EQS-News: Lenzing achieves significant revenue and earnings growth within a deteriorating market environment
EQS-News: Lenzing AG / Key word(s): Quarter Results
Lenzing achieves significant revenue and earnings growth within a deteriorating market
environment
08.05.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Lenzing achieves significant revenue and earnings growth within a deteriorating market
environment
• Revenue grows 4.8 percent to EUR 690.2 mn in the first quarter of 2025
• EBITDA significantly increased to EUR 156.1 mn – also supported by positive special
effects
• Result after tax positive again at EUR 31.7 mn
• Free cash flow of EUR 14.5 mn
• Cautious earnings outlook due to political uncertainty and trade tensions
Lenzing – The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the
textile and nonwovens industries, reports a continued improvement in its business
performance in the first quarter of 2025, although the recovery of global textile markets
remained very slow and uneven during the reporting period. While the positive trend in
volumes sold continued, prices remained constant at a low level. Raw material, energy and
logistics costs continued to be high.
Revenue grew by 4.8 percent year-on-year to EUR 690.2 mn in the first quarter of 2025. The
operating earnings trend largely reflected the positive effects of the performance program.
Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 118.8 percent
year-on-year to EUR 156.1 mn. This also includes positive special effects from the sale of
EUR 25.5 mn surplus EU emission certificates and the change in the fair value of biological
assets in the amount of EUR 9.2 mn. The EBITDA margin in-creased from 10.8 percent to
22.6 percent. The operating result (EBIT) amounted to EUR 74.3 mn (compared with EUR 1.5 mn
in the first quarter of 2024) and the EBIT margin amounted to 10.8 percent (compared with
0.2 percent in the first quarter of 2024). Earnings before tax (EBT) amounted to EUR 35.1 mn
(compared with minus EUR 17.8 mn in the first quarter of 2024). The result after tax also
improved significantly and was positive again for the first time since the third quarter of
2022 at EUR 31.7 mn (compared with minus EUR 26.9 mn in the first quarter of 2024).
“The Lenzing Group continued on its recovery track in the first quarter of 2025 and achieved
significant revenue and earnings growth thanks to our performance program,” notes Rohit
Aggarwal, Lenzing Group CEO. “Uncertainty in the markets and – as a consequence – limited
earnings visibility have been further exacerbated by an increasingly aggressive tariffs
policy. For this reason, we will not ease up on resolutely implementing the measures we have
initiated, in order to complete our turnaround and further strengthen our position as a
leading integrated fiber company.”
The Lenzing Group’s performance program is designed holistically with the overarching
objective of significantly increasing long-term resilience to crises and greater agility in
the face of market changes. The program initiatives are primarily aimed at improving EBITDA
and at generating free cash flow through enhanced profitability, as well as sustainable cost
excellence. Extensive actions are being undertaken to strengthen sales activities, such as
the acquisition of new customers for the most important fiber types as well as expansion in
previously smaller markets, which are exerting a positive impact in terms of revenue. The
Managing Board also anticipates significant cost savings. Savings of over EUR 130 mn were
already realized in the 2024 financial year. From the current financial year onwards,
Lenzing is aiming for recurring annual cost savings of over EUR 180 mn.
Cash flow from operating activities amounted to EUR 47.1 mn in the first quarter of 2025
(compared with EUR 120.7 mn in the first quarter of 2024). Cash flow from investing
activities amounted to minus EUR 36.1 mn (compared with minus EUR 32.8 mn in the first
quarter of 2024). Free cash flow was also positive at EUR 14.5 mn (compared with EUR 87.3 mn
in the first quarter of 2024). Cash flow from financing activities amounted to minus
EUR 19 mn (compared with EUR 11.1 mn in the first quarter of 2024).
Liquid assets (including liquid bills of exchange) decreased slightly by 2.6 percent
compared to December 31, 2024, to a level of EUR 439.9 mn as of March 31, 2025. Capital
expenditure on intangible assets, property, plant and equipment and biological assets
(CAPEX) amounted to EUR 32.7 mn in the first quarter of 2025 (compared with EUR 33.4 mn in
the first quarter of 2024), reflecting the ongoing reduction in investment activities. In
2024, Lenzing focused clearly on maintenance and license-to-operate projects as part of its
performance program, following significant investments in previous years.
Outlook
The IMF has significantly downgraded its growth forecasts for both this year and next to
2.8 percent and 3.0 percent respectively. The escalation of international trade conflicts
and the risk of inflation returning are seen as major threats to global growth.[1]^[1]
In times of uncertainty and high living costs, consumers can be expected to remain cautious
and thrifty, with negative effects on consumer sentiment and their willingness to spend.
The currency environment is expected to remain volatile in regions relevant to Lenzing.
In the trend-setting market for cotton, analysts expect a slight increase in stocks to
around 18.8 mn tonnes in the current 2024/2025 harvest season, according to preliminary
estimates.[2]^[2]
Lenzing will continue to consistently implement its performance program and expects to
leverage further cost potentials and further improve its revenue and margin generation.
Having weighed the aforementioned factors, the Lenzing Group confirms its guidance for the
2025 financial year of year-on-year higher EBITDA.
However, the current tariff dispute and the high level of uncertainty associated with it are
dampening expectations and further limiting the visibility of earnings.
In structural terms, Lenzing continues to expect growth in demand for environmentally
responsible fibers for the textile and apparel industry, as well as for the hygiene and
medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is
driving ahead with not only profitable growth in specialty fibers but also the further
expansion of its market leadership in the sustainability area.
Selected indicators of the Lenzing Group`
EUR mn 01-03/2025 01-03/2024
Revenue 690.2 658.4
EBITDA (earnings before interest, tax, depreciation and amortization) 156.1 71.4
EBITDA margin 22.6% 10.8%
Net profit/loss after tax 31.7 (26.9)
Earnings per share in EUR 0.12 (0.83)
Cash flow from operating activities 47.1 120.7
Free cash flow 14.5 87.3
CAPEX 32.7 33.4
31/03/2025 31/12/2024
Net financial debt 1,499.3 1,532.5
Adjusted equity ratio 35.3% 34.7%
Employees (full-time equivalents) 7,659 7,816
Photo download:
[3] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=iqfKyU6vguw8
PIN: iqfKyU6vguw8
Your contact for
Public Relations: Investor Relations:
Dominic Köfner Sébastien Knus
Vice President Corporate Communications & Public Affairs Vice President Capital Markets
Lenzing Aktiengesellschaft Lenzing Aktiengesellschaft
Werkstraße 2, 4860 Lenzing, Austria Werkstraße 2, 4860 Lenzing, Austria
Phone +43 7672 701 2743 Phone +43 7672 701 3599
E-mail [4]media@lenzing.com E-mail [6]s.knus@lenzing.com
Web [5] www.lenzing.com Web [7] www.lenzing.com
About the Lenzing Group
The Lenzing Group stands for the responsible production of specialty and premium fibers
based on regenerated cellulose. As an innovation leader, Lenzing is a partner to global
textile and nonwoven manufacturers and drives many new technological developments. The
Lenzing Group’s high-quality fibers are the raw material for a wide range of textile
applications – ranging from functional, comfortable, and fashionable clothing through to
durable and sustainable home textiles. TÜV-certified biodegradable and compostable Lenzing
fibers are also ideal for demanding use in everyday hygiene applications.
The Lenzing Group’s business model extends far beyond that of a traditional fiber producer.
Together with its customers and partners, Lenzing develops innovative products along the
value chain, creating added value for consumers. The Lenzing Group strives for efficient
utilization and processing of all raw materials and offers solutions for the transformation
of the textile industry from the current linear economic system to a circular economy. In
order to align its commitment to limiting man-made climate change with the goals of the
Paris Agreement, Lenzing has a clear, science-based climate action plan that provides for a
significant reduction in greenhouse gas emissions (Scopes 1, 2, and 3) by 2030 and a
net-zero target by 2050.
Key Facts & Figures Lenzing Group 2024
Revenue: EUR 2.66 bn
Nominal capacity (fibers): 1,110,000 tonnes
Employees (full-time equivalents): 7,816
TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™, and REFIBRA™ are trademarks of Lenzing AG.
Disclaimer: The above key financial figures are derived primarily from the condensed
consolidated interim financial statements and the consolidated financial statements of the
previous year of the Lenzing Group. Additional details are provided in “Notes on the
Financial Performance Indicators of the Lenzing Group”, available at the following
link[8] https://www.lenzing.com/notes-financial-performance-indicators-lenzing-group-2025-q1,
as well as in the condensed consolidated interim financial statements and in the Lenzing
Group’s prior-year consolidated financial statements. Rounding differences can occur in the
presentation of rounded amounts and percentage rates.
[9]^[1] Source: IMF, World Economic Outlook, April 2025
[10]^[2] Source: ICAC
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08.05.2025 CET/CEST This Corporate News was distributed by EQS Group. www.eqs.com
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Language: English
Company: Lenzing AG
4860 Lenzing
Austria
Phone: +43 7672-701-0
Fax: +43 7672-96301
E-mail: office@lenzing.com
Internet: www.lenzing.com
ISIN: AT0000644505
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 2132672
End of News EQS News Service
2132672 08.05.2025 CET/CEST
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References
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6. s.knus@lenzing.com
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