Lenzing Group Reports Positive Net Result of EUR 24 Mn in Q1 2026, Free Cash Flow Rises to EUR 33.8 Mn

Lenzing Group announced its financial results for the first quarter of 2026, reporting a net result of EUR 24 mn compared to EUR 31.7 mn in the same period last year. The company stated that this marks the first positive quarterly net result after three negative quarters in 2025.

EBITDA for the quarter stood at EUR 116.3 mn, while revenues totaled EUR 615.7 mn, representing a decline of 10.8 percent compared to the first quarter of 2025. Free cash flow increased significantly to EUR 33.8 mn from EUR 14.8 mn in the prior-year period.

According to the company, the market environment continues to be affected by geopolitical tensions, volatile energy prices, and broader economic uncertainty.

Mathias Breuer, CFO of the Lenzing Group, said:
“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.”

The decline in revenue was mainly attributed to lower fiber sales volumes and prices, as well as reduced pulp prices. The company stated that lower fiber sales volumes also reflected deliberate production management measures, including the temporary curtailment of less profitable production lines.

Compared to the fourth quarter of 2025, fiber sales volumes remained largely stable, while pricing levels improved. Raw material, logistics, and energy costs continued to remain elevated but were partially offset through internal efficiency and savings measures.

EBITDA in the first quarter of 2026 decreased from EUR 156.1 mn in the corresponding period last year, while the EBITDA margin stood at 18.9 percent compared to 22.6 percent in Q1 2025. Lenzing noted that EBITDA was supported by positive one-off effects totaling EUR 25.7 mn, including proceeds from the sale of surplus EU emission allowances and a one-time effect from the negative goodwill recognized after the acquisition of a majority stake in TreeToTextile AB in February 2026.

The company stated that the acquisition aligns with its strategy to strengthen its position in next-generation specialty fibers.

EBIT amounted to EUR 40.1 mn in Q1 2026, compared to EUR 74.3 mn in the same quarter last year. EBIT margin stood at 6.5 percent. Earnings before tax reached EUR 22.8 mn, while tax income totaled EUR 1.2 mn, influenced primarily by currency translation effects.

Lenzing said its transformation strategy continues to focus on profitability, resilience, and operational agility. The company’s performance program is aimed at improving EBITDA and generating free cash flow through cost management, profitability improvements, and targeted working capital control.

According to the company, savings exceeding EUR 200 mn were achieved during the 2025 financial year. Additional measures include optimization of structural, personnel, and process costs, alongside operational excellence and energy efficiency initiatives across production sites.

The company also reported that new customers were added for key products and new markets were opened to support revenue growth, while increasing focus remained on high-margin segments.

Cash flow from operating activities rose to EUR 94.6 mn in the first quarter of 2026 compared to EUR 72.0 mn in the prior-year period. The company attributed the increase partly to inventory reduction and working capital management.

Cash and cash equivalents as of March 31, 2026 remained largely stable at EUR 690.1 mn. Capital expenditure for intangible assets, property, plant and equipment, and biological assets totaled EUR 28.4 mn.

Total assets increased to EUR 4.65 bn, while adjusted equity reached EUR 1.39 bn with an adjusted equity ratio of 29.9 percent. Net financial debt remained largely unchanged at EUR 1.36 bn.

Regarding the outlook, Lenzing noted that the International Monetary Fund has revised its global growth forecast for 2026 downwards to 3.1 percent, while maintaining the forecast for 2027 at 3.2 percent. The company stated that geopolitical developments, energy prices, inflation expectations, and financial market conditions continue to create uncertainty.

Lenzing added that it will continue implementing its performance program and transformation measures, but due to the high level of geopolitical and trade policy uncertainty, a reliable forecast for the 2026 financial year is currently not possible.