Brenntag, the global leader in chemicals and ingredients distribution, reported a dip in third-quarter 2025 results, citing a persistently challenging market environment.

Sales fell 4.7% to €3.72 billion, while operating gross profit dropped 3.1% to €947.2 million. Operating EBITDA slid 6.7% to €330.2 million, and operating EBITA declined 9.2% to €243 million. Despite the downturn, free cash flow surged nearly 28% to €315.6 million, bolstered by accelerated cost-containment measures.

The company booked €45 million in savings in Q3 as part of a broader €300 million annual cost-reduction target by 2027. Initiatives include streamlining administrative processes, reducing headcount worldwide, and optimizing the global site network, the company said in a release.

CEO Jens Birgersson, in his first months at the helm, emphasized operational discipline and market responsiveness. “We are focusing on strengthening Brenntag’s core—optimizing the corporate backbone, simplifying structures, and improving our cost base,” he said.

Brenntag also announced a streamlined governance structure, effective December 1, 2025, with a two-member Management Board of CEO and CFO replacing divisional boards introduced in 2023.

CFO Thomas Reisten highlighted the cost program as a key lever for resilience. “We are simplifying structures, removing overlaps, and streamlining processes,” he said. The programme will be implemented responsibly, with worker consultations as required.

Looking ahead, Brenntag now expects 2025 operating EBITA at the lower end of its guidance range of €950–1,050 million. The company is prioritizing sales execution, efficiency gains, and strategic alignment to capture growth once market conditions stabilize.