Lenzing's Heiligenkreuz Deadline Nears as Deutsche Bank Flags Unfinished Turnaround

Deutsche Bank has nudged its price target for Lenzing higher, but the Austrian fibre maker's path back to health remains a work in progress — and the fate of one of its flagship plants is still hanging in the balance.

Analyst Lars Vom-Cleff lifted his target to EUR 14.30 from EUR 12.70 on Monday while keeping a "Hold" rating on the stock. He credited the company with improved underlying profitability, better working-capital management and a stronger conversion of earnings into cash, and singled out the "Grow Nonwovens, Reset Textiles" strategy for praise. Even so, Vom-Cleff made clear he does not regard the recovery as complete.

Nine-Month Figures Show Restructuring Drag

For the first nine months of 2026, Lenzing posted revenue of EUR 1.93 billion. Adjusted EBITDA came in at EUR 353 million, lifting the adjusted EBITDA margin to 18.3%. Reported EBITDA stood at EUR 316.4 million, weighed down by EUR 36.6 million in charges tied to restructuring measures.

Investors took a cautious view on the day, with the shares down 1.2%. A separate reading put the stock 1.6% lower at EUR 11.26.

Buyer Shortlist Due Mid-November

Attention is now fixed on Heiligenkreuz, where Lenzing is weighing a sale of the fibre site against shutting it down. Roughly 30 potential buyers expressed interest in the location about a week ago, according to ORF, and a narrower shortlist was expected around mid-November.

By the end of December it should be clear whether serious bids for the site are on the table. The final call between a sale and closure rests with Lenzing's supervisory board, which under the schedule reported by ORF will decide by year-end.

Production at Heiligenkreuz is slated to stop by the end of the first quarter of 2027. The same fate awaits the Grimsby facility, where output is due to wind down by the end of 2027.

Lenzing is reviewing sale options for the affected assets, leaving both a disposal and a shutdown on the table as the board prepares to rule on the plant's future.