BRENNTAG : Q1 2026 conf. call feedback: Mixed

Research evidence excerpt

BRENNTAG : Q1 2026 conf. call feedback: Mixed

EQUITIES

CHEMICALS

BRENNTAG NEUTRALPRICE* EUR62.9  TARGET PRICE EUR52 (DOWNSIDE 17%)

BRENNTAG ADR NEUTRALPRICE* USD14.8  TARGET PRICE USD11.9 (DOWNSIDE 19%)

FLASH NOTE

Q1 2026 conf. call feedback: Mixed

13 MAY 2026 Securities Research Report Production time: 14:28* (London time)

Research Analyst & Publishing Entities

David Symonds BNP Paribas London Branch (+44) 203 430 8496 david.symonds@uk.bnpparibas.com

What happened?

There were some positives and negatives from the call. On the positive side, the company stated that 2Q started well

and sounded quietly confident on the outlook. They particularly mentioned no weakness in US order patterns, and

strength in LATAM. On the negative side, the CEO said repeatedly that he expects the worst scarcity effects are behind

us, and that Asian pricing has reached a ceiling. Without quantification of the benefits expected in 2Q from the company,

it sounds like the initial rush of activity at the end of March has slowed, albeit April is likely still decently higher YoY due

to comps. We continue to expect pricing to be a significant positive and think unless demand does drop away (Brenntag

described this as moving sideways, not falling) pricing levels will be dictated by molecule availability, which in our view

could easily get worse from here without a full opening of the Strait. The €15m build for bonus provisioning caught some

attention; this jars with EBITDA which is expected lower YoY currently by consensus vs. expected higher YoY in 1Q

last year. This may simply be changing personnel, with the previous CEO leaving before the end of 2025 and CFO only

joining part-way through the year, or could reflect a more confident view of prospects for the year which the company