EQS-Adhoc: Lenzing AG: Lenzing AG advances strategic transformation

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Lenzing AG advances strategic transformation with focus on nonwoven applications and repositioning of its textiles business; planned phase-out of selected sites; expected non-cash impairment losses of up to EUR 150 mn in 2026; targeting EBITDA margin between 20-25%  and leverage below 2.5x in the mid-term; comprehensive refinancing package including a fully underwritten capital increase of up to EUR 300mn, subject to consent of extraordinary general meeting on or around August 25, 2026 as well as new financing agreements of up to EUR 300 mn

Lenzing, July 27, 2026 – The Management Board of Lenzing AG (“Lenzing”), with the consent of Lenzing’s Supervisory Board, today resolved on further executing its strategic transformation aimed at focusing on nonwoven applications while reshaping Lenzing’s textiles business. Lenzing intends to grow its nonwovens business substantially by 2030.

As part of this transformation, Lenzing is consolidating its fiber production footprint in parallel with the ongoing sale process for the Indonesian viscose site, PT South Pacific Viscose. In addition, Lenzing plans to phase out production at its fiber plants in Heiligenkreuz, Austria, by the end of 2026 and in Grimsby, UK, by the end of 2027. Production of premium fibers is expected to be transferred to Lenzing’s core manufacturing sites, ensuring a stable and reliable supply for customers.

As part of the production footprint consolidation, Lenzing AG expects to recognize impairment losses of the non-current assets, especially property, plant and equipment of up to EUR 150 mn in 2026. This non-cash impairment charge is expected to negatively impact consolidated EBIT and consolidated net income in 2026, while having no impact on EBITDA in 2026. In addition, restructuring provisions related to headcount reductions of up to EUR 40 mn are expected to negatively impact EBITDA in 2026.

The Company's strategic ambition is to return to revenue growth with an EBITDA uplift of approximately EUR 150 mn achieving an EBITDA margin of 20-25% and reducing leverage to below 2.5x in the medium term.

Lenzing’s transformation is planned to be accompanied by a comprehensive refinancing package designed to strengthen its financial structure, including new financing agreements in an aggregate amount of up to EUR 300 mn and the extension of existing debt’s maturity to 2030. Effectiveness of the refinancing package is subject to the completion of a capital increase of EUR 300 mn.

The Management Board, with the consent of the Supervisory Board, today resolved to convene an extraordinary general meeting on or around August 25, 2026, and to submit a proposal to the shareholders for a capital increase with a discounted rights offering of up to EUR 300 mn with pro-rata subscription rights allotted to Lenzing’s existing shareholders.

The syndicate formed by B&C Group and Suzano, which together indirectly holds approximately 52.25% of Lenzing’s share capital, has, subject to customary conditions, irrevocably committed to participate in the capital increase by investing up to EUR 156.7 mn, representing its approximately 52.25% share of the capital increase. Oberbank AG, which holds approximately 3.86% of Lenzing’s share capital, has likewise, subject to customary conditions, committed to participate in the capital increase by investing up to approximately EUR 11.6mn, representing its approximately 3.86% share of the capital increase. A group of international banks have undertaken, subject to terms and conditions in line with market practice for similar transactions, to subscribe for any shares not taken up by Lenzing’s shareholders.

Further details regarding the convocation of the extraordinary general meeting, the capital increase and the rights offering will be published in due course.

Important Notice

This communication is not for distribution or release, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), Australia, Canada, Japan or any other jurisdiction in which such distribution or release would be unlawful. This communication does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States, Australia, Canada or Japan, or any other jurisdiction in which such offer or solicitation may be unlawful. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered or sold in the United States, absent registration or an exemption from the registration requirements of the Securities Act. There will be no public offer of the securities in the United States.

In the United Kingdom, this communication is only being distributed to and is only directed at persons who are “qualified investors” for the purposes of the Public Offers and Admissions to Trading Regulations 2024 (“POATRs”), and who are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), or (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.), or (iii) persons to whom an invitation or inducement to engage in an investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise be lawfully communicated or caused to be communicated (all such persons together being referred to as “Relevant Persons”). This communication is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This communication does not constitute a public offer of securities in the United Kingdom for the purposes of POATRs. Any offer of securities in the United Kingdom will be made only in compliance with POATRs and applicable FCA rules.

In any member state of the European Economic Area other than Austria, this communication is only addressed to and is only directed at “qualified investors” in that member state within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”).

This publication constitutes neither an offer to sell nor a solicitation to buy securities of Lenzing Aktiengesellschaft in any jurisdiction.

2372278  27-Jul-2026 CET/CEST