EQS-News: Lenzing advances its transformation: Higher EBITDA, stronger free cash flow and more than EUR 200 million in cost savings
EQS-News: Lenzing AG / Key word(s): Annual Results
Lenzing advances its transformation: Higher EBITDA, stronger free cash
flow and more than EUR 200 million in cost savings
19.03.2026 / 07:35 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Lenzing advances its transformation: Higher EBITDA, stronger free cash
flow and more than EUR 200 million in cost savings
• Revenues in 2025 amounted to EUR 2.6 billion, broadly unchanged from
the previous year (-2.3 percent)
• Performance program shows impact: adjusted EBITDA increased by 7.6
percent to EUR 425.6[1][1] million despite ongoing pressure on sales
prices (reported EBITDA EUR 413 million); free cash flow amounted to
EUR 173.9 million (after EUR 169.4[2][2] million in the previous year)
• Strategic review of the Indonesian production site completed,
resulting in a non‑cash impairment of EUR 82.1 million
Lenzing – The business performance of the Lenzing Group in 2025 was
affected particularly in the second half of the year by external factors
such as international tariff measures, subdued demand and declining market
prices. As a result, revenue decreased slightly by 2.3 percent to EUR 2.6
billion, primarily due to lower fiber sales volumes and lower prices for
fibers and pulp, which were further negatively impacted by currency
developments. Nevertheless, thanks to the comprehensive Performance
Program, Lenzing was able to improve its operating performance and key
financial indicators compared with the previous year. Adjusted for
restructuring expenses, EBITDA increased by 7.6 percent from EUR 395.4
million in 2024 to EUR 425.6 million (reported EBITDA EUR 413 million).
EBIT – before the impairment of long‑term assets at the Indonesian
production site – amounted to EUR 99.6 million in 2025 (EUR 88.5 million
in 2024) and came in at EUR 17.6 million after the non‑cash adjustment of
the carrying amount. Although the result after tax remained negative, it
improved slightly to minus EUR 135.2 million compared to minus EUR 138.3
million in the previous year. Free cash flow rose to EUR 173.9 million
(EUR 169.4^1 million in 2024), while unlevered free cash flow increased to
EUR 279.3 million (EUR 244.6 million in 2024).
“We are continuing to drive the transformation of the Lenzing Group
forward. In 2025, despite a challenging environment, we made substantial
progress: higher EBITDA, improved free cash flow and significant cost
reductions. Through the Performance Program, our organizational
development and targeted investments in our sites, we are strengthening
profitability and consistently advancing our premiumization strategy. This
is how we create stability for today and growth opportunities for the
future,” said the Managing Board of the Lenzing Group: Mathias Breuer,
CFO, Christian Skilich, CPO/CTO, and Georg Kasperkovitz, COO.
Market environment and operational measures
Staple fiber prices remained under pressure in 2025, and dissolving wood
pulp prices declined significantly; at the same time, raw material, energy
and logistics costs remained high.
Income statement
The Lenzing Group’s EBITDA adjusted for restructuring expenses increased
to EUR 425.6[3]^[3] million in the 2025 financial year, supported by the
effective implementation of performance measures as well as efficiency
improvements in core processes. EBIT – impacted by a non‑cash impairment
of EUR 82.1 million in connection with the strategic options for the
Indonesia site – amounted to EUR 17.6 million (EBIT margin 0.7 percent).
EBT came in at minus EUR 122.5 million; income tax expense amounted to EUR
12.7 million. The result after tax improved slightly to minus EUR 135.2
million.
Cash flow, liquidity and financing
Cash flow from operating activities amounted to EUR 419.7 million; free
cash flow increased to EUR 173.9 million and unlevered free cash flow to
EUR 279.3 million. To support operating cash flow, Lenzing selectively
adjusted production capacities, resulting in a 21.6 percent reduction in
working capital to EUR 453.4 million. Lenzing strengthened its capital
structure through a syndicated financing package of EUR 545 million (loan:
EUR 355 million / revolving credit facility: EUR 190 million), the
issuance of a new hybrid bond of EUR 500 million, and the repayment of the
2020 hybrid bond. Liquid assets as of December 31, 2025 amounted to EUR
690.9 million; net financial debt decreased to EUR 1.35 billion; the
adjusted equity ratio stood at 29.6 percent.
Investments and cost program
Cost savings of more than EUR 200 million (2024: EUR 130 million) were
realized in 2025. Capital expenditures (CAPEX) amounted to EUR 141.1
million and were primarily allocated to maintenance and license‑to‑operate
projects as well as initiatives aimed at strengthening operational
excellence and optimizing energy efficiency. In addition, Lenzing is
implementing a comprehensive cost‑optimization program that includes a
planned reduction of around 600 positions in Austria. The annual savings
of approximately EUR 45 million are expected to be fully realized by the
end of 2027 at the latest. Of this amount, EUR 22 million has already been
achieved in the final months of the year through the termination of
employment for more than 200 employees.
Segment and sales performance
New customers for key products and expansion into important, higher‑margin
markets in North America and Asia supported revenue development. External
revenue distribution in 2025 was 61 percent in Asia, 29 percent in Europe
including Turkey, 9 percent in the Americas and 1 percent in other
regions. Fiber sales volumes amounted to roughly 904,000 tonnes (2024:
approximately 960,000 tonnes). The pulp business ensured the supply of
dissolving wood pulp for fiber production while also generating
significant external pulp revenues that contributed positively to the
Group result.
Management Board and governance
In 2025, several changes occurred within the Managing Board of the Lenzing
Group. After Walter Bickel stepped down as Chief Transformation Officer at
the end of March 2025, Georg Kasperkovitz assumed the role of Chief
Operations Officer (COO) as of June 1, 2025. Mathias Breuer succeeded Nico
Reiner as CFO on January 1, 2026, following the regular expiration of
Reiner’s term. The mandate of Christian Skilich was extended early through
May 31, 2029. CEO Rohit Aggarwal stepped down on January 31, 2026; since
then, the company has been led by a three‑member board: CFO Mathias
Breuer, COO Georg Kasperkovitz and CPO/CTO Christian Skilich. To support
the organization’s further development, an Executive Committee was
established.
Outlook
Trade policy uncertainties and geopolitical tensions – including the
indirect effects of the US–Iran conflict on energy markets, supply chains
and consumer confidence – are slowing global developments and resulting in
limited visibility. Prices in the market for generic fibers are expected
to remain under pressure due to further capacity additions. However,
slightly improved price trends and demand in the pulp and fiber businesses
can be observed in Q1 2026. Lenzing will continue to consistently drive
the company’s transformation through its holistic performance program and
premiumization strategy in order to further enhance profitability,
resilience and agility.
Selected indicators of the Lenzing Group
EUR mn 2025 2024
Revenue 2,602.4 2,663.9
EBITDA (earnings before interest, tax, depreciation 413.0 395.4
and amortization)
EBITDA margin 15.9 % 14.8 %
Net profit/loss after tax (135.2) (138.3)
Earnings per share in EUR[4]^[4] (5.45) (4.06)
Cash flow from operating activities 419.7 395.0[5]^[5]
Free cash flow 173.9 169.4^2
CAPEX 141.1 153.8^2
31/12/2025 31/12/2024
Net financial debt 1,350.1 1,532.5
Adjusted equity ratio 29.6 % 34.7 %
Employees (full-time equivalents) 7,738 7,816
Photo download:
[6] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=l5P1Q9g4Q8q2
Your contact for
Media Relations: Investor Relations:
Corporate Communications Alexander Schwaiger
Lenzing Aktiengesellschaft VP Corp. Treasury & Investor Relations
Werkstraße 2, 4860 Lenzing, Austria Lenzing Aktiengesellschaft
Werkstraße 2, 4860 Lenzing, Austria
Phone +43 7672 701 2743
E-mail [7]media@lenzing.com Phone +43 7672 701 8947
Web [8] www.lenzing.com E-mail [9]a.schwaiger@lenzing.com
Web [10]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 2025
Revenue: EUR 2.60 bn
Nominal capacity (fibers): 1,110,000 tonnes
Employees (full-time equivalents): 7,738
TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™, and REFIBRA™ are trademarks
of Lenzing AG.
Disclaimer: The above financial indicators are derived primarily from the
Lenzing Group’s IFRS consolidated financial statements. Additional details
are provided in the section “Notes on the financial performance indicators
of the Lenzing Group”, in the glossary to the Annual and Sustainability
Report and in the Lenzing Group’s consolidated financial statements.
[11]^[1]Excl. restructuring costs of EUR 12.6 million.
[12]^[2]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 retroactively in accordance with IAS 8. A
reconciliation to the adjusted figures for the comparative period can be
found in note 2 of the consolidated financial statements.
[13]^[3]Excl. restructuring costs of EUR 12.6 million.
[14]^[4]The net result is allocated among the shareholders of Lenzing AG,
the non‑controlling interests and the hybrid capital holders. Earnings per
share are calculated by dividing the portion of the net result
attributable to the shareholders of Lenzing AG by the weighted average
number of shares outstanding during the year. Although the net result
improved year‑on‑year, earnings per share declined in the reporting
period. This development primarily reflects the higher share attributable
to hybrid capital holders as well as changes in the share attributable to
non‑controlling interests, driven in particular by foreign exchange
effects within income tax expense.
[15]^[5]Since the second quarter of the 2025 financial year, the
consolidated statement of cash flows is presented according to a new
format (see footnote 1).
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19.03.2026 CET/CEST This Corporate News was distributed by [16]EQS Group
View original content: [17]EQS News
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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: 2294090
End of News EQS News Service
2294090 19.03.2026 CET/CEST
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References
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