Lenzing (LNZ) Q2 2026 earnings summary

Executive summary

• Delivered resilient H1 2026 performance amid volatile markets and Middle East conflict, with revenue stable or slightly down year-over-year and a focus on value over volume.

• EBITDA margin improved to 18.9%-19%, with EBITDA up 9% in Q2 2026, supported by pricing discipline and cost measures.

• Net profit after tax rose sharply to EUR 35.6 mn, reflecting improved financial performance and strong cash generation.

• Strategic transformation included pruning low-margin business, premium fiber focus, and significant cost savings initiatives.

• CEO transition and new leadership to drive ongoing transformation.

Financial highlights

• H1 2026 revenue: EUR 1,267 mn (down 5% YoY); Q2 2026 revenue: EUR 652 mn (flat YoY).

• Q2 2026 EBITDA: EUR 123 mn (+9% YoY, 19% margin); H1 2026 EBITDA: EUR 239 mn (down 10.9% YoY, 18.9% margin).

• Net financial debt at EUR 1.36 bn, down 5% YoY; liquidity cushion at EUR 837 mn.

• Unlevered free cash flow for H1 2026: EUR 98 mn (+10% YoY); Q2 2026: EUR 32 mn (down 35% YoY).

• Net income for Q2 2026: EUR 11.7 mn (vs. EUR -16.6 mn in Q2 2025).

Outlook and guidance

• Pricing environment remains constructive but may be peaking; cost headwinds from energy and raw materials to persist.

• Strategic focus on expanding nonwovens, repositioning textiles, and strengthening pulp business.

• Medium-term targets: return to revenue growth, EUR 150 mn EBITDA uplift, 20–25% EBITDA margin, and leverage below 2.5x.

• Planned rights issue and new financing agreements of up to EUR 300 mn each to strengthen financial structure.

• Expected non-cash impairment charges up to EUR 150 mn and restructuring provisions up to EUR 40 mn in 2026.