Lenzing AG Overview
Lenzing is the world's leading producer of branded, wood-based regenerated cellulosic fibres. It is vertically integrated into dissolving wood pulp in Austria, the Czech Republic and Brazil, and sells lyocell, modal and viscose fibres under the TENCEL™, LENZING™ ECOVERO™, VEOCEL™ and LENZING™ brands into apparel, home textiles, hygiene nonwovens and technical applications. Its competitive edge rests on proprietary closed-loop lyocell technology, brand pull with fashion and hygiene brand owners, and certified low-impact supply chains. That edge has been badly eroded since 2022. Asian commodity viscose and lyocell overcapacity, energy and chemical inflation, and weak consumer demand have pushed the Fiber Division to roughly break-even EBITDA, while the Pulp Division now generates essentially all group earnings. After four consecutive annual net losses (2022–2025), Lenzing is executing a radical reset under CEO Georg Kasperkovitz ("Grow Nonwovens, Reset Textiles"): two European lyocell plants are closing, about 2,000 jobs are being cut, and a EUR 300M rights issue backed by B&C and Suzano is under way.
Company's own description (ASR 2025, paraphrased)
Lenzing reports three segments.
Division Fiber: produces all three generations of regenerated cellulosic fibres (viscose, modal, lyocell) under the TENCEL™, VEOCEL™, LENZING™ ECOVERO™ and LENZING™ brands, for textiles, nonwovens and special applications.
Division Pulp: produces and procures dissolving pulp, the primary and intermediate product for fibre production. The pulp is used internally and sold externally. The division also sells biorefinery products, energy, and engineering services.
Others: covers central headquarters functions, cross-divisional activities, and the BZL – Bildungszentrum Lenzing training centre.
The company notes that no single external customer accounts for more than 10% of revenue (ASR 2025, Note 4).
Business and revenue model
| Product line | FY2024 | FY2025 |
|---|---|---|
| Regenerated cellulosic fibres (EUR M) | 1,965.3 | 1,833.2 |
| Co-products of fibre production (EUR M) | 63.4 | 57.7 |
| Other Fiber Division (EUR M) | 4.3 | 6.9 |
| Pulp (external) (EUR M) | 456.7 | 524.2 |
| Biorefinery products and energy (EUR M) | 111.6 | 112.2 |
| Engineering services, wood and other (EUR M) | 59.2 | 65.3 |
| Others segment (EUR M) | 3.3 | 3.0 |
| Group revenue (EUR M) | 2,663.9 | 2,602.4 |
Lenzing is a product company. Revenue comes almost entirely from per-tonne sales of fibre and pulp, plus by-products. It has no meaningful subscription or licensing income, although it leverages brand co-marketing (TENCEL™ hangtags and licensing to brand owners) to support price premiums. Pricing is negotiated, typically quoted in USD or EUR per kg, and indexed loosely to Chinese viscose and dissolving-pulp market benchmarks for generic grades. Specialty grades (lyocell, modal, ECOVERO™) carry premiums that management has repeatedly said are under pressure (FY2025 outlook: generic fibre pricing to remain under pressure).
Revenue mix by product, FY2025 vs FY2024 (EUR M, ASR 2025 Note 4)
Value-chain position
Lenzing spans the chain from forestry and wood procurement (including eucalyptus plantations in Brazil through the LD Celulose JV, recorded as biological assets) through dissolving-pulp production (Lenzing, Paskov, Indianópolis) and fibre spinning (nine production sites at end-2025). Downstream customers are spinners and yarn makers (textiles) and roll-goods producers (nonwovens). Lenzing also maintains brand relationships directly with apparel, home-textile and hygiene brand owners, who specify TENCEL™, ECOVERO™ or VEOCEL™ to their supply chains: a "pull" model unusual in commodity fibres.
Customer types and end-markets
Textiles: apparel (denim, intimates, activewear, womenswear), home textiles (bedding, towels), luxury (TENCEL™ Luxe filament).
Nonwovens: wipes (baby, personal care, household), hygiene (topsheets, feminine care), cosmetic sheet masks, medical. This is the stated growth priority under the 2026 strategy.
Technical and industrial: flame-retardant fibres (LENZING™ FR for protective apparel), specialty fibres.
Pulp customers: third-party viscose and lyocell producers (largely Asian), supplied from Brazil.
Biorefinery: acetic acid, furfural, xylose and similar co-products sold to chemical, food and pharma users.
Independent characterisation
Lenzing should now be understood as two economically distinct businesses under one roof:
-
A high-margin, scale-advantaged dissolving-pulp business: FY2025 segment EBITDA of EUR 451.5M at a 34.6% margin, anchored by the 500 kt Brazilian mill, which ran about 20% above nameplate in 2025.
-
A structurally challenged branded-fibre business: FY2025 segment EBITDA of EUR 0.1M on EUR 1.9bn sales, with EBIT of EUR −184.4M after an EUR 82M impairment in Indonesia.
The Fiber Division's premium positioning has not insulated it from Chinese capacity additions in lyocell and viscose. The 2026 strategy implicitly concedes that the European lyocell footprint (Heiligenkreuz, Grimsby) is uneconomic. It redirects capital to nonwovens, where Lenzing's VEOCEL™ brand and plastic-free regulatory tailwinds (for example the EU Single-Use Plastics Directive) support differentiation.
Strategy
Strategy evolution
"Better Growth" (2015–2023): shift from commodity to specialty fibres (target above 75% specialty share), backward integration into pulp (Brazil) and lyocell scale (Thailand). It was supported by an EBITDA ambition of EUR 800M that was never reached.
Performance programme (2023–2025): cost excellence, revenue and margin management, and cash generation. It delivered more than EUR 200M of savings in 2025 (EUR 130M in 2024). Additional measures beyond 2025 include about 300 HQ positions (above EUR 25M annual savings from 2026) and about EUR 45M of annual savings from administrative streamlining.
"Refined premiumisation" (December 2025): ExCo structure created to sharpen commercial focus on premium fibre segments.
"Grow Nonwovens, Reset Textiles" (27 July 2026): the current strategy.
"Grow Nonwovens, Reset Textiles": the four pillars
| Pillar | Content |
|---|---|
| Grow Nonwovens | Substantial organic growth of the nonwovens business by 2030. EUR 15M (November 2025) plus EUR 8M (June 2026) invested in nonwovens capacity at Lenzing, focused on hygiene. Next-generation nonwoven fibres developed with leading industry partners. Mobile, Alabama converted to specialty nonwovens. |
| Reset Textiles | Concentrate the textile portfolio on premium segments (TENCEL™, LENZING™ ECOVERO™), supported by TreeToTextile, LENZING™ Nonwoven Technology and advanced filament solutions. Exit low-margin generic volumes. Pursue additional TENCEL™ Modal capacity in Austria and China. |
| Strengthen Pulp / biorefinery | Further strengthen the Pulp Division and biorefinery (Brazil, Paskov, Lenzing). |
| Footprint and cost | Close Heiligenkreuz (end-2026) and Grimsby (end-2027); reduce Purwakarta to two lines and run a sale process; headcount reduction of 267 achieved in H1 2026; about 2,000 positions in total by end-2027 (including the 600 SG&A roles announced earlier). Additional cost savings of EUR 120M versus 2025, fully effective by end-2027. |
| Financial structure | EUR 600M package: about EUR 300M rights issue plus a EUR 300M new credit line, with existing debt maturities extended to 2030 (Modaes). |
Medium-term financial targets (July and August 2026)
| Target | Value |
|---|---|
| Revenue | Return to growth in the medium term |
| EBITDA uplift | About EUR 150M |
| EBITDA margin | 20% to 25% |
| Leverage (NFD/EBITDA) | Below 2.5x |
| Cost savings | EUR 120M by end-2027 (versus 2025) |
| 2026 one-offs | Up to EUR 150M non-cash impairments (EBIT and net result only); up to EUR 40M restructuring provisions (EBITDA) |
| FY2026 guidance | None quantified. In the Q1 2026 statement, management said a reliable forecast for 2026 was not possible. |
Products & Services
Pricing is generally not publicly disclosed. Fibres are sold per tonne under negotiated contracts, with specialty premiums over generic viscose benchmarks.
Division Fiber — Textiles (TENCEL™ and LENZING™ ECOVERO™)
| Brand / product | Description and key capabilities | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| TENCEL™ Lyocell | Lyocell staple fibre made by a closed-loop solvent-spinning process (NMMO solvent largely recovered). Offers high wet strength, moisture management and smoothness. | Spinners, denim and apparel mills, home-textile brands | Lyocell commercialised in the 1990s (Courtaulds/Lenzing) | Core premium textile fibre. Produced in Austria, the UK and Thailand, and historically in the US; European capacity is shrinking from 2026. |
| TENCEL™ Modal | Modal fibre (high wet-modulus viscose) noted for softness and colour retention. Historically made from beech wood at the integrated Lenzing site. | Intimates, loungewear, home textiles | Long-standing; capacity expansion planned in Austria and China (2026) | Named in the 2026 strategy as a premium growth line. |
| TENCEL™ Lyocell filament ("TENCEL™ Luxe") | Continuous lyocell filament positioned as a silk alternative. | Luxury fashion | c.2020 (not re-verified) | Ties into the "advanced filament solutions" named in the 2026 strategy. |
| TENCEL™ with REFIBRA™ technology | Lyocell made with recycled pre- and post-consumer cotton textile waste mixed with wood pulp. | Brands with circularity targets | 2017 launch (not re-verified) | Circularity flagship. |
| TENCEL™ carbon-zero variants | TENCEL™ fibres certified CarbonNeutral® through reductions and offsets. | Sustainability-focused brands | c.2020 (not re-verified) | — |
| LENZING™ ECOVERO™ | Viscose made from certified or controlled wood with a lower environmental footprint than generic viscose. Traceable using fibre-identification technology. | Mass-market and premium fashion | 2017 (not re-verified) | Lenzing's differentiated answer to commodity viscose. |
| LENZING™ ECOVERO™ Black / colour variants | Spun-dyed viscose that avoids conventional dyeing. | Fashion | — | — |
| LENZING™ viscose and modal (generic grades) | Standard viscose and modal staple fibre. | Spinners | Legacy | The deliberate reduction of these low-margin volumes drove the H1 2026 revenue decline. |
Division Fiber — Nonwovens (VEOCEL™)
| Brand / product | Description | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| VEOCEL™ Lyocell | Lyocell for nonwovens; biodegradable and plastic-free. | Wipes and hygiene roll-goods producers | VEOCEL™ brand created c.2018 (not re-verified) | Core of "Grow Nonwovens". |
| VEOCEL™ viscose / specialty nonwoven fibres | Nonwoven-grade viscose with tailored fibre geometry. | Wipes, hygiene | Ongoing | Capacity at Lenzing expanded through a EUR 15M (November 2025) plus EUR 8M (June 2026) investment, focused on hygiene. |
| VEOCEL™ Beauty | Lyocell for cosmetic sheet masks. | Cosmetics | Not re-verified | — |
| Next-generation nonwoven fibres | New fibres for nonwovens, especially hygiene applications (July 2026 release). | Leading nonwovens producers | Under development (2026) | Developed with "leading companies in the nonwovens industry" per the July 2026 release. |
| LENZING™ Nonwoven Technology (incl. LENZING™ Web Technology) | Proprietary process technology for making nonwoven webs directly from cellulose. | Nonwoven producers / licensees | Named in the 2026 strategy | Platform for technology-led growth. |
| Mobile (Alabama) specialty nonwovens | Conversion of the Mobile lyocell site into a "state-of-the-art specialty nonwovens facility". | US nonwovens market | Announced July 2026 | Repurposing of existing TENCEL™ capacity. |
Division Fiber — Special and industrial applications (LENZING™)
| Product | Description | Target customer |
|---|---|---|
| LENZING™ FR | Inherently flame-resistant modal fibre for protective clothing. | Workwear and protective-apparel makers, military |
| LENZING™ specialty lyocell and viscose | Fibres for technical uses (for example filtration and specialty papers). | Industrial converters |
Process technology platforms
| Platform | Description |
|---|---|
| TreeToTextile | Technology collaboration for a new low-impact cellulosic fibre process, named as a strategic technology in July 2026. Lenzing is a partner and investor (stake not publicly disclosed). |
| Lyocell (NMMO) closed-loop process | Core proprietary process know-how. |
| Biorefinery concept (Lenzing site) | Wood is fully used: pulp plus acetic acid, furfural, xylose, sodium sulfate and energy. |
Division Pulp
| Product / service | Description | Customer | Notes |
|---|---|---|---|
| Dissolving wood pulp (DWP) | Feedstock for viscose and lyocell. Made from beech (Lenzing), spruce (Paskov) and eucalyptus (Brazil). | Internal fibre sites and external viscose and lyocell producers | External pulp revenue was EUR 524.2M in FY2025. The Brazilian mill (500 kt nameplate) ran about 20% above nameplate in 2025. |
| Biorefinery products and energy | Acetic acid, furfural, xylose and others, plus electricity and heat. | Chemical, food and pharma; energy grid | EUR 112.2M in FY2025 |
| Mechanical and plant engineering, engineering services, wood | Engineering know-how (historically "Lenzing Technik") and wood trading. | Third parties | EUR 65.3M in FY2025 |
Financial Narrative
Source: ASR 2025 Five-Year Overview, Segment Report and income statement, unless noted as derived.
Income statement
Notes: Diluted EPS is taken as equal to basic, since no material dilutive instruments were identified. EPS is calculated after hybrid-capital coupons and non-controlling interests, which is why FY2025 EPS (−5.45) is worse than FY2024 (−4.06) despite a slightly smaller net loss. FY2022 EBITDA is shown as restated (EUR 241.9M); the originally reported FY2022 figure was higher. FY2024 gross profit uses FY2024 cost of sales as presented in ASR 2025.
Margins
Revenue CAGR FY2021–FY2025: 4.4% (derived). Almost all of this came in FY2022 from price inflation; revenue has been flat to down since.
Balance sheet
Notes on debt and equity.
-
"Adjusted equity" includes the EUR 500M hybrid bond (equity under IFRS) and non-controlling interests, mainly Dexco's 49% of LD Celulose. Equity attributable to ordinary shareholders is therefore materially lower than EUR 1,363.5M.
-
Non-current assets in the Americas fell from EUR 1,637.3M to EUR 1,418.4M in FY2025, and in Asia from EUR 676.1M to EUR 499.0M. Both declines reflect FX translation (BRL, USD) and the Indonesian impairment.
Cash flow
Notes: The FY2022 dividend paid is derived as the EUR 4.35 FY2021 dividend multiplied by 26.55M shares. Hybrid coupons and dividends to non-controlling interests are not included. No buyback authorisation has been used in the period.
Ratios
Notes:
-
The cash conversion cycle is not disclosed. Trading working capital to revenue (18.0% in FY2025) is the company's own proxy.
-
The derived net financial result includes FX and other financial items, not just interest. The FY2023 EBIT/net-financial-result ratio is not meaningful because EBIT was negative.
Interim results, 2026
Q2 figures are derived as H1 minus Q1. The company quotes Q2 EBITDA as EUR 123.0M. The H1 2026 EBITDA margin appears as 18.9% in the release text and as 18.6% in one table and in some press reports; the discrepancy is noted. Net financial debt was EUR 1.36bn at 30 June 2026, and liquidity including liquid bills of exchange was EUR 618M. H1 2025 EBITDA had been flattered by one-offs: EUR 30.6M from sales of surplus EU emission allowances and EUR 12.5M from biological-asset valuation.
Commentary on trends, inflections and drivers
-
2021 peak to 2022 collapse. FY2021 was a post-COVID restocking peak: EBITDA of EUR 362.9M, a EUR 4.35 dividend and a EUR 122 share price. In 2022, energy and caustic-soda costs exploded while fibre demand softened. Group EBITDA halved to EUR 241.9M and Fiber EBITDA fell 85%. At the same time, the peak investment cycle (EUR 1.54bn capex in 2021–22) pushed free cash flow to EUR −1.19bn over two years and net financial debt from EUR 914M to EUR 1.80bn.
-
2023 balance-sheet reset. EUR 464.9M of impairments on sites in Indonesia, Austria, China, Thailand and the US produced the EUR −593M net loss. A rights issue and loan extensions restored liquidity to EUR 731M.
-
2024–2025 self-help. The performance programme delivered about EUR 130M (2024) and more than EUR 200M (2025) of savings. Free cash flow turned positive (EUR 169M and EUR 174M), and leverage fell from 7.4x to 3.3x. Even so, net losses persisted because of high D&A (EUR 397M in FY2025 including impairment), the EUR 140M net financial burden, hybrid coupons and minorities.
-
2025 quality of earnings. Reported EBITDA (EUR 413M) was supported by CO2-certificate sales and biological-asset gains. The Fiber Division was flat at the EBITDA level, and fibre volumes fell 6% while USD selling prices rose 2.8% on mix (FY2025 call). The growth came from Pulp, with sales volumes up 27%.
-
2026 inflection attempt. H1 2026 net profit rose to EUR 35.6M, mainly on FX valuation gains in the financial result. EBITDA was down 11% as low-margin volume was deliberately cut. Full-year 2026 EBIT and net result will absorb up to EUR 150M of non-cash impairments and up to EUR 40M of restructuring provisions (the latter hitting EBITDA).
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansFinancial Detail
Revenue by Segment
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Division Fiber external revenue (EUR Mn) | 1,904.3 | 2,093.8 | 1,841.0 | 2,033.0 | 1,897.8 |
Division Pulp external revenue (EUR Mn) | 284.2 | 466.9 | 676.1 | 627.6 | 701.6 |
Others external revenue (EUR Mn) | 6.1 | 5.0 | 4.0 | 3.3 | 3.0 |
Group revenue (EUR Mn) | 2,194.6 | 2,565.7 | 2,521.2 | 2,663.9 | 2,602.4 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansRevenue by Segment — Division Fiber total revenue
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Division Fiber total revenue (EUR Mn) | 1,904.3 | 2,104.8 | 1,850.6 | 2,033.5 | 1,898.1 |
Division Pulp total revenue (EUR Mn, FY2024 restated) | 759.3 | 952.0 | 1,047.4 | 1,381.6 | 1,304.3 |
Pulp inter-segment revenue (EUR Mn) | 475.1 | 485.1 | 371.3 | 754.0 | 602.7 |
Results by Segment and Segment Margins & Growth (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Division Fiber EBITDA (EUR Mn) | 214.0 | 32.9 | -98.7 | 32.8 | 0.1 |
Division Pulp EBITDA (EUR Mn) | 210.1 | 310.0 | 462.1 | 436.3 | 451.5 |
Others EBITDA (EUR Mn) | -58.4 | -100.3 | -65.7 | -52.5 | -51.6 |
Division Fiber EBIT (EUR Mn) | 107.4 | — | -683.8 | -68.7 | -184.4 |
Division Pulp EBIT (EUR Mn) | 164.2 | — | 284.6 | 243.7 | 249.6 |
Division Fiber EBITDA margin (%) | 11.2 | 1.6 | -5.3 | 1.6 | 0.0 |
Division Pulp EBITDA margin (%, FY2024 restated) | 27.7 | 32.6 | 44.1 | 31.6 | 34.6 |
Division Fiber EBIT margin (%) | 5.6 | -4.4 | -36.9 | -3.4 | -9.7 |
Division Pulp EBIT margin (%) | 21.6 | 23.2 | 27.2 | 17.6 | 19.1 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Fiber external revenue YoY (%) | -12.1 | 10.4 | -6.6 |
Pulp external revenue YoY (%) | 44.8 | -7.2 | 11.8 |
Fiber share of group revenue (%) | 73.0 | 76.3 | 72.9 |
Pulp share of group revenue (%) | 26.8 | 23.6 | 27.0 |
Fiber capex (EUR Mn) | — | 79.0 | 62.5 |
Pulp capex (EUR Mn) | — | 76.0 | 77.3 |
Fiber D&A incl. impairment (EUR Mn) | — | 102.9 | 185.8 |
Fiber impairment (EUR Mn) | — | 3.8 | 82.0 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (EUR Mn) | 2,194.6 | 2,565.7 | 2,521.2 | 2,663.9 | 2,602.4 |
Revenue YoY growth (%) | 34.4 | 16.9 | -1.7 | 5.7 | -2.3 |
Gross profit (EUR Mn, derived: revenue minus cost of sales) | — | — | — | 508.1 | 338.4 |
EBITDA reported (EUR Mn) | 362.9 | 241.9 | 303.3 | 395.4 | 413.0 |
EBITDA adjusted for restructuring (EUR Mn) | — | — | — | 395.4 | 425.6 |
Operating income / EBIT (EUR Mn) | 200.6 | 16.5 | -476.4 | 88.5 | 17.6 |
Pre-tax income / EBT (EUR Mn) | 182.9 | -10.1 | -585.6 | -42.0 | -122.5 |
Net income after tax (EUR Mn) | 127.7 | -37.2 | -593.0 | -138.3 | -135.2 |
EPS basic (EUR) | 4.16 | -2.75 | -20.02 | -4.06 | -5.45 |
EPS diluted (EUR) | 4.16 | -2.75 | -20.02 | -4.06 | -5.45 |
Dividend per share (EUR) | 4.35 | 0 | 0 | 0 | 0 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansMargin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%, derived) | — | — | — | 19.1 | 13.0 |
EBITDA margin (%) | 16.5 | 9.4 | 12.0 | 14.8 | 15.9 |
EBIT margin (%) | 9.1 | 0.6 | -18.9 | 3.3 | 0.7 |
Net margin (%, derived) | 5.8 | -1.4 | -23.5 | -5.2 | -5.2 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (EUR Mn) | 5,322.8 | 5,525.0 | 5,214.6 | 4,976.8 | 4,609.4 |
Liquid assets (EUR Mn) | 1,124.1 | 453.3 | 731.0 | 451.7 | 690.9 |
Unused credit facilities (EUR Mn) | 454.5 | 232.3 | 203.0 | 198.1 | 219.1 |
Gross financial debt excl. leases (EUR Mn, derived: NFD + liquid assets) | 2,037.7 | 2,252.7 | 2,293.6 | 1,984.2 | 2,041.0 |
Net financial debt excl. leases (EUR Mn) | 913.6 | 1,799.4 | 1,562.6 | 1,532.5 | 1,350.1 |
Net financial debt incl. leases (EUR Mn) | 977.0 | 1,869.0 | 1,704.7 | 1,656.3 | 1,478.6 |
Net debt incl. pensions and other items (EUR Mn) | 1,079.3 | 1,946.6 | 1,779.5 | 1,732.2 | 1,542.2 |
Adjusted equity (EUR Mn) | 2,115.7 | 2,088.6 | 1,809.1 | 1,725.9 | 1,363.5 |
Adjusted equity ratio (%) | 39.7 | 37.8 | 34.7 | 34.7 | 29.6 |
Trading working capital (EUR Mn) | 387.4 | 570.7 | 551.1 | 578.0 | 453.4 |
Trading working capital / annualised revenue (%) | 16.0 | 24.0 | 21.0 | 20.5 | 18.0 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansCash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (EUR Mn) | 394.0 | -43.2 | 160.3 | 395.0 | 419.7 |
Capex (EUR Mn) | 844.3 | 698.9 | 283.6 | 153.8 | 141.1 |
Free cash flow (EUR Mn, company definition) | -445.5 | -740.7 | -122.8 | 169.4 | 173.9 |
Unlevered free cash flow (EUR Mn) | — | — | — | 244.6 | 279.3 |
Dividends paid to Lenzing shareholders (EUR Mn, derived) | — | 115.5 | 0 | 0 | 0 |
Share buybacks (EUR Mn) | 0 | 0 | 0 | 0 | 0 |
Returns & Leverage Ratios (%) and Balance Sheet
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%, reported) | 9.1 | -0.5 | -30.1 | -2.4 | -7.9 |
ROA (%, derived: net income / total assets) | 2.4 | -0.7 | -11.4 | -2.8 | -2.9 |
ROCE (%, reported; proxy for ROIC) | 5.4 | 2.0 | -14.2 | 3.6 | 0.7 |
ROI (%, reported) | 4.2 | 0.3 | -8.9 | 1.7 | 0.4 |
Net gearing (%; NFD / adjusted equity, used as debt-to-equity) | 43.2 | 86.2 | 86.4 | 88.8 | 99.0 |
Net financial debt / EBITDA (x) | 2.5 | 7.4 | 5.2 | 3.9 | 3.3 |
EBITDA / net financial result (x, derived) | 20.5 | 9.1 | 2.8 | 3.0 | 2.9 |
EBIT / net financial result (x, derived) | 11.3 | 0.6 | — | 0.7 | 0.1 |
Asset turnover (x, derived: revenue / total assets) | 0.41 | 0.46 | 0.48 | 0.54 | 0.56 |
Net financial result (EUR Mn, derived: EBT − EBIT) | -17.7 | -26.6 | -109.2 | -130.5 | -140.1 |
Income Statement and Margin Analysis (%) (H1 2025–Q2 2026)
| Metric | Q1 2026 | Q2 2026 | H1 2026 | H1 2025 |
|---|---|---|---|---|
Revenue (EUR Mn) | 615.7 | 651.7 | 1,267.5 | 1,341.2 |
EBITDA (EUR Mn) | 116.3 | 122.9 | 239.2 | 268.6 |
EBITDA margin (%) | 18.9 | 18.9 | 18.9 | 20.0 |
Net result after tax (EUR Mn) | 24.0 | 11.6 | 35.6 | 15.2 |
Operating cash flow (EUR Mn) | — | — | 160.4 | — |
Revenue by Region
| Region | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Austria (EUR Mn) | — | 88.2 | 89.0 |
Europe excl. Austria, incl. Turkey (EUR Mn) | — | 751.7 | 674.7 |
Asia (EUR Mn) | — | 1,571.5 | 1,581.9 |
Americas (EUR Mn) | — | 237.7 | 242.5 |
Rest of world (EUR Mn) | — | 14.9 | 14.3 |
Group total (EUR Mn) | 2,521.2 | 2,663.9 | 2,602.4 |
Geographic Revenue
| Region | FY2025 YoY growth (%) | FY2025 share of revenue (%) |
|---|---|---|
Austria | 0.9 | 3.4 |
Europe excl. Austria | -10.2 | 25.9 |
Asia | 0.7 | 60.8 |
Americas | 2.0 | 9.3 |
Rest of world | -3.7 | 0.5 |
Share Price and Market Valuation
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Year-end share price (EUR) | 122.00 | 54.80 | 35.55 | 29.50 | 23.40 |
Year-end market cap (EUR Mn) | 3,239.1 | 1,454.9 | 1,372.9 | 1,139.2 | 903.7 |
Shares outstanding (M, derived) | 26.55 | 26.55 | 38.62 | 38.62 | 38.62 |
Dividend per share (EUR) | 4.35 | 0 | 0 | 0 | 0 |
Change by Horizon
| Horizon | Change | Basis |
|---|---|---|
Year to date 2026 | about −54% | EUR 23.40 (31 December 2025) to EUR 10.76 (16 October 2026, ex-rights) |
1 year | about −56% | About EUR 24.70 (6 November 2025) to EUR 10.76 |
3 years | about −70% | EUR 35.55 (end-2023) to EUR 10.76 (end-2023 used as proxy) |
5 years | about −90% | EUR 103.20 (30 June 2021) to EUR 10.76 |
Valuation Snapshot
| Multiple | Value | Method |
|---|---|---|
P/E | Not meaningful | FY2025 EPS EUR −5.45 |
EV/EBITDA (FY2025) | About 4.6x excluding hybrid; about 5.9x including the EUR 500M hybrid as debt | Pro forma market cap about EUR 790M plus pro forma NFD about EUR 1.06bn (after about EUR 300M proceeds); EBITDA EUR 413M |
EV/Sales (FY2025) | About 0.7–0.9x | Same EV range ÷ EUR 2,602M |
P/B | Not meaningful on reported "adjusted equity" | Adjusted equity includes the hybrid and minority interests |
Capital Instruments
| Instrument | Amount | Maturity / status |
|---|---|---|
Syndicated financing (2025) | EUR 545M | Secured financing to 2027 |
Hybrid bond (2025) | EUR 500M | — |
New credit line (2026 package) | EUR 300M | Part of the EUR 600M package; maturities extended to 2030 (Modaes) |
Rights issue (2026) | About EUR 300M equity | Closing late October 2026 |
Net financial debt, 30 June 2026 | About EUR 1.36bn | Before equity proceeds |
Liquidity, 30 June 2026 | EUR 618M (including liquid bills of exchange) | — |
Analyst Conclusions
Management guidance
FY2026: no quantified guidance ("a reliable forecast for 2026 not possible", Q1 2026).
Medium term: return to revenue growth, about EUR 150M EBITDA uplift, 20–25% EBITDA margin, leverage below 2.5x.
Cost: EUR 120M of additional savings versus 2025, fully effective by end-2027.
2026 one-offs: up to EUR 150M of impairments (EBIT and net result) and up to EUR 40M of restructuring provisions (EBITDA).
Consensus growth expectations
Press reports around the Berenberg downgrade (October 2026) point to scepticism that 2026 EBITDA consensus estimates, which had been rising, are achievable given cost inflation and restructuring provisions.
Bull case
-
Pulp-anchored floor value. Pulp segment EBITDA of about EUR 450M per year at a 35% margin (FY2025) alone exceeds group EBITDA. At a pro forma EV of about EUR 1.85–2.35bn, the market is effectively assigning negative value to the Fiber Division. Any Fiber recovery is therefore upside.
-
Self-help with a track record. Savings of more than EUR 200M (2025) were delivered on schedule. An additional EUR 120M plus the exit from loss-making Heiligenkreuz, Grimsby and Purwakarta could lift Fiber EBITDA from zero towards EUR 100–150M, consistent with the EUR 150M uplift target.
-
De-risked balance sheet. The EUR 300M rights issue and refinancing to 2030 remove the near-term liquidity overhang. Pro forma leverage of about 2.6–2.7x is already close to the below-2.5x target, and FCF of about EUR 170M per year could deleverage quickly.
Bear case
-
Structural Fiber decline. Fiber EBITDA fell from EUR 214M (2021) to EUR 0.1M (2025) on flat revenue. Chinese lyocell and viscose capacity may make the premium unrecoverable, and closures may only shrink losses rather than restore profits.
-
Earnings quality and cyclicality. FY2025 EBITDA was helped by CO2-certificate sales and biological-asset gains, and H1 2026 net profit by FX. Pulp prices are cyclical, so a pulp downturn would expose a group with zero Fiber earnings.
-
Dilution and governance. Two rights issues in three years (2023 and 2026) have roughly tripled the share count since 2021 (26.55M to 73.4M). Persistent CEO turnover and controlling-shareholder dominance limit minority influence.
Key catalysts and monitorables (next 12 months)
| Timing | Catalyst |
|---|---|
| 20–23 Oct 2026 | Final take-up of the rights issue, international placement and listing of new shares |
| 5 Nov 2026 | Q3 2026 results: Fiber margins, size of restructuring provisions, any FY2026 indication |
| By end-2026 | Heiligenkreuz buyer decision; Purwakarta sale outcome; closing of the EUR 300M credit line and maturity extension |
| Mar 2027 | FY2026 results (impairments up to EUR 150M) and first progress report on "Grow Nonwovens" |
| 2,027 | Grimsby wind-down or sale; Mobile nonwovens conversion; TENCEL™ Modal capacity additions |
| Ongoing | Dissolving-pulp and Chinese VSF prices; caustic soda and energy costs; EUR/USD and EUR/BRL; US tariff developments; Suzano's option over a further 15% (to end-2028) |
Analyst verdict
Lenzing enters late 2026 as a company whose identity is being rewritten under duress. The numbers are unambiguous. Since 2021, the branded fibre franchise that defined the group has gone from EUR 214M of EBITDA to effectively nothing. Meanwhile the dissolving-pulp business, built through the Brazilian joint venture, has become the sole source of operating profit, generating about EUR 450M of EBITDA at a mid-thirties margin. Four consecutive annual net losses, EUR 547M of cumulative impairments in 2023 and 2025 with up to EUR 150M more in 2026, and two rights issues in three years have destroyed roughly nine-tenths of the market value investors held in 2021.
"Grow Nonwovens, Reset Textiles" is the most credible restructuring plan Lenzing has presented. It accepts that European lyocell is uncompetitive, redirects capital to nonwovens where regulation and the VEOCEL™ brand offer genuine differentiation, and recapitalises the balance sheet with committed anchor investors. The CEO, Georg Kasperkovitz, comes from operations and has already delivered site-level improvements, and the CFO built the performance programme. Pro forma leverage near 2.7x and refinancing to 2030 remove the existential tail risk.
The risks are equally clear. The medium-term targets (+EUR 150M EBITDA, 20–25% margin) are unquantified in timing and depend on a Fiber recovery the market has repeatedly been promised. Earnings quality has relied on one-offs, and group profitability is now hostage to the pulp cycle.
On balance, at about 5–6x pro forma EV/EBITDA with the Fiber Division priced at roughly zero, the risk/reward is improving but not yet compelling. We view Lenzing as a "show-me" Hold. Upgrade triggers would be evidence over two to three quarters that Fiber EBITDA is turning sustainably positive excluding one-offs, successful divestment of Heiligenkreuz and Purwakarta, and stable pulp pricing. Downside triggers are a pulp-price correction or slippage in the EUR 120M savings plan.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles | Education | Age |
|---|---|---|---|---|---|
Georg Kasperkovitz | CEO (from 1 June 2026; retains COO responsibilities for fibre production, fibre sales, supply chain and HR) | Board member since 1 June 2025 (COO); CEO mandate to 31 May 2029 | CEO of a business unit at Mondi plc; Chairman of the Management Board of Rail Cargo Austria AG; Partner at McKinsey & Company; more than 15 years of international management in Europe, North America and Asia | PhD in Mechanical Engineering (TU Wien); MBA (Harvard Business School) | — |
Mathias Breuer | CFO | Since 1 January 2026; joined Lenzing management in 2023 as SVP responsible for the performance programme | CFO of packaging group Adapa; CFO of the Sempermed division of Semperit AG Holding | — | 42 (as of September 2025) |
Christian Skilich | Chief Pulp Officer / Chief Technology Officer (CPO/CTO) | — | — | — | — |
“—” = not publicly disclosed.
Board & Management Changes
| Date | Change | Context |
|---|---|---|
End-March 2025 | Walter Bickel steps down as Chief Transformation Officer | Board streamlining |
1 June 2025 | Georg Kasperkovitz joins as COO | Operational turnaround of fibre sites |
19 September 2025 | Skilich mandate extended to 2029; Breuer named CFO from 2026 | CFO Nico Reiner chose not to extend his mandate (expiring 31 December 2025). Reiner was credited with the earnings improvement and the 2025 refinancing. |
9 December 2025 | CEO Rohit Aggarwal resigns (effective 31 January 2026; adviser until September 2026); six-member ExCo created | Personal reasons cited. The three-member board led the company on an interim basis. Press (trend.) reported Aggarwal had been less visible during the 600-job SG&A cut. |
29 May 2026 | Kasperkovitz appointed CEO effective 1 June 2026 | Internal solution after a search of internal and external candidates |
Major Shareholders
| Holder | Stake before rights issue (%) | Stake after rights issue as announced (%) | Notes |
|---|---|---|---|
B&C Group (Austrian industrial holding, B&C Privatstiftung) | 37.25 | 39.64 | Syndicate partner |
Suzano S.A. (Brazil) | 15.00 | 12.60 | Bought its 15% from B&C for EUR 230M. Has an option to buy a further 15% from B&C until end-2028. |
B&C + Suzano syndicate | 52.25 | 52.24 | Committed to exercise all subscription rights (about EUR 157.1M) |
Free float (residual) | about 47.75 | about 47.8 | Includes Austrian and international institutional investors and retail |
Competitive Landscape
Key Competitors
| Competitor | Segment overlap | Relative positioning versus Lenzing |
|---|---|---|
Aditya Birla Group: Birla Cellulose (Grasim Industries, India) | Viscose, modal, lyocell (Excel); branded Livaeco | Largest global VSF producer by capacity (industry consensus). Integrated into pulp (Domsjö, AV Group). Lower-cost base with a growing branded offer. |
Sateri (RGE Group, China) | Viscose, lyocell | Major Chinese VSF and lyocell producer; sister company Bracell supplies DWP. Very large scale and cost-competitive. |
Asia Pacific Rayon (RGE Group, Indonesia) | Viscose | Integrated Indonesian VSF; direct competitor to Purwakarta |
Tangshan Sanyou Chemical (China) | Viscose | Large Chinese VSF producer (chemical integration) |
Xinjiang Zhongtai Chemical (China) | Viscose | Large Chinese VSF producer |
Chinese lyocell entrants (e.g. Baoding Swan, Shandong Yingli, Hubei Golden Ring) | Lyocell | Rapid capacity additions since 2021 have eroded the lyocell premium |
Kelheim Fibres (Germany) | Specialty viscose for nonwovens and hygiene | Niche specialty competitor in European nonwovens |
Thai Rayon (Aditya Birla) | Viscose | Regional VSF |
Sappi (Verve dissolving pulp) | Dissolving pulp | Global DWP leader; competes with Lenzing's external pulp sales |
Bracell (RGE) | Dissolving pulp | Large Brazilian DWP producer |
Rayonier Advanced Materials (USA) | Specialty cellulose / DWP | Specialty pulp competitor |
Eastman (Naia™ acetate) | Cellulosic textile fibre (acetate) | Branded cellulosic alternative in fashion |
Polyester producers (e.g. Indorama Ventures) | Substitute | Synthetic fibre substitution, especially in nonwovens and apparel |
Peer Comparison FY2025
| Metric | Lenzing (FY2025) | Sateri / RGE |
|---|---|---|
Revenue | EUR 2,602.4M | Private (not disclosed) |
Revenue growth | −2.3% | — |
EBITDA margin | 15.9% (Fiber 0.0%, Pulp 34.6%) | — |
“—” = not publicly disclosed.
