Lenzing (LNZ) Q1 2025 earnings summary

Executive summary

• Revenue increased by 5% year-over-year to EUR 690 million in Q1 2025, with significant improvement in profitability and positive free cash flow, supported by the performance program and specialty fiber focus.

• EBITDA rose 119% year-over-year to EUR 156 million, including EUR 25.5 million from surplus EU emission certificate sales and EUR 9.2 million from fair value changes in biological assets.

• Net income turned positive at EUR 31.7 million, compared to a loss in the previous quarter.

• CapEx remained low at €33 million in Q1 2024/2025, focused on maintenance and license-to-operate projects, supporting positive free cash flow.

• U.S.-China reciprocal tariffs and global trade tensions have introduced significant uncertainty, impacting raw material costs and supply chains, but effects on Q1 results were limited.

Financial highlights

• Group revenue reached EUR 690.2 million, up from EUR 658.4 million in Q1 2024.

• EBITDA margin improved to 23% from 11% year-over-year.

• Free cash flow was positive at €15 million in Q1 2024/2025, reversing a negative EUR 73 million in Q1 2024.

• Other operating income was strong at €15.5 million in Q1, mainly driven by CO2 certificate sales.

• EBIT reached EUR 74.3 million (Q1 2024: EUR 1.5 million); EBIT margin improved to 10.8%.

Outlook and guidance

• Guidance for higher year-on-year EBITDA in 2025 is confirmed, supported by ongoing performance programs and cost excellence.

• Stable demand in pulp is assumed, with a cautious outlook for generic fiber markets in 2025.

• Energy and raw material prices are expected to remain elevated; market visibility is low due to tariff changes and global economic uncertainty.

• Demand for sustainable specialty fibers is expected to grow, supporting strategic positioning.