Lenzing Balances Alabama Growth Against Heiligenkreuz Exit as Deutsche Bank Lifts Target to EUR 14.30

Lenzing has confirmed a EUR 27 million investment at its Mobile, Alabama site, expanding specialty fibre capacity for nonwovens applications — including lyocell short-cut fibres. The outlay forms part of a broader EUR 50 million programme for the nonwovens business, which also covers the previously announced EUR 23 million for the Lenzing site in Austria.

The shares edged 0.4% higher on the day of the announcement.

A Tale of Two Sites

While Mobile gears up for expansion, the group's Heiligenkreuz plant faces a far less certain future. Lenzing has received several non-binding purchase offers for the facility and is now evaluating them. A decision is due by the end of 2026: either a viable sale is agreed, or the site will be shuttered at the end of the first quarter of 2027.

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

The restructuring has already left its mark on the accounts. On 5 November, Lenzing reported EBIT of EUR -55.1 million for the first nine months of 2026, a figure that included impairment charges of EUR 136.1 million at Heiligenkreuz and Grimsby.

Margins Hold Up Beneath the Impairments

Revenue for the nine-month period came in at EUR 1.93 billion, with adjusted EBITDA of EUR 353 million — a margin of 18.3%. Restructuring effects of EUR 36.6 million weighed on EBITDA, which stood at EUR 316.4 million on an unadjusted basis. The bottom line showed a net loss of EUR 130.3 million.

Looking ahead, management is guiding for full-year 2026 adjusted EBITDA of between EUR 430 million and EUR 460 million.

Deutsche Bank Sticks With Hold

Deutsche Bank raised its price target on Monday to EUR 14.30 from EUR 12.70, keeping its "Hold" rating unchanged. The higher target therefore arrives without any shift in the bank's stance on the stock.

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