Lenzing's Impairment Hit Clouds a Brighter Margin Picture

Lenzing has reaffirmed its full-year 2026 target of EUR 430 million to EUR 460 million in adjusted EBITDA, a day after the release of nine-month figures that showed profitability improving on an adjusted basis even as impairments dragged the bottom line deep into the red. The guidance compares with EUR 425.6 million achieved in the prior year.

The group's adjusted EBITDA for the first nine months came in at EUR 353.0 million, essentially flat year on year, while the adjusted EBITDA margin climbed to 18.3%. In the third quarter, the margin was higher than in the same period a year earlier, according to the company. Revenue over the nine months totaled EUR 1.9263 billion, a decline that accompanied the near-stable adjusted result.

Below the operating line, the picture darkens. Lenzing posted a loss after tax of EUR 130.3 million, burdened by impairments of EUR 136.1 million at its Heiligenkreuz and Grimsby sites. Unadjusted EBITDA reached EUR 316.4 million, a figure that included restructuring effects of EUR 36.6 million. The gap between the adjusted and unadjusted numbers — roughly the restructuring charge — is what separates the margin story from the net loss.

Investors nonetheless took the update in stride. The shares rose 3.4% yesterday following publication of the nine-month results, a rebound that followed a sharp valuation cut from Deutsche Bank, which lowered its price target on Lenzing to EUR 12.7 from EUR 22 on 28 October.

Attention now shifts to Heiligenkreuz, where roughly 30 potential buyers have reportedly expressed interest. A shortlist was expected to be drawn up in mid-November, and by year-end the supervisory board is due to decide whether to sell the site or close it. Lenzing had previously pushed back the closure to the first quarter of 2027, leaving a sale to a new owner as a live option; no deal has been agreed.

On the ownership side, the syndicate of B&C-Gruppe and Suzano S.A. holds around 52.25% of voting rights, according to Lenzing. The shareholder structure published by the company also includes a direct stake of about 0.80% held by Suzano Holding S.A., while Goldman Sachs Group owns 5.86% of Lenzing shares. The figures reflect the ownership structure following completion of the capital increase.

Lenzing is scheduled to report its full-year results on 18 March 2027, when the market will see whether the EUR 430 million to EUR 460 million range is met — and how much of the adjusted result survives once restructuring and impairment charges are counted.