Lenzing delivers positive net result in Q1 2026 and significantly increases free cash flow

Lenzing delivers positive net result in Q1 2026 and significantly increases free cash flow

 

• Net result for the first quarter of 2026 at EUR 24 mn (prior year: EUR 31.7 mn) – positive again for the first time after three negative quarters in 2025
• Free cash flow increased to EUR 33.8 mn (prior year: EUR 14.8 mn[1])
• Revenues in the first quarter of 2026 at EUR 615.7 mn (-10.8% compared to Q1 2025)
• EBITDA at EUR 116.3 mn

 

Lenzing, May 7, 2026 – In the first quarter of 2026, the Lenzing Group achieved a positive net result of EUR 24 mn despite a persistently challenging market environment, following three negative quarters in 2025. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 116.3 mn, supported by the consistent implementation of the pricing strategy and the performance program as well as by positive one-off effects. Free cash flow increased significantly to EUR 33.8 mn driven by disciplined management of prices, costs and working capital. The market environment remains characterized by geopolitical tensions, volatile energy prices and ongoing uncertainties.

 

“During the first quarter of 2026, we further stabilized our operational development and returned to a positive net result after economically challenging previous quarters. The significant improvement in free cash flow is particularly encouraging and demonstrates that our measures are taking effect. At the same time, the market environment remains highly volatile. We are therefore continuing our transformation with strong discipline to structurally strengthen Lenzing’s profitability and resilience,” says Mathias Breuer, CFO of the Lenzing Group.

Earnings performance in the first quarter of 2026

In the first quarter of 2026, the company generated revenues of EUR 615.7 mn, representing a decrease of 10.8 percent compared to the very strong first quarter of 2025. This decline was mainly attributable to lower fiber sales volumes and prices as well as lower pulp prices. The reduced fiber sales volumes also reflect deliberate production management, including the temporary curtailment of less profitable production lines. These measures are aligned with the strategic focus on value-generating growth. Compared to the fourth quarter of 2025, fiber sales volumes remained largely stable, while price levels increased. Raw material, energy and logistics costs remained elevated, but were partially mitigated by internal savings and efficiency measures.

 

EBITDA amounted to EUR 116.3 mn in the first quarter of 2026, compared to EUR 156.1 mn in the prior-year period. The EBITDA margin stood at 18.9 percent, after 22.6 percent in the first quarter of 2025. Compared to the second half of 2025, however, there has been a clear upward trend in earnings development since the beginning of the year. In addition to the performance program, EBITDA was supported by positive one-off effects totaling EUR 25.7 mn, compared to EUR 25.5 mn in the prior-year period, stemming from the sale of surplus EU emission allowances and a one-time effect from the negative goodwill^[2] recognized in connection with the initial consolidation of the majority stake in TreeToTextile AB acquired in February 2026. With the majority acquisition of TreeToTextile, Lenzing also underscores its ambition to further advance its premiumization strategy and strengthen its position in the market for next-generation specialty fibers.

 

Earnings before interest and tax (EBIT) amounted to EUR 40.1 mn, compared to EUR 74.3 mn in the first quarter of 2025; the EBIT margin was 6.5 percent. Earnings before tax (EBT) reached EUR 22.8 mn, compared to EUR 35.1 mn in the prior-year quarter. Tax income totaled EUR 1.2 mn and was positively influenced primarily by currency effects from the translation of tax items from local to functional currency. Net profit thus amounted to EUR 24 mn and was positive again for the first time after three negative quarters in 2025.

Performance program and transformation

The Management Board of the Lenzing Group is consistently driving forward the transformation of the company in order to further strengthen profitability, resilience and agility. A key component is the holistic performance program, which primarily aims to improve EBITDA and generate free cash flow through enhanced profitability, consistent cost management and targeted working capital control. As a result, Lenzing achieved savings of more than EUR 200 mn in the 2025 financial year. In parallel, measures to optimize structural, process and personnel costs are being continuously implemented. Additional focus lies on sustainable cost savings through operational excellence and energy optimization across all production sites. On the sales side, new customers were gained for key products, and new attractive markets were opened up to strengthen revenue development. At the same time, Lenzing is increasingly focusing on high-margin segments.

 

Cash flow, investments and balance sheet

Cash flow from operating activities amounted to EUR 94.6 mn in the first quarter of 2026, compared to EUR 72.0 mn¹ in the same period of the previous year. The increase is, among other factors, attributable to targeted working capital management and inventory reduction. Free cash flow rose to EUR 33.8 mn, compared to EUR 14.8 mn¹ in the prior-year quarter. Cash and cash equivalents as of March 31, 2026 remained largely stable at EUR 690.1 mn. Capital expenditure (CAPEX) for intangible assets, property, plant and equipment, and biological assets totaled EUR 28.4 mn. Total assets increased to EUR 4.65 bn, adjusted equity to EUR 1.39 bn and the adjusted equity ratio to 29.9 percent. Net financial debt remained largely unchanged at EUR 1.36 bn.

Outlook

The International Monetary Fund has revised its global growth forecast for 2026 downwards to 3.1 percent, while maintaining its forecast for 2027 at 3.2 percent for the time being. The foreign exchange environment in regions relevant to Lenzing is also expected to remain volatile. Key downside risks include the Middle East conflict, which, starting in the second quarter, is already driving and is expected to further drive increases in energy and raw material prices, higher inflation expectations and tightening financial conditions. New global crises could further increase uncertainty and the cost of living, thereby weighing on consumer sentiment and purchasing propensity. Lenzing will consistently continue its transformation through the holistic performance program to unlock additional cost potential and further improve revenue and margin generation. In view of the ongoing high level of uncertainty and geopolitical and trade policy developments, a reliable forecast for the 2026 financial year is currently not possible.

 

Selected indicators of the Lenzing Group
EUR mn 01-03/2026 01-03/2025 Revenue 615.7 690.2 EBITDA (earnings before interest, tax, depreciation and amortization) 116.3 156.1 EBITDA margin 18.9 % 22.6 % Net profit/loss after tax 24.0 31.7 Earnings per share in EUR 0.01 0.12 Cash flow from operating activities 94.6 72.0¹ Free cash flow 33.8 14.8¹ CAPEX 28.4 32.4^[3]

 

  31.03.2026 31.03.2025 Net financial debt 1,362.0 1,350.1 Adjusted equity ratio 29.9 % 29.6 % Employees (full-time equivalents) 7,589 7,738

 

 

 

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Your contact for Media Relations:   Corporate Communications   Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing, Austria   Phone  +43 7672 701 2743 E-mail  media@lenzing.com Web     www.lenzing.com

Investor Relations:   Alexander Schwaiger VP Corp. Treasury & Investor Relations Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing, Austria   Phone  +43 7672 701 8947 E-mail   a.schwaiger@lenzing.com Web       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.

 

 

^[1] To enhance transparency and comparability of its key financial performance indicators, the Lenzing Group has re-exercised the accounting policy options available under IAS 7 and has therefore adjusted the presentation of its statement of cash flows. The revised structure starts from earnings before tax (EBT) and enables the calculation of Unlevered Free Cash Flow, which – in addition to Free Cash Flow – serves as a key performance indicator within the framework of the performance program. The adjustment is aligned with common market reporting practices and improves the informative value of the statement of cash flows for internal and external stakeholders. The change in presentation has been applied retrospectively in accordance with IAS 8. For further details, please refer to the Annual and Sustainability Report 2025, section Consolidated Financial Statements, Note 2.

^[2] Negative goodwill (“bargain purchase”) arises in the course of the initial consolidation of a business combination when the purchase price is below the fair value of the acquired net assets. The resulting difference is recognized in profit or loss at the acquisition date in accordance with IFRS3.

^[3] Since the second quarter of the 2025 financial year, capitalized borrowing costs in accordance with IAS 23 have been presented within cash flows from financing activities under “interest paid”; previously, these amounts were included in cash flows from investing activities under “acquisition of intangible assets, property, plant and equipment and biological assets”. As a result, CAPEX for the comparative period was reduced retrospectively by EUR 0.2 mn.