EQS-News: Lenzing AG: Challenging market conditions weigh on Q3 results, positive 2025 EBITDA outlook confirmed

EQS-News: Lenzing AG / Key word(s): Quarter Results
Lenzing AG: Challenging market conditions weigh on Q3 results, positive 2025 EBITDA outlook confirmed

06.11.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Lenzing AG: Challenging market conditions weigh on Q3 results, positive 2025 EBITDA outlook confirmed

 

  • Revenue of EUR 1.97 bn stable at previous year’s level
  • 9M EBITDA up 29.1 percent; Q3 reflects headwinds
  • Impairment losses of EUR 82.1 mn negatively impact EBIT
  • Net financial debt improves to EUR 1.4 bn; liquidity cushion of EUR 993 mn secured
  • EBITDA outlook confirmed

 

Lenzing, 6 November 2025 – In the first nine months of 2025, Lenzing AG recorded revenue growth and
higher EBITDA, but a market-driven volatile third quarter. This performance reflects the effects of
ongoing market volatility, tariffs and geopolitical uncertainties. Nevertheless, the medium to
long-term outlook remains positive.

 

The revenue generated by Lenzing AG rose by 0.7 percent to EUR 1.97 bn (prior-year period: EUR 1.96 bn)
in the first nine months. EBITDA grew by 29.1 percent to EUR 340.4 mn (prior-year period: EUR 263.7
mn), including effects from the sale of surplus emission allowances and the valuation of biological
assets. The EBITDA margin improved to 17.3 percent (prior-year period: 13.5 percent). Earnings before
interest and tax (EBIT) amounted to EUR 20.6 mn (prior-year period: EUR 38.3 mn), which corresponds to
an EBIT margin of 1 percent (prior-year period: 2 percent). This result includes asset impairments of
EUR 82.1 mn in Indonesia. Earnings before tax (EBT) amounted to EUR minus 98.7 mn (prior-year period:
EUR minus 33.4 mn).

 

“We see these challenging times also as an opportunity. We are increasingly building on our strengths
and are continuing to focus on what we excel at: strong brands, precise execution and bold innovation,”
notes Rohit Aggarwal, CEO of Lenzing AG.
 

Strategic development

Lenzing AG pursues a holistically adapted strategy with a clear focus on value-generating growth. Key
pillars of this strategy include enhancing operational efficiency, optimizing production sites, and
targeting high-margin premium products such as TENCEL™, VEOCEL™, and LENZING™ ECOVERO™. Additional
growth potential is expected particularly in the fields of hygiene, packaging, filtration, as well as
medical and industrial applications.

 

To sustainably secure this growth and strengthen long-term competitiveness, the company has initiated a
strategic review of its production site in Indonesia. The planned measures – including adjustments to
administrative functions – are expected to generate additional annual savings of approximately EUR 45mn
by the end of 2027. For the current reporting year, the Management Board anticipates cost savings
exceeding EUR 180mn. Furthermore, the company is investing over EUR 100mn in its sites in Lenzing and
Heiligenkreuz and aims to achieve holistic energy optimization of more than 5percent across all
production locations. Strategic options for the site in Indonesia are being evaluated, including a
potential sale.

 

The Supervisory Board also made personnel decisions during the reporting period: The Managing Board
mandate of Christian Skilich, Chief Pulp & Chief Technology Officer, was extended until May 2029.
Mathias Breuer, currently Senior Vice President and responsible for the performance program, will
become CFO from January 1, 2026, and succeed Nico Reiner, who is due to step down from his position at
the end of 2025.
 

Solid financial position in a difficult environment

Thanks to its strong focus on cash management, Lenzing succeeded in leaving no doubt about its adequate
liquidity position during the reporting period. As of September 30, 2025, the company held liquidity
cushion of EUR 993 mn. The capital structure was strengthened by a EUR 500 mn hybrid bond and a
EUR 545 mn syndicated financing facility. Net financial debt was reduced by 8.5% to EUR 1.4 bn as of
the reporting date. With total assets of EUR 4.80 bn, this corresponds to an adjusted equity ratio of
30.7% as of September 30, 2025.

 

Cash flow from operating activities amounted to EUR 284.6 mn (prior-year period: EUR 319.4 mn). Free
cash flow was also positive at EUR 110.9 mn. (prior-year period: EUR 194.0 mn) Furthermore, unlevered
free cash flow amounted to EUR 192.1 mn (prior-year period: EUR 228.6 mn).

 

Capital expenditure amounted to EUR 93.2 mn (prior-year period: EUR 93.3 mn).
 

Outlook

The global environment remains volatile. The International Monetary Fund (IMF) expects growth of 3.2
percent in 2025, but warns of trade conflicts and financial instability. Consumer sentiment is subdued,
and higher tariff costs could further weigh on demand in 2026. Based on the business performance to
date and the current market outlook, the Managing Board expects year-on-year growth in EBITDA in 2025.
The actual business performance may nevertheless 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

 

The report on the third quarter of the year can be downloaded [1]here.

 

 

Selected indicators of the Lenzing Group
EUR mn                                                                01-09/2025   01-09/2024
Revenue                                                                  1,972.0      1,958.2
EBITDA (earnings before interest, tax, depreciation and amortization)      340.4        263.7
Net result                                                               (105.0)      (111.1)
Earnings per share in EUR                                                 (4.38)       (3.50)
Cash flow from operating activities                                        284.6 319.4[2]^[1]
Free cash flow                                                             110.9      194.0^1
Unlevered free cashflow                                                    192.1        228.6
CAPEX                                                                       93.2       93.3^1
                                                                                             

 

                                  30/09/2025 31/12/2024
Total assets                         4,795.9    4,976.8
Net financial debt                   1,402.8    1,532.5
Adjusted equity ratio                  30.7%      34.7%
Employees (full-time equivalents)      7,729      7,816

 

 

Photo download:

[3]https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=OiUO05ljikag
PIN: OiUO05ljikag

 

Your contact for                           
Media Relations:                           
 
Corporate Communications
Phone:    +43 7672 701 2743
E-mail:  [4]media@lenzing.com
 
Investor Relations:
Phone:    +43 664 828 1576
E-mail:  [5]investorrelations@lenzing.com
 

 

About the Lenzing AG
 
The Lenzing  AG  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 AG’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 AG’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 AG 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  AG.
Additional details are provided in “Notes on  the Financial Performance Indicators of the Lenzing  AG”,
available                   at                   the                   following                   link
[6]https://a.storyblok.com/f/306166/x/8aba43190f/notes_financial_performance_indicators_2025_q3_en.pdf,
as well  as  in the  condensed  consolidated  interim financial  statements  and in  the  Lenzing  AG’s
prior-year consolidated financial  statements. Rounding differences  can occur in  the presentation  of
rounded amounts and percentage rates.

   

[7]^[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 retroactively in accordance with IAS 8.
Additional explanations are provided in the condensed consolidated interim financial statements
01-06/2025.

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06.11.2025 CET/CEST This Corporate News was distributed by EQS Group. www.eqs.com

View original content: [8]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: 2224788


    
   End of News EQS News Service


   2224788  06.11.2025 CET/CEST

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