#Yarn & Fiber

2024-03-21

Lenzing Group's financial performance in 2023: Overcoming challenges with resilience

In 2023, the Lenzing Group, a key player in regenerated cellulosic fibers, faced challenges with subdued demand and rising raw material costs, impacting earnings negatively. Despite stable revenue of EUR 2.52 bn, primarily due to low fiber prices and weaker demand, specialty brands maintained resilience. EBITDA increased by 25.4% to EUR 303.3 mn, but EBIT stood at minus EUR 476.4 mn due to impairment losses.

Net loss amounted to EUR 593 mn. The performance program aimed at enhancing resilience and cutting costs is yielding positive results, with over EUR 100 mn in annual cost savings expected. Positive free cash flow in the latter half of 2023 reached EUR 42.7 mn. Capital expenditure decreased to EUR 283.6 mn, while liquidity rose by 61.3% to EUR 731 mn by December 31, 2023.

“The anticipated recovery of markets relevant to the Lenzing Group has failed to materialize to date. Subdued demand and the still sharply increased raw material and energy costs have led to a result in 2023 that we are not satisfied with,” notes Stephan Sielaff, Chief Executive Officer of the Lenzing Group. “This makes the measures we have taken decisively and at an early stage to keep Lenzing on track and further boost its resilience to crises all the more significant.”

Nico Reiner, Lenzing Group CFO, adds: “This performance program is a powerful instrument to tackle the current economic challenges and enhance Lenzing’s resilience to crises. We are very satisfied with how the program has unfolded so far. The cash flow trend in the second half of the year shows that these measures are taking effect.”

In the third and fourth quarters of 2023, Lenzing generated positive free cash flow of EUR 27.3 mn and EUR 15.4 mn respectively (compared with minus EUR 132.3 mn in the first quarter and minus EUR 33.1 mn in the second quarter of 2023).

"Further progress with “Better Growth” strategy

Lenzing made strides in implementing its “Better Growth” strategy, focusing on specialty fibers like TENCEL™ and LENZING™ ECOVERO™. Modernization efforts in Nanjing, China, and Purwakarta, Indonesia, aimed at sustainability and quality enhancements.

Sustainability recognition

Lenzing garnered accolades for sustainability achievements, including triple “A” ranking by CDP and Platinum Status by EcoVadis. Its brands, notably TENCEL™, maintained strong global visibility.

Outlook and challenges

While IMF forecasts slight global economic growth, risks persist, including geopolitical tensions and inflation. Consumer sentiment remains subdued, impacting markets crucial for Lenzing. Volatility in currency and cotton markets adds uncertainty.

Performance and future prospects

Lenzing’s performance program targets positive cash flow, revenue growth, and cost efficiency. With expectations of increased demand for eco-friendly fibers, Lenzing remains optimistic about future growth and sustainability goals, anticipating higher EBITDA for 2024."

Lenzing improves profitability as strategic transformation gains momentum

The Lenzing Group reported improved operating profitability in the first nine months of 2026 despite declining revenue and a challenging market environment. Revenue decreased by 2.3 percent to EUR 1.93 billion, while adjusted EBITDA remained stable at EUR 353 million. The adjusted EBITDA margin increased from 17.9 percent to 18.3 percent, reflecting progress in the company's strategic transformation under its “Grow Nonwovens. Reset Textiles.” strategy.

Lenzing and Kaihara to debut REMOD denim collection at Kingpins Amsterdam

The Lenzing Group, a global producer of wood-based fibers for the textile and nonwovens industries, has partnered with Japanese denim manufacturer Kaihara Corporation to launch the “REMOD Collection”. The collection combines three of Lenzing's fiber offerings for denim applications: TENCEL™ Lyocell Standard, TENCEL™ Lyocell – HV100 and TENCEL™ Lyocell dtex 2.2.

Lenzing reports improved half-year results and advances strategic transformation

Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

Kraig Biocraft Laboratories launches performance yarn development program based on spider silk

Kraig Biocraft Laboratories has launched a development program for high-performance yarns based on its recombinant spider silk technology. The initiative follows the company's first commercial shipment of a custom spider silk yarn to a performance apparel customer and includes the delivery of spider silk samples to a textile technology company with experience in aerospace-related material development.

Circ and Huafon partner to scale textile-to-textile recycling in China

Circ® and Huafon, a leading spandex producer in China, are partnering to build and scale a new multi-phase textile-to-textile recycling site in China, expanding Circ's global pathway to industrial scale. The project will be located within Huafon's industrial footprint and will use Circ's technology to process polycotton textile waste and recycle both inputs, recovering recycled PTA, recycled MEG and recycled cellulosic pulp for use in new textiles. The site will be developed in phases, with Phase 1 designed for approximately 200 metric tons of textile waste per day and additional capacity planned.

Stäubli to introduce new S3292 dobby for high-speed weaving at ITME India 2026

Stäubli will introduce its new S3292 dobby at ITME India 2026, taking place from December 4 to 9 at the India Expo Centre & Mart in Greater Noida, Uttar Pradesh. Designed for high-speed air-jet weaving, the new machine will be among the highlights of the company's presentation, which also includes warp preparation systems, cam motions, Jacquard technologies and digital services.

DITF develops bio-based binding fibers for wood-fiber insulation materials

As part of the CelluWoodFlex project, the German Institutes of Textile- and Fiber-Research in Denkendorf (DITF) are developing bio-based cellulose ester fibers as alternative binding fibers for flexible wood fiber insulation materials. In addition to the spinning process and the production of suitable staple fibers, the institute is also investigating how wood and cellulose fibers can be separated and recycled at the end of their useful life.

Reju expands textile-to-textile recycling network with six international fabric manufacturers

Reju, a textile-to-textile regeneration company, is expanding its industrial network through collaborations with six fabric manufacturers in Europe and the Americas. The initiative aims to accelerate the integration of regenerated polyester into textile manufacturing and support the development of finished fabrics for commercial applications.

Magnera highlights HighPleat™ filtration media technology at FiltXPO 2026

At FiltXPO 2026, held on October 28–29 at the Minneapolis Convention Center in Minneapolis, Minnesota, Magnera highlighted advances in air filtration media architecture, with a particular focus on its HighPleat™ platform for MERV 8–10 applications. The technology combines a lofted fiber structure with optimized pore architecture to address the challenge of balancing filtration efficiency, airflow resistance and contaminant-holding capacity.