Brenntag reports resilient Q1 FY26 performance with USD 4.3B in sales
This performance was marked by a weak demand start, mid‑quarter supply‑chain shock from the Middle East and Strait of Hormuz closure, and a resulting lift in pricing.
GERMANY – Brenntag has reported Q1 2026 results, showing sales of €3.7 billion (USD 4.29 billion), a 5.1% decline on a constant-currency basis compared to the prior-year quarter, driven by persistently weak demand across North America, EMEA, and APAC.
According to the company, the outlook worsened in mid‑quarter when geopolitical tensions in the Middle East and the closure of the Strait of Hormuz triggered global supply‑chain disruptions, pushing up chemical prices and creating availability pressures.
The operating gross profit fell only modestly to €950 million (USD 1.1 billion) while the gross margin expanded to 25.9%, up 0.9 percentage points year‑on‑year.
Operating EBITDA came in at €306 million (USD 355.5 million), with the decline driven by weak volumes in January and February that were only partially offset by improving pricing momentum from mid‑March; the ongoing cost‑out program contributed €27 million (USD 31.37 million) in savings against the 2025 baseline.
Free cash flow landed at €91 million (USD 105.73 million), down from €163 million (USD 189.4 million) in Q1 2025, primarily due to higher working‑capital requirements in an elevated‑pricing environment.
The company confirmed its full‑year 2026 operating EBITDA guidance of €1,150–€1,350 million (USD 1.34-USD 1.57 million), underpinned by solid year‑to‑date performance and recent positive pricing dynamics, while maintaining a prudent view on macroeconomic developments and demand visibility for the rest of the year.
Jens Birgersson, Chief Executive Officer of Brenntag SE, stated, “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 given the strong first quarter of 2025.¨
Divisional results showed Brenntag Essentials delivering an operating gross profit of €666 million (‑1.1%) with gross margins rising to 27.1% (+1.2 pp), as demand weakness in North America, EMEA and APAC was partially offset by mid‑March improvements linked to oil‑linked product price increases and customers rebuilding safety stocks.
On the other hand, Brenntag Specialities recorded an operating gross profit of €284 million (‑1.9%) and gross margins of 23.7% (+0.4 pp), with positive gross profit and volume trends emerging in Material Science, while Life Science continued to face subdued demand; customers in selected segments pulled forward orders amid heightened geopolitical uncertainty.
Both divisions reported gross‑margin improvements versus the prior year.
Looking ahead, Brenntag will continue to leverage its integrated business model, global network, commercial agility and supply‑chain expertise while progressing structural simplification of its operations.
The company plans to present a full strategy update at its Capital Markets Day on November 12, 2026.
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