From the Sector

The Management Board decided to start a review of strategic options including a potential sale for the Indonesian production site, which supports Lenzing’s strategic focus on branded high-performance fibers with higher margins. Accordingly, Lenzing AG expects to recognize impairment losses of the non-current assets, especially property, plant and equipment of up to EUR 100 mn in 2025. This non-cash charge impairment has a negative impact on consolidated EBIT and consolidated net income but no impact on Lenzing’s EBITDA. 

In order to strengthen operational efficiency, Lenzing plans to reduce the costs with a series of efficiency measures. This includes a reduction in headcount in the Lenzing-based headquarter. Jobs particularly in the administrative area will be reduced by approximately 300 employees, thereof 250 until the end of 2025. This is expected to result in annual savings of over EUR 25 mn from financial year 2026 onwards. At the same time, the company will strengthen its presence in Asia and North America to move closer to its customers in key markets. With this additional effect, total savings will ramp up to more than EUR 45 mn fully effective before the end of 2027. 

To strengthen competitiveness and lasting site profitability in Austria, an investment package has also been put together for the Lenzing and Heiligenkreuz sites. The Management Board intends to invest more than EUR 100 mn in both sites until the end of 2027. 

The Management Board of Lenzing confirms the “above previous year” EBITDA guidance for the financial year 2025. Based on the refined strategy and defined measures, Lenzing’s management targets an EBITDA of around EUR 550 mn for 2027, subject to unchanged market conditions and geopolitical stability.