Lenzing reports revenue decline and higher loss

Austrian fibre manufacturer Lenzing AG experienced a decline in revenue and a higher loss during the first nine months of the current 2026 financial year. However, the company simultaneously managed to improve its operating margin due to extensive reforms. This was revealed in an interim report published by the company on Thursday.

According to the report, group revenue for the period from January to September amounted to 1.93 billion euros (2.17 billion dollars). This corresponded to a 2.3 percent decrease compared to the prior-year period. In a statement, the company attributed the decline primarily to “lower sales volumes resulting from the targeted scaling back of standard fibre production, as well as lower pulp prices”. Furthermore, the company pointed to a “persistently volatile market environment”.

Special effects lead to higher net loss

Reported earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 7 percent to 316.4 million euros. Adjusted for special effects resulting from restructuring costs, EBITDA stood at 353 million euros. It therefore remained stable compared to the corresponding prior-year figure of 352.7 million euros, as the adjusted EBITDA margin increased from 17.9 to 18.3 percent.

The reported net loss, which stood at 105 million euros in the prior-year period, rose to 130.3 million euros. The group attributed this, among other factors, to impairment losses on long-term assets at the Heiligenkreuz and Grimsby production sites, the closures of which had already been announced. Adjusted for impairment losses and effects from restructuring measures, net profit amounted to 42.4 million euros, following a corresponding loss of 10.8 million euros recorded in the prior-year period.

CEO Kasperkovitz sees “milestone in the realignment” of company

CEO Georg Kasperkovitz highlighted the progress the company has made with its comprehensive reforms. “The third quarter of 2026 marks an important milestone in the realignment of the Lenzing Group. Our focus is now on the consistent implementation of our new strategy,” he explained in a statement. “The stable earnings development and improved margin demonstrate that our measures are taking effect. Under the strategic priorities ‘Grow Nonwovens. Reset Textile’, we are consistently driving the transformation forward and will set further essential courses by the end of the year to optimise our product portfolio and production network.”

For the full financial year, management anticipates an adjusted EBITDA in the range of 430 to 460 million euros. This would represent an increase compared to the prior-year figure of 425.6 million euros. In the medium term, the company continues to aim for renewed revenue growth, an EBITDA increase of 150 million euros and an EBITDA margin of 20 to 25 percent.

However, the group warned of risks. According to a statement, actual business performance could deviate from current expectations “depending on geopolitical and economic factors as well as the cyclical nature of the industry”.