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1. Company Snapshot

1.a. Company Description

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally.The company operates through the divisions Brenntag Essentials and Brenntag Specialties.It provides value-added services, such as just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling, as well as technical and laboratory services for specialty chemicals.


The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries.Brenntag SE was founded in 1874 and is based in Essen, Germany.

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1.b. Last Insights on BNR

Brenntag SE's recent performance was driven by its status as a stable dividend stock, offering a reliable income stream amidst market volatility. The company's resilience in a mixed economic landscape has garnered attention from investors seeking stability. Additionally, Brenntag's recent share price growth of 20% suggests investor confidence in the company's prospects.

1.c. Company Highlights

2. Brenntag's Q3 2025 Earnings: A Mixed Bag

Brenntag's financial performance in Q3 2025 was marked by a decline in revenues and a miss on EPS estimates. The company's revenues were impacted by lower volumes and pricing pressure, resulting in a decline in operating EBITA of 9.2% year-over-year to EUR 243 million. The EPS came in at EUR 0.78, below the estimated EUR 0.917. The gross profit margin declined from 9.1% to 8.9%, but the company's cost containment program delivered EUR 45 million of savings, which helped to mitigate the decline in margins.

Publication Date: Nov -13

📋 Highlights
  • Cost Savings Progress: Achieved EUR 45 million in cost savings in Q3 2025, exceeding prior year's EUR 15 million by EUR 30 million.
  • Free Cash Flow Resilience: Generated EUR 316 million in free cash flow, up from EUR 247 million in Q3 2024 despite earnings decline.
  • EBITA Guidance Adjustment: Full-year EBITA guidance now EUR 950–1,050 million (lower end of original range) due to volume and pricing pressures.
  • Operational Simplification: Eliminating EUR 90–120 million in duplicate costs over 12 months by streamlining headquarters and support functions.
  • Margin Stabilization: Gross profit margin fell slightly to 8.9% (from 9.1%), better than industry peers amid subdued market conditions.

Segment Performance

The company's segment performance was mixed, with Material Science showing a slight improvement in volumes, but still under pressure. Latin America was a bright spot, with growth driven by the acquisition in Mexico, but other countries in the region were impacted by Chinese imports. The company's Specialty businesses continued to face challenges, with lower volumes and pricing pressure. According to Jens Birgersson, "lower volumes are a key driver" of the decline, and "lower pricing is also a factor."

Cash Flow and Capital Allocation

Brenntag generated EUR 316 million in free cash flow in Q3 2025, driven by lower CapEx and a cash inflow from working capital. The company's free cash flow yield is attractive at 8.19%, indicating a strong ability to generate cash. The company's capital allocation guideline is EUR 300 million a year, but it is now expected to come in around EUR 200 million at the end of the year, driven by a trend of reduced spending.

Valuation

Brenntag's valuation metrics indicate a relatively attractive profile, with a P/E ratio of 16.92 and a dividend yield of 4.24%. The company's EV/EBITDA ratio is 5.52, indicating a reasonable valuation relative to its earnings. The ROE is 9.38%, indicating a decent return on equity. Overall, the company's valuation metrics suggest that it is reasonably priced, but the decline in earnings and revenues is a concern.

3. NewsRoom

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Brenntag SE's (ETR:BNR) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?

Dec -01

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Brenntag SE (BNTGF) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic Cost ...

Nov -20

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3 European Dividend Stocks Offering Yields Up To 4.2%

Nov -14

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Is Brenntag SE (ETR:BNR) Trading At A 37% Discount?

Nov -13

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Top European Dividend Stocks To Consider In October 2025

Oct -03

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Analysis: Trump's tariffs threaten to choke European chemicals recovery

Sep -03

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Brenntag Second Quarter 2025 Earnings: Misses Expectations

Aug -15

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[Latest] Global Third Party Chemical Distribution Market Size/Share Worth USD 460.92 Billion by 2034 at a 4.5% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT)

Aug -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.76%)

6. Segments

Brenntag Essentials

Expected Growth: 4.83%

Brenntag Essentials' 4.83% growth is driven by increasing demand for sustainable and eco-friendly products, expansion into emerging markets, and strategic acquisitions. Additionally, the segment benefits from Brenntag's strong distribution network, efficient supply chain management, and ability to provide tailored solutions to customers.

Brenntag Specialties

Expected Growth: 4.65%

Brenntag Specialties' 4.65% growth is driven by increasing demand for specialty chemicals in industries such as pharmaceuticals, personal care, and food processing. Strategic acquisitions, expansion into emerging markets, and a strong focus on sustainability also contribute to growth. Additionally, the segment benefits from Brenntag's extensive distribution network and expertise in logistics and supply chain management.

All Other

Expected Growth: 4.83%

Brenntag SE's All Other segment growth of 4.83% is driven by strategic acquisitions, expansion into emerging markets, and a diversified product portfolio. Additionally, the company's focus on digitalization, process optimization, and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

Chemicals

Brenntag SE offers a wide range of chemicals, including industrial chemicals, specialty chemicals, and pharmaceutical ingredients.

Plastics and Polymers

Brenntag SE provides a variety of plastics and polymers, including commodity and engineering plastics, and specialty polymers.

Food and Nutrition

Brenntag SE offers a range of food ingredients and additives, including sweeteners, flavor enhancers, and texture modifiers.

Pharmaceuticals and Personal Care

Brenntag SE provides a range of pharmaceutical ingredients and personal care products, including active pharmaceutical ingredients and excipients.

Water Treatment

Brenntag SE offers a range of water treatment chemicals, including coagulants, flocculants, and disinfectants.

Oil and Gas

Brenntag SE provides a range of oilfield chemicals, including drilling fluids, completion fluids, and production chemicals.

8. Brenntag SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Brenntag SE operates in the chemical distribution industry, where substitutes are limited. However, customers may opt for alternative products or suppliers, posing a moderate threat.

Bargaining Power Of Customers

Brenntag SE's customers are diverse and fragmented, reducing their bargaining power. The company's large customer base and diversified product offerings also mitigate the bargaining power of individual customers.

Bargaining Power Of Suppliers

Brenntag SE relies on a large network of suppliers, which can exert some bargaining power. However, the company's scale and diversified supplier base help to mitigate this threat.

Threat Of New Entrants

The chemical distribution industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This limits the threat of new entrants and allows Brenntag SE to maintain its market position.

Intensity Of Rivalry

The chemical distribution industry is highly competitive, with several large players competing for market share. Brenntag SE must continually innovate and improve its operations to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.78%
Debt Cost 6.69%
Equity Weight 64.22%
Equity Cost 8.65%
WACC 7.95%
Leverage 55.71%

11. Quality Control: Brenntag SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Evonik

A-Score: 5.4/10

Value: 7.7

Growth: 2.8

Quality: 3.9

Yield: 9.4

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Fuchs Petrolub

A-Score: 5.4/10

Value: 5.1

Growth: 5.6

Quality: 7.2

Yield: 5.0

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Brenntag

A-Score: 5.4/10

Value: 7.1

Growth: 5.6

Quality: 5.1

Yield: 5.6

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Arkema

A-Score: 4.7/10

Value: 7.3

Growth: 3.4

Quality: 3.2

Yield: 7.5

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Clariant

A-Score: 4.3/10

Value: 6.3

Growth: 3.7

Quality: 3.1

Yield: 6.9

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
IMCD

A-Score: 4.2/10

Value: 4.2

Growth: 6.6

Quality: 5.0

Yield: 3.1

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.54$

Current Price

49.54$

Potential

-0.00%

Expected Cash-Flows