Lenzing's Heiligenkreuz Deadline and Alabama Fibre Bet Frame a Year of Write-Downs

Lenzing has drawn several non-binding offers for its Heiligenkreuz plant and is now sifting through them, with a verdict due by the end of 2026 on whether a viable sale can be struck. Should no economically sound solution emerge, the site is slated to close at the end of the first quarter of 2027. The company intends to press ahead with those bidders whose proposals look financially sustainable.

The Austrian fibre maker's decision on Heiligenkreuz comes against a backdrop of heavy accounting charges. Impairments at Heiligenkreuz and Grimsby together reached EUR 136.1 million, dragging the group to a net loss after tax of EUR 130.3 million across the first nine months of 2026.

Revenue for that nine-month stretch came in at EUR 1.93 billion. Adjusted EBITDA stood at EUR 353 million, while the unadjusted figure reached EUR 316.4 million — a gap that reflects EUR 36.6 million in one-off restructuring effects booked against the metric.

For the full year 2026, management is guiding toward adjusted EBITDA of between EUR 430 million and EUR 460 million. The figures were published on 5 November.

Alabama Expansion Anchors Nonwovens Push

On the growth side of the ledger, Lenzing said on Thursday it will sink EUR 27 million into expanding its specialty fibre capacity for nonwoven applications at Mobile, Alabama. The outlay is aimed at broadening short-cut fibre capacity and forms part of a wider EUR 50 million investment programme for the nonwovens business. That envelope already includes the EUR 23 million previously earmarked for the Lenzing site.

The twin announcements sketch out a company pulling in two directions at once: retreating from a loss-making European plant while funding expansion in the United States.

Deutsche Bank Research, for its part, kept a "Hold" rating on the stock. The broker argued that underlying profitability has improved, though it cautioned that the recovery has yet to run its course. Shares slipped 0.4% on Friday.