Lenzing (LNZ) investor relations material

Executive summary

• Revenue for Q1 2026 was EUR 616 million, down 10.8%–11% year-over-year, reflecting a challenging macroeconomic and geopolitical environment, especially due to Middle East tensions and lower fiber and pulp volumes.

• EBITDA reached EUR 116.3 million, up 60% sequentially but down 25.5% year-over-year, with a margin of 18.9%–19%, supported by cost excellence, pricing initiatives, and one-off effects.

• Net profit returned to positive territory at EUR 24 million after three negative quarters, driven by strong cash generation and disciplined cost management.

• Free cash flow rose to EUR 33.8 million, reflecting disciplined price, cost, and working capital management.

• Positive one-time effects included sale of EU emission allowances, remeasurement of biological assets, and negative goodwill from TreeToTextile AB acquisition.

Financial highlights

• EBITDA margin stood at 18.9%–19% for Q1 2026.

• Unlevered free cash flow was EUR 66 million, up 66% year-over-year.

• Net financial debt declined by 9% year-over-year to EUR 1.36 billion; liquidity cushion exceeded EUR 900 million.

• CapEx remained disciplined at EUR 28–28.4 million for the quarter.

• Trading working capital reduced by 29% year-over-year to EUR 425 million.

Outlook and guidance

• No reliable full-year 2026 guidance due to high uncertainty from geopolitical risks, volatile markets, and limited visibility.

• Market volatility and elevated input costs expected to persist, with management focused on pricing, cost excellence, and cash flow.

• Strategic review of alternative options for specific locations, including potential divestitures, is ongoing.

• Transformation and performance programs continue, targeting profitability, resilience, and agility.

• Structurally expects rising demand for sustainable fibers in textiles, hygiene, and medical sectors.