Brenntag AG shares tumbled after the German chemicals distributor reported a 34% collapse in fourth-quarter operating profit and proposed a 10% dividend cut. The Essen-based company's preliminary Q4 operating EBITA fell to €175 million, missing consensus expectations of €203 million by 14% and Jefferies' estimate of €195 million by 10%. Full-year 2025 results showed sales down 3.7% to €15.2 billion, operating EBITDA down 8.6% to €1.29 billion, and operating EBITA down 12.6% to €929 million, slightly below guidance.

Earnings per share dropped to €1.83 from €3.71, impacted by €248 million in non-cash impairments. The board proposed a €1.90 dividend, a 10% reduction from €2.10, citing the payout exceeded its policy due to impairments and strong free cash flow. For 2026, Brenntag forecast operating EBITDA of €1.15 billion to €1.35 billion, excluding potential Middle East geopolitical impacts.

Jefferies, maintaining a 'underperform' rating with a €42 target, expected continued share pressure following Tuesday's close at €49.18 against a 52-week low of €45.71.