Brenntag (AO) | Hold | Very strong prelims for Q2 - Brenntag lifts its guidance for 2026

Research evidence excerpt

Brenntag (AO) | Hold | Very strong prelims for Q2 - Brenntag lifts its guidance for 2026

Brenntag Hold | Target Price: EUR51.00

Company description Management

Brenntag SE is the global market leader in full-line chemical distribution. Linking Jens Birgersson, CEO

chemical manufacturers and chemical users, the company provides business-to- Thomas Reisten, CFO

business distribution solutions for industrial and specialty chemicals globally. Richard Ridinger, Chairman

With over 10,000 products and a highly diverse supplier base, Brenntag offers Key shareholders

one-stop-shop solutions to about 185,000 customers. Headquartered in Essen, Free float 100.00%

Germany, the company operates a global network with more than 670 locations Artisan 5.31%

in over 70 countries. Blackrock 5.00% Kuhne Holding AG 15.00%

Investment case Valuation methodology

Brenntag stands to benefit from its scale as chemical producers Our TP targets 7.5x EV/EBITDA, a 10% discount to three year

outsource distribution and/or rationalise the number of historical average.

distributors they work with. Also, from an M&A perspective, Risks to our rating

scale is a competitive advantage. Downside risks: reversal of margin uplift from pressure on global

Brenntag has the most exposure to industrial chemicals, giving chemical supply chains having a larger-than-expected impact

it the least defensive profile with our chemical distributor on profitability, regulatory problems, inability to transform

coverage. Growth has historically been volatile and below digital infrastructure.

average. Upside risk: strong economic recovery.

Given limited visibility and continued macro headwinds, we see

a relevant risk that Brenntag's EBITA growth in 2026 will only be

modest. This is offset by valuation, and we hence see balanced