EQS-News: Lenzing AG: Challenging market conditions weigh on Q3 results, positive 2025 EBITDA outlook confirmed

Lenzing AG: Challenging market conditions weigh on Q3 results, positive 2025 EBITDA outlook confirmed

• Revenue of EUR 1.97 bn stable at previous year’s level
• 9M EBITDA up 29.1 percent; Q3 reflects headwinds
• Impairment losses of EUR 82.1 mn negatively impact EBIT
• Net financial debt improves to EUR 1.4 bn; liquidity cushion of EUR 993 mn secured
• EBITDA outlook confirmed

Lenzing, 6 November 2025 – In the first nine months of 2025, Lenzing AG recorded revenue growth and higher EBITDA, but a market-driven volatile third quarter. This performance reflects the effects of ongoing market volatility, tariffs and geopolitical uncertainties. Nevertheless, the medium to long-term outlook remains positive.

The revenue generated by Lenzing AG rose by 0.7 percent to EUR 1.97 bn (prior-year period: EUR 1.96 bn) in the first nine months. EBITDA grew by 29.1 percent to EUR 340.4 mn (prior-year period: EUR 263.7 mn), including effects from the sale of surplus emission allowances and the valuation of biological assets. The EBITDA margin improved to 17.3 percent (prior-year period: 13.5 percent). Earnings before interest and tax (EBIT) amounted to EUR 20.6 mn (prior-year period: EUR 38.3 mn), which corresponds to an EBIT margin of 1 percent (prior-year period: 2 percent). This result includes asset impairments of EUR 82.1 mn in Indonesia. Earnings before tax (EBT) amounted to EUR minus 98.7 mn (prior-year period: EUR minus 33.4 mn).

“We see these challenging times also as an opportunity. We are increasingly building on our strengths and are continuing to focus on what we excel at: strong brands, precise execution and bold innovation,” notes Rohit Aggarwal, CEO of Lenzing AG.
 

Strategic development

Lenzing AG pursues a holistically adapted strategy with a clear focus on value-generating growth. Key pillars of this strategy include enhancing operational efficiency, optimizing production sites, and targeting high-margin premium products such as TENCEL™, VEOCEL™, and LENZING™ ECOVERO™. Additional growth potential is expected particularly in the fields of hygiene, packaging, filtration, as well as medical and industrial applications.

To sustainably secure this growth and strengthen long-term competitiveness, the company has initiated a strategic review of its production site in Indonesia. The planned measures – including adjustments to administrative functions – are expected to generate additional annual savings of approximately EUR 45mn by the end of 2027. For the current reporting year, the Management Board anticipates cost savings exceeding EUR 180mn. Furthermore, the company is investing over EUR 100mn in its sites in Lenzing and Heiligenkreuz and aims to achieve holistic energy optimization of more than 5percent across all production locations. Strategic options for the site in Indonesia are being evaluated, including a potential sale.

The Supervisory Board also made personnel decisions during the reporting period: The Managing Board mandate of Christian Skilich, Chief Pulp & Chief Technology Officer, was extended until May 2029. Mathias Breuer, currently Senior Vice President and responsible for the performance program, will become CFO from January 1, 2026, and succeed Nico Reiner, who is due to step down from his position at the end of 2025.
 

Solid financial position in a difficult environment

Thanks to its strong focus on cash management, Lenzing succeeded in leaving no doubt about its adequate liquidity position during the reporting period. As of September 30, 2025, the company held liquidity cushion of EUR 993 mn. The capital structure was strengthened by a EUR 500 mn hybrid bond and a EUR 545 mn syndicated financing facility. Net financial debt was reduced by 8.5% to EUR 1.4 bn as of the reporting date. With total assets of EUR 4.80 bn, this corresponds to an adjusted equity ratio of 30.7% as of September 30, 2025.

Cash flow from operating activities amounted to EUR 284.6 mn (prior-year period: EUR 319.4 mn). Free cash flow was also positive at EUR 110.9 mn. (prior-year period: EUR 194.0 mn) Furthermore, unlevered free cash flow amounted to EUR 192.1 mn (prior-year period: EUR 228.6 mn).

Capital expenditure amounted to EUR 93.2 mn (prior-year period: EUR 93.3 mn).
 

Outlook

The global environment remains volatile. The International Monetary Fund (IMF) expects growth of 3.2 percent in 2025, but warns of trade conflicts and financial instability. Consumer sentiment is subdued, and higher tariff costs could further weigh on demand in 2026. Based on the business performance to date and the current market outlook, the Managing Board expects year-on-year growth in EBITDA in 2025. The actual business performance may nevertheless diverge from current expectations depending on geopolitical and economic factors as well as the cyclical nature of the industry. Any assessment of economic development is therefore subject to forecasting risks

The report on the third quarter of the year can be downloaded here.

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^[1] In order to improve the transparency and comparability of the financial key performance indicators, the Lenzing Group has newly exercised the accounting options available under IAS 7 and consequently adjusted the presentation of the cash flow statement. The new structure starts with EBT and enables the calculation of unlevered free cash flow, which serves as a key performance indicator in addition to free cash flow as part of the performance program. The adjustment is in line with standard market reporting practices and improves the informative value of the cash flow statement for internal and external stakeholders. The change in presentation was made retroactively in accordance with IAS 8. Additional explanations are provided in the condensed consolidated interim financial statements 01-06/2025.