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

   ══════════════════════════════════════════════════════════════════════════

   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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