Lenzing Group Revenue Falls, But Profits Rise

Even as revenue dropped in the first half to $1.47 billion (1.27 billion euros) from $1.56 billion (1.34 billion euros) in the same period last year, Lenzing Group delivered stronger profits. The cellulose fiber company said its net result after tax rose to $41.11 million (35.6 million euros) from $17.55 million (15.2 million euros) last year.

Dollar figures are at the current exchange rate.

The Top 100 Publicly Traded Textile Companies

The Lenzing Group Announces Next Steps in Transformation

The New Material Age? How Technical Textiles Are Engineering Tomorrow

"Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group achieved a significantly positive result," the company said in a statement Wednesday.

The company said the drop in revenue compared with the first half of 2025 was primarily attributable to a deliberate reduction of low-margin fiber volumes as well as the resulting lower fiber production. There were also lower revenues from the external pulp business.

The company said free cash flow increased to $52.89 million (45.8 million euros) in the first half from $49.77 million (43.1 million euros) last year.

For the second quarter, revenue increased to $752.56 million (651.7 million euros) from $ 711 million (615.7 million euros) in the same period last year. The company said the revenue gain was supported by targeted sales initiatives and consistent pricing measures.

Mathias Breuer, chief financial officer of the Lenzing Group, said the results for the first half of 2026 "demonstrate that our sales initiatives and disciplined cost management are delivering results. At the same time, they confirm both the necessity and the potential of our strategic realignment. With 'Grow Nonwovens, Reset Textiles', we are laying the foundation for a structurally more profitable and resilient Lenzing Group."

Last week, Georg Kasperkovitz, chief executive officer, announced the "Grow Nonwovens, Reset Textiles" initiative and said the company is taking "decisive steps to reposition the company for long-term success in a fundamentally changing market environment." Kasperkovitz was named CEO last May.

The strategy aims to improve competitiveness, profitability and return on invested capital while also positioning the Lenzing Group for long-term growth in higher-value markets. The initiative takes place against an "increasingly challenging market environment for man-made cellulosic fibers and changed market dynamics," Lenzing said, adding that the focus will be on a strong innovation pipeline of proprietary next-generation fiber technologies such as TreeToTextile and Lenzing Nonwoven Technology as well as advanced filament solutions.

Lenzing said the transformation includes optimizing its production footprint and implementing a comprehensive performance program as well as a more disciplined capital allocation to strengthen its financials. The initiative also involves closing two facilities and a labor force reduction.

Looking ahead, the company said in its first-half report that risks are likely to continue from geopolitical tensions in the Middle East to volatile energy and raw material markets, along with subdued consumer demand in key sales markets.

"The Lenzing Group plans to consistently pursue the implementation of its new 'Grow Nonwovens, Reset Textiles' strategy in order to unlock further value creation potential," the company said. "In the nonwovens business, Lenzing intends to leverage the ongoing shift from fossil-based materials to cellulosic fiber solutions and aims to significantly expand its nonwovens business in the medium term."

To achieve this, Lenzing said it is converting production capacities from textile fibers to nonwoven fibers, "to expand the existing product portfolio, particularly in the attractive hygiene segment, and to develop and bring to market next-generation innovative fibers for nonwovens applications."

In the textiles business, Lenzing said it is focusing on differentiated premium segments and innovative specialty solutions as well as "strategic customer partnerships."

Everything You Need to Know About Digital Product Passports

DTC Explainer: Everything You Need to Know about Direct-to-Consumer