The Lenzing Group reported significantly improved financial performance for the first half of 2026, with net profit more than doubling despite continued challenges from volatile energy and raw material prices, subdued consumer demand, and intense competition from Asia.
The company posted revenue of EUR 1.27 billion, compared to EUR 1.34 billion in the first half of 2025, reflecting its strategic decision to prioritize profitability over production volumes. Net profit after tax increased to EUR 35.6 million, more than double the EUR 15.2 million recorded in the previous year. Free cash flow also improved to EUR 45.8 million, while EBITDA reached EUR 239.2 million.
According to Mathias Breuer, Chief Financial Officer of Lenzing Group, the improved results demonstrate the effectiveness of the company’s sales initiatives and disciplined cost management. He emphasized that the new “Grow Nonwovens, Reset Textiles” strategy will create a more profitable and resilient business model.
Revenue increased from EUR 615.7 million in the first quarter to EUR 651.7 million in the second quarter of 2026, supported by targeted pricing initiatives. EBITDA also improved sequentially from EUR 116.3 million to EUR 123 million, highlighting continued progress in profitability despite a lower EBITDA margin of 18.9% compared to 20% a year earlier.
Operating performance remained strong, with cash flow from operating activities rising to EUR 160.4 million, supported by effective working capital management and lower inventory levels. Capital expenditure totaled EUR 62.3 million, while total assets remained stable at EUR 4.61 billion.
Strategic Focus on Nonwovens and Premium Fibers
Lenzing is accelerating its strategic transformation through its “Grow Nonwovens, Reset Textiles” initiative. The company plans to expand its nonwovens business organically by converting production capacity from textile fibers to nonwoven fibers and strengthening its presence in the hygiene market.
In textiles, the company will increasingly concentrate on differentiated premium products and long-term customer partnerships while gradually reducing production of low-margin standard textile fibers. Lenzing also intends to strengthen its pulp and biorefinery operations as part of its long-term growth strategy.
The company continues to invest in premium specialty fiber brands, including TENCEL™, LENZING™ ECOVERO™ and VEOCEL™, while advancing innovations such as TreeToTextile, LENZING™ Nonwoven Technology, and advanced filament solutions.
Lenzing’s Management Board also confirmed leadership changes, with Georg Kasperkovitz assuming the role of Chief Executive Officer on June 1, 2026, alongside CFO Mathias Breuer and CPO/CTO Christian Skilich.
Performance Program Targets Further Savings
After achieving cost savings exceeding EUR 200 million during 2025, Lenzing has launched an expanded performance program targeting an additional EUR 120 million in savings compared to the 2025 cost base. These measures are expected to deliver their full earnings impact by the end of 2027.
Outlook
Looking ahead, Lenzing expects global market conditions to remain challenging due to geopolitical tensions, volatile energy markets, and weak consumer demand. Nevertheless, the company aims to return to revenue growth over the medium term by expanding its nonwovens business, increasing EBITDA by EUR 150 million, achieving an EBITDA margin of 20–25%, and reducing leverage to below 2.5x through continued strategic transformation and operational efficiency.
