Lenzing's Heiligenkreuz Lifeline Runs to March 2027 as Deutsche Bank Raises Its Sights

Lenzing has bought its Heiligenkreuz lyocell site more time than the headline numbers alone would suggest. Production at the Austrian plant will continue through the end of March 2027, with the field of roughly 30 prospective buyers set to be whittled down in mid-November. Whether a purchaser steps forward or the site winds down should be settled by the end of the year.

That breathing room sits alongside a nine-month report card that lays bare the cost of the company's overhaul. Revenue for the first three quarters of 2026 came in at EUR 1.93 billion, while adjusted EBITDA reached EUR 353 million — an 18.3 percent margin. Strip out the adjustments, and EBITDA falls to EUR 316.4 million, with restructuring effects taking a EUR 36.6 million bite.

Further down the income statement, the picture darkens. EBIT showed a loss of EUR 55.1 million, dragged lower by impairments of EUR 136.1 million. Lenzing pointed to a volatile trading environment, geopolitical friction and tariff uncertainty, compounded by higher energy and chemical costs. The bottom line landed at a net loss of EUR 130.3 million, wider than the EUR 105.0 million shortfall recorded a year earlier.

Deutsche Bank Sees Progress, Not a Finished Job

Deutsche Bank lifted its price target on the stock yesterday to EUR 14.30 from EUR 12.70, keeping its "Hold" rating intact. The bank credits improved underlying profitability in the third quarter for the higher valuation, though it stops short of calling the turnaround complete.

Investors, for their part, marked the shares down 3.2 percent to EUR 11.50 on the day.

Beyond Heiligenkreuz, Lenzing has mapped out a broader retreat from older production. The company confirmed it will halt output at Grimsby by the end of 2027, and it still expects adjusted EBITDA of between EUR 430 million and EUR 460 million for the full year 2026.