Brenntag: 2025 financial results reflect weak market environment – cost-cutting program accelerated

Brenntag has presented its financial results for fiscal year 2025 and at the same time announced an acceleration of its cost-cutting measures. The background is a persistently challenging macroeconomic environment marked by subdued demand, pricing pressure, and restrained industrial activity.

The globally active distributor of chemicals and ingredients generated revenue of EUR 15.2 billion in fiscal year 2025. This corresponds to a decline of 3.7% compared with the previous year. Operating gross profit came in at EUR 3.8 billion (-1.9%), operating EBITDA at EUR 1.29 billion (-8.6%), and operating EBITA at EUR 929 million (-12.6%). This means earnings were slightly below the lower end of the guidance issued in July 2025.

Advert

Despite the market weakness, Brenntag improved its gross margin from 24.8% to 25.3%. Free cash flow rose to EUR 941 million (+5.4%). The company attributes this development to disciplined working capital management and structurally improved cash generation.

As part of the accelerated cost-cutting program, Brenntag realized savings of EUR 165 million in 2025. The company is therefore maintaining its target of achieving annual cost savings of EUR 300 million by 2027. In addition, further savings of EUR 200 million to EUR 250 million are to be implemented relative to the 2025 cost base.

The business segments developed differently in the difficult market environment. Brenntag Essentials generated operating gross profit of EUR 2,733 million (-1.2%), while Brenntag Specialties reached EUR 1,098 million (-3.6%). Both divisions increased their gross margins by 0.5 percentage points each. While demand in North America, Europe, and Asia remained weak, Brenntag Essentials recorded positive volume growth in Latin America.

In the area of mergers and acquisitions, Brenntag invested a total of EUR 260 million in 2025. The most important transactions include the acquisitions of Chem Tech in the US and Airedale in the UK. Both acquisitions are intended to strengthen the market position of the Brenntag Essentials and Brenntag Specialties divisions in their core markets.

The company also reported progress in sustainability. Brenntag achieved its emissions targets aligned with the Science Based Targets initiative and reported full sustainability classification of its product portfolio. In addition, the company opened its first CO2-free site in Traun.

The Executive Board and Supervisory Board intend to propose a dividend of EUR 1.90 per share to the Annual General Meeting on May 20, 2026, compared with EUR 2.10 in the previous year. Earnings per share came in at EUR 1.83 in 2025, compared with EUR 3.71 in 2024. The decline is attributable, among other things, to the weak market environment as well as non-cash impairments and other special effects.

For fiscal year 2026, Brenntag expects operating EBITDA to be between EUR 1,150 million and EUR 1,350 million in view of the continued economic uncertainty. The guidance reflects a still volatile macroeconomic environment, geopolitical tensions, tariff uncertainties, weak industrial production, and possible currency effects. Potential impacts of current geopolitical developments in the Middle East are not yet included in the guidance.

Alongside operational execution, Brenntag is also working on a strategic realignment. An updated corporate strategy is to be presented in the second half of 2026.

More information: www.brenntag.com

Brenntag AG, Essen

back to news list