European Chemical Distributors: Strong Q2, re-rating case strengthening

Research evidence excerpt

European Chemical Distributors: Strong Q2, re-rating case strengthening

Equity Research

25 June 2026

European Chemical Distributors

Strong Q2, re-rating case

strengthening

Brenntag Q2 beat highlights disruption upside; guidance European Chemicals & Ingredients

remains conservative, leaving upgrade scope. We raise IMCD/ NEGATIVE Unchanged

Azelis estimates (lesser magnitude) but see stronger re-rating European Chemicals & Ingredients

Anil Shenoythere as China risk overstated; prefer IMCD on balance sheet

strength and execution. +91anil.shenoy@barclays.com(0)22 6175 2487

Barclays, UK

Brenntag print reinforces disruption upside; cautious guidance likely underpins scope for Alex Sloane

upgrades: Brenntag has reported preliminary Q2 EBITDA +23% ahead of consensus, broadly in- +44 (0)20 3555 0645

line with what we flagged from our May expert call and Germany field trip (i.e., exceptionally alexander.sloane@barclays.com

strong April/2Q driven by disruption). While guidance has been upgraded, it still implies a sharp Barclays, UK

H2 slowdown; following discussions with the company, we view this primarily as a function of Katie Richards

prudence rather than evidence of a demand slowdown. As such, our FY EBITDA of €1,434m +44 (0)20 3555 0315

(revised +7% upwards post Q2 beat) already sits above the upper end of guidance of kathryn.richards@barclays.com

€1.25-1.4bn. Barclays, UK

Setu Sharda

Read-across: upgrades for IMCD/Azelis, but to a lesser extent: Following the Brenntag print, + 91 (0)22 6175 1934

we lift our estimates for IMCD and Azelis, reflecting continued benefit from supply chain setu.sharda@barclays.com

disruption, albeit to a lesser magnitude given their higher specialty exposure. Our Q2 EBITA Barclays, UK

estimates are now c.+7-9% above consensus.