The Lenzing Group, a leading producer of regenerated cellulosic fibers for the textile and nonwovens industries, reported a strong performance in the first quarter of 2025 despite slow and uneven recovery across global textile markets. While sales volumes remained on an upward trajectory, prices have stayed persistently low, and costs for raw materials, energy, and logistics remain elevated.
In the first quarter of 2025, Lenzing’s revenue rose by 4.8% year-on-year, reaching EUR 690.2 million ($773.0 million). The company’s earnings growth was driven by its performance program, with EBITDA soaring by 118.8% to EUR 156.1 million ($174.8 million). This increase includes positive special effects, such as EUR 25.5 million from surplus EU emission certificate sales and EUR 9.2 million from changes in the fair value of biological assets. The EBITDA margin improved significantly from 10.8% to 22.6%. Additionally, the EBIT rose to EUR 74.3 million (compared to EUR 1.5 million in Q1 2024), with the EBIT margin climbing from 0.2% to 10.8%. Earnings before tax (EBT) reached EUR 35.1 million, reversing the EUR 17.8 million loss from the same period last year, while the result after tax improved to EUR 31.7 million, marking the company’s first positive after-tax result since Q3 2022.
“The Lenzing Group continued on its recovery track in the first quarter of 2025 and achieved significant revenue and earnings growth thanks to our performance program,” said Rohit Aggarwal, Lenzing Group CEO.
“Uncertainty in the markets and – as a consequence – limited earnings visibility have been further exacerbated by an increasingly aggressive tariffs policy. For this reason, we will not ease up on resolutely implementing the measures we have initiated, in order to complete our turnaround and further strengthen our position as a leading integrated fiber company.”
The performance program is designed to enhance Lenzing’s resilience to market crises while improving profitability and cash flow. The program has already led to savings of over EUR 130 million in 2024, with the company targeting recurring annual cost savings of more than EUR 180 million beginning this year. Under the program, Lenzing is expanding into smaller markets and acquiring new customers for its key fiber types, which has positively impacted revenue. Extensive cost-saving measures and improved sales activities remain central to the company’s strategy.
Operating cash flow stood at EUR 47.1 million in Q1 2025, down from EUR 120.7 million in Q1 2024. Investing activities resulted in a cash outflow of EUR 36.1 million, and free cash flow was positive at EUR 14.5 million, though it declined from EUR 87.3 million last year. Financing activities saw a cash outflow of EUR 19 million in Q1 2025, compared to EUR 11.1 million in Q1 2024. Liquid assets slightly decreased by 2.6% compared to the end of 2024, totaling EUR 439.9 million as of March 31, 2025. Capital expenditure (CAPEX) on intangible assets, property, plant, equipment, and biological assets was slightly reduced to EUR 32.7 million from EUR 33.4 million in Q1 2024, reflecting Lenzing’s focus on maintenance and essential projects.
