Brenntag Q2 profit rises on chemical price gains, lifts annual forecast

German chemicals distributor Brenntag SE reported a 21% increase in second-quarter net profit on Tuesday, citing higher selling prices for chemicals and improved margins.

The company posted net income of €265 million ($295 million) for the three months ended June 30, up from €219 million a year earlier. Revenue rose 6% to €4.5 billion, driven by price increases across its global operations.

Brenntag attributed the profit growth to sustained demand for industrial and specialty chemicals, which offset softer volumes in some regions. The company’s gross margin expanded to 18.4% from 16.8% in the same period last year, reflecting pricing power in a tight supply environment.

In response to the strong performance, Brenntag raised its full-year guidance, now expecting adjusted EBITDA of €1.25 billion to €1.30 billion, an increase from its prior forecast of €1.15 billion to €1.25 billion. The company also maintained its outlook for organic revenue growth of 2% to 4%.

Chief Executive Officer Christian Kohlpaintner said the results demonstrated the company’s resilience amid macroeconomic uncertainties, including volatile energy costs and geopolitical tensions. "We continue to benefit from a stable demand environment for essential chemicals, which supports our pricing strategy," Kohlpaintner stated.

Brenntag’s shares were up 2.5% in early trading in Frankfurt on Tuesday, outperforming the broader European chemicals sector.