Brenntag Lowers Profit Forecast: Third Profit Warning in the Chemical Industry
The chemical trader Brenntag lowered its profit forecast for the current year on July 11, 2025, marking the third profit warning in a row for chemical companies on that day.
Updated Forecast and Reasons
Brenntag now expects an operational EBITA of 950 million to 1.05 billion euros for the fiscal year 2025. Previously, the forecast was in the range of 1.10 to 1.30 billion euros. This adjustment is below analyst expectations, which anticipated around 1.06 billion euros.
- Notable slowdown in demand across various end markets
- Increased pricing pressure
- Unfavorable developments in the euro/dollar exchange rate
- Sustained geopolitical tensions and unresolved global tariff issues
Market Reactions
In the second quarter, Brenntag achieved a preliminary operational gross profit of around 974 million euros and an operational EBITA of approximately 246 million euros, which also fell short of market expectations. These announcements provoked negative reactions on the stock market: Brenntag’s shares fell by about 2.6 percent.
For private investors, this development is significant as it impacts market sentiment and the short-term performance of the stock. The repeated profit warning may lead to increased volatility and uncertainty.
Long-term Perspectives
Warburg Research continues to rate Brenntag with a “Buy” rating and a target price of around 69 euros, stating a fundamentally positive view, despite the current challenges. This highlights a differentiated perspective between short-term pressures and long-term potential.
Overall, Brenntag is under pressure due to macroeconomic and industry-specific factors, which directly affect forecasts and stock price. Investors should consider this in their portfolio decisions.