Lenzing returns to profitability in Q1 2026 after three negative quarters

Austrian fiber producer Lenzing has reported a positive net result for the first quarter of 2026. This marks a financial recovery for the group following three consecutive negative quarters throughout 2025.

The group achieved a net profit of 24 million euros (28.24 million dollars) for the period ending March 31, 2026. While this figure is lower than the 31.70 million euros recorded in the first quarter of 2025, it represents a significant stabilization of operational development.

Revenue and earnings performanceRevenues for the first quarter of 2026 reached 615.70 million euros, a decrease of 10.80% compared to the 690.20 million euros generated in the prior-year period. Management attributed this decline to lower fiber sales volumes and pricing, alongside reduced pulp prices. The reduction in fiber volumes was partly due to deliberate production management.

This included the temporary curtailment of less profitable production lines to align with a strategic focus on value-generating growth.

EBITDA amounted to 116.30 million euros. The EBITDA margin stood at 18.90 percent, down from 22.60 percent in the first quarter of 2025. Lenzing chief financial officer (CFO), Mathias Breuer, stated: “During the first quarter of 2026, we further stabilized our operational development and returned to a positive net result after economically challenging previous quarters”.

The group is continuing its holistic performance program, which achieved savings of more than 200 million euros during the 2025 financial year. This transformation aims to structurally strengthen profitability and resilience through operational excellence and energy optimization.

Acquisition of TreeToTextile and outlook

In February 2026, Lenzing acquired a majority stake in Swedish fiber developer TreeToTextile. This move is intended to advance the group's premiumization strategy and its position in the market for next-generation specialty fibers. The initial consolidation of TreeToTextile resulted in a one-time positive effect from negative goodwill, which supported EBITDA for the quarter. Total positive one-off effects for the period reached 25.70 million euros.

Despite the return to profit, the market environment remains characterized by geopolitical tensions and volatile energy prices. Key risks include the Middle East conflict, which is expected to drive increases in raw material prices and inflation. Due to these ongoing uncertainties, Lenzing stated that a reliable forecast for the full 2026 financial year is currently not possible.