Lenzing AG has reaffirmed its 2025 EBITDA outlook after a volatile third quarter, reporting higher earnings for the first nine months despite headwinds from tariffs, market volatility and geopolitical uncertainty. Revenue for January–September edged up 0.7% year on year to EUR 1.97 billion, while EBITDA rose 29.1% to EUR 340.4 million, lifting the margin to 17.3% from 13.5% a year earlier.

Third-quarter pressure was visible lower down the income statement. Group EBIT for the nine months came in at EUR 20.6 million, including EUR 82.1 million of impairments in Indonesia, while earnings before tax were EUR minus 98.7 million. “We are building on our strengths with strong brands, precise execution and bold innovation,” said CEO Rohit Aggarwal, who confirmed the full-year EBITDA outlook.

Lenzing said its strategy remains focused on value-generating growth, with priority on operational efficiency, site optimisation and higher-margin premium fibres including Tencel, Veocel and Lenzing Ecovero. Additional growth opportunities are targeted in hygiene, packaging, filtration, medical and industrial applications.

A strategic review of the Indonesian site is under way, with options including a potential sale. Planned measures, including administrative adjustments, are expected to yield approximately EUR 45 million of annual savings by the end of 2027. For 2025, management anticipates cost savings exceeding EUR 180 million. More than EUR 100 million is being invested at the Lenzing and Heiligenkreuz sites, with a goal of over 5% holistic energy optimisation across all production locations.

The company underscored a solid liquidity position, supported by a EUR 500 million hybrid bond and a EUR 545 million syndicated facility. As at 30 September 2025, net financial debt improved to EUR 1.4 billion and the liquidity cushion stood at EUR 993 million. Free cash flow was positive at EUR 110.9 million, while capital expenditure amounted to EUR 93.2 million.

Governance changes included the extension of Chief Pulp & Chief Technology Officer Christian Skilich’s mandate to May 2029. Mathias Breuer, currently leading the performance programme, will become CFO on 1 January 2026, succeeding Nico Reiner.

Lenzing cautioned that the macro environment remains volatile, with subdued consumer sentiment and the risk of higher tariff costs carrying into 2026. Nonetheless, based on year-to-date trading and current market conditions, management continues to expect year-on-year EBITDA growth in 2025.

www.lenzing.com