Lenzing reports revenue growth and profitability in H1 2025

Austrian fibre producer Lenzing AG achieved revenue growth in the first half of the 2025 financial year. Thanks to successful reforms, the company has returned to profitability. Recently, however, Lenzing AG has felt the effects of the increasingly difficult economic climate. "In the second quarter, however, international customs measures and the resulting uncertainty led to noticeable burdens along the textile value chain. This slowed down the recovery of the Lenzing Group," said an interim report published on Thursday.

Successful reforms and positive one-off effects boost results

In the months from January to June, consolidated revenue amounted to approximately 1.34 billion euros. This corresponded to an increase of 2.3 percent compared to the same period of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) even increased by 63.3 percent to 268.6 million euros.

The development of earnings "benefited significantly from the positive effects of the performance programme", the company explained. In addition, "positive one-off effects from the sale of surplus EU emissions certificates amounting to 30.6 million euros and the valuation of biological assets amounting to 12.5 million euros" were recorded. Lenzing AG posted a net profit of 15.2 million euros. This follows a loss of 65.4 million euros in the first half of the previous year.

Despite uncertainties: Management confirms earnings forecast

CEO Rohit Aggarwal was satisfied with the group's recent development. However, he warned of the continuing macroeconomic uncertainties. "Lenzing has made further progress on the path to operational recovery in the first half of 2025. Our performance programme is clearly contributing to the improvement in earnings," he explained in a statement. "At the same time, we are seeing noticeable effects of increasing uncertainties in international trade in the second quarter – in particular due to aggressive customs policies. These developments are not only affecting our visibility, but also our results. This makes us all the more determined to continue our measures to sustainably secure the turnaround and further strengthen our margins." Despite the current risks, the group adhered to its annual forecast. Management continues to expect "higher EBITDA compared to the previous year" for 2025.

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