Brenntag reports 3.7% decline in revenue for FY2025 amid persistent market challenges
Despite the continued market weakness throughout the year, Brenntag delivered resilient results and made clear progress on its operational and cost priorities.
GERMANY – Brenntag, the global market leader in chemicals and ingredients distribution, has released its full-year 2025 financial results, revealing resilient performance amid persistent market challenges.
In the 2025 financial year, the company posted revenue of EUR 15.2 billion (US$17.40B), down 3.7% from 2024, driven by subdued industrial demand, pricing pressures, and economic volatility.
Operating gross profit reached EUR 3.8 billion (US$4.35B), a modest 1.9% decline, lifting the gross margin to 25.3%, up 0.5 percentage points.
Operating EBITDA fell 8.6% to EUR 1.29 billion (US$1.48B), while operating EBITA dropped 12.6% to EUR 929 million (US$1.06B), slightly below prior guidance.
Despite these headwinds, Brenntag boosted free cash flow by 5.4% to EUR 941 million (US$1.08B), highlighting strong working capital management and cash generation across its Essentials and Specialties divisions.
Brenntag Essentials delivered an operating gross profit of EUR 2.733 billion (US$3.13B) (down 1.2%), with margins at 26.4% (+0.5 pp), despite negative impacts from Chinese exports on pricing.
While demand weakness continued in North America, EMEA, and APAC, Brenntag Essentials saw some positive volume growth in Latin America.
Additionally, Brenntag welcomed Remedios Marcos who is joining Brenntag as President, Nutrition EMEA, effective March 2, 2026. Remedios succeeds Frank Haven, who will transfer his responsibilities to her during a transition period through the end of May 2026.
Brenntag Specialties reported EUR 1.098 billion (US$1.10B) (down 3.6%), maintaining a 22.9% margin amid stable Life Science and Material Science pricing.
The accelerated cost-out program yielded EUR 165 million (US$88.86M) in 2025 savings, on pace to reach EUR 300 million (US$343.61M) annually by 2027, plus an additional EUR 200-250 million (US$229.07-286.34M) versus the 2025 baseline.
Strategic moves included EUR 260 million (US$297.79M) in mergers and acquisitions (M&A), such as the US-based Chem Tech and the UK’s Airedale, boosting portfolios.
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.
The Board proposed a EUR 1.90 (US$2.18) per share dividend, down about 10% from 2024, balancing stability with EPS of EUR 1.83 (US$2.10) (versus EUR 3.71 (US$4.25) prior).
Outlook 2026
Brenntag is well-positioned to capitalize on future market turnarounds and trends through its business model and M&A strategy.
However, Brenntag expects 2026 to be another challenging year, given limited visibility amid volatility.
Brenntag expects an operating EBITDA for the 2026 financial year in the range of EUR 1,150-1,350 million (US$1.32-1.55B).
This guidance excludes potential impacts from recent geopolitical developments in the Middle East, whose effects are currently too early to assess reliably.
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.
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