Lenzing Wins Higher Deutsche Bank Target as Alabama Expansion and Heiligenkreuz Deadline Diverge

Deutsche Bank lifted its price target on Lenzing to EUR 14.30 from EUR 12.70 on Monday, while leaving its rating at "Hold" — a combination that captures the fiber maker's twin story: margins are improving, but the turnaround has yet to run its course.

The upgrade in the bank's view rests on stronger underlying profitability and cash conversion following the nine-month figures, though it stressed that the recovery is not yet complete.

Margins Improve Even as Revenue Slips

Lenzing booked revenue of EUR 1.93 billion in the first nine months of 2026, down from EUR 1.97 billion a year earlier. Adjusted EBITDA came in at EUR 353 million, lifting the adjusted EBITDA margin to 18.3 percent from 17.9 percent.

Restructuring charges of EUR 36.6 million weighed on EBITDA, which totaled EUR 316.4 million on an unadjusted basis. The bottom line showed a loss after tax of EUR 130.3 million.

By the end of the reporting period, employment contracts covering more than 260 full-time equivalents had been legally terminated. Lenzing put the annualized savings from those cuts at EUR 27 million.

Alabama Site Anchors Nonwovens Push

Growth spending is flowing in parallel. Lenzing announced a EUR 27 million investment at its Mobile, Alabama site, where it will expand specialty fiber capacity for nonwovens, including lyocell short-cut fibers. The outlay is part of a broader EUR 50 million program for the nonwovens business, which also earmarks EUR 23 million for the Lenzing site in Austria. The Mobile expansion centers on the lyocell plant and its specialty and short-cut fiber lines.

Investors took the news in stride: the stock was up 0.4 percent on the day.

Heiligenkreuz Hangs on a Year-End Decision

Elsewhere in the portfolio, Lenzing is reviewing several non-binding purchase offers for its Heiligenkreuz facility, according to reporting by Der Standard. A determination on whether an economically viable sale can be reached is due by the end of 2026. Failing that, the plant is slated for closure by the end of the first quarter of 2027.

For the full 2026 financial year, management is guiding toward adjusted EBITDA of EUR 430 million to EUR 460 million.