From the Sector

The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reports a continued improvement in its business performance in the first quarter of 2025, although the recovery of global textile markets remained very slow and uneven during the reporting period. While the positive trend in volumes sold continued, prices remained constant at a low level. Raw material, energy and logistics costs continued to be high.

Revenue grew by 4.8 percent year-on-year to EUR 690.2 mn in the first quarter of 2025. The operating earnings trend largely reflected the positive effects of the performance program. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 118.8 percent year-on-year to EUR 156.1 mn. This also includes positive special effects from the sale of EUR 25.5 mn surplus EU emission certificates and the change in the fair value of biological assets in the amount of EUR 9.2 mn. The EBITDA margin in-creased from 10.8 percent to 22.6 percent. The operating result (EBIT) amounted to EUR 74.3 mn (compared with EUR 1.5 mn in the first quarter of 2024) and the EBIT margin amounted to 10.8 percent (compared with 0.2 percent in the first quarter of 2024). Earnings before tax (EBT) amounted to EUR 35.1 mn (compared with minus EUR 17.8 mn in the first quarter of 2024). The result after tax also improved significantly and was positive again for the first time since the third quarter of 2022 at EUR 31.7 mn (compared with minus EUR 26.9 mn in the first quarter of 2024).

The Lenzing Group’s performance program is designed holistically with the overarching objective of significantly increasing long-term resilience to crises and greater agility in the face of market changes. The program initiatives are primarily aimed at improving EBITDA and at generating free cash flow through enhanced profitability, as well as sustainable cost excellence. Extensive actions are being undertaken to strengthen sales activities, such as the acquisition of new customers for the most important fiber types as well as expansion in previously smaller markets, which are exerting a positive impact in terms of revenue. The Managing Board also anticipates significant cost savings. Savings of over EUR 130 mn were already realized in the 2024 financial year. From the current financial year onwards, Lenzing is aiming for recurring annual cost savings of over EUR 180 mn.

Outlook
The IMF has significantly downgraded its growth forecasts for both this year and next to 2.8 percent and 3.0 percent respectively. The escalation of international trade conflicts and the risk of inflation returning are seen as major threats to global growth.

In times of uncertainty and high living costs, consumers can be expected to remain cautious and thrifty, with negative effects on consumer sentiment and their willingness to spend.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, analysts expect a slight increase in stocks to around 18.8 mn tonnes in the current 2024/2025 harvest season, according to preliminary estimates.

Lenzing will continue to consistently implement its performance program and expects to leverage further cost potentials and further improve its revenue and margin generation.

Having weighed the aforementioned factors, the Lenzing Group confirms its guidance for the 2025 financial year of year-on-year higher EBITDA.

However, the current tariff dispute and the high level of uncertainty associated with it are dampening expectations and further limiting the visibility of earnings.

In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

ISKO’s new FW 26/27 collection explores a diverse and ambitious vision for sustainable denim. With a strong focus on fiber innovation, the collection incorporates organic and regenerative cellulosic fibers, alongside Next-Gen circular materials powered by RE&UP — transforming end-of-life textiles into high-performance fabrics that rival the durability and comfort of virgin fibers.

Among the highlights of the FW 26/27 collection is RECODE DENIM, ISKO’s latest breakthrough in circular denim technology. Built on advanced recycled content and proprietary weaving innovation, RECODE sets a new benchmark for quality, resource efficiency, and scalability — seamlessly integrating sustainability with style.

This season also marks the debut of new fabric technologies that elevate denim’s potential for both performance and creativity:

• ISKO™ We’Raw – delivers an authentic raw denim aesthetic that resists shrinkage, fading, and distortion, even after repeated home washing.
• ISKO™ FitWise – engineered for lasting structure and a smart, adaptive fit with zero compromise on comfort.
• ISKO™ Wondersoft – combines silky softness and authentic denim texture using sustainable fibers like modal and lyocell.

From rich textures to sculpted silhouettes, the collection embraces a deep winter palette — dark indigos, blackened hues, and earthy browns – further elevated by TINTED MANIA, a curated series of tone-on-tone color effects that enrich the visual depth of each garment. Fabric weights range from 9 oz to 15 oz, offering versatility and adaptability across seasonal applications.

ISKO™ Multitouch, introduced in SS26, remains a key fabric concept for the FW 26/27 season. Known for its ability to deliver multiple textures and finishes from a single fabric, it continues to empower designers with options like 3D effects, permanent embossing, vintage-inspired wash-downs, and soft or firm hand feels – all achieved through responsible finishing processes that reduce environmental impact.

“With this collection, we’re continuing to merge fashion and function – introducing new updates in finishing and construction that reflect the latest industry trends,” said Fatma Korkmaz, Product Development Manager at ISKO. “We see a clear resurgence in demand for stretch, and have focused on delivering smart, adaptive solutions that meet both performance and aesthetic needs. We’Raw, FitWise, and RECODE Denim aren’t just technical breakthroughs — they embody our vision for the future of denim, where innovation, comfort, and responsibility go hand in hand.”

The Lenzing Group is presenting the Lenzing Young Scientist Award at the Dornbirn Global Fiber Congress (GFC) from September 10 to 12, 2025 for bachelor, master and doctoral students who develop innovative solutions to ecological challenges in the fiber and textile industry. The deadline for applications is June 30, 2025. The best thesis by Bachelor's and Master's students will receive a prize of EUR 3,000, while the best doctoral thesis will receive EUR 5,000.

For the fourth time, the Lenzing Group honors young researchers with the Lenzing Young Scientist Award for excellent research work in the fiber and textile sector. The Dornbirn-GFC, as a platform for international exchange of experience in the field of fibers, offers an ideal stage for this research competition. Bachelor's and Master's students can submit their scientific work under the guiding theme “Unlimited inspiration from nature: Together we research sustainable innovations based on cellulose, including regenerated cellulose fibers and films, as well as cellulose composites” and face a jury of renowned experts from the industry. The aim is to support students who inspire the industry with their research results and create a platform for networking with the textile and fiber industry.

Austrian Fibers Institute as organizer of the Dornbirn GFC
For the 64th time, the Austrian Fiber Institute is organizing the Dornbirn Fiber Congress on a non-profit basis and will provide the framework for presenting the Lenzing Young Scientist Award from September 10 to 12, 2025. The Austrian Fiber Institute, based in Vienna, was founded in 1960 by fiber producers and the Austrian textile industry to promote the market launch of fibers and their products. The Fiber Institute also offers the opportunity to exchange information and experience about fibers and supports contact with educational institutions. The GFC focuses on an international exchange of experience in close coordination with the umbrella organization CIRFS in Brussels and deals with topics relevant to the future, such as fiber innovations, sustainability and the circular economy.

Applicants for the Lenzing Young Scientist Award have the opportunity to submit their work (theses, papers, etc.) in English until June 30, 2025 to the following e-mail address: YSA2025@lenzing.com. Further information can be found online at https://www.lenzing.com/young-scientist-award.

Ahead of the Annual Geneal Meeting of listed company Lenzing AG to be held on April 17, 2025, the Nomination Committee has revised the future composition of the Supervisory Board. Cord Prinzhorn, the current Supervisory Board Chairman is stepping down from the Supervisory Board with the end of his mandate, to focus on his existing and new engagements within B&C Group going forward.

Patrick Lackenbucher, Managing Director of B&C Group, has been nominated for election as a new member of the Supervisory Board, and is designated to take over the role of Chairman of the Supervisory Board on an interim basis. Mr. Lackenbucher has supported the company throughout various key strategic and financial projects over the past 15 years.

Designated Supervisory Board Chairman Patrick Lackenbucher sees the company well positioned for the future: “Both long-term core shareholders, B&C and Suzano, have a strong commitment to the enhancement of Lenzing’s competitiveness as a global market leader in sustainable cellulosic fibers. The company is addressing the continued competitive market environment with a holistic set of measures, that are already yielding positive results and will be pursued further consequently. Profitability is vital for Lenzing to sustain in the face of global competition over the long-term and to further invest in new products and markets. I am looking forward to working together collaboratively with the entire Lenzing Managing Board and Supervisory Board.”

Rohit Aggarwal, CEO of Lenzing AG comments: “Cord Prinzhorn has accompanied Lenzing with great confidence through the difficult environment over the past years and has played a key role in initiating revenue and cost initiatives, which have shown first positive effects in recent quarters leading to revenue, margin and cash flow enhancement for the company. On behalf of the entire Managing Board, I would like to thank him for the excellent collaboration, and I look forward to our future collaboration with the designated Chairman Patrick Lackenbucher, who brings many years of experience and extensive knowledge with Lenzing to the table.”

Besides Patrick Lackenbucher, Leonardo Grimaldi is proposed to be newly elected to the Supervisory Board. Mr. Grimaldi is Executive Vice President and Management Board member of Lenzing’s core shareholder Suzano S/A and will assume the Supervisory Bord mandate from Marcelo Bacci, who has left Suzano. He is an expert in the global pulp market and, among others, also acts as Supervisory Board Chairman at Brazilian port operator Portocel as well as a Supervisory Board member at Veracel Celulose S/A.

Cord Prinzhorn comments: “After four years on the Supervisory Board of Lenzing AG, my current mandate is coming to an end, and I will now concentrate on other existing and new engagements going forward. During my time as Supervisory Board Chairman we have managed to successfully complete important strategic investment projects in Brazil, Thailand and China, to reduce costs as well as financial debt, and at the same time to expand Lenzing’s position in this challenging market environment. I would like to thank not only the members of the Supervisory Board and the Managing Board but also, and above all, the employees of Lenzing, who have made a significant contribution to the success of these strategic projects.”

Cord Prinzhorn will remain Supervisory Board Chairman until the conclusion of the 81st Annual General Meeting on April 17, 2025. The election of Patrick Lackenbucher as Supervisory Board Chairman is planned for the constituting Supervisory Board meeting on the same day directly after the Annual General Meeting.

This year, Eastman and its innovative Naia™ cellulosic fibers have earned again the dark green shirt designation in the Canopy Hot Button Ranking and Report, underscoring the steadfast commitment to protecting ancient and endangered forests while driving innovation in Next Generation fiber solutions.

With “buttons” being used in the report as a measure of MMCF producers sustainability performance across seven critical categories, Eastman maintained a score of 30 buttons for the sustainable production of Naia™ cellulosic fibers. This recognition has been consistently reconfirmed since 2022, after Eastman’s first light green designation in 2019, reflecting their ongoing efforts to prioritize sustainable raw material sourcing, low-impact production processes, and fiber innovation that comes with a lighter impact on the planet.
The Naia™ Renew portfolio, including the Naia™ Renew ES, has also been a cornerstone of this success. Already available at scale, Naia™ Renew ES is created from a blend of 40% certified recycled waste materials, 20% certified recycled cellulose, and 40% sustainably sourced wood pulp. This innovative fiber has become a preferred choice for sustainability-driven brands like Reformation which has already launched its 2nd collection and is gaining increasing traction in retail markets worldwide.

By investing in cutting-edge technologies and industry collaboration, Eastman is redefining what is possible in sustainable fiber innovation. The company remains committed to advancing its mission of creating high-quality, eco-conscious solutions that support the well-being of the planet, industry workers, and consumers alike.

Archroma is bringing its latest “Planet Conscious+” innovations to FEBRATEX 2024 in Brazil with the aim to empower the region’s textile mills and brands to lead the industry shift to sustainability.

SUPER SYSTEMS+ are end-to-end systems that combine fiber-specific processing solutions and intelligent effects. Drawing on the industry’s broadest product portfolio, the SUPER SYSTEMS+ suite encompasses wet processing solutions that deliver measurable environmental impact from sizing to finishing; durable colors and functional effects that add value and longevity to the end product; and cleaner chemistries that eliminate harmful or regulated substances.

Textile industry professionals will be able to explore Archroma’s “PLANET CONSCIOUS+” vision at FEBRATEX 2024 and discover SUPER SYSTEMS+ technologies such as Archroma’s DENIM HALO, a newly launched concept for denim production that is both eco-friendly and simple, aniline-free* DENISOL® PURE INDIGO 30 LIQ pre-reduced indigo, and the patented EarthColors® technology that creates high-performance bio waste-based dyes from non-edible food and agricultural waste. Archroma is also showcasing ULTRATEX® STS-U, a compatible hydrophilic silicone softener for cotton and cotton blended knits with great running stability, Siligen® EH1, a biomass-based silicone softener that has great moisture management and delivers a smooth soft touch, AVITERA® SE GENERATION NEXT for cellulosic fibers and blends that enables significant resource savings, chlorine fastness and improved cost-to-performance ratio for dark and extra-dark shades, and ERIOPON® E3-SAVE all-in-one auxiliary.

Eastman, a specialty materials company and producer of Naia™ cellulosic fibers, has formed a collaboration with Debrand, a logistics company specializing in finding sustainable solutions to apparel waste.

Teaming up with Debrand for collection of the waste, Eastman is using its molecular recycling technology to recycle 5,000 pounds of pre- and post-consumer apparel waste. The process breaks down apparel waste to its molecular building blocks and uses the certified recycled material to create Naia™ Renew fibers — circular fibers made from 60% sustainably sourced wood pulp and 40% recycled waste material via Global Recycled Standard-certified mass balance.

Eastman and Debrand are showcasing the transformative potential of molecular recycling technology to address the textile waste crisis. By providing more circular solutions for apparel waste, this partnership sets a new standard for sustainable practices in the fashion industry. Prior to its collaboration with Eastman, Debrand secured a strategic investment from Waste Management, a provider of comprehensive waste management in North America, to deliver circular solutions across the U.S. and Canada.

Eastman continues to partner with strategic brands and organizations to drive innovation and enhance the infrastructure for a circular economy in the textiles industry. Recently, Eastman teamed up with Patagonia to recycle 8,000 pounds of its unusable apparel.

Archroma has developed a new wet-fastness improver that helps brands and mills produce durable clothing, towels, linens and other textile products with long-lasting colors without compromising on quality or introducing hazardous chemicals.

ALBAFIX® ECO PLUS is a next-generation fixing agent that delivers a strong wet-fastness for all reactive dyes on cotton and other cellulosic fibers and polyester-cotton blends. It will not change the shade of the dyed fabric or negatively impact light-fastness. The product also avoids production challenges – such as foaming, acid hydrolysis and migration problems during drying – to promote efficiency and quality output.

ALBAFIX® ECO PLUS is suitable for jet applications, and for other dyeing and washing equipment with vigorous liquor circulation, and can also be applied by exhaustion, by padding or from the last bath of the soaping process after dyeing or printing.

Like ALBAFIX® ECO, the latest addition to the ALBAFIX® family has a positive influence on chlorine-fastness. When applied with double fixing, it achieves the same high performance on polyamide and PA/Elastane fabrics, as it does on cellulosic fibers. This makes it ideal for the production of swimwear, as well as sportswear and outdoor clothing.

ALBAFIX® ECO PLUS complies with global eco-standards and initiatives, including Global Organic Textile Standard (GOTS), bluesign® and the Zero Discharge of Hazardous Chemicals (ZDHC) Roadmap.

With the growing demand among brands and consumers for plastic-free materials and ingredient transparency, VEOCEL™, the flagship specialty nonwovens brand of Lenzing Group, showcased LENZING™ Lyocell Dry fiber at Hygienix 2023. LENZING™ Lyocell Dry fiber which is not classified as “plastic” according to EU SUPD, meets the growing interest for plastic-free nonwoven products across the industry and among consumers. Additionally, along with being an environment-friendly solution, the fiber delivers high-performance dryness and comfort which makes it the optimum fiber choice for absorbent hygiene applications.

Comprised of mostly fossil-based materials, absorbent hygiene products are an essential part of many consumers’ daily lives. With heightened concerns towards environmental impact, the product segment has been undergoing a change caused by shifting consumer preferences, increased consciousness and concerns towards plastic waste, and technology advancement. LENZING™ Lyocell Dry fiber has embraced these changes without compromising on quality or performance.

LENZING™ Lyocell Dry is a cellulosic environment-friendly wood-based alternative to fossil-based fibers. Besides offering great performance features such as liquid management, dryness, gentle-on-the-skin comfort, softness, and quality, LENZING™ Lyocell Dry helps to meet the needs of customers who are aiming to produce plastic-free applications or end products that do not harm the planet without compromising on performance or comfort.

Featuring Lenzing’s unique Dry technology, LENZING™ Lyocell Dry’s hydrophobic characteristics and liquid-controlling properties make it the ideal fiber for absorbent hygiene products. Its high-performing hydrophobicity makes it the optimal choice for a wide range of applications, including baby diapers, feminine care and personal hygiene products as well as adult incontinence products.

The fiber has consistently been tested by Lenzing as the softest* fiber among cellulosic fibers in both dry and wet stages. LENZING™ Lyocell Dry will enable brands and manufacturers to deliver quality hygiene products that provide a high level of comfort, softness, and dryness.

*Lenzing AG softness panel test

HeiQ AeoniQ™ becomes an active brand partner of the Canopy initiative with eleven other companies to address the growing climate and biodiversity crises by committing to keep Ancient and Endangered Forests out of our man-made cellulosic fiber supply chain.

The commitments that HeiQ AeoniQ™ is making are part of solutions-driven non-profit Canopy’s Pack4Good and CanopyStyle initiatives which currently represent collectively 950 brand partners. Together, the initiatives are shifting supply chains away from vital forests to low-impact, circular Next Gen Solutions.

“We must rapidly replace oil-based polyester in the textile industry causing microplastics, global warming, landfill and ecosystem degradation. Cellulose is the most abundant biopolymer in the world and is best suited to replace polyester. However, we must pay attention to cellulose feedstock sources. Our forests, a potential cellulose feedstock, are one of the most important solutions to addressing the effects of climate change. Approximately 2.6 billion tons of carbon dioxide, one-third of the CO₂ released from burning fossil fuels, is absorbed by forests every year. Around 12.5% of global greenhouse gas emissions (5-10 GtCO₂e annually) come from deforestation. We are losing forests at an alarming rate. Every year, around 10 million hectares of forests globally are destroyed. We need immediate action to increase forests again. Canopy is our go-to partner to replace polyester with circular & sustainable cellulose feedstock for our innovative HeiQ AeoniQ™ fiber revolution.” said Carlo Centonze, HeiQ Group CEO.

Paper packaging is also a key driver of forest loss globally, as 3.1 billion trees are cut down annually to produce the boxes and bags in which products are packaged and shipped. Paper packaging production has increased by 65% over the past two years.

“The range of companies and sectors represented in today’s announcement reflects the breadth of market response to the growing climate and biodiversity crises and intensifying supply chain disruptions,” said Nicole Rycroft, Founder and Executive Director of Canopy. “Today’s brand partners add significant momentum to global conservation efforts and the movement to transform ‘take, make, waste’ supply chains to be lower-impact and Next Gen.”

Today, as part of Pack4Good, HeiQ AeoniQ™ committed to:

• Eliminate Ancient and Endangered Forests from our paper packaging supply chain.
• Reduce material use through design innovation.
• Maximize recycled content.
• Explore and scale alternative Next Gen fibers (such as agricultural residues).
• Where virgin fiber is necessary, use FSC-certified fiber.