Bragg Q2 2026 results show revenue drop, margin gains; Drayton deal finalized

Bragg reported a 12% year-over-year decline in revenue to $1.2 billion for the second quarter of 2026, though gross margins expanded to 28% from 24% a year earlier, according to slides published Thursday.

The company attributed the revenue decrease to softer demand across core markets and supply chain disruptions, which offset pricing gains. Operating expenses fell 5% year-over-year, supporting the margin improvement despite the revenue headwind.

Separately, Bragg confirmed the completion of its previously announced acquisition of Drayton, a specialty chemicals firm, as scheduled. Financial terms were not disclosed. The deal is expected to bolster Bragg’s product portfolio in high-margin specialty segments.

Bragg’s management highlighted the integration of Drayton as a key priority for the second half of 2026, with synergies targeted in cost efficiencies and cross-selling opportunities. Analysts noted the transaction aligns with the company’s strategy to shift toward higher-value, lower-volume products.

Shares of Bragg were down 1.8% in pre-market trading following the release of the results.