Lenzing Puts Heiligenkreuz Fate in Supervisory Board's Hands as Buyers Circle and Deutsche Bank Turns More Bullish

Lenzing has drawn interest from 30 potential investors in its Heiligenkreuz plant, Austrian broadcaster ORF Burgenland reported on 4 November, setting the stage for a decision that now rests with the company's supervisory board. A shortlist of bidders is expected to be finalized in mid-November, with clarity on whether serious offers exist due by the end of December. The choice before the board is stark: sell the site or shut it down.

Production at Heiligenkreuz is slated to continue until the end of the first quarter of 2027. Grimsby faces a similar fate, with operations there scheduled to wind down by the end of 2027. Lenzing is actively exploring divestment options for the affected facilities.

Impairments Weigh Heavily on the Bottom Line

The site question has left its mark on the accounts. Non-cash write-downs at Heiligenkreuz and Grimsby took a substantial toll on earnings, amounting to EUR 136.1 million. EBIT for the first nine months of 2026 came in at minus EUR 55.1 million.

Should investors sell immediately? Or is it worth buying Lenzing?

Revenue for the period reached EUR 1.93 billion, while adjusted EBITDA totaled EUR 353 million. The adjusted EBITDA margin improved to 18.3%. Unadjusted EBITDA stood at EUR 316.4 million, dragged down by EUR 36.6 million in restructuring effects. For the full year 2026, Lenzing is guiding toward adjusted EBITDA of between EUR 430 million and EUR 460 million.

Deutsche Bank Sees Recovery Still in Progress

Deutsche Bank Research reaffirmed its "Hold" rating on Monday and lifted its price target to EUR 14.30 from EUR 12.70. Analyst Lars Vom-Cleff, whose assessment followed the nine-month figures, pointed to improved underlying profitability but cautioned that the turnaround has yet to run its course.

Shares of the fiber maker were trading 1.4% lower at EUR 11.28 on the day, with the mid-November shortlist for Heiligenkreuz bidders representing the next milestone on the calendar.

Ad

Lenzing Stock: New Analysis - 11 November

Fresh Lenzing information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Lenzing analysis...