The Lenzing Group, a global leader in regenerated cellulosic fibres for textile and nonwovens industries, has posted significant revenue and earnings growth in the first quarter of 2025, despite ongoing market volatility and weak global textile demand.

Revenue rose by 4.8% year-on-year to EUR 690.2 million. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to EUR 156.1 million, up 118.8% from Q1 2024. This increase was bolstered by EUR 25.5 million in EU emission certificate sales and a EUR 9.2 million revaluation of biological assets. The EBITDA margin improved to 22.6%, compared with 10.8% in the same period last year.

The operating result (EBIT) surged to EUR 74.3 million from just EUR 1.5 million, with the EBIT margin climbing to 10.8%. Net profit returned to positive territory, reaching EUR 31.7 million compared to a loss of EUR 26.9 million a year ago. Free cash flow also recovered, totalling EUR 14.5 million.

Rohit Aggarwal, CEO of Lenzing Group, highlighted the company’s transformation efforts: “The Lenzing Group continued on its recovery track in the first quarter of 2025 and achieved significant revenue and earnings growth thanks to our performance programme. Uncertainty in the markets and – as a consequence – limited earnings visibility have been further exacerbated by an increasingly aggressive tariffs policy.”

The group’s performance programme aims to boost EBITDA and generate free cash flow through efficiency, cost savings, and expansion into new markets. Lenzing reported savings exceeding EUR 130 million in 2024 and aims to achieve recurring annual cost reductions of over EUR 180 million starting this year.

However, political tensions and global trade disputes have clouded the earnings outlook. The International Monetary Fund recently downgraded global growth forecasts to 2.8% for 2025. High inflation risks and volatile currency markets are also affecting industry sentiment. Despite this, Lenzing reaffirmed its full-year guidance for higher EBITDA year-on-year.

In structural terms, the company continues to expect growth in demand for environmentally responsible fibres. With strong positioning in sustainability, Lenzing plans to further expand its specialty fibre offerings and maintain its leadership in circular textile solutions.

www.lenzing.com