Lenzing Group advances strategic transformation under “Grow Nonwovens, Reset Textiles” and announces measures to strengthen financial structure

• Strategic focus: Grow Nonwovens, reset Textiles, and further strengthen Pulp.
• Performance program: EUR 120 mn cost savings targeted versus 2025 actuals, including EUR 45 mn already communicated, full run-rate effect by the end of 2027.
• Profitability and deleveraging: Targeted EBITDA uplift of approx. EUR 150 mn with an EBITDA margin between 20-25% and leverage ratio below 2.5x in the medium term.
• Refinancing: Transformation supported by shareholders and key lenders through plans for a capital increase and a new debt financing arrangement.
• Production footprint: Optimization of the global fiber production network, strengthening selected core sites, including Lenzing in Austria, while phasing out production in Heiligenkreuz by the end of 2026 and Grimsby by the end of 2027.
• People: Measures to be implemented responsibly, in close partnership with employee representatives and with support for affected employees.

Under the leadership of Chief Executive Officer Georg Kasperkovitz and the strengthened management team, the company is focusing on improving competitiveness, profitability and return on invested capital by concentrating resources on higher-value markets and sustainable cellulose-based fiber solutions.

Against a challenging market environment for man-made cellulosic fibers and changing global demand patterns, Lenzing aims to sharpen its focus on nonwovens applications while reshaping its textiles portfolio. The transformation is supported by a strong innovation pipeline, including LENZING™ Nonwoven Technology, TreeToTextile, and advanced filament solutions, designed to accelerate growth across both business areas.

Nonwovens becomes a strategic growth engine

Lenzing is positioning its Nonwovens business as a primary growth driver through 2030, supported by increasing demand for sustainable cellulosic fiber solutions, particularly in hygiene, wipes and medical applications.

The company is expanding its nonwovens capabilities through targeted investments and technology development:

• Following the €15 million investment announced in November 2025, Lenzing committed an additional €8 million investment in June 2026 to increase premium nonwoven fiber production capacity at its Lenzing, Austria, site.
• The company is expanding its portfolio of next-generation fibers for nonwoven applications, supported by long-term contracts with leading players in the nonwovens industry, particularly in the attractive hygiene segment.
• Lenzing is accelerating the commercialization of LENZING™ Nonwoven Technology with strategic partners, offering sustainable alternatives based on zero-binder, 100% cellulosic continuous filament technology.
• The company is strategically upgrading its Mobile, Alabama (USA) facility into a state-of-the-art specialty nonwovens production hub.

Reset Textiles: focusing on premium specialty applications

Through its “Reset Textiles” strategy, Lenzing is reshaping its textile fiber business to focus on differentiated, high-value market segments and strategic partnerships with brands and retailers.

The company will prioritize innovative and premium solutions, including:

• TENCEL™ Modal fibers
• Next-generation flame-retardant fibers
• Specialty textile solutions
• Sustainable platforms such as TreeToTextile

At the same time, Lenzing will gradually reduce its exposure to commodity products such as standard viscose fibers for textile applications, while continuing to invest in additional production capacity for TENCEL™ Modal fibers in both China and Austria.

Strengthening pulp and biorefinery operations

Pulp and Biorefinery Products remain a core pillar of Lenzing’s strategy. The company plans to further strengthen this business through capacity debottlenecking in Brazil and Austria, operational improvements and energy optimization.

These measures are intended to enhance competitiveness and reinforce the contribution of the integrated pulp business to the Group’s long-term strategy.

Global production footprint optimization

As part of its transformation and portfolio optimization, Lenzing is consolidating its global fiber production network to better align capacity with future market requirements.

Key measures include:

• Phasing out fiber production at Heiligenkreuz, Austria, by the end of 2026.
• Ending production activities at Grimsby, United Kingdom, by the end of 2027.
• Continuing the sale process for PT South Pacific Viscose in Indonesia.

The transformation will strengthen selected core production sites, including the Lenzing, Austria, facility, while maintaining reliable supply for customers.

Lenzing expects to recognize non-cash impairment losses of up to €150 million in 2026 related primarily to non-current assets. These charges will impact EBIT and net income but will not affect EBITDA. Additional restructuring provisions related to workforce reductions of up to €40 million are expected to impact EBITDA in 2026.

The company said it will work closely with employee representatives and provide support measures for affected employees as it strengthens selected core sites and invests in higher-value applications.

Performance program targets €120 million in savings

Building on the progress achieved in recent years, Lenzing is strengthening its performance program with a target of €120 million in annual savings compared with 2025 actuals by the end of 2027.

This includes:

• €45 million in previously announced personnel cost savings, mainly from administrative functions.
• A planned reduction of approximately 600 positions globally.
• 267 positions already reduced during the first half of 2026, generating annualized savings of approximately €25 million.

The program focuses on creating a leaner organization, reducing overhead costs and improving the competitiveness of production sites.

Transformation supported by €600 million financing package

To strengthen its financial structure and provide flexibility during the transformation, Lenzing is preparing a comprehensive refinancing package supported by its shareholders and key lenders.

The package includes:

• A capital increase with subscription rights of up to €300 million, subject to shareholder approval.
• New financing agreements of up to €300 million.
• Extension of existing debt maturities to 2030.

The capital increase is underwritten by BNP Paribas, UniCredit, COMMERZBANK and Erste Group.

The refinancing is designed to provide sufficient financial flexibility to execute the transformation while improving Lenzing’s long-term financial profile.

Improved Q2 2026 performance confirms progress

Lenzing’s strategic measures are already showing early signs of improvement, with preliminary second quarter 2026 results reflecting the impact of pricing actions and the performance program.

In Q2 2026:

• Revenue reached €652 million, compared with €651 million in Q2 2025.
• EBITDA increased to €123 million, compared with €112 million in Q2 2025.
• EBITDA margin improved to 19%, up two percentage points year-on-year.
• Net financial debt decreased to €1.36 billion, compared with €1.44 billion a year earlier.

Financial targets

Lenzing’s medium-term ambition is to return to revenue growth while achieving:

• Approximately €150 million EBITDA uplift
• EBITDA margin of 20–25%
• Net Debt/EBITDA ratio below 2.5x

Through “Grow Nonwovens, Reset Textiles,” Lenzing aims to create a more focused, resilient and profitable company, strengthening its position as a leading provider of sustainable cellulose-based fiber solutions.