Lenzing (LNZ) investor relations material

Executive summary

• Revenue for Q1 2026 was EUR 616 million, down 10.8–11% year-on-year, reflecting lower fiber sales and pulp prices amid a challenging macroeconomic and geopolitical environment, including the Iran War.

• EBITDA reached EUR 116–116.3 million, up 60% sequentially but down 25.5–26% year-on-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.

• Positive one-off effects included EUR 13.7–14 million from CO2 certificate sales, EUR 13–13.3 million from biological asset revaluation, and negative goodwill from TreeToTextile consolidation.

• Strong cash generation achieved through disciplined capex and working capital management.

Financial highlights

• Unlevered free cash flow was EUR 66–66.3 million, up 66% year-on-year.

• Free cash flow rose to EUR 33.8 million from EUR 14.8 million year-on-year.

• Net financial debt declined by 9% year-on-year to EUR 1.36–1.362 billion; liquidity cushion increased to over EUR 900 million.

• EBIT was EUR 40.1 million, with a margin of 6.5%.

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

Outlook and guidance

• No formal or reliable full-year 2026 guidance provided due to high uncertainty from geopolitical risks and volatile markets.

• Market volatility and limited visibility persist, with elevated input costs and inflation risks.

• Management continues transformation and performance programs, focusing on pricing, cost excellence, working capital, and cash.

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

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