EQS-News: Lenzing Group advances strategic transformation
EQS-News: Lenzing AG / Key word(s): Strategic Company Decision
Lenzing Group advances strategic transformation
27.07.2026 / 20:05 CET/CEST
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Lenzing Group advances strategic transformation under “Grow Nonwovens,
Reset Textiles” and announces measures to strengthen financial structure
• Strategic focus: Grow Nonwovens, reset Textiles, and further
strengthen Pulp.
• Performance program: EUR 120 mn cost savings targeted versus 2025
actuals, including EUR 45 mn already communicated, full run-rate
effect by the end of 2027.
• Profitability and deleveraging: Targeted EBITDA uplift of approx. EUR
150 mn with an EBITDA margin between 20-25% and leverage ratio below
2.5x in the medium term.
• Refinancing: Transformation supported by shareholders and key lenders
through plans for a capital increase and a new debt financing
arrangement.
• Production footprint: Optimization of the global fiber production
network, strengthening selected core sites, including Lenzing in
Austria, while phasing out production in Heiligenkreuz by the end of
2026 and Grimsby by the end of 2027.
• People: Measures to be implemented responsibly, in close partnership
with employee representatives and with support for affected employees.
Lenzing, July 27, 2026 – The Lenzing Group today announced the
next decisive steps in its strategic transformation: Building on
measurable progress of its performance program and ongoing organizational
development, Lenzing is accelerating its strategic realignment under the
priorities “Grow Nonwovens, Reset Textiles”.
This strategy will be executed by the new leadership team under CEO Georg
Kasperkovitz, supported by the Supervisory Board. The strengthened
leadership framework with proven track record in successfully
transforming companies provides the continuity, accountability, and
operational focus required to deliver the next phase of Lenzing’s
transformation.
The strategy is designed to improve competitiveness, profitability and
return on invested capital, positioning Lenzing for long‑term growth
in higher‑value markets. Against an increasingly challenging market
environment for man-made cellulosic fibers and changed market dynamics,
Lenzing plans to sharpen its focus on nonwovens applications while
reshaping its textiles business. A strong innovation pipeline of
proprietary next generation fiber technologies and platforms,
including TreeToTextile, LENZING™ Nonwoven Technology and advanced
filament solutions are intended to accelerate growth in both business
areas.
The transformation includes optimization of the production footprint, a
comprehensive performance program, and disciplined capital allocation to
support durable margin expansion and a structurally stronger financial
profile.
“With “Grow Nonwovens, Reset Textiles”, Lenzing is taking decisive steps
to reposition the company for long-term success in a fundamentally
changing market environment. By combining a streamlined premium product
portfolio, improved competitiveness and a strong proprietary innovation
pipeline, we are creating the foundation for profitable growth and a more
focused, resilient Lenzing. At the same time, this transformation will
strengthen our main production site in Lenzing, Austria, and support a
sustainably profitable and competitive future for the site.,” says Georg
Kasperkovitz, CEO of the Lenzing Group.
Grow Nonwovens
Capitalizing on the accelerating shift from fossil-based materials to
sustainable cellulosic fiber solutions, Lenzing Group plans
substantial organic growth of its nonwovens business by 2030. Supported
by robust demand for nonwoven fibers, the company committed investments of
EUR 15 mn in November 2025 and an additional EUR 8 mn in June 2026
to increase its nonwovens production capacity at the Lenzing site in
Austria. The focus is on expanding the existing portfolio and developing
next-generation fibers for nonwovens applications, especially in the
attractive hygiene segment, supported by long-term contracts with
leading companies in the nonwovens industry. In addition, Lenzing is
advancing the commercialization of LENZING™ Nonwoven Technology in
collaboration with strategic partners, providing competitive and
sustainable alternatives for the market. Furthermore, Lenzing is
strategically upgrading its fiber production site in Mobile, USA into a
state-of-the-art specialty nonwovens facility.
Reset Textiles
As the global textile fiber industry continues to quickly evolve, Lenzing
aims to further sharpen its focus on differentiated, premium market
segments and strategic customer partnerships, to better serve the needs of
brands and retailers in Western and Asian markets even better. With
advanced fiber technologies such as TreeToTextile, next-generation
flame-retardant fibers and specialty solutions, Lenzing aims to reinforce
its position as a trusted partner for high-value textile applications
where innovation, performance and sustainability are key differentiators.
Lenzing also plans to reduce capital employed by consolidating its
production footprint and aligning its asset base with future market
requirements, such as investments in additional production capacity for
TENCEL™ Modal fibers, both in China and in Austria. At the same time,
Lenzing continues to gradually reduce its exposure to commodity products
such as standard viscose fibers for textile applications.
Pulp & Biorefinery Products
Pulp & Biorefinery products remain a core pillar of Lenzing. Capacity
debottlenecking in Brazil and Austria, together with operational
improvements and energy optimization, are intended to further strengthen
this profitable division and its contribution to the Group.
Sharpened performance program
Building on the progress achieved in recent years, Lenzing is sharpening
its performance program to aim for EUR 120 mn in savings versus 2025
actuals, including EUR 45 mn of previously communicated personnel cost
savings from predominantly administrative functions, corresponding to an
approximate reduction of 600 employees. As part of these measures, a
headcount reduction of 267 was achieved in the first half of 2026,
resulting in annualized savings of EUR 25 mn. The full program is expected
to reach full run-rate effect by the end of 2027. The new program focuses
on a lean overhead structure and operational savings from improving site
competitiveness.
Consolidation of the production footprint
As part of its transformation and product portfolio optimization, Lenzing
is consolidating its fiber production footprint alongside the ongoing sale
process of the Indonesian viscose site, PT South Pacific Viscose. In
addition, Lenzing plans to phase out production at its fiber
plants in Heiligenkreuz, Austria by end of 2026 and in Grimsby, UK by end
of 2027.
This transformation will enable Lenzing to strengthen its core
manufacturing network, including the Lenzing site in Austria, while
ensuring a stable and reliable supply for customers.
In parallel, Lenzing is evaluating strategic options for the affected
sites, including potential divestment or other value-preserving solutions.
Should no viable outcome be achieved, Lenzing plans to implement a
structured and orderly wind-down, with a strong focus on safety, supply
reliability, and continuity for customers, as well as social and
environmental responsibility.
For the affected employees in Heiligenkreuz, an existing social plan
applies. For affected employees in Grimsby, Lenzing will engage with
employee representatives and relevant stakeholders regarding appropriate
support and mitigation measures. In Indonesia, Lenzing plans to implement
workforce-related efficiency measures in the third quarter of 2026, in
line with local regulatory requirements, to optimize two-line operations.
CEO Georg Kasperkovitz: “We are fully aware that phasing out production at
plants is a difficult but necessary decision that affects our employees.
It is important to me that we act responsibly toward our employees also in
this situation. We are currently engaged in constructive discussions with
employee representatives regarding the necessary measures under the
existing social plans and applicable local frameworks.”
Lenzing’s global workforce is expected to decrease significantly from
approximately 8,100 employees (7,700 FTE) at the end of 2025, until
the end of 2027. The reduction will primarily affect employees at
the aforementioned sites in Heiligenkreuz (Austria), Grimsby (UK), and
Purwakarta (Indonesia), as well as the previously announced reduction of
600 SG&A positions within the entire Group.
As part of the production footprint optimization, Lenzing Group expects to
recognize impairment losses of the non-current assets, especially
property, plant and equipment of up to EUR 150 mn in 2026. This non-cash
impairment charge is expected to negatively impact consolidated EBIT
and consolidated net income in 2026, while having no impact on EBITDA in
2026. In addition, restructuring provisions related to headcount
reductions of up to EUR 40 mn are expected to negatively impact EBITDA in
2026.
Financial targets
The Company’s strategic ambition is to return to revenue growth with an
EBITDA uplift of approximately EUR 150 mn achieving an EBITDA margin of
20-25% and reducing leverage to below 2.5x in the medium term.
Reassuring second quarter results[1][1]
The ongoing disciplined implementation of the performance program and
strategic measures, especially consistent pricing measures, start to bear
fruit, reflected in solid, preliminary results of the second quarter 2026.
Revenue in Q2-2026 was at EUR 652 mn, compared to EUR 651 mn in the year
before (Q1-2026: EUR 616 mn). Earnings before interest, tax, depreciation
and amortization (EBITDA) increased to EUR 123 mn, after EUR 112 mn in the
second quarter of 2025 (Q1-2026: EUR 116 mn). EBITDA margin improved by 2
percentage points to 19 percent in Q2-2026. Unlevered free cash flow
amounted to EUR 32 mn in the second quarter of 2026, after EUR 49 mn in
the same period in the previous year (Q1-2026: EUR 66 mn). Net financial
debt decreased to EUR 1.36 bn compared to EUR 1.44 bn in the previous
year.
“The positive preliminary results in the first half year of 2026 confirm
that we have initiated the right measures to put Lenzing back on a
profitable path. Nevertheless, we have to continue and sharpen our
performance program as well as reposition our fiber business to achieve
long-term, structural profitability, targeting an EBITDA margin between 20
and 25 percent in the medium-term”, emphasizes Mathias Breuer, CFO of the
Lenzing Group.
Comprehensive refinancing
Lenzing’s transformation is supported by its primary shareholders, B&C
Group and Suzano, as well as Oberbank AG, and plans for a comprehensive
refinancing agreement with its core lenders. The company intends
to strengthen its financial structure through a combination of capital
increase with subscription rights amounting to up to EUR 300 mn, subject
to approval at an Extraordinary General Meeting on or around August 25,
2026, as well as new financing agreements of up to EUR 300 mn and the
extension of existing debt’s maturity to 2030. The capital increase is
underwritten by BNP Paribas, UniCredit, COMMERZBANK, and Erste Group.
“The multi-stage financing plan enables Lenzing to strengthen its
financial structure. The comprehensive plan consists of new equity, which
reduces total debt, and an expansion of the syndicated financing. This
results in a maturity profile that is well-aligned with
the ongoing implementation of our strategy”, says Mathias Breuer, CFO.
The refinancing is designed to provide Lenzing ample headroom to execute
its strategic transformation under “Grow Nonwovens, Reset Textiles” while
proactively addressing near-term maturities. Through this transformation,
Lenzing intends to strengthen resilience and
profitability, focus investments on differentiated, value-adding
applications, and reshape its portfolio and footprint. This positions the
company to deliver long-term value for customers, employees and
shareholders, while reinforcing its role as a leading provider of
sustainable, cellulose-based fiber solutions.
Photo download:
[2] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=H5X3C3E7r1c0
Your contact for
Media Relations:
Corporate Communications
PR & Media Team
Lenzing Aktiengesellschaft
Werkstraße 2, 4860 Lenzing, Austria
Phone +43 664 6112534
E-mail [3]media@lenzing.com
Web [4] www.lenzing.com
Investor Relations:
Alexander Schwaiger
VP Corp. Treasury & Investor Relations
Lenzing Aktiengesellschaft
Werkstraße 2, 4860 Lenzing, Austria
Phone +43 7672 701 8947
E-mail [5]a.schwaiger@lenzing.com
Web [6] 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.
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[7]^[1] Preliminary, not audited, publication of half-year results 2026 on
August 05, 2026 in accordance with Lenzing’s financial calendar
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27.07.2026 CET/CEST This Corporate News was distributed by [8]EQS Group
View original content: [9]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)
LEI Code: 529900BKFJBI0QRDJH63
EQS News ID: 2372296
End of News EQS News Service
2372296 27.07.2026 CET/CEST
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5. a.schwaiger@lenzing.com
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