Lenzing Reports Improved H1 2026 Results, Advances ‘Grow Nonwovens, Reset Textiles’ Strategy

Net profit more than doubles to EUR 35.6 million as the company focuses on higher-margin products, cost reductions and strategic transformation amid challenging market conditions.

The Lenzing Group reported improved financial results for the first half of 2026 despite continued market challenges, including volatile energy and raw material prices, subdued global consumer demand, and intensified competition from Asia. The company recorded a net profit after tax of EUR 35.6 million, while continuing to implement its strategic transformation through the "Grow Nonwovens, Reset Textiles" agenda.

The Lenzing Group reported revenue of EUR 1.27 billion for the first half of 2026, compared with EUR 1.34 billion in the corresponding period of 2025. EBITDA reached EUR 239.2 million, while net profit after tax more than doubled to EUR 35.6 million from EUR 15.2 million a year earlier. Free cash flow improved to EUR 45.8 million, compared with EUR 43.1 million in the previous year.

According to the company, the decline in revenue was mainly due to the deliberate reduction of low-margin fiber volumes, lower fiber production and reduced revenue from the external pulp business. However, revenue increased from EUR 615.7 million in the first quarter of 2026 to EUR 651.7 million in the second quarter, supported by targeted sales initiatives and pricing measures.

EBITDA for the first half of 2026 stood at EUR 239.2 million, compared with EUR 268.6 million in the same period of the previous year. EBITDA increased sequentially from EUR 116.3 million in the first quarter to EUR 123 million in the second quarter, while the EBITDA margin was 18.9 percent. The company stated that earnings performance benefited from the implementation of its performance program and positive non-recurring effects.

“The results for the first half of 2026 demonstrate that our sales initiatives and disciplined cost management are delivering results. At the same time, they confirm both the necessity and the potential of our strategic realignment. With ‘Grow Nonwovens, Reset Textiles’, we are laying the foundation for a structurally more profitable and resilient Lenzing Group,” says Mathias Breuer, CFO of the Lenzing Group.

EBIT amounted to EUR 83.7 million compared with EUR 109 million in the first half of 2025, while earnings before tax (EBT) increased to EUR 42.6 million from EUR 22.1 million. The improvement in net profit was primarily attributed to a stronger financial result resulting from positive foreign currency valuation effects.

Cash flow from operating activities increased to EUR 160.4 million from EUR 150.1 million, supported by working capital management and inventory reductions. Unlevered free cash flow rose to EUR 98.5 million compared with EUR 89.4 million in the previous year. As of June 30, 2026, liquid assets, including liquid bills of exchange, totaled EUR 618 million, while capital expenditure reached EUR 62.3 million. Total assets remained at EUR 4.61 billion, adjusted equity increased to EUR 1.37 billion with an adjusted equity ratio of 29.7 percent, and net financial debt rose slightly by 1 percent to EUR 1.36 billion.

The company stated that its "Grow Nonwovens, Reset Textiles" strategy is intended to expand the nonwovens business, strengthen premium textile market segments and strategic customer partnerships, and reinforce its pulp and biorefinery business. Following the Management Board's approval on July 27, 2026, Lenzing is consolidating fiber production sites as part of its strategic transformation.

Lenzing also announced that, after achieving savings of more than EUR 200 million during the 2025 financial year, it is implementing additional efficiency measures in 2026. Its Performance Program targets savings of EUR 120 million compared with the 2025 cost base, with the full earnings impact expected by the end of 2027. The company continues to focus on specialty fibers marketed under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands.

Effective June 1, 2026, the Supervisory Board appointed Georg Kasperkovitz as Chief Executive Officer (CEO) of Lenzing AG. The Management Board comprises Georg Kasperkovitz (CEO), Mathias Breuer (CFO) and Christian Skilich (CPO/CTO).

Looking ahead, the International Monetary Fund (IMF) forecasts global economic growth of 3 percent in 2026. Lenzing plans to continue implementing its strategic agenda by expanding its nonwovens business, converting production capacity from textile fibers to nonwovens fibers, broadening its product portfolio, particularly in the hygiene segment, and developing next-generation fiber technologies. In textiles, the company intends to concentrate on differentiated premium segments, innovative specialty solutions and strategic customer partnerships while gradually reducing its exposure to low-margin standard textile fibers.

The company's medium-term objectives include returning to revenue growth, increasing EBITDA by EUR 150 million, achieving an EBITDA margin of 20 to 25 percent, and reducing leverage to below 2.5x.