Brenntag SE

Management did not report full Q2 revenue, EPS, or gross margin figures on the call, but it did state that total sales increased by about 11% year on year and sales in the BSP space increased by 6%. Working capital outflow in Q2 was EUR 353 million, inventory increased by 11.8%, and working capital turns improved to 7.5x. Thomas Reisten said the company had EUR 40 million of bonus provisions and other effects in the quarter, and that the cost efficiency program reached a EUR 41 million run rate in Q2. On performance, he said gross profit margin in BSP improved by 0.6 percentage points and EBITDA conversion increased by 3.3 percentage points to 38.6%. Guidance-wise, management said the second-half midpoint assumes Q3 gross profit moderates step by step and Q4 is roughly similar to the prior year; they reiterated EUR 150 million of 2026 initiatives and EUR 200 million to EUR 250 million next year.

Jens Birgersson framed the quarter as one where Brenntag benefited from a normalized but still elevated pricing and volatility environment, especially in the Middle East, while also improving its own commercial execution. He emphasized that the company is shifting from defending gross profit per tonne to focusing more on customers, cross-selling, and sales force effectiveness, including early use of AI in pricing and customer analytics. His tone was cautiously optimistic: volumes are flat overall, but he sees self-help and market-share gains starting to show through.

Thomas Reisten described the Q2 working capital increase as a temporary technical effect driven mainly by higher inventory pricing, not a volume build or shortages. He said the second-quarter working capital outflow was EUR 353 million, inventory was up 11.8%, and working capital turns improved to 7.5x, while the peak in working capital had already been reached by quarter-end and was starting to unwind in Q3. On costs, he pointed to about EUR 40 million of bonus provisions and other effects in Q2, a EUR 41 million savings run rate, and reiterated the EUR 150 million 2026 target with EUR 200 million to EUR 250 million next year. He also said tax litigation is not generating a cash payout at this point, while restructuring payments will continue to be made as the transformation progresses.

Analysts focused on flat volumes, the apparent inventory build, higher personnel costs, and whether the company’s guidance implies a sharp second-half step-down. Management said customer prebuying in March and April normalized rather than unwound, there is no sign of an inventory bubble, and they have not seen significant shortages. On personnel costs, CFO Thomas Reisten said the increase was mostly higher bonus provisions and some salary inflation, while Jens Birgersson added that the company has reduced over 800 people year on year and is lowering management layers. Management also said commercial momentum is improving through cross-selling, better customer penetration, and recovering dormant U.S. customers, but they declined to disclose volumes by business.