Brenntag (BNR) Q1 2026 earnings summary

Executive summary

• Q1 2026 began with subdued demand and weak market activity, but momentum improved from mid-March due to agile crisis management, commercial agility, and pricing actions following Middle East disruptions.

• Integrated business model and organizational simplification enabled reliable supply, value creation, and cost-out savings of EUR 27 million in Q1.

• The acquisition of Airedale Group in the UK was completed, strengthening EMEA presence and enhancing service capabilities.

• The company remains focused on organic growth, commercial execution, and leveraging its full product portfolio.

Financial highlights

• Q1 2026 sales were EUR 3.7 billion, down 5.1% year-over-year (fx adjusted); operating gross profit was EUR 950 million, down 1.3%, with gross margin up 0.9pp to 25.9%.

• Operating EBITDA was EUR 306 million, down 8.3% year-over-year; profit after tax was EUR 98–99 million; EPS was EUR 0.68 (Q1 2025: EUR 0.93).

• Free cash flow was EUR 91 million, down from EUR 163 million in Q1 2025, impacted by higher working capital needs.

• Cost-out program delivered EUR 27 million in Q1, with OpEx down year-over-year.

Outlook and guidance

• Full-year 2026 operating EBITDA guidance is confirmed at EUR 1,150–1,350 million, reflecting robust YTD performance and ongoing uncertainties.

• Q2 is expected to progress well, but H2 demand remains uncertain due to macroeconomic and geopolitical risks; supply chains may normalize within 6–12 months if tensions ease.

• Strategy update planned for Capital Markets Day on November 12, 2026.