Lenzing AG
Executive Summary
Lenzing AG is a public limited company, which has been founded since 1890. Lenzing AG manufactures cellulosic fibers out of wood in closed loop operation. In addition, the company applies the concept of the biorefinery for making the production process more effective and sustainable. According to the financial report as per 2025, the turnover of the company amounts to 2,602.40 EUR million. Its EBITDA is performing positively, and there is a net loss of -135.2 EUR million.
Company Overview
The Lenzing Group is an Austrian publicly traded company. It was founded by Emil Hamburger in 1890. It manufactures cellulose fibers such as lyocell, modal and viscose and wood pulp. It produces these materials for the textile, apparel, and nonwovens industries. The company is primarily owned by B&C Group.
Industry Overview
Lenzing AG is in the chemical, textile and packaging industries. They are in the production of wood-based dissolving pulp and regenerated cellulose fibers. It uses an advanced biorefinery concept which uses 100% of wood constituents to generate dissolving pulp, bio-bases byproducts like acetic acid and xylose and bioenergy.
Year | Revenue |
2025 | 2,602.40 |
2024 | 2,663.90 |
2023 | 2,521.20 |
Financial Performance Analysis
Particulars (EUR Million) | FY2025 | FY2024 |
Revenue | 2,602.40 | 2,663.90 |
Gross Profit | 338.4 | 508.1 |
EBITDA | 413 | 395.4 |
Net Profit/(Loss) | -135.2 | -138.3 |
Key Financial YOY
Revenue Trend Over 3–5 Years
Interpretation
The income decreased to €2,602.4 million in 2025. The gross profit also fell, which shows that the firm is under pressure in terms of its profit margins. The firm made favorable EBITDA in 2025 as a result of good management of operations in the firm. The firm recorded net losses, but the situation improved from 2024.
Key Financial Ratio
Ratio Category | Formula | FY 2025 | Interpretation |
Current Ratio | Current Assets / Current Liabilities | 1.36 | The company has sufficient current assets to cover its short-term obligations, indicating adequate liquidity. |
Quick Ratio | (Current Assets − Inventory) / Current Liabilities | 0.92 | Liquid assets are slightly below current liabilities, suggesting moderate short-term liquidity pressure. |
Gross Margin % | Gross Profit / Revenue × 100 | 13.00% | The company retained €13 as gross profit for every €100 of revenue generated. |
Net Profit Margin % | Net Profit / Revenue × 100 | -5.19% | The company incurred a net loss, resulting in a negative profit margin during FY2025. |
Return on Equity (ROE) | Net Profit / Shareholders’ Equity × 100 | -7.90% | Negative ROE indicates that shareholders' funds did not generate positive returns due to losses. |
Debt-to-Equity Ratio | Total Debt / Shareholders’ Equity | 1.66 | The company relies significantly on debt financing, with debt exceeding equity. |
Asset Turnover | Revenue / Total Assets | 0.56 | The company generated €0.56 of revenue for every €1 invested in assets, reflecting moderate asset utilization. |
SWOT Analysis
Strengths | Weaknesses |
Leading global producer of sustainable cellulose fibers. | Net loss of €135.2 million in FY2025. |
Strong focus on innovation and eco-friendly products. | High debt-to-equity ratio of 1.66. |
Improved EBITDA performance in FY2025. | Gross margin declined to 13.0%. |
Opportunities | Threats |
Growing demand for sustainable textiles worldwide. | Volatile raw material and energy costs. |
Expansion into emerging markets and premium fiber segments. | Intense competition from global fiber manufacturers. |
Increasing environmental regulations favor eco-friendly products. | Economic slowdowns may reduce textile demand. |
Peer / Competitor Comparison
Company | Revenue (EUR Million) | Profit Margin (%) | Debt-to-Equity (x) |
Lenzing AG | 2,602.4 | -5.19% | 1.66 |
SK Chemicals Co., Ltd. | 1,516.1 | 0.50% | 0.69 |
LOTTE Fine Chemical Co., Ltd. | 1,123.5 | 6.73% | 0.03 |
Conclusion and Recommendations
Lenzing AG is among the leading companies producing sustainable cellulose fibers operating across the globe. The firm had revenues of €2,602.4 million in the FY2025 and showed improvements in its EBITDA figure by achieving €413.0 million in EBITDA. But the firm experienced declines in its gross profit and incurred a net loss of €135.2 million, giving rise to negative ratios of profitability.
References & Sources
- Lenzing AG Annual Report 2025.
- Lenzing AG Official Website.
- Yahoo Finance - SK Chemicals Co., Ltd. Financial Data.
- Yahoo Finance - LOTTE Fine Chemical Co., Ltd. Financial Data.
- MS Excel - Charts