EQS-News: Lenzing improves profitability in the first nine months of 2026

EQS-News: Lenzing AG / Key word(s): Quarter Results
Lenzing improves profitability in the first nine months of 2026

05.11.2026 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Lenzing improves profitability in the first nine months of 2026

• Revenue in the first nine months of 2026 amounted to EUR 1.93 bn
(previous year: EUR 1.97 bn)
• Adjusted EBITDA remained stable at EUR 353 mn; adjusted EBITDA margin
improved to 18.3 percent (previous year: 17.9 percent)
• EBITDA of EUR 316.4 mn impacted by one-off restructuring effects of
EUR 36.6 mn

Lenzing, November 5, 2026 – The Lenzing Group generated revenue of EUR
1.93 bn and adjusted earnings before interest, tax, depreciation and
amortization (adjusted EBITDA) of EUR 353 mn in the first nine months of
2026, despite a persistently volatile market environment characterized by
geopolitical tensions, including the conflict in Iran, trade policy
uncertainties related to tariffs, and continued elevated energy and
chemical costs.

The strategy “Grow Nonwovens. Reset Textiles.”, adopted in July, places a
clear focus on the profitability of the fiber product portfolio. Despite
an expected decline in revenue resulting from the targeted reduction of
standard fiber capacities, adjusted EBITDA was maintained at the level of
the prior-year period. At the same time, the adjusted EBITDA margin
improved from 17.9 percent to 18.3 percent. Progress was particularly
evident in the third quarter: compared with Q3 2025, the adjusted EBITDA
margin increased by 4.0 percentage points, from 13.3 percent to 17.3
percent. This margin development highlights the increasing operational
earnings strength and confirms the effectiveness of the profitability
measures implemented.

“The third quarter of 2026 marks an important milestone in the
repositioning of the Lenzing Group. Our focus is now on the consistent
execution of our new strategy. The stable earnings development and
improved margin demonstrate that our measures are delivering results.
Under the strategic priorities “Grow Nonwovens. Reset Textiles.”, we are
driving our transformation forward and will take further significant steps
by year-end to optimize our product portfolio and production network,”
says Georg Kasperkovitz, CEO of the Lenzing Group.

Earnings performance in the first nine months of 2026

Revenue of the Lenzing Group declined by 2.3 percent to EUR 1.93 bn in the
first three quarters of 2026 (previous year: EUR 1,972.0 mn). This
development was primarily driven by lower sales volumes resulting from the
targeted reduction of standard fiber production as well as lower pulp
prices.

Adjusted EBITDA amounted to EUR 353 mn, remaining virtually unchanged from
the prior-year level (EUR 352.7 mn). The adjusted EBITDA margin increased
to 18.3 percent, compared with 17.9 percent in the prior-year period.

EBITDA decreased by 7 percent to EUR 316.4 mn (previous year: EUR 340.4
mn) and was burdened by EUR 36.6 mn (previous year: EUR 12.3 mn) of
restructuring-related effects associated with the ongoing strategic
transformation. The EBITDA margin amounted to 16.4 percent (previous year:
17.3 percent).

Operating result (EBIT) amounted to EUR -55.1 mn (previous year: EUR 20.6
mn) and was significantly impacted by non-cash impairment charges of EUR
136.1 mn[1]^[1] on long-term assets at the Heiligenkreuz and Grimsby
production sites (previous year: EUR 82 mn on long-term assets in
Indonesia). These impairment charges have no impact on EBITDA. Earnings
before tax (EBT) amounted to EUR -126.9 mn (previous year: EUR -98.7 mn),
while earnings after tax totaled EUR -130.3 mn (previous year: EUR -105.0
mn). Adjusted for impairment charges and restructuring effects, earnings
after tax reached EUR 42.4 mn (previous year: EUR -10.8 mn).

Capital expenditure (CAPEX) for intangible assets, property, plant and
equipment, and biological assets amounted to EUR 97.0 mn (previous year:
EUR 93.2 mn). Major investments were made at the Lenzing site, including a
new wood processing facility and a project to improve water supply.

Strategic transformation consistently implemented

Under the priorities “Grow Nonwovens. Reset Textiles.”, Lenzing is
realigning its business and production portfolio. Key focus areas include
profitable organic growth in the nonwovens business, a stronger
concentration of the textiles business on differentiated premium and
specialty applications, and the further strengthening of the pulp and
biorefinery business. At the same time, Lenzing is gradually withdrawing
from low-margin standard fiber segments and high-cost production sites.

Another key lever is the focused performance program. Building on cost
savings of more than EUR 200 mn achieved in 2025, Lenzing aims to realize
an additional EUR 120 mn in savings compared with the 2025 baseline. The
full earnings impact is expected by the end of 2027.

This includes annual personnel cost savings of EUR 45 mn resulting from
the reduction of approximately 600 positions, mainly in administrative
functions. As of 30 September 2026, employment relationships corresponding
to more than 260 full-time equivalents had already been legally
terminated, generating annualized savings of EUR 27 mn. Furthermore,
savings of EUR 35 mn are targeted through energy and operating expense
(OPEX) optimization measures. Additional personnel savings are planned as
part of the optimization of the production network as well as
non-personnel savings through administrative cost reductions.

As part of the optimization of its global production network, Lenzing is
continuing the previously communicated sales process for its Indonesian
fiber production site. In parallel, production at Heiligenkreuz is planned
to cease by the end of the first quarter of 2027, while production at
Grimsby is scheduled to end by the close of 2027. The company is currently
evaluating value-maximizing options for the sale of these assets and has
formally notified the Austrian Public Employment Service (AMS) of the
planned workforce reduction at the Heiligenkreuz site.

With the successful completion of a capital increase of approximately EUR
300 mn in October 2026 and new financing agreements totaling a further EUR
300 mn, around half of which have already been contractually secured,
Lenzing has made significant progress in strengthening its financial
structure. Full implementation of these measures is expected by year-end
2026 and will provide additional financial flexibility to support the
ongoing strategic transformation.

Outlook

The Lenzing Group will continue to consistently advance its strategic
transformation under the priorities “Grow Nonwovens. Reset Textiles.”
throughout the remainder of the 2026 business year and beyond. Lenzing
intends to significantly expand its nonwovens business, defend its leading
position as an innovative producer of textile fibers, and increasingly
replace fossil-based materials with wood-based fiber solutions.

Planned initiatives include capacity conversions from textile fibers to
nonwoven fibers, portfolio expansion particularly in hygiene and
filtration applications, as well as the development and commercialization
of new fibers. In the textiles business, the focus will remain on
differentiated premium segments, specialty solutions and strategic
customer partnerships, while the withdrawal from low-margin standard
fibers continues.

Innovative fiber technologies and platforms such as TreeToTextile
technology and LENZING™ Nonwoven Technology are expected to support growth
across both business segments. In addition, Lenzing will continue to
strengthen its pulp business.

For the full-year 2026, Lenzing expects adjusted EBITDA[2]^[2] to be above
the prior year level (adj. EBITDA 2025: EUR 425.6 mn) and range between
EUR 430 mn and EUR 460 mn. Over the medium term, Lenzing remains committed
to its targets of returning to revenue growth, increasing EBITDA by EUR
150 mn, achieving an EBITDA margin of 20 to 25 percent, and reducing
leverage to below 2.5x. The actual business performance may diverge from
current expectations depending on geopolitical and economic factors as
well as the cyclical nature of the industry. Any assessment of economic
development is therefore subject to forecasting risks

Selected indicators of the Lenzing Group
EUR mn 01-09/2026 01-09/2025
Revenue 1,926.3 1,972.0
EBITDA (earnings before interest, tax, depreciation 316.4 340.4
and amortization)
EBITDA margin 16.4 % 17.3 %
Adjusted EBITDA 353.0 352.7
Adjusted EBITDA margin 18.3 % 17.9 %
Earnings after tax -130.3 -105.0
Earnings per share in EUR -4.73 -4.38
Cash flow from operating activities 206.2 284.6
Free cash flow 24.7 110.9
CAPEX 97.0 93.2

  30/09/2026 31/12/2025
Net financial debt 1,418.9 1,350.1
Adjusted equity ratio 26.6% 29.6 %
Employees (full-time equivalents) 7,374 7,738

Photo download:

[3] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=V0L7A9V2O5c5

Your contact for
Media Relations: Investor Relations:

Corporate Communications Alexander Schwaiger
  VP Corp. Treasury & Investor Relations
Lenzing Aktiengesellschaft Lenzing Aktiengesellschaft
Werkstraße 2, 4860 Lenzing, Austria Werkstraße 2, 4860 Lenzing, Austria

Phone  +43 7672 701 2743 Phone  +43 7672 701 8947
E-mail  [4]media@lenzing.com E-mail   [6]a.schwaiger@lenzing.com
Web     [5] www.lenzing.com Web       [7] www.lenzing.com

About the Lenzing Group

The Lenzing Group is an internationally operating company that develops
and manufactures wood-based product solutions for the textile and
nonwovens industries. As one of the few companies worldwide, Lenzing
combines the production of cellulose fibers and filaments, as well as
dissolving wood pulp and biorefinery products, under one roof, thereby
covering key stages of the production process in-house. Lenzing’s
wood-based specialty fibers and filaments are developed to meet demanding
and highly specialized customer requirements and applications and are used
in a wide range of end products, including apparel, home textiles, hygiene
products, as well as medical and industrial applications. They are
marketed under the TENCEL™, LENZING™ ECOVERO™, VEOCEL™, and LENZING™
product brands.

More information on [8] www.lenzing.com

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
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
https://www.lenzing.com/investors/reporting-and-capital-market-update/, 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] Amount subject to audit by the external auditor

[10]^[2] Reported EBITDA adjusted for effects of restructuring measures

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05.11.2026 CET/CEST This Corporate News was distributed by [11]EQS Group

View original content: [12]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: 2428804

End of News EQS News Service

2428804  05.11.2026 CET/CEST

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References

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6. a.schwaiger@lenzing.com
7. https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&url=8937a13fc33a0a14e89778154b8631b5&application_id=2428804&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
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