Fiber manufacturer

Lenzing Reported Lower Revenue and a Larger Loss

The fiber manufacturer Lenzing is headquartered in the municipality of the same name in Upper Austria.(Bild: Kerschbaummayr Werner)

The Upper Austrian fiber manufacturer Lenzing reported a decline in revenue from 1.972 to 1.926 billion euros in the first nine months of 2026. Net income after taxes was a loss of 130 million euros, compared to a loss of 105 million euros in the same period last year. However, the company now sees itself on the upswing thanks to its new corporate strategy.

Fiber manufacturer Lenzing from Upper Austria remains in the red this year as well after four consecutive years of losses, but the performance in the third quarter offers hope for improvement—that’s how one could summarize the financial results for the first nine months of 2026, published on Thursday.

In figures: Revenue fell in the first three quarters from 1.972 to 1.926 billion euros. “The main factor was lower sales volumes resulting from the targeted reduction in production,” Lenzing stated. Operating profit before depreciation and amortization also declined, from 340 to 316 million euros. And the loss widened: After a loss of 105 million euros in the same period last year, Lenzing posted a loss of 130 million euros in the first three quarters of this year.

Upward Trend in the Third Quarter
Looking at the third quarter alone, however, the company reported a noticeable upturn. “The stable earnings trend and improved margin show that our measures are taking effect,” says Lenzing CEO Georg Kasperkovitz. The adjusted profit margin (EBITDA margin) rose from 13.3 percent to 17.3 percent in the third quarter. “The margin trend underscores our growing operational profitability and confirms the effectiveness of the profitability measures we’ve implemented,” the company stated.

New Strategy
As reported, Lenzing adopted a new strategy this summer following several years of losses. The parent company plans to expand its nonwovens business and, in the textile sector, focus on premium and specialty fibers, which are more profitable than standard fibers. This strategic shift is accompanied by significant cutbacks: for example, the plant in Heiligenkreuz, Burgenland, which employs 285 people, will close in the spring of 2027. A total of 2,000 jobs are to be cut worldwide by the end of 2027. As of the end of September, Lenzing still had 7,374 employees, down from 7,738 at the same time last year.

For the full fiscal year 2026, adjusted operating profit before depreciation and amortization is expected to exceed the prior-year level, ranging between 430 and 460 million euros. In the medium term, Lenzing continues to pursue the goal of returning to revenue growth and achieving an EBITDA margin of 20 to 25 percent.