Lenzing Resets Strategy: Nonwovens Growth, Textile Turnaround

Lenzing announced a strategic reset on Monday, with the Austrian fiber maker shifting its focus toward nonwovens growth, a textile market recovery, and a renewed emphasis on pulp profitability. The plan was outlined by the new CEO, Georg Kasperkovitz, who took the helm in June after joining the company as COO a year earlier.

“Pulp remains profitable,” Kasperkovitz said on the call. “Fiber markets remain challenging.” He described the situation in manmade cellulosic fibers as a structural shift, not a cyclical dip. The macroeconomic and geopolitical headwinds have persisted, weighing on the entire industry, he added.

The reset has three pillars. Nonwovens, a segment that includes products like wipes and hygiene materials, is the growth target. The textile business, which has faced weaker demand, will undergo a reset. And pulp capitalization will be used to support the broader strategy, Kasperkovitz said.

CFO Mathias Breuer, who joined Lenzing in 2023 and became CFO at the start of 2026, is expected to provide the financial details. The company did not release specific financial targets on the call, but Kasperkovitz said the strategy is designed to position Lenzing for the structural changes in the fiber market.

The announcement comes as the global fiber industry grapples with overcapacity and weak demand in the textile sector. Lenzing, which produces specialty fibers like Tencel and Lyocell, has been under pressure from lower-priced competitors and a slowdown in apparel consumption. The nonwovens segment has offered a more resilient demand profile, driven by hygiene and medical applications.

Kasperkovitz said the company will focus on capturing growth in nonwovens while managing the textile downturn. The pulp capitalization piece suggests Lenzing may look to its own pulp production – the company operates a dissolving pulp plant in Brazil – as a source of cost advantage or capital allocation.

Investors on the call included analysts from Berenberg, ODDO BHF, and M&G Investment Management. The strategy reset is the first major move under Kasperkovitz, who replaced previous CEO Stefan Doboczky. The company has not yet provided a timeline for when the new strategy will begin to show results in financial statements.

Lenzing shares trade over the counter in the U.S. under the ticker LNZNF. The stock has declined over the past year amid the broader fiber market weakness. The new strategy aims to stabilize the business and position it for a recovery when textile demand returns, Kasperkovitz said.