Lenzing Group has reported a strong improvement in its financial performance for the first half of 2026, with net profit more than doubling despite continued global market challenges. The company attributed the results to disciplined cost management, stronger sales initiatives and a strategic shift toward higher-margin products.
The Austria-based specialty fiber manufacturer recorded revenue of EUR 1.27 billion during the first six months of 2026, compared with EUR 1.34 billion in the corresponding period last year. While revenue declined due to the deliberate reduction of low-margin fiber volumes and lower external pulp sales, profitability improved significantly.
Net profit after tax rose to EUR 35.6 million, more than doubling from EUR 15.2 million in the first half of 2025. Free cash flow also improved to EUR 45.8 million, while EBITDA reached EUR 239.2 million.
The company said the improved profitability reflects its strategic emphasis on premium products, disciplined pricing measures and ongoing cost optimization rather than volume-driven growth.
Commenting on the performance, Mathias Breuer, Chief Financial Officer of Lenzing Group, said:
“The results for the first half of 2026 demonstrate that our sales initiatives and disciplined cost management are delivering results. At the same time, they confirm both the necessity and the potential of our strategic realignment. With ‘Grow Nonwovens, Reset Textiles’, we are laying the foundation for a structurally more profitable and resilient Lenzing Group.”
Revenue improved sequentially during the second quarter, increasing from EUR 615.7 million in the first quarter to EUR 651.7 million, supported by targeted pricing initiatives. EBITDA also increased quarter-on-quarter from EUR 116.3 million to EUR 123 million, highlighting continued operational improvement.
Cash flow from operating activities increased to EUR 160.4 million, driven by improved working capital management and inventory reductions. Capital expenditure remained stable at EUR 62.3 million, while the company’s adjusted equity ratio strengthened slightly to 29.7 percent.
Transformation Strategy Accelerates
Lenzing is accelerating its long-term transformation through its newly announced “Grow Nonwovens, Reset Textiles” strategy. The plan focuses on expanding the company’s nonwovens business while repositioning its textiles business toward premium, differentiated market segments and strengthening its pulp and biorefinery operations.
As part of this strategy, the company approved the consolidation of selected fiber production sites in July 2026 to better align operations with evolving global market conditions.
Lenzing also continues implementing its performance improvement programme. After achieving savings exceeding EUR 200 million during 2025, the company now targets an additional EUR 120 million in cost reductions by the end of 2027.
Innovation remains central to the company’s strategy, with continued investments in specialty fibers marketed under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands. Lenzing is also advancing new technologies including TreeToTextile, LENZING™ Nonwoven Technology and next-generation filament solutions.
Leadership changes also marked the period, with Georg Kasperkovitz assuming the role of Chief Executive Officer on June 1, 2026, joining CFO Mathias Breuer and Chief Product & Technology Officer Christian Skilich in leading the company’s transformation.
Outlook
Looking ahead, Lenzing expects the global business environment to remain challenging due to geopolitical uncertainties, volatile energy and raw material costs, and subdued consumer demand.
Nevertheless, the company plans to continue expanding its nonwovens business, gradually reduce exposure to lower-margin textile fibers and strengthen partnerships in premium market segments. Over the medium term, Lenzing aims to return to sustainable revenue growth, increase EBITDA by EUR 150 million, achieve an EBITDA margin of 20–25 percent, and reduce financial leverage below 2.5x.
