Lenzing Wins Back Investors With Upgraded 2026 Outlook as Heiligenkreuz Fate Nears

Lenzing shares climbed 3.4% on Thursday after the Austrian fibre maker raised its full-year guidance and posted a stronger margin for the first nine months of 2026 — a rebound that came barely a day after Deutsche Bank had slashed its price target on the stock from EUR 22 to EUR 12.7.

The lender's downgrade, issued on 28 October, had sharply marked down its valuation of the company. Thursday's advance suggests the market was willing to look past the writedowns that dragged the group to a net loss and focus instead on improving operating profitability and the capital increase completed roughly a month earlier.

Margin Improves Despite Shrinking Top Line

Adjusted EBITDA for the nine-month period came in at EUR 353 million, translating into an adjusted EBITDA margin of 18.3%. In the third quarter alone, the margin was higher than in the same period a year earlier, according to the company.

Revenue, however, slipped to EUR 1.926 billion from EUR 1.972 billion in the comparable prior-year period. The unadjusted EBITDA figure stood at EUR 316.4 million and included restructuring charges of EUR 36.6 million.

Those restructuring costs, together with impairments, pushed the bottom line deep into the red. The loss after tax widened to EUR 130.3 million from EUR 105 million a year earlier, with write-downs of EUR 136.1 million on the Heiligenkreuz and Grimsby sites accounting for the bulk of the damage.

Guidance Raised for 2026

Management now expects adjusted EBITDA of between EUR 430 million and EUR 460 million for the full year 2026, lifting its earlier forecast. The annual results are scheduled for publication on 18 March 2027.

Heiligenkreuz Decision Due by Year-End

Attention is turning to the future of the Heiligenkreuz plant, where Lenzing must decide by the end of the year whether to sell the site or shut it down. The field of roughly 30 interested buyers is set to be narrowed in mid-November. Once the offers have been reviewed, the supervisory board will choose between a sale and closure.

Lenzing had previously postponed the closure to the first quarter of 2027, leaving the door open for a buyer to keep the operation running. No sale has been agreed so far.

Ownership Structure Unchanged

In a statement dated 29 October, Lenzing said the shareholder syndicate comprising B&C-Gruppe and Suzano S.A. continues to hold approximately 52.25% of voting rights. Goldman Sachs Group holds 5.86% of Lenzing shares, according to the company.