Lenzing Returns to Positive Net Result in Q1 2026 and Significantly Improves Free Cash Flow

The Lenzing Group reported a positive net result of EUR 24 million in the first quarter of 2026, marking a return to profitability after three negative quarters in 2025. The company also significantly increased free cash flow to EUR 33.8 million, underscoring the effectiveness of its ongoing transformation and performance initiatives.

Despite a persistently challenging market environment characterized by geopolitical tensions, volatile energy prices, and macroeconomic uncertainty, Lenzing delivered stable operational performance through disciplined pricing, cost management, and targeted efficiency measures.

“During the first quarter of 2026, we further stabilized our operational development and returned to a positive net result after economically challenging previous quarters,” said Mathias Breuer, CFO of the Lenzing Group. “The significant improvement in free cash flow is particularly encouraging and demonstrates that our measures are taking effect. At the same time, the market environment remains highly volatile. We are therefore continuing our transformation with strong discipline to structurally strengthen Lenzing’s profitability and resilience.”

Q1 2026 Financial Highlights

• Net result: EUR 24 million (Q1 2025: EUR 31.7 million)

• Free cash flow: EUR 33.8 million (Q1 2025: EUR 14.8 million)

• Revenue: EUR 615.7 million (Q1 2025: EUR 690.2 million)

• EBITDA: EUR 116.3 million

• EBITDA margin: 18.9%

The decline in revenue compared with the strong prior-year quarter was primarily due to lower fiber sales volumes and prices, as well as lower pulp prices. Lenzing also implemented deliberate production management measures, including temporary curtailments of less profitable production lines, in line with its focus on value-generating growth.

At the same time, disciplined working capital management and inventory reduction supported a strong increase in operating cash flow to EUR 94.6 million.

Transformation and Strategic Focus

Lenzing continued to advance its holistic performance program aimed at strengthening profitability, resilience, and operational agility. The company achieved savings of more than EUR 200 million during the 2025 financial year through enhanced cost management and efficiency improvements.

The Group is also intensifying its focus on premium and high-margin market segments. In February 2026, Lenzing acquired a majority stake in TreeToTextile AB, reinforcing its premiumization strategy and commitment to next-generation specialty fibers.

Additional operational measures include:

• Structural and process optimization initiatives

• Sustainable energy efficiency improvements across production sites

• Expansion into new customer segments and attractive markets

• Continued emphasis on specialty fiber solutions

Outlook

Lenzing expects the global market environment to remain volatile due to geopolitical tensions, energy price fluctuations, inflationary pressures, and uncertain consumer sentiment. The company will continue implementing its transformation program to unlock additional cost potential and improve margin performance.

Given the ongoing uncertainty surrounding geopolitical and trade policy developments, Lenzing stated that a reliable forecast for the 2026 financial year is currently not possible.