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

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

   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: 2428804


    
   End of News EQS News Service


   2428804  05.11.2026 CET/CEST

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