Lenzing doubles half-year profit as strategic transformation gains pace
The Lenzing Group reported a significant improvement in its financial performance for the first half of 2026, with net profit after tax more than doubling to EUR 35.6 million despite continued market challenges. The company also accelerated its strategic transformation through its newly launched “Grow Nonwovens, Reset Textiles” programme, aimed at driving long-term profitability and resilience.
Revenue for the first six months of 2026 stood at EUR 1.27 billion, compared with EUR 1.34 billion in the same period last year, reflecting the company’s deliberate decision to reduce low-margin fibre volumes and focus on higher-value products. EBITDA reached EUR 239.2 million, while free cash flow improved to EUR 45.8 million.
According to Chief Financial Officer Mathias Breuer, the results demonstrate the effectiveness of Lenzing’s sales initiatives and disciplined cost management while validating the company’s strategic realignment towards more profitable market segments.
Compared with the first quarter of 2026, second-quarter revenue increased to EUR 651.7 million, supported by targeted sales initiatives and pricing measures. Operating cash flow also improved to EUR 160.4 million, driven by efficient working capital management and lower inventory levels.
New strategy prioritises profitable growth
Lenzing’s new “Grow Nonwovens, Reset Textiles” strategy focuses on expanding its nonwovens business, strengthening its pulp and biorefinery operations, and repositioning its textiles business towards differentiated premium products and strategic customer partnerships.
As part of this transformation, the company approved the consolidation of fibre production sites in July 2026 to improve operational efficiency and better align manufacturing with changing market demand.
Having already achieved cost savings exceeding EUR 200 million during 2025, Lenzing is implementing additional efficiency measures targeting a further EUR 120 million in savings by the end of 2027.
The company continues to prioritise high-value specialty fibres marketed under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands, with innovation, sustainability and transparency remaining key competitive strengths.
Effective 1 June 2026, Georg Kasperkovitz assumed the role of Chief Executive Officer, joining CFO Mathias Breuer and Chief Production and Technology Officer Christian Skilich in leading the company’s transformation strategy.
Outlook
Looking ahead, Lenzing expects global economic conditions to remain challenging due to geopolitical tensions, volatile energy and raw material costs, and subdued consumer demand.
The company plans to accelerate growth in its nonwovens business by expanding production capacity, strengthening its hygiene product portfolio and developing next-generation fibre technologies. Within textiles, Lenzing will continue focusing on premium specialty fibres while gradually reducing its exposure to low-margin standard textile fibres.
Over the medium term, Lenzing aims to return to revenue growth, increase EBITDA by EUR 150 million, achieve an EBITDA margin of 20–25%, and reduce financial leverage to below 2.5x.
