The Lenzing Group has reported solid financial results for the first half of 2025, with revenue reaching EUR 1.34 billion and EBITDA up 63.3% year-on-year to EUR 268.6 million. The positive results were supported by the successful implementation of its performance programme and one-off gains, including the sale of surplus EU emission allowances and biological asset valuation.

Despite this progress, the second quarter was marked by international tariff uncertainty, which strained the textile value chain and dampened the pace of recovery. Market prices remained weak, while raw material, energy and logistics costs stayed high.

Earnings before tax reached EUR 22.1 million, compared to a loss of EUR 22.3 million in the same period last year. Net profit after tax turned positive at EUR 15.2 million, a significant improvement from the EUR 65.4 million loss in H1 2024. The EBITDA margin rose from 12.5% to 20%, while EBIT increased to EUR 109 million.

CEO Rohit Aggarwal said: “Lenzing made further progress on its path to operational recovery. However, growing uncertainties in international trade, particularly from aggressive tariff policies, continue to affect our visibility and earnings.”

Lenzing’s performance programme focuses on long-term profitability and crisis resilience. The company achieved EUR 130 million in cost savings in 2024 and expects this to exceed EUR 180 million in 2025. Areas of improvement include product costs, production efficiency and overhead reductions.

To support its strategic goals, Lenzing secured a syndicated loan of EUR 545 million in May, comprising a term loan and revolving credit, both with three-year terms. It also placed a new EUR 500 million hybrid bond, securing financing through to 2027.

Free cash flow remained positive at EUR 43.1 million, while liquid assets rose by nearly 67% to EUR 754 million. Personnel changes on the Managing Board included the appointment of Georg Kasperkovitz as COO, responsible for fibre production sites and advancing cost and efficiency improvements.

Despite ongoing global economic risks and cautious consumer sentiment, Lenzing maintains its forecast of year-on-year EBITDA growth for 2025. The company remains focused on demand for environmentally responsible fibres and continues to strengthen its leadership in sustainable materials for the textile, hygiene and medical sectors.

www.lenzing.com