[pageLogInLogOut]

#Man-Made Fibers

Lenzing advances its transformation: Higher EBITDA, stronger free cash flow and more than EUR 200 million in cost savings

© 2026 Lenzing
The business performance of the Lenzing Group in 2025 was affected particularly in the second half of the year by external factors such as international tariff measures, subdued demand and declining market prices. As a result, revenue decreased slightly by 2.3 percent to EUR 2.6 billion, primarily due to lower fiber sales volumes and lower prices for fibers and pulp, which were further negatively impacted by currency developments. Nevertheless, thanks to the comprehensive Performance Program, Lenzing was able to improve its operating performance and key financial indicators compared with the previous year.

Adjusted for restructuring expenses, EBITDA increased by 7.6 percent from EUR 395.4 million in 2024 to EUR 425.6 million (reported EBITDA EUR 413 million). EBIT – before the impairment of long‑term assets at the Indonesian production site – amounted to EUR 99.6 million in 2025 (EUR 88.5 million in 2024) and came in at EUR 17.6 million after the non‑cash adjustment of the carrying amount. Although the result after tax remained negative, it improved slightly to minus EUR 135.2 million compared to minus EUR 138.3 million in the previous year. Free cash flow rose to EUR 173.9 million (EUR 169.4¹ million in 2024), while unlevered free cash flow increased to EUR 279.3 million (EUR 244.6 million in 2024).

“We are continuing to drive the transformation of the Lenzing Group forward. In 2025, despite a challenging environment, we made substantial progress: higher EBITDA, improved free cash flow and significant cost reductions. Through the Performance Program, our organizational development and targeted investments in our sites, we are strengthening profitability and consistently advancing our premiumization strategy. This is how we create stability for today and growth opportunities for the future,” said the Managing Board of the Lenzing Group: Mathias Breuer, CFO, Christian Skilich, CPO/CTO, and Georg Kasperkovitz, COO.

Market environment and operational measures

Staple fiber prices remained under pressure in 2025, and dissolving wood pulp prices declined significantly; at the same time, raw material, energy and logistics costs remained high.

Income statement

The Lenzing Group’s EBITDA adjusted for restructuring expenses increased to EUR 425.6¹ million in the 2025 financial year, supported by the effective implementation of performance measures as well as efficiency improvements in core processes. EBIT – impacted by a non‑cash impairment of EUR 82.1 million in connection with the strategic options for the Indonesia site – amounted to EUR 17.6 million (EBIT margin 0.7 percent). EBT came in at minus EUR 122.5 million; income tax expense amounted to EUR 12.7 million. The result after tax improved slightly to minus EUR 135.2 million.

Cash flow, liquidity and financing

Cash flow from operating activities amounted to EUR 419.7 million; free cash flow increased to EUR 173.9 million and unlevered free cash flow to EUR 279.3 million. To support operating cash flow, Lenzing selectively adjusted production capacities, resulting in a 21.6 percent reduction in working capital to EUR 453.4 million. Lenzing strengthened its capital structure through a syndicated financing package of EUR 545 million (loan: EUR 355 million / revolving credit facility: EUR 190 million), the issuance of a new hybrid bond of EUR 500 million, and the repayment of the 2020 hybrid bond. Liquid assets as of December 31, 2025 amounted to EUR 690.9 million; net financial debt decreased to EUR 1.35 billion; the adjusted equity ratio stood at 29.6 percent.

Investments and cost program

Cost savings of more than EUR 200 million (2024: EUR 130 million) were realized in 2025. Capital expenditures (CAPEX) amounted to EUR 141.1 million and were primarily allocated to maintenance and license‑to‑operate projects as well as initiatives aimed at strengthening operational excellence and optimizing energy efficiency. In addition, Lenzing is implementing a comprehensive cost‑optimization program that includes a planned reduction of around 600 positions in Austria. The annual savings of approximately EUR 45 million are expected to be fully realized by the end of 2027 at the latest. Of this amount, EUR 22 million has already been achieved in the final months of the year through the termination of employment for more than 200 employees.

Segment and sales performance

New customers for key products and expansion into important, higher‑margin markets in North America and Asia supported revenue development. External revenue distribution in 2025 was 61 percent in Asia, 29 percent in Europe including Turkey, 9 percent in the Americas and 1 percent in other regions. Fiber sales volumes amounted to roughly 904,000 tonnes (2024: approximately 960,000 tonnes). The pulp business ensured the supply of dissolving wood pulp for fiber production while also generating significant external pulp revenues that contributed positively to the Group result.

Management Board and governance

In 2025, several changes occurred within the Managing Board of the Lenzing Group. After Walter Bickel stepped down as Chief Transformation Officer at the end of March 2025, Georg Kasperkovitz assumed the role of Chief Operations Officer (COO) as of June 1, 2025. Mathias Breuer succeeded Nico Reiner as CFO on January 1, 2026, following the regular expiration of Reiner’s term. The mandate of Christian Skilich was extended early through May 31, 2029. CEO Rohit Aggarwal stepped down on January 31, 2026; since then, the company has been led by a three‑member board: CFO Mathias Breuer, COO Georg Kasperkovitz and CPO/CTO Christian Skilich. To support the organization’s further development, an Executive Committee was established.

Outlook

Trade policy uncertainties and geopolitical tensions – including the indirect effects of the US–Iran conflict on energy markets, supply chains and consumer confidence – are slowing global developments and resulting in limited visibility. Prices in the market for generic fibers are expected to remain under pressure due to further capacity additions. However, slightly improved price trends and demand in the pulp and fiber businesses can be observed in Q1 2026. Lenzing will continue to consistently drive the company’s transformation through its holistic performance program and premiumization strategy in order to further enhance profitability, resilience and agility.



More News from Lenzing

#Man-Made Fibers

Lenzing shareholders approve €300 million capital increase

Shareholders of Lenzing AG have approved a capital increase of approximately €300 million, providing financial support for the company's recently announced "Grow Nonwovens, Reset Textiles" strategy.

#Man-Made Fibers

Lenzing reports improved half-year results and advances strategic transformation

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 significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

#Nonwovens

Lenzing Group highlights scalable, bio-based nonwovens solutions at leading global industry fairs

From CIDPEX in China to Techtextil in Frankfurt and INDEX in Geneva, the Lenzing Group showcases ready-for-market, bio-based nonwoven solutions and receives industry recognition for LENZING™ Nonwoven Technology.

#Yarn & Fiber

Lenzing AG appoints Georg Kasperkovitz as Chief Executive Officer

The Supervisory Board of Lenzing AG has appointed Georg Kasperkovitz, Member of the Management Board and Chief Operations Officer, as Chief Executive Officer (CEO) of Lenzing AG with effect from June 1, 2026.

More News on Man-Made Fibers

#Spinning

Greater efficiency for tomorrow’s textile industry

From September 24 to 27, 2026, Barmag, together with BB Engineering (BBE), will present innovative solutions for the efficient and sustainable production of synthetic yarns at the Egy Stitch & Tex Expo in Cairo, Egypt. Under the motto “A New Era. Powered by Innovation.,” experts from Barmag and BBE will present technologies spanning the entire textile value chain — from melt to yarn — at the ATAG Ltd. booth (Hall 1, Booth C1).

#Man-Made Fibers

The LYCRA Company expands its co-creation vision through an immersive Lifestyle District at Intertextile Shanghai.

The LYCRA Company, a global leader in fiber and technology solutions for the apparel industry, is reimagining the trade show experience at Intertextile Shanghai Apparel Fabrics Autumn Edition, which opened today in China. Building on the success of last year's ALL IN concept, the company has expanded its co-creation vision into a 356-square-meter Lifestyle District featuring partners Jingzili New Material, JYT Textile, Lianxingfa Knitting, and Trend Textile. The district is part of a larger 895-square-meter pavilion showcasing a total of 19 co-exhibitors. Together, they demonstrate how innovations in fiber, fabric, and garments can be combined to create compelling solutions for both work and play.

#Man-Made Fibers

Bemberg and Anita Dongre collaborate once again to launch “BREATH” collection

BembergTM and Anita Dongre present BREATH, a ready to wear collection of 18 key silhouettes, shaped by a common belief that true beauty is inseparable from caring for the environment.

#Man-Made Fibers

Dyneema® to unveil next-generation mooring fiber at SMM 2026

Dyneema®, the world's strongest fiber™, will introduce Dyneema® SK80 fiber at SMM 2026 (Shipbuilding, Machinery, and Marine Technology), the world’s leading international maritime trade fair, held in Hamburg, Germany.

Latest News

#Weaving

Lindauer DORNIER GmbH welcomes new apprentices and dual-study students

For 22 new “DORNIER Talents”, these days mark the beginning of a new chapter at Lindauer DORNIER. For the family-owned company, in-house training is a key pillar in developing skilled professionals and retaining them within the company for the long term.

#Raw Materials

Cotton Brazil Dialogues 2026 concludes with 50 international participants immersed in Brazilian cotton production

The Cotton Brazil Dialogues concludes its 2026 edition after a series of technical visits to farms, cotton gins and reference centers, as well as workshops focused on Brazilian cotton production. A total of 50 participants from 14 countries took part in the field trips. The initiative is led by the Brazilian Association of Cotton Growers (Abrapa) and the National Association of Cotton Exporters (Anea), with support from the Brazilian Trade and Investment Promotion Agency (ApexBrasil).

#Research & Development

Novel flame-retardant and recyclable fiber-reinforced composite

Airplanes and passenger trains must meet strict safety requirements, including fire safety standards. This calls for materials that are flame-retardant, lightweight, robust, and scalable. Empa researchers, in collaboration with their industry partner Elantas, have now succeeded for the first time in making such a material – a composite – fully recyclable.

#Composites

WHILL selects Teijin’s tough, lightweight Carbon Fiber Composite for new last-mile mobility

Teijin Limited announced today that WHILL Inc., a global leader in inclusive mobility technology, has selected Sereebo® P CFP series, a carbon fiber-reinforced thermoplastic (CFRTP) material, for key structural components of the upcoming WHILL Model C Lite. Sereebo® P CFP series provides high strength, light weight, design flexibility and system cost advantages to the Model C Lite, which is a battery powered, single-seat, last-mile device. This new model combines maneuverability with light weight and one-handed folding to ensure ease of handling and operation.

TOP