Lenzing increases half-year profit despite decline in revenue

Last week, the Austrian fibre manufacturer Lenzing AG presented further drastic reforms and announced the closure of two production sites. On Wednesday, the group presented its results for the first half of the 2026 financial year.

According to the report, group revenue from January to June amounted to just under 1.27 billion euros (1.47 billion dollars), a decrease of 5 percent compared to the same period last year. The company explained in a statement that the losses were “primarily due to the reduction of low-margin fibres and the associated lower fibre production, as well as lower revenues from the external pulp business.” It also pointed to the continued challenging market environment.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 10 percent to 239.2 million euros due to the decline in revenue and lower margins. The company, however, more than doubled its net profit, which jumped from 15.2 to 35.6 million euros. “The main reason for this was an improved financial result due to positive effects from foreign currency valuation,” Lenzing announced.

Chief financial officer (CFO) Mathias Breuer emphasised the importance of the ongoing reforms in light of the current results. “The results for the first half of 2026 show that our sales-side measures and consistent cost discipline are working,” he explained in a statement. “At the same time, they confirm the necessity and potential of our strategic realignment.” With the “Grow Nonwovens, Reset Textiles” transformation programme presented a few days ago, management is creating “the foundation for a structurally more profitable and resilient Lenzing Group,” according to Breuer.

The group expects the current measures to result in additional cost savings of 120 million euros for the current year compared to 2025. These are expected to “have a full impact on earnings by the end of 2027”. The company’s goal is to “achieve revenue growth again in the medium term with an EBITDA increase of 150 million euros and an EBITDA margin of 20 to 25 percent”.