EQS-News: Lenzing Reports Strongly Improved Half-Year Results and Accelerates Strategic Transformation Agenda

EQS-News: Lenzing AG / Key word(s): Half Year Results
   Lenzing Reports Strongly Improved Half-Year Results and Accelerates
   Strategic Transformation Agenda

   05.08.2026 / 07:35 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Lenzing Reports Strongly Improved Half-Year Results and Accelerates
   Strategic Transformation Agenda

    

     • Focus on profitability rather than volume growth: Revenue of EUR 1.27
       bn (previous year: EUR 1.34 bn)
     • Net result after tax more than doubled to EUR 35.6 mn in the first
       half of 2026 (previous year: EUR 15.2 mn)
     • Free cash flow improved to EUR 45.8 mn (previous year: EUR 43.1 mn)
     • Improved profitability driven by a stronger focus on higher-margin
       products, sales measures and realized cost reductions

    

   Lenzing, August 5, 2026 – Despite a persistently challenging market
   environment in the first half of 2026, characterized by volatile energy
   and raw material prices, subdued global consumer demand and intensified
   competition from Asia, the Lenzing Group achieved a significantly positive
   result. Net result after tax more than doubled to EUR 35.6 mn, compared
   with EUR 15.2 mn in the previous year. Free cash flow improved to EUR 45.8
   mn. EBITDA amounted to EUR 239.2 mn, while revenue totaled EUR 1.27 bn.

    

   “The results for the first half of 2026 demonstrate that our sales
   initiatives and disciplined cost management are delivering results. At the
   same time, they confirm both the necessity and the potential of our
   strategic realignment. With ‘Grow Nonwovens, Reset Textiles’, we are
   laying the foundation for a structurally more profitable and resilient
   Lenzing Group,” says Mathias Breuer, CFO of the Lenzing Group.

   Development of Results in the First Half of 2026

   The decline in revenue compared with the first half of 2025 was primarily
   attributable to the deliberate reduction of low-margin fiber volumes and
   the resulting lower fiber production, as well as lower revenues from the
   external pulp business. Compared with the first quarter of 2026, revenue
   increased from EUR 615.7 mn to EUR 651.7 mn in the second quarter of 2026,
   supported by targeted sales initiatives, particularly consistent pricing
   measures.

    

   EBITDA amounted to EUR 239.2 mn in the first half of 2026, compared with
   EUR 268.6 mn in the same period of the previous year. Compared with the
   first quarter of 2026, EBITDA increased from EUR 116.3 mn to EUR 123 mn in
   the second quarter of 2026, underscoring the Group’s focus on sustainably
   improving profitability. The EBITDA margin stood at 18.9 percent (previous
   year: 20.0 percent). Earnings performance was supported by the consistent
   implementation of the performance program and positive non-recurring
   effects.

    

   EBIT amounted to EUR 83.7 mn (previous year: EUR 109 mn), corresponding to
   an EBIT margin of 6.6 percent (previous year: 8.1 percent). Earnings
   before tax (EBT) totaled EUR 42.6 mn, compared with EUR 22.1 mn in the
   same period of the previous year. Net result after tax improved
   significantly to EUR 35.6 mn (previous year: EUR 15.2 mn). This
   improvement was primarily driven by a stronger financial result due to
   positive effects from foreign currency valuation.

    

   Cash flow from operating activities increased to EUR 160.4 mn in the first
   half of 2026, compared with EUR 150.1 mn in the same period of the
   previous year. Key drivers included targeted working capital management
   and inventory reductions. Free cash flow improved to EUR 45.8 mn, compared
   with EUR 43.1 mn in the same period of the previous year. Unlevered free
   cash flow increased to EUR 98.5 mn (previous year: EUR 89.4 mn).

    

   As of June 30, 2026, liquid assets, including liquid bills of exchange,
   amounted to EUR 618 mn. (December 31,2025: EUR 690.9 mn). Capital
   expenditures (CAPEX) on intangible assets, property, plant and equipment,
   and biological assets totaled EUR 62.3 mn (previous year: EUR 61.3 mn).

    

   Total assets amounted to EUR 4.61 bn, equal to December 31, 2025. Adjusted
   equity increased by 0.5 percent to EUR 1.37 bn, resulting in an adjusted
   equity ratio of 29.7 percent (compared to 29.6 percent as at December 31,
   2025). Net financial debt remained largely unchanged, rising slightly by 1
   percent to EUR 1.36 bn.

   Strategic Transformation Accelerates

   The new “Grow Nonwovens, Reset Textiles” strategy builds on the
   operational progress achieved in recent months and consistently aligns the
   company toward profitable growth, greater resilience and focused market
   segments. The strategy aims to further expand the nonwovens business
   organically, sharpen the focus of the textiles business on differentiated
   premium market segments and strategic customer partnerships, and further
   strengthen the pulp and biorefinery business. With the consolidation of
   fiber production sites approved by the Management Board on July 27, 2026,
   Lenzing is accelerating the Group’s strategic transformation and
   implementing decisive measures to position the company for long-term
   success in a fundamentally changed market environment. In doing so,
   Lenzing is laying the foundation for profitable growth and an even more
   resilient and focused Lenzing Group.

    

   Having already realized savings of more than EUR 200 mn in the 2025
   financial year, Lenzing is implementing additional efficiency measures in
   2026. The focused Performance Program targets savings of EUR 120 mn
   compared with the 2025 cost base, which are intended to have their full
   earnings impact by the end of 2027.

    

   At the same time, Lenzing continues to focus on high-margin specialty
   fibers and premium market segments marketed under the TENCEL™, LENZING™
   ECOVERO™ and VEOCEL™ brands. Innovation, proven sustainability,
   transparency and strong brands remain key differentiating factors.

    

   Effective June 1, 2026, the Supervisory Board appointed Georg Kasperkovitz
   as Chief Executive Officer (CEO) of Lenzing AG. The Management Board
   continues to consist of Georg Kasperkovitz (CEO), Mathias Breuer (CFO) and
   Christian Skilich (CPO/CTO), who will jointly drive forward the strategic
   realignment of the Lenzing Group.

   Outlook

   The International Monetary Fund (IMF) expects global economic growth of 3
   percent in 2026. This forecast remains below the historical pre-pandemic
   average. Risks continue to arise in particular from geopolitical tensions
   in the Middle East, volatile energy and raw material markets, and subdued
   consumer demand in key sales markets.

    

   The Lenzing Group plans to consistently pursue the implementation of its
   new “Grow Nonwovens, Reset Textiles” strategy in order to unlock further
   value creation potential. In the nonwovens business, Lenzing intends to
   leverage the ongoing shift from fossil-based materials to cellulosic fiber
   solutions and aims to significantly expand its nonwovens business in the
   medium term. To achieve this the plan is to convert production capacities
   from textile fibers to nonwovens fibers, to expand the existing product
   portfolio, particularly in the attractive hygiene segment, and to develop
   and bring to market next-generation innovative fibers for nonwovens
   applications. In the textiles business, Lenzing is focusing on
   differentiated premium segments, innovative specialty solutions and
   strategic customer partnerships. At the same time, the company is
   gradually withdrawing from low-margin standard fibers for textile
   applications. A strong innovation pipeline based on proprietary fiber
   technologies and next-generation platforms, including TreeToTextile,
   LENZING™ Nonwoven Technology and advanced filament solutions, is expected
   to accelerate growth in both business areas.

    

   The company’s strategic objective is to return to revenue growth in the
   medium term, while increasing EBITDA by EUR 150 mn, achieving an EBITDA
   margin of 20 to 25 percent, and reducing leverage to below 2.5x.

    

   Selected indicators of the Lenzing Group
   EUR mn                                               01-06/2026 01-06/2025
   Revenue                                                 1,267.5    1,341.2
   EBITDA (earnings before interest, tax, depreciation       239.2      268.6
   and amortization)
   EBITDA margin                                            18.6 %     20.0 %
   Net profit/loss after tax                                  35.6       15.2
   Earnings per share in EUR                                (0.09)     (0.90)
   Cash flow from operating activities                       160.4      150.1
   Free cash flow                                             45.8       43.1
   CAPEX                                                      62.3       61.3

    

                                     30/06/2026 31/12/2025
   Net financial debt                   1,363.3    1,350.1
   Adjusted equity ratio                 29.7 %     29.6 %
   Employees (full-time equivalents)      7.556      7,738

    

    

    

   Photo download:

   [1]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  [2][email protected]        E-mail   [4][email protected]
   Web     [3]www.lenzing.com          Web       [5]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.
    
   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.
    

    

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   05.08.2026 CET/CEST This Corporate News was distributed by [6]EQS Group

   View original content: [7]EQS News

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

   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)
   LEI Code:    529900BKFJBI0QRDJH63
   EQS News ID: 2377396


    
   End of News EQS News Service


   2377396  05.08.2026 CET/CEST

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