Lenzing (LNZ) Q2 2025 earnings summary

Executive summary

• Revenue increased 2.3% year-over-year to EUR 1.34 billion in H1 2025, with EBITDA up 64% to EUR 269 million and margin rising from 13% to 20%, driven by a performance program and positive exceptional effects.

• EBIT rose to EUR 109 million from EUR 18.9 million, and net profit after tax improved to EUR 15.2 million from a loss of EUR 65.4 million year-over-year.

• Unlevered Free Cash Flow reached EUR 49 million in Q2 2025, up 24% sequentially, and liquidity cushion increased by EUR 335 million due to refinancing.

• Performance and cost excellence programs delivered over EUR 130 million in 2024, targeting at least EUR 180 million in 2025.

• Geopolitical uncertainty and international tariffs created significant stress along the textile value chain, especially in Q2.

Financial highlights

• Revenue for H1 2025 was EUR 1,341.1 million, up 2.3% year-over-year; EBITDA reached EUR 269 million, up from EUR 164 million in H1 2024.

• EBIT was EUR 109 million, up from EUR 19 million in H1 2024; net profit after tax was EUR 15.2 million, improved from a EUR 65.4 million loss.

• Net financial debt reduced by 6.2% to EUR 1,437.9 million; liquidity cushion rose 53% to EUR 970 million, with pro forma liquidity above EUR 1.1 billion after refinancing.

• CapEx remained low at EUR 29 million in Q2 2025, focused on maintenance and compliance.

• Sale of CO2 certificates contributed EUR 30.6 million to EBITDA.

Outlook and guidance

• EBITDA for 2025 is expected to be higher than in 2024, supported by ongoing performance programs.

• Market visibility remains low due to ongoing tariff uncertainties and elevated energy and raw material costs.

• Structural demand for sustainable fibers is expected to rise, supporting growth strategy.