EQS-News: Lenzing with revenue and earnings growth in first half of the year – tariff policy slows recovery momentum

EQS-News: Lenzing AG / Key word(s): Half Year Results
Lenzing with revenue and earnings growth in first half of the year –
tariff policy slows recovery momentum

07.08.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Lenzing with revenue and earnings growth in first half of the year –
tariff policy slows recovery momentum

 

• Revenue grows to EUR 1.34 bn, EBITDA at EUR 268.6 mn
• Earnings after tax positive at EUR 15.2 mn
• Tariff measures place a strain on market environment in second quarter
• Performance program takes effect, financing secured until 2027

 

Lenzing – The Lenzing Group, a leading supplier of regenerated cellulosic
fibers for the textile and nonwovens industries, reported both revenue and
earnings growth year-on-year in the first half of 2025. In the second
quarter, however, international tariff measures and the resultant
uncertainty led to tangible stress along the textile value chain and
slowed the Lenzing Group’s recovery. Market prices remained at a low level
while costs for raw materials, energy and logistics continued to be high.

 

The Lenzing Group generated revenue of EUR 1.34 bn in the first half of
2025, which was higher than in the same period of the previous year. The
operating earnings trend benefited significantly from the positive effects
of the performance program. EBITDA grew by 63.3 percent to EUR 268.6 mn,
which included positive exceptional effects from the sale of surplus EU
emission allowances amounting to EUR 30.6 mn and the valuation of
biological assets amounting to EUR 12.5 mn. The EBITDA margin rose from
12.5 percent to 20 percent. Earnings before interest and tax (EBIT)
amounted to EUR 109 mn (compared with EUR 18.9 mn in the same period of
the previous year), which corresponds to an EBIT margin of 8.1 percent
(compared with 1.4 percent in the same period of the previous year).
Earnings before tax (EBT) amounted to EUR 22.1 mn (compared with minus
EUR 22.3 mn in the same period of the previous year). Earnings after tax
improved significantly to EUR 15.2 mn (compared with minus EUR 65.4 mn in
the same period of the previous year).

 

“Lenzing made further progress on its path to operational recovery in the
first half of 2025. Our performance program is making a clear contribution
to earnings improvement. At the same time, we are seeing tangible effects
from the growing uncertainties in international trade in the second
quarter – particularly as a consequence of the aggressive tariffs policy.
These developments not only affect our visibility, but also our earnings.
For this reason, we are all the more determined to continue our measures
to secure our turnaround in the long term and further strengthen our
margins,” notes Rohit Aggarwal, Lenzing Group CEO.

 

The Lenzing Group’s performance program is comprehensively geared towards
strengthening long-term crisis resilience and enhancing agility in the
face of market changes. The aim is to sustainably improve EBITDA and
generate free cash flow through increased profitability and consistent
cost excellence. Measures such as acquiring new customers for key products
and expanding into smaller markets were implemented in order to strengthen
sales activities and thereby revenue growth. At the same time, Lenzing is
implementing measures to significantly improve its cost structure, which
are being reviewed and further developed on an ongoing basis. Over
EUR 130 mn in cost savings were already achieved in 2024. Progress was
made especially in terms of product costs and product quality. The
Managing Board also expects further efficiency gains in the coming
quarters, especially in production costs and overhead functions. The
ongoing improvements in structures, processes and personnel expenses are
expected to lead to an increase in both revenue and margins. The Managing
Board anticipates cost savings of in excess of EUR 180 mn in the current
financial year.

 

Lenzing has also successfully strengthened its capital structure over the
course of the year to date. A syndicated loan of EUR 545 mn was concluded
in May. The structure of the loan comprises a EUR 355 mn term loan with a
three-year term and a revolving line of credit of EUR 190 mn, also with a
three-year term and extension options totaling two years. In addition, a
new EUR 500 mn three-year non-callable hybrid bond was successfully placed
on the market. With these measures, Lenzing secures its financing until
2027 and can continue to focus fully on implementing its successful
performance program to enhance margins and free cash flow as well as to
improve the cost position.

 

Cash flow from financing activities amounted to EUR 150.1 mn (compared
with EUR 239.6 mn in the same period of the previous year). The reduction
is partly due to a higher level of working capital. Free cash flow was
also positive at EUR 43.1 mn (compared with EUR 141.8 mn in the same
period of the previous year). Unlevered free cash flow amounted to
EUR 89.4 mn (compared with EUR 180.4 mn in the same period of the previous
year).[1]^[1]

 

Liquid assets (including liquid bills of exchange) increased by
66.9 percent compared with December 31, 2024, to a level of EUR 754.0 mn
as of June 30, 2025, mainly due to the syndicated loan that was agreed in
May.

 

Lenzing also announced personnel changes on its Managing Board during the
first half of the year. At the end of March, Walter Bickel relinquished
his operational tasks by mutual agreement. Georg Kasperkovitz was
appointed as a member of the Managing Board and as Chief Operations
Officer (COO) of Lenzing AG with effect from June 1, 2025. As COO, Georg
Kasperkovitz took over the management of the company-wide fiber production
sites, including the site in Lenzing (Austria). He will also advance the
ongoing performance program and, as a consequence, operational cost
excellence and the transformation of the company as a whole.

Outlook

For 2025, the IMF forecasts global growth of three percent, followed by
3.1 percent in 2026 – marking a slowdown compared to the previous year
(2024: 3.3 percent). The projection remains below the pre-pandemic
historical average. At the same time, the IMF warns of persistently high
risks to the global economy: a renewed escalation of trade conflicts,
geopolitical tensions, or tighter financing conditions could dampen growth
and reignite inflationary pressures.[2]^[2]

 

In an environment characterized by uncertainty and a persistently high
cost of living, consumers are anticipated to remain cautious. This is
exerting a lasting negative impact on their propensity to spend. Given the
announced tariff increases, the rise in spending on apparel in the USA in
the first half of the year is to be regarded as a temporary, one-off
effect and is unlikely to continue over the course of the remainder of the
year.

 

The currency environment is expected to remain volatile in regions
relevant to Lenzing.

 

In the global bellwether market for cotton, market analysts’ current
forecasts anticipate a slight increase in stocks to around 16.3 mn tons
for the coming 2025/26 harvest season.

 

Lenzing will continue to consistently implement its performance program
and will conduct ongoing evaluations in order to leverage further cost
potentials and further improve its revenue and margin generation.

 

At present, the Lenzing Group confirms its guidance for the 2025 financial
year of year-on-year higher EBITDA.

 

The ongoing tariffs conflict and associated uncertainty are negatively
affecting market expectations and are continuing to exert a very
restrictive effect on earnings visibility.

 

In structural terms, Lenzing continues to expect growing demand for
environmentally responsible fibers for the textile and apparel industry as
well as the hygiene and medical sectors. Lenzing is therefore very well
positioned with its strategy and is pushing both profitable growth with
specialty fibers and the further expansion of its market leadership in the
sustainability area.

 

Selected indicators of the Lenzing Group` 
EUR mn 01-06/2025 01-06/2024
Revenue 1,341.1 1,310.7
EBITDA (earnings before interest, tax, depreciation 268.6 164.4
and amortization)
EBITDA margin 20.0% 12.5%
Net profit/loss after tax 15.2 (65.4)
Earnings per share in EUR (0.90) (1.84)
Cash flow from operating activities 150.1 239.6^1
Free cash flow 43.1 141.8^1
CAPEX 61.3 59.8^1

 

  30/06/2025 31/12/2024
Net financial debt 1,437.9 1,532.5
Adjusted equity ratio 33.4% 34.7%
Employees (full-time equivalents) 7,712 7,816

 

1) In order to improve the transparency and comparability of the financial
key performance indicators, the Lenzing Group has newly exercised the
accounting options available under IAS 7 and consequently adjusted the
presentation of the cash flow statement. The new structure starts with EBT
and enables the calculation of unlevered free cash flow, which serves as a
key performance indicator in addition to free cash flow as part of the
performance program. The adjustment is in line with standard market
reporting practices and improves the informative value of the cash flow
statement for internal and external stakeholders. The change in
presentation was made retrospectively in accordance with IAS 8. A
reconciliation to the adjusted figures for the comparative period can be
found in Note 1 of the condensed consolidated interim financial
statements.

 

 

Photo download:

[3] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=0LDzibJBPq5Q
PIN: 0LDzibJBPq5Q

 

 

 

Your contact for  
Public Relations: Investor Relations:
   
Dominic Köfner Sébastien Knus
Vice President Corporate Communications Vice President Investor Relations
& Public Affairs Lenzing Aktiengesellschaft
Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing,
Werkstraße 2, 4860 Lenzing, Austria Austria
   
Phone    +43 7672 701 2743 Phone    +43 664 828 1576
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 of 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, adding value
for consumers. The Lenzing Group strives for efficient utilization and
processing of all raw materials and offers solutions for the transition 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 tons
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 the section “Notes on the financial performance
indicators of the Lenzing Group”, in the glossary to the half-year report
and in the condensed consolidated interim financial statements as well as
the Lenzing Group’s prior year consolidated financial statements. Rounding
differences can occur in the presentation of rounded amounts and
percentage rates.

   

[8]^[1] In order to improve the transparency and comparability of the
financial key performance indicators, the Lenzing Group has newly
exercised the accounting options available under IAS 7 and consequently
adjusted the presentation of the cash flow statement. The new structure
starts with EBT and enables the calculation of unlevered free cash flow,
which serves as a key performance indicator in addition to free cash flow
as part of the performance program. The adjustment is in line with
standard market reporting practices and improves the informative value of
the cash flow statement for internal and external stakeholders. The change
in presentation was made retrospectively in accordance with IAS 8. A
reconciliation to the adjusted figures for the comparative period can be
found in Note 1 of the condensed consolidated interim financial
statements.

[9]^[2] Source: IMF, World Economic Outlook, July 2025

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07.08.2025 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: 2180642

 
End of News EQS News Service

2180642  07.08.2025 CET/CEST

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References

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4. media@lenzing.com
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6. s.knus@lenzing.com
7. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=5803f22d982f72dcc3d9f0027e178e6b&application_id=2180642&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
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