Lenzing (LNZ) Q3 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year to nearly €2 billion for the first nine months of 2024, with Q3 revenue at €647 million, driven by higher fiber sales and improved volumes despite weak market recovery.

• EBITDA rose 20% year-over-year to €264 million in Q1–Q3 2024, with Q3 EBITDA at €99 million and margin up to 15%, supported by cost excellence and performance program benefits.

• Free cash flow was positive for the fifth consecutive quarter, reaching €192 million for the nine months, and net financial debt decreased by €217 million to €1.36 billion.

• Net loss after tax was €111.1 million, impacted by a €77.7 million tax expense, including a €25.8 million tax transfer due to group structure changes.

• The performance program, launched in Q3 2023, is ahead of schedule, targeting over €100 million in annualized cost savings for 2025.

Financial highlights

• Q3 2024 revenue was €647 million (+5% YoY); Q1–Q3 2024 revenue reached €1,958 million (+5% YoY).

• Q3 2024 EBITDA was €99 million (+20% YoY, 15% margin); Q1–Q3 2024 EBITDA was €264 million (+20% YoY, 13% margin).

• EBIT for Q1–Q3 2024 turned positive at €38 million, up from a loss in the prior year; net loss narrowed to €111.1 million.

• Free cash flow for Q1–Q3 2024 was €192 million, up from negative €138 million in the prior year.

• Net financial debt at the end of Q3 2024 was €1,357 million, down from €1,574 million a year earlier.

Outlook and guidance

• Guidance for 2024 financial year confirmed: EBITDA expected to be higher than previous year, with ongoing margin improvements and cost excellence.

• Market visibility remains low due to global economic and geopolitical uncertainties.

• Stable demand in bulk and continued demand growth for sustainable specialty fibers in textiles, hygiene, and medical sectors expected.

• Energy and raw material costs are anticipated to remain elevated.

• Performance program is ahead of schedule and expected to further improve earnings in coming quarters.