Q2 2026 Henkel AG & Co KGaA Earnings Call Transcript
Key Points
- Strong organic sales growth of 3.2% in H1 2026, with a clear sequential acceleration in Q2, driven by both positive price and volume dynamics.
- Adhesive Technologies delivered robust performance with 4.5% organic sales growth and a strong adjusted EBIT margin of 17.7%, supported by swift pricing actions and volume expansion in electronics and industrials.
- Successful execution of M&A growth strategy, closing four of five acquisitions (including OLAPLEX and ATP Adhesive Systems), with expectations of positive contributions to sales and earnings in 2026 and a ramp-up to at least 10% EPS contribution by 2030.
- Consumer Brands returned to positive volume growth for four consecutive quarters, with Hair growing over 4% and Laundry Care accelerating in Q2, driven by premiumization and strong brand performance (Persil and Perwoll).
- Upgraded full-year 2026 organic sales growth guidance for the group (1.5%-3.5%) and Adhesive Technologies (2%-4%), reflecting strong H1 performance and confidence in the business.
- Adjusted EPS grew 7% at constant currency in H1, demonstrating strong bottom-line performance despite a challenging macroeconomic environment.
- Innovation and investment in high-growth markets (e.g., electronics, aerospace, data centers) are driving long-term growth, with new smart factory in China and application centers in Asia enhancing capabilities.
- Foreign exchange impact was negative at almost -4%, primarily due to a weakened US dollar, leading to a slight decline in nominal sales.
- Raw material cost inflation is expected to intensify in H2 2026, pressuring margins, with a time lag between oil price movements and input costs.
- Adhesive Technologies faced headwinds in automotive, packaging, and construction segments, with some markets (e.g., Latin America) impacted by tariffs and demand weakness.
- Consumer Brands' Laundry & Home Care continues to face a challenging competitive environment, with slight negative growth in North America and Europe, and promotional intensity remains high.
- Net working capital increased by 100 basis points to 7% of sales, partly due to recent acquisitions, and free cash flow was impacted by M&A and share buyback outflows.
- The company expects softer margins in H2 versus H1 for both business units, reflecting raw material headwinds and a more normalized growth profile.
- Geopolitical volatility, particularly in the Middle East, creates uncertainty around supply chains and forward buying, with potential for reversal of prebuying effects.
Thank you. Good morning, and a warm welcome to everyone joining Henkel's half year 2026 results conference call today. I'm Leslie Iltgen, Head of Investor Relations at Henkel. Today, I'm joined by our CEO, Carsten Knobel, and our CFO, Marco Swoboda. Carsten will begin with an overview of the key developments in the first half. Marco will then follow with a more detailed review of the company's financial performance.
As always, following the presentation, we will open up the lines and Carsten and Marco will be happy to take your questions. Before handing over to Carsten, please let me remind you that this call will be recorded and a replay will be made available on our Investor Relations website shortly after this call. By asking a question during the Q&A session, you agree to both the live broadcasting as well as the recording of your question, including salutation to be published on our website.
Also, please be reminded that this presentation contains the usual formal disclaimer in regard to forward-looking
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