Lenzing Improves EBITDA, Cash Flow Amid Ongoing Market Pressures
The Lenzing Group reported a resilient financial performance in 2025, with improved profitability and cash flow despite continued market headwinds.
Revenue declined slightly by 2.3% to €2.6 billion, impacted by lower fiber volumes, subdued demand, and falling prices for fibers and pulp. However, the company’s performance programme delivered results, with adjusted EBITDA rising 7.6% to €425.6 million, while reported EBITDA stood at €413 million. Free cash flow also improved to €173.9 million.
The company recorded a net loss of €135.2 million, marginally better than the previous year, while EBIT was impacted by a €82.1 million non-cash impairment linked to its Indonesian operations.
Lenzing achieved cost savings of over €200 million during the year, supported by efficiency improvements and restructuring measures. A broader cost-optimisation plan, including workforce reductions, is expected to generate further annual savings of around €45 million by 2027.
Operationally, fiber sales volumes declined to around 904,000 tonnes, while expansion into higher-margin markets in North America and Asia supported overall performance.
The business environment remained challenging, with pressure on fiber prices, declining pulp prices, and persistently high raw material, energy, and logistics costs.
Looking ahead, the company expects continued pressure in global fiber markets due to additional capacity, although early signs of improved demand and pricing have emerged in the first quarter of 2026. Lenzing said it will continue to drive its transformation strategy, focusing on cost efficiency, premiumisation, and long-term resilience.
