Brenntag reports resilient 2025 results amid weak demand, targets further cost savings through 2027
Brenntag maintains margins and boosts cash flow despite declining sales, while expanding cost-saving measures and investing in innovation to navigate ongoing market uncertainty.
GERMANY – Brenntag has reported resilient financial results for 2025, navigating a challenging year marked by weak industrial demand, subdued consumer confidence and persistent pricing pressure.
The global chemicals and ingredients distributor recorded sales of €15.2 billion (US$17.44B), representing a 3.7% decline compared to 2024. The decrease reflects a difficult macroeconomic and geopolitical environment that weighed on demand across its business segments.
Despite lower sales, Brenntag maintained stable margins and strengthened its cash generation, supported by accelerated cost-cutting measures and operational adjustments. The company improved its gross margin to 25.3%, up from 24.8% in the previous year, while free cash flow rose by 5.4% to €941 million (US$1.08B).
Chief executive Jens Birgersson highlighted the company’s focus on internal efficiency as external challenges persist. “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.”
Brenntag reported operating EBITDA of €1.29 billion (US$1.48B), a decline of 8.6% year-on-year, while operating EBITA fell 12.6% to €929 million (US$1.07B), slightly below the lower end of its guidance issued in July 2025.
Chief financial officer Thomas Reisten said the company maintained financial discipline during the volatile period. “Our 2025 results demonstrate disciplined execution in a highly volatile environment,” Reisten said.
He added: “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.”
The company’s global cost-containment programme delivered €165 million (US$189.34M) in savings in 2025, keeping Brenntag on track to achieve its €300 million (US$344.32M) annual savings target by 2027. It is now targeting an additional €200–250 million (US$286.9M) in savings through expanded efficiency measures and tighter capital allocation.
Looking ahead, Brenntag expects continued economic volatility, geopolitical tensions, tariff uncertainty and weak industrial production to weigh on performance. The company forecasts operating EBITDA in the range of €1.15 billion (US$1.32B) to €1.35 billion (US$1.55B) for 2026.
Meanwhile, Brenntag has strengthened its innovation capabilities with the opening of a new Life Sciences Innovation & Application Center in Shanghai.
The facility supports Beauty & Care and Food & Nutrition applications, including ready-to-drink beverages, dairy, bakery, confectionery and savory products.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
