Lenzing (WBAG:LNZ) Profit Rebuild Gains Credibility Despite Ongoing Losses

Lenzing closed yesterday at €23.50, roughly flat over the past three months, so the market came into this earnings release with muted expectations after a choppy year. The headline is simple. The business is still loss making, but the income statement is starting to show the effect of a profit rebuild.

Q2 revenue landed at €651.7m, broadly in line with recent quarters, while the company swung back to a small quarterly loss of €3.9m after a marginal profit in Q1. The real story sits on a longer time horizon. Management is pushing a €120m profitability program and is emphasizing specific EBITDA targets that matter far more than one soft earnings per share print.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): €651.7m vs. €650.9m (broadly flat year on year)
• Net Income or Loss (Q2 2026 vs. Q2 2025): loss of €3.9m vs. loss of €39.4m (loss narrowed)
• Basic EPS (Q2 2026 vs. Q2 2025): loss of €0.10 per share vs. loss of €1.02 per share (per share loss narrowed)
• Trailing 12 Month Revenue (Q2 2026 TTM vs. Q2 2025 TTM): €2,528.8m vs. €2,694.3m (revenue lower on a trailing basis)

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Lenzing earnings strengthen cautious bullish thesis

Lenzing gives bulls some support. Revenue of €651.7m is broadly flat year on year and over recent quarters, which fits a value over volume message rather than a growth story. The loss narrowed sharply to €3.9m compared with a €39.4m loss a year ago, while group EBITDA is higher on roughly stable sales. Progress on the €120m profitability program, with part already realized and operational EBITDA above a €100m run rate, supports the idea of a profit rebuild rather than a business stuck in structural decline.

Persistent losses keep Lenzing risk firmly in view

The bearish lens still finds plenty to work with. Lenzing remains loss making in Q2 despite earlier help from one offs such as CO2 certificate sales. Trailing 12 month revenue of €2,528.8m is below the prior year, so the top line is not yet supporting the turnaround story. Leverage of 3.6x net debt to EBITDA sits above the sub 2.5x ambition and the company is planning about €150m of capex in 2026. That keeps execution risk and balance sheet risk part of the near term picture.

After a period of volatile share price movements and with Lenzing still unprofitable, it is worth asking whether these issues are isolated or indicate deeper fragility. Review the independent risk analysis for Lenzing which shows 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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