- FY 2025 results reflect a persistently challenging environment: Revenue of EUR 15.2 billion; Operating Gross Profit* of EUR 3.8 billion (-1.9%**); Operating EBITDA of EUR 1.29 billion (-8.6%**); Operating EBITA of EUR 929 million (-12.6%**)
- Strong Free Cash Flow of EUR 941 million (+5.4%), reflecting disciplined working capital management and structurally improved cash generation
- Cost-out program accelerated; EUR 165 million full-year impact in 2025, on track to deliver EUR 300 million annual savings by 2027 and new target of EUR 200-250m until 2027 vs. 2025 base
- Dividend proposal of EUR 1.90 per share, reflecting a reduction of ~10% vs. 2024
- Operating EBITDA for 2026 expected to be in the range of EUR 1,150 – 1,350 million against the background of subdued market conditions
Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, today published its financial results for the 2025 fiscal year. The year was characterized by a challenging macroeconomic and geopolitical environment as well as muted consumer confidence, subdued industrial activities and persistent pricing pressure weighing on demand and margins. Despite the continued market weakness throughout the year, Brenntag delivered resilient results and made clear progress on its operational and cost priorities.
Jens Birgersson, Chief Executive Officer of Brenntag SE: “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.”
Financial performance
In the 2025 financial year, Brenntag achieved sales of EUR 15.2 billion, down 3.7%** compared to the 2024 financial year. In challenging markets, the company generated an operating gross profit* of EUR 3.8 billion (-1.9%**). Operating EBITDA stood at EUR 1.29 billion (-8.6%**). With an operating EBITA of EUR 929 million (-12.6%**), Brenntag came in slightly below the lower end of its adjusted guidance announced on 11 July 2025. The decline compared to the previous year was primarily driven by the subdued market environment weighing on customer demand across both divisions.
Despite the challenging market environment, Brenntag increased its gross margin to 25.3%, up from 24.8% and improved its Free Cash Flow to EUR 941 million (+5.4%), underpinning the company’s resilience of its diversified business model across BES and BSP as well as Brenntag’s disciplined working capital management and structurally improved cash generation.
Accelerated cost containment program firmly on track
Brenntag continued the implementation of its accelerated cost containment program. It also streamlined corporate overhead functions and extended global cost-out initiatives. The company’s accelerated and extended global cost-out initiatives exhibit an impact of EUR 165 million in the 2025 financial year. Therefore, Brenntag is firmly on track to achieving its original goal of 300 million EUR annual cost-out by 2027. Using the baseline of the financials 2025, it now targets an additional EUR 200-250 million EUR in savings until 2027.
Thomas Reisten, Chief Financial Officer of Brenntag SE: “Our 2025 results demonstrate disciplined execution in a highly volatile environment. 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.”
Divisional performance
Brenntag’s decision to operate its two divisions within one group, as well as initiatives on sales and costs show first results despite difficult environment and further strengthen Brenntag’s competitive advantage.
Brenntag Essentials reported an operating gross profit of EUR 2,733 million (-1.2%**), while improving gross margins to 26.4% (+0.5 pp) despite negative impacts from Chinese exports on the pricing environment. While demand weakness continued in North America, EMEA and APAC, Brenntag Essentials saw some positive volume development in LATAM.
Brenntag Specialities reported an operating gross profit of EUR 1,098 million (-3.6%**), impacted by subdued demand in all business units. Despite the challenging environment, Brenntag Specialities increased its gross margin to 22.9% (+0.5 pp), reflecting the margin stability and robust pricing in Life Science and Material Science.
Mergers and Acquisitions
In 2025, Brenntag invested strategically into the regional footprint and product portfolio, with transactions signed or closed totalling EUR 260 million. Two major acquisitions, Chem Tech in the United States and Airedale in the UK strengthened the Brenntag Essentials and Brenntag Specialties offerings in core markets.
Sustainability
In 2025, Brenntag advanced its sustainability agenda by meeting SBTi-aligned emission targets and achieving a 100% sustainability classification for its entire product portfolio. Key milestones included opening the company’s first CO₂-free site in Traun and improving safety performance, accomplishments further validated by receiving two German Sustainability Awards.
Dividend proposal
The Board of Management and the Supervisory Board will recommend to the Annual General Meeting on May 20, 2026, a dividend of EUR 1.90 per share (previous year: EUR 2.10). The proposal exceeds the dividend policy range and takes into account extraordinary write-off effects and special items in the fiscal year.
Earnings per share (EPS) for the 2025 fiscal year stand at EUR 1.83 (previous year: EUR 3.71), mainly due to general market weakness, as well as impacts from non-cash impairments and other special items.
The Management Board and the Supervisory Board consider the dividend policy deviation to be appropriate, taking into account these non-cash impairments and other special items totalling EUR 248 million as well as a strong free cash flow in the 2025 financial year.
This proposal reflects a balanced approach of safeguarding financial stability while maintaining a clear commitment to delivering attractive and sustainable returns to shareholders. Brenntag remains committed to paying an attractive dividend in the coming years.
Outlook 2026
Brenntag is well-positioned to capitalize on future market turnarounds and trends through its business model and M&A strategy. Brenntag’s new operating model will allow the company to benefit from any market improvements, as it continues to evaluate accretive and strategic (bolt-on) M&A opportunities in a fragmented market based on its sector-leading M&A strategy.
However, Brenntag expects 2026 to be another challenging year given limited visibility in a volatile environment. Taking into account the expected absence of short-term improvement of the macroeconomic environment, elevated level of economic volatility, emerging geopolitical tensions and tariff uncertainty, muted consumer confidence, short-term order flow and small order volumes, as well as subdued industrial production in developed economies, and transnational headwinds from the EUR/USD FX rate, Brenntag expects an operating EBITDA for the 2026 financial year in the range of EUR 1,150-1,350 million. This guidance excludes potential impacts from the recent geopolitical developments in the Middle East, the effects of which are currently too early to reliably assess.
Brenntag will continue to focus on cost discipline, cash generation and organizational simplification. Brenntag’s ongoing strategic realignment is aimed at ensuring its business and operating model remains fully aligned with evolving customer requirements and market dynamics. Brenntag plans to present a strategy update in the second half of 2026.
