Lenzing (LNZ) investor relations material

Executive summary

• Revenue declined by 2.3% year-over-year to EUR 2.6 billion due to lower fiber sales volumes, pricing pressure, and adverse currency effects, but EBITDA margin improved to 16.4% through cost-saving measures, performance programs, and a one-off sale of CO2 certificates.

• Strategic focus shifted to value-generating growth, premiumization, innovation, and sustainability, with an emphasis on operational excellence, cash flow generation, and liquidity.

• Leadership team aligned on disciplined execution, profitability, and cash generation, supported by strong cash generation and successful refinancing.

• Non-cash impairment losses of EUR 82 million were recognized, mainly related to the Indonesian plant following a strategic review.

• Net loss after tax improved slightly to minus EUR 135.2 million compared to the previous year.

Financial highlights

• Revenue: EUR 2,602 million (-2.3% YoY); adjusted EBITDA: EUR 426 million (+7.6% YoY, 16.4% margin); unlevered free cash flow: EUR 279 million (+14% YoY).

• Net financial debt reduced to EUR 1.35 billion (-12% YoY); leverage ratio improved to 3.3x EBITDA.

• Liquidity cushion increased to EUR 910 million (+40% YoY); liquid assets at year-end were EUR 690.9 million.

• Trade working capital decreased by 22% YoY; capex was EUR 141 million, focused on maintenance and strategic investments.

• Cost savings exceeded EUR 200 million, with SG&A and personnel costs reduced by EUR 40 million and EUR 55 million (10% reduction), respectively.

Outlook and guidance

• Market conditions remain uncertain due to geopolitical risks, tariffs, and new capacity in generic lyocell, with no formal guidance for 2026.

• Fiber demand is expected to stay subdued, but some improvement was seen in Q1 2026; pulp demand remains stable.

• Energy and raw material costs are expected to remain volatile and elevated; management focused on pricing discipline and cost efficiency.

• The outlook will be reviewed and may be updated after Q1 or H1 2026 results.

• Ongoing transformation and premiumization strategy to enhance profitability and resilience.