Global chemicals and ingredients distributor Brenntag reported resilient results for 2025, navigating a year marked by weak industrial demand, subdued consumer confidence and persistent pricing pressure.
The company posted €15.2 billion in sales, a 3.7% decline from 2024, reflecting a difficult macroeconomic and geopolitical environment that weighed on demand across its businesses.
Despite the downturn, Brenntag held margins steady and strengthened cash generation as it accelerated cost-cutting and operational changes.
Chief Executive Jens Birgersson signalled a cautious outlook as market headwinds continue.
“We anticipate continued market headwinds through 2026,” Birgersson said. “While we anticipate continued market headwinds through 2026, Brenntag is focusing on what we can control. We are sharpening our operational execution, simplifying our governance, and reducing costs to build a leaner, more agile organization.
"With a fully formed Executive Committee we are making substantial progress in positioning Brenntag to lead as the market normalizes. As we look ahead, the market environment will be flat at best and we expect the high uncertainty to persist.
"This is reflected in our guidance for the coming year, during which we will use this phase of market softness to strengthen our structural foundations and position the Group for the next upcycle. Furthermore, we observe that the present market environment creates a favorable backdrop for strategic and bolt-on acquisitions to expand our footprint.”
Brenntag reported operating EBITDA of €1.29 billion, down 8.6% year-on-year, while operating EBITA fell 12.6% to €929 million, coming in slightly below the lower end of guidance issued in July 2025.
However, the company improved its gross margin to 25.3%, up from 24.8%, and boosted free cash flow to €941 million, an increase of 5.4%, highlighting the resilience of its diversified distribution model.
Chief Financial Officer Thomas Reisten said the company maintained strict financial discipline during the volatile year.
“Our 2025 results demonstrate disciplined execution in a highly volatile environment,” Reisten said. “While the market environment put pressure on customer demand across both divisions, we managed to actually increase our gross margin, generated strong Free Cash Flow and accelerated our cost-out initiatives, delivering EUR 165 million impact for the full year 2025.
"We remain fully on track to deliver EUR 300 million annual savings by 2027 and continue to focus on cost discipline, cash generation and organizational simplification. With the accelerated execution of our cost-out program we target additional savings of EUR 200-250 million until 2027 on top of the baseline of 2025, as we set an additional focus on controlled capital allocation, including disciplined capex spending across divisions.”
Brenntag’s global cost-containment program delivered €165 million in savings in 2025, putting the company on track to reach its €300 million annual savings target by 2027.
The group is now targeting an additional €200–250 million in savings by 2027 through expanded efficiency measures and tighter capital allocation.
Brenntag’s two-division structure delivered early results despite the weak market.
Brenntag Essentials generated €2.73 billion in operating gross profit, down 1.2%, while improving margins to 26.4%. Demand remained soft in North America, EMEA and APAC, though Latin America showed modest volume growth.
Brenntag Specialties posted €1.10 billion in operating gross profit, down 3.6%, amid subdued demand across business units. Margins improved to 22.9%, supported by pricing stability in life sciences and material science.
The company spent about €260 million on acquisitions in 2025, strengthening its regional presence and product portfolio.
Key deals included Chem Tech in the United States and Airedale in the United Kingdom, expanding offerings across its Essentials and Specialties divisions.
Brenntag also advanced its sustainability agenda, achieving 100% sustainability classification across its product portfolio and opening its first CO₂-free site in Traun. The company also met emission targets aligned with the Science Based Targets initiative and received two German Sustainability Awards.
The management and supervisory boards will propose a €1.90 per share dividend for 2025 at the company’s Annual General Meeting on May 20, 2026, down from €2.10 the previous year.
Earnings per share fell to €1.83, compared with €3.71 in 2024, largely due to weaker markets and €248 million in non-cash impairments and special items.
Brenntag expects another difficult year ahead, citing economic volatility, geopolitical tensions, tariff uncertainty and weak industrial production.
The company forecasts operating EBITDA of €1.15 billion to €1.35 billion in 2026, while continuing to focus on cost discipline, cash generation and organizational simplification.
A broader strategy update is expected in the second half of 2026, as Brenntag positions itself to capitalize on future market recovery and pursue further acquisitions in the fragmented chemicals distribution sector.
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