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][email protected]                             E-mail   [6][email protected]
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:      [email protected]
   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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