Lenzing stock gains as Q3 margin lifts to 17.3 percent

Lenzing reported stronger underlying profitability for the first nine months of 2026, even as revenue declined and the reported loss widened. The results, published on Thursday, November 5, mark a new operating test after the company's capital increase.

According to Lenzing's EQS release via OTS, revenue fell 2.3 percent to EUR 1.93 billion from EUR 1.97 billion in the January-to-September period. The company attributed the decline mainly to lower volumes following its targeted reduction of standard-fiber production and lower pulp prices.

Underlying margins show progress

Adjusted EBITDA remained almost unchanged at EUR 353 million, compared with EUR 352.7 million a year earlier. The adjusted EBITDA margin rose to 18.3 percent from 17.9 percent, while the third-quarter margin improved to 17.3 percent from 13.3 percent in the year-earlier quarter.

Reported EBITDA fell to EUR 316.4 million and included EUR 36.6 million in restructuring effects. Non-cash impairment charges of EUR 136.1 million at the Heiligenkreuz and Grimsby sites contributed to an EBIT loss of EUR 55.1 million. Earnings after tax fell to negative EUR 130.3 million, while earnings after tax adjusted for impairment and restructuring effects reached EUR 42.4 million, compared with negative EUR 10.8 million a year earlier.

Transformation remains the next test

Lenzing is pursuing its "Grow Nonwovens. Reset Textiles." strategy, with a focus on specialty fibers, nonwovens and pulp. The company targets an additional EUR 120 million in savings against the 2025 baseline, with the full earnings impact expected by the end of 2027.

Production at Heiligenkreuz is planned to cease by the end of the first quarter of 2027, while Grimsby is scheduled to close by the end of 2027. Lenzing also said its capital increase of approximately EUR 300 million and new financing agreements totaling a further EUR 300 million are intended to strengthen financial flexibility.

For full-year 2026, management expects adjusted EBITDA between EUR 430 million and EUR 460 million, above the EUR 425.6 million achieved in 2025. The target gives investors a benchmark for judging whether the improved quarterly margin can offset lower volumes and restructuring costs.

Lenzing stock traded at EUR 12.30 on Lang & Schwarz at 17:42 CET on Thursday, November 5, up 6.1 percent from EUR 11.59 at 17:38 CET on Wednesday, November 4, in the previous report. The real-time quote of Lenzing stock shows the latest trading price.

European investors are weighing improving corporate margins against persistent energy, chemical and geopolitical risks across the Euro Stoxx 50 market.

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