Brenntag SE, the global leader in chemicals and ingredients distribution, reported a mixed but resilient performance in the first quarter of 2026. This, as weak demand and geopolitical disruption weighed on volumes while pricing strength and margin discipline provided support.
The company posted sales of EUR 3.7 billion, down 5.1% year-on-year, reflecting a sluggish demand environment in early 2026. Operating gross profit fell modestly by 1.3% to EUR 950 million, while operating EBITDA declined 8.3% to EUR 306 million.
Despite the softer top-line performance, Brenntag expanded its gross margin to 25.9%, up 0.9 percentage points, underscoring its ability to extract pricing gains in a disrupted market. Free cash flow came in at EUR 91 million, down from EUR 163 million a year earlier, pressured by higher working capital needs in a volatile pricing environment.
The quarter was shaped by shifting global conditions. After a subdued start to the year, market disruption intensified in mid-March following conflict in the Middle East and the closing of the Strait of Hormuz, driving tighter supply chains and higher chemical pricing.
The company said it was able to turn volatility into opportunity through its integrated global network and commercial execution.
Brenntag CEO Jens Birgersson said: “The first quarter of 2026 has been a clear testament to the resilience of our business model. While the year began with an anticipated slow start, I am pleased with our performance, particularly when measured against the strong first quarter of 2025.
"Our new, flatter, and more agile organizational structure proved its worth as we navigated supply-chain disruptions stemming from the crisis in the Middle East and ensured continuity for our customers. This agility allowed us to respond quickly across the entire organization, turning market volatility into commercial opportunities while continuing to execute on our core priorities sales, simplification, and our cost-out program.
"Our guidance is underpinned by the robust operating performance and pricing discipline delivered year-to-date, and reflects a prudent view on macroeconomic development and demand visibility for the remainder of the year. We remain focused on operational discipline, commercial rigor, and protecting profitability as visibility evolves.”
CFO Thomas Reisten highlighted margin expansion and cost control, stating:
“We increased our gross margin through our active pricing management and ensuring supply reliability in volatile market conditions in Q1 2026. Simultaneously, we continue to focus on cost reduction, organizational simplification, and disciplined capital allocation.
"Our cost-out program contributed EUR 27 million in savings during the quarter, tracking in line with our full-year targets. We remain on course to deliver savings of EUR 200-250 million by 2027. Brenntag’s financial position remains robust, providing the operational and financial flexibility to continue executing on our key priorities.”
Operationally, Brenntag’s Essentials division delivered operating gross profit of EUR 666 million, down 1.1%, while margins improved to 27.1%. Demand remained weak across North America, EMEA, and APAC, though pricing improvements emerged in mid-March.
The Specialties division reported operating gross profit of EUR 284 million, down 1.9%, with margins rising to 23.7%. Performance improved in Material Science, while Life Science remained under pressure, although both segments saw margin gains year-on-year.
The company also continued its cost-out programme, delivering EUR 27 million in savings during the quarter, and strengthened its UK footprint with the closure of the Airedale acquisition.
Looking ahead, Brenntag reaffirmed its full-year 2026 outlook, expecting operating EBITDA between EUR 1.15 billion and EUR 1.35 billion, citing stable year-to-date performance and recent pricing improvements, while acknowledging ongoing macroeconomic uncertainty.
