Austria's Lenzing 9-mo net loss widens due to restructuring, impairment charges 

Overview

• Austria wood-based fiber producer's 9-mo revenue fell 2.3% yr/yr to EUR 1.93 bln

• Adjusted EBITDA for 9-mo held steady at EUR 353 mln, margin rose to 18.3%

• Net loss widened to EUR 130.3 mln on restructuring and impairment charges

Outlook

• Lenzing expects 2026 adjusted EBITDA between EUR 430 mln and EUR 460 mln

• Company plans to expand nonwovens business and focus textiles on premium, specialty segments

• Lenzing targets additional EUR 120 mln in cost savings by end-2027 compared to 2025 baseline

Result Drivers

• STANDARD FIBER REDUCTION - Co said revenue decline was mainly due to lower sales volumes from targeted reduction of standard fiber production and lower pulp prices

• PROFITABILITY MEASURES - Adjusted EBITDA margin improved as co implemented profitability measures under its new strategy, including focus on nonwovens and premium textile applications

• RESTRUCTURING COSTS - EBITDA and net results were negatively affected by restructuring-related effects and impairment charges linked to strategic transformation and site closures

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy."

• Wall Street's median 12-month price target for Lenzing AG is €17.71, about 54.2% above its November 4 closing price of €11.48

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)