Half Year 2026 Lenzing AG Earnings Call
Operator: Ladies and gentlemen, welcome to the Lenzing AG Q2 and Half-Year Results 2026 conference call and live webcast. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Georg Kasperkovitz, CEO. Please go ahead, sir.
Operator: Ladies and gentlemen, welcome to the Lenzing AG Q2 and Half-Year Results 2026 conference call and live webcast. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Georg Kasperkovitz, CEO. Please go ahead, sir.
Speaker #1: Ladies and gentlemen, welcome to the Lenzing Aktiengesellschaft Q2 half-year results 2026 conference call and live webcast. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded.
Speaker #1: The presentation will be followed by a Q&A session. You can register for questions, at any time by pressing star N1 on your telephone. Our operator assistance, please press star N0.
Speaker #1: The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Georg Kasper Kovic, CEO. Please go ahead, sir.
Speaker #2: Good afternoon, everyone. Thank you for joining us. We're excited to present Lenzing's Half-Year 1 2026 results, after recently presenting our new strategy to you.
Georg Kasperkovitz: Good afternoon, everyone. Thank you for joining us. We're excited to present Lenzing's H1 2026 results after recently presenting our new strategy to you. Over the course of today's presentation, we'll walk you through the key highlights of the last six months, discuss the market dynamics, and of course, present our H1 2026 financial results. I will take you through the highlights in the market. Mathias Breuer, our CFO, will lead you through the financials. The headline for the H1 is resilience. Against the backdrop of heated demand volatility and uncertainty, as well as the cost increases caused by the Middle East conflict, the business demonstrated resilience and improvement. Revenue was only modestly lower than H1 2025, despite a particularly strong H1 2025 comparison base and the consequent pruning of low-margin volumes in H1 2026.
Georg Kasperkovitz: Good afternoon, everyone. Thank you for joining us. We're excited to present Lenzing's H1 2026 results after recently presenting our new strategy to you. Over the course of today's presentation, we'll walk you through the key highlights of the last six months, discuss the market dynamics, and of course, present our H1 2026 financial results. I will take you through the highlights in the market. Mathias Breuer, our CFO, will lead you through the financials. The headline for the H1 is resilience. Against the backdrop of heated demand volatility and uncertainty, as well as the cost increases caused by the Middle East conflict, the business demonstrated resilience and improvement. Revenue was only modestly lower than H1 2025, despite a particularly strong H1 2025 comparison base and the consequent pruning of low-margin volumes in H1 2026.
Speaker #2: For the course of today, presentation, we'll walk you through the key highlights of the last 6 months, discuss the market dynamics, and of course, present our Half-Year 1 2026 financial results.
Speaker #2: I will take you through the highlights and the market, and Matthias Breuer, our CFO, will lead you through the financials. The headline for the first half is strengthened resilience.
Speaker #2: Against the backdrop of hated demand volatility, an uncertainty as well as a cost increases caused by the Middle East conflict, the business demonstrated resilience and improvement.
Speaker #2: Revenue was only modestly lower than Half-Year 1 2025, despite a particularly strong Half-Year 1 2025 comparison base and the consequent pruning of low-margin volumes in Half-Year 1 2026, so holding close to that level with increased average sales prices is a reassuring achievement.
Georg Kasperkovitz: Holding close to that level with increased average sales prices is a reassuring achievement. It reflects our deliberate focus on value over volume and the sales measures, which we are already vigorously pursuing. Below the top line, the same discipline shows through in strong gross profit and EBITDA improvement of the fiber division, cash generation and a further reduction in assets. A development towards a healthier financial profile, also at the core of our recently announced new strategy. The takeaway for you is simple. A robust H1 that keeps us firmly on track and a strong platform from which to execute. Overall, the market backdrop through the H1 was constructive. Demand across our portfolio was robust as customers build up some inventory along the empty value chain and supply demand dynamics worked in our favor, evidenced by net margin improvement of most fiber products.
Georg Kasperkovitz: Holding close to that level with increased average sales prices is a reassuring achievement. It reflects our deliberate focus on value over volume and the sales measures, which we are already vigorously pursuing. Below the top line, the same discipline shows through in strong gross profit and EBITDA improvement of the fiber division, cash generation and a further reduction in assets. A development towards a healthier financial profile, also at the core of our recently announced new strategy. The takeaway for you is simple. A robust H1 that keeps us firmly on track and a strong platform from which to execute. Overall, the market backdrop through the H1 was constructive. Demand across our portfolio was robust as customers build up some inventory along the empty value chain and supply demand dynamics worked in our favor, evidenced by net margin improvement of most fiber products.
Speaker #2: It reflects our deliberate focus on value over volume and the self-help measures which we are already rigorously pursuing. Below the top line, the same discipline shows through in strong gross profit and EBITDA improvements of the fiber division.
Speaker #2: Cash generation and the further reduction in net debt. A development towards a healthier financial profile, also at the core of our recently announced new strategy.
Speaker #2: So the takeaway for you is simple: a robust first half that keeps us firmly on track, and a strong platform from which to execute.
Speaker #2: Overall, the market backdrop through the first half was constructive. Demand across our portfolio was robust, as customers built up some inventory along the empty value chain, and supply demands dynamics worked in our favor.
Speaker #2: Evidenced by net margin improvement of most fiber products. In textiles, end demand was stable across Europe and North America, and the pair retail remained resilient.
Georg Kasperkovitz: In textiles, end demand was stable across Europe and North America, and apparel retail remained resilient. The underlying consumer demand actually held up better than the headlines might suggest. In nonwovens, demand remains firm, underpinned by high downstream operating rates. The continued trend led shift towards cellulosic plays directly to our position. Lastly, in the dissolving wood pulp, demand is tied to cellulosic fiber production. A structurally undersupplied market kept the pricing environment stable. The bottom line for us, stable demand across all three parts of the portfolio and a supportive pricing environment, which is exactly what you want to see underpinning the strategy. The key point of this slide is that elevated prices of competing fibers are a structural tailwind for us, and one we expect to persist. By these methods, our cost competitiveness versus alternative fibers continues to improve.
Georg Kasperkovitz: In textiles, end demand was stable across Europe and North America, and apparel retail remained resilient. The underlying consumer demand actually held up better than the headlines might suggest. In nonwovens, demand remains firm, underpinned by high downstream operating rates. The continued trend led shift towards cellulosic plays directly to our position. Lastly, in the dissolving wood pulp, demand is tied to cellulosic fiber production. A structurally undersupplied market kept the pricing environment stable. The bottom line for us, stable demand across all three parts of the portfolio and a supportive pricing environment, which is exactly what you want to see underpinning the strategy. The key point of this slide is that elevated prices of competing fibers are a structural tailwind for us, and one we expect to persist. By these methods, our cost competitiveness versus alternative fibers continues to improve.
Speaker #2: The underlying consumer demand actually held up better than the headlines might suggest. In nonwovens, demand remained firm, underpinned by high downstream operating rates. The continued brand-led shift towards cellulosics plays directly to our positioning.
Speaker #2: Lastly, in dissolving wood parts, demand is tied to cellulosic fiber production. So a structurally undersupplied market kept the pricing environment favorable. The bottom line for us: stable demand across all three parts of the portfolio, and a supportive pricing environment, which is exactly what you want to see underpinning the strategy.
Speaker #2: The key point of this slide is that elevated prices of competing fibers are a structural tailwind for us, and one we expect to persist.
Speaker #2: White metals are cost-competitiveness versus alternative fibers continues to improve. Year to date, cotton is up around 70% and polyester around 20%. Against these costs at roughly plus 15%.
Georg Kasperkovitz: Year to date, cotton is up around 17% and polyester around 20%, against viscose at roughly +15%. That gap means cellulosic fibers has become relatively cheaper than the substitute main players again, which pulls demand towards our fiber family and gives us pricing headroom over time. Crucially, this is sustainable rather than a one-off. Cotton remains supply constrained and polyester pricing is expected to stay elevated by higher crude oil and natural gas prices in the wake of the Middle East conflict. We expect these elevated competing fiber prices to persist, supporting both demand and pricing for cellulosics over the medium term. On the cost side, input costs remain above historic levels and the drivers are largely structural, including the Middle East conflict. Energy prices, and particularly caustic soda, remain elevated through Q2.
Georg Kasperkovitz: Year to date, cotton is up around 17% and polyester around 20%, against viscose at roughly +15%. That gap means cellulosic fibers has become relatively cheaper than the substitute main players again, which pulls demand towards our fiber family and gives us pricing headroom over time. Crucially, this is sustainable rather than a one-off. Cotton remains supply constrained and polyester pricing is expected to stay elevated by higher crude oil and natural gas prices in the wake of the Middle East conflict. We expect these elevated competing fiber prices to persist, supporting both demand and pricing for cellulosics over the medium term. On the cost side, input costs remain above historic levels and the drivers are largely structural, including the Middle East conflict. Energy prices, and particularly caustic soda, remain elevated through Q2.
Speaker #2: That gap means cellulosic fibers have become relatively cheaper than the substitute mills planned against. Which pulls demand towards our fiber family and gives us pricing headroom over time.
Speaker #2: Crucially, this is sustainably rather than a one-off. Cotton remains supply-constrained and polyester pricing is expected to stay elevated by higher crude oil and natural gas prices in the wake of the Middle East conflict.
Speaker #2: So we expect these elevated competing fiber prices to persist. Supporting both demand and pricing for cellulosics over the medium term. On the cost side, input costs remain above historic levels, and the drivers are largely structural, including the Middle East conflict.
Speaker #2: Energy prices and particularly cost exhoda remained elevated through the second quarter. Initial easing in Q1 2025 has already reversed, and we expect volatility to persist while the geopolitical situation remains unresolved.
Georg Kasperkovitz: Initial easing in Q1 2025 has already reversed, and we expect volatility to persist while the geopolitical situation remains unresolved. Caustic soda, in particular, remains one of our key cost headwinds, and sulfur has been even more pronounced, up as much as a threefold year to date, which continues to pressure the cost base. The reassurance in this, while these headwinds are real, we're actively managing them through the cost pass-through and the sales measures I will come to, and that is what has protected our margin. Let me put the conflict in perspective. Important distinction is that its main impact is on our input cost and supply chain volatility, not on customer demand, which has, as in previous crises, remained resilient.
Georg Kasperkovitz: Initial easing in Q1 2025 has already reversed, and we expect volatility to persist while the geopolitical situation remains unresolved. Caustic soda, in particular, remains one of our key cost headwinds, and sulfur has been even more pronounced, up as much as a threefold year to date, which continues to pressure the cost base. The reassurance in this, while these headwinds are real, we're actively managing them through the cost pass-through and the sales measures I will come to, and that is what has protected our margin. Let me put the conflict in perspective. Important distinction is that its main impact is on our input cost and supply chain volatility, not on customer demand, which has, as in previous crises, remained resilient.
Speaker #2: Cost exhoda, in particular, remains one of our key cost headwinds. And sulfur has been even more pronounced. Up as much as a 3-4 year to date.
Speaker #2: Which continues to pressure the cost base. The reassurance in this while these headwinds are real, we're actively managing them. Through the cost pass-through and the self-help measures, I will come to.
Speaker #2: And that is what has protected our margins. Let me put the conflict in perspective. Important distinction is that its main impact is on our input costs and supply chain volatility.
Speaker #2: Not on customer demand, which has, as in previous periods, remained resilient.
Speaker #1: I will follow up on the response that Lenzing is providing to the current market uncertainty. So good afternoon also from my side, Matthias here.
Mathias Breuer: I will follow up on the response that Lenzing is providing to the current market uncertainties. Good afternoon also from my side, Mathias here. This is the part that really matters. We as Lenzing, we don't react passively. We take an active approach with full cost pass-through and pricing excellence, which remain a key strategic priority to us. We use the cost increases to adjust the overall pricing level. The order intake remains robust, supported by positive demand. On the supply side, we continue to diversify, especially with regard to key chemicals. We monitor the pricing and the cost structure in a weekly structure process, and we address the developments proactively. I think this we have proven, with our track record, our cost measures are well on the way.
Mathias Breuer: I will follow up on the response that Lenzing is providing to the current market uncertainties. Good afternoon also from my side, Mathias here. This is the part that really matters. We as Lenzing, we don't react passively. We take an active approach with full cost pass-through and pricing excellence, which remain a key strategic priority to us. We use the cost increases to adjust the overall pricing level. The order intake remains robust, supported by positive demand. On the supply side, we continue to diversify, especially with regard to key chemicals. We monitor the pricing and the cost structure in a weekly structure process, and we address the developments proactively. I think this we have proven, with our track record, our cost measures are well on the way.
Speaker #1: And this is the part that really matters. We, as Lenzing, don't react passively. We take an active approach. We pull cost pass-through and pricing excellence, which remain a key strategic priority for us.
Speaker #1: We use the cost increases to adjust the overall pricing level. The order intake remains robust, supported by positive demand, and on the supply side, we continue to diversify especially with regard to key chemicals.
Speaker #1: We monitor the pricing and the cost structure in a weekly, structured process, and we address developments proactively. And I think, as we have proven with our track record, our cost measures are well underway.
Speaker #1: Around 25 million of the Euro 120 million program that we announced also last week, are already fully in the books and successfully realized, and contribute to the current profitability.
Mathias Breuer: Around EUR 25 million of the EUR 120 million program that we announced also last week are already fully in the books and successfully realized and contribute to the current profitability. While the conflict creates some volatility, we have a clear action plan going forward to mitigate as much as possible. If you go into quantities and price developments, we can see on the fiber side that the volumes remained broadly stable in the quarter, which is a solid result in a still challenging market and with our efforts to cut down on generic segments. At the same time, selling prices increased during Q2 2026, approximately 6% both in US dollars and in EUR. The stable volumes, together with the higher prices, demonstrate the continued pricing discipline that sits in the heart of our value over volume approach.
Mathias Breuer: Around EUR 25 million of the EUR 120 million program that we announced also last week are already fully in the books and successfully realized and contribute to the current profitability. While the conflict creates some volatility, we have a clear action plan going forward to mitigate as much as possible. If you go into quantities and price developments, we can see on the fiber side that the volumes remained broadly stable in the quarter, which is a solid result in a still challenging market and with our efforts to cut down on generic segments. At the same time, selling prices increased during Q2 2026, approximately 6% both in US dollars and in EUR. The stable volumes, together with the higher prices, demonstrate the continued pricing discipline that sits in the heart of our value over volume approach.
Speaker #1: So while the conflict creates some volatility, we have a clear action plan going forward to mitigate as much as possible. If we go into quantities and price developments, we can see on the fiber side, that the volumes remain broadly stable in the quarter, which is a solid result in a still challenging market and with our efforts to cut down on generic segments.
Speaker #1: At the same time, selling prices increased during Q2 2026 by approximately 6%, both in US dollars and in euros. The stable volumes, together with the higher prices, demonstrate the continued pricing discipline that sits at the heart of our value-over-volume approach.
Speaker #1: In pulp, production volumes increased quarter on quarter, so a 300,000 tonnes production in the second quarter, sales volumes continue to reflect the normal quarterly fluctuations we see in this business, which is driven by shipment patterns.
Mathias Breuer: In pulp, production volumes increased quarter on quarter, so at 300,000 tons production in Q2. Sales volumes continue to reflect the normal quarterly fluctuations we see in this business, which is driven by shipment patterns. Average selling prices improved quarter on quarter, leaving the rock bottom level of $780 per ton. You remember by end of last year to currently a level of $850 per ton, reaching a level of approximately $900 within Q3. On that slide, you can see the translation into euro per kilogram, but as the market is trading in US dollar, I just try to refer on that level. In short, a steady, dependable pulp performance that added to the group's progress in the quarter. To sum up the market, overall, we continue to see a constructive backdrop.
Mathias Breuer: In pulp, production volumes increased quarter on quarter, so at 300,000 tons production in Q2. Sales volumes continue to reflect the normal quarterly fluctuations we see in this business, which is driven by shipment patterns. Average selling prices improved quarter on quarter, leaving the rock bottom level of $780 per ton. You remember by end of last year to currently a level of $850 per ton, reaching a level of approximately $900 within Q3. On that slide, you can see the translation into euro per kilogram, but as the market is trading in US dollar, I just try to refer on that level. In short, a steady, dependable pulp performance that added to the group's progress in the quarter. To sum up the market, overall, we continue to see a constructive backdrop.
Speaker #1: Average selling prices improved quarter on quarter, leaving the rock bottom level of 780 US dollar per tonne. You remember, by end of last year, to currently a level of 850 US dollar per tonne.
Speaker #1: Reaching a level of approximately 900 dollar within quarter 3. On that slide, you can see the translation into euro per kilogram, but as the market is trading in US dollar, I just tried to refer on that level.
Speaker #1: In short, a steady, dependable pulp performance that added to the group's progress in the quarter. To sum up the market overall, we continue to see a constructive backdrop.
Speaker #1: Challenges remain, particularly on the cost side, but the demand across our portfolio is robust and favourable supply demands dynamics continue to support our results.
Mathias Breuer: Challenges remain, particularly on the cost side, but the demand across our portfolio is robust and favorable supply-demand dynamics continue to support our results. With the market backdrop in mind, let us now turn to the financial performance. Looking across the past 5 quarters, revenue have remained broadly stable, a sign of resilience, given everything what is happening around us. The strategic focus remains firmly on value over volume. I need to repeat that, including the deliberate pruning of unprofitable volumes. That discipline is increasingly reflected in the profitability. EBITDA grew by around 9% year-on-year, despite largely unchanged revenues, supported by both pricing initiatives and the cost excellence and the self-help measures that we have communicated and that we have discussed. The conclusion is that the improvement of our profitability does not only start with the new strategy that we announced last week.
Mathias Breuer: Challenges remain, particularly on the cost side, but the demand across our portfolio is robust and favorable supply-demand dynamics continue to support our results. With the market backdrop in mind, let us now turn to the financial performance. Looking across the past 5 quarters, revenue have remained broadly stable, a sign of resilience, given everything what is happening around us. The strategic focus remains firmly on value over volume. I need to repeat that, including the deliberate pruning of unprofitable volumes. That discipline is increasingly reflected in the profitability. EBITDA grew by around 9% year-on-year, despite largely unchanged revenues, supported by both pricing initiatives and the cost excellence and the self-help measures that we have communicated and that we have discussed. The conclusion is that the improvement of our profitability does not only start with the new strategy that we announced last week.
Speaker #1: With the market backdrop in mind, let us now turn to the financial performance. Looking across the past five quarters, revenue have remained broadly stable.
Speaker #1: A sign of resilience, given everything what is happening around us. The strategic focus remains firmly on value over volume. I need to repeat that, including the deliberate pruning of unprofitable volumes.
Speaker #1: And that discipline is increasingly reflected in the profitability, EBITDA, group around 9% year on year, despite largely unchanged revenues, supported by both pricing initiatives and the cost excellence and the self-help measures that we have communicated and that we have discussed.
Speaker #1: The conclusion is that the improvement of our profitability does not only start with the new strategy that we announced last week. It is well underway, and it will be amplified going forward.
Mathias Breuer: It is well underway and it will be amplified going forward. Very important also to understand our performance is the quarterly development, and this bridge shall show the way from Q1 into Q2, and how we drove the improvements. Positive contributions from pricing, from volume, and from mix effects across fiber and pulp supported the quarter. Compared to Q1, we had accounted for significantly lower one-offs. No positive impact from TreeToTextile first-time consolidation, which impacted Q1 performance. Lower sales of CO2 certificates and a lower impact from bio asset valuation compared to Q1. On the cost side, the cost inflation or higher input costs amounted to EUR 11 million quarter on quarter. Our cost base has increased by EUR 11 million. That delivered an EBITDA increase of roughly 6% versus Q1.
Mathias Breuer: It is well underway and it will be amplified going forward. Very important also to understand our performance is the quarterly development, and this bridge shall show the way from Q1 into Q2, and how we drove the improvements. Positive contributions from pricing, from volume, and from mix effects across fiber and pulp supported the quarter. Compared to Q1, we had accounted for significantly lower one-offs. No positive impact from TreeToTextile first-time consolidation, which impacted Q1 performance. Lower sales of CO2 certificates and a lower impact from bio asset valuation compared to Q1. On the cost side, the cost inflation or higher input costs amounted to EUR 11 million quarter on quarter. Our cost base has increased by EUR 11 million. That delivered an EBITDA increase of roughly 6% versus Q1.
Speaker #1: Very important also to understand our performance is the quarterly development and this bridge shall show you the way from quarter 1 into quarter 2.
Speaker #1: And how we drove the improvement. Positive contributions from pricing, from volume, and from mix effects across fibre and pulp supported the quarter. Compared to the first quarter, we had accounted for a significantly lower one-offs.
Speaker #1: So no positive impact from tree-to-textile first-time consolidation, which impacted first quarter performance. Lower sales of CO2 certificates and a lower impact from bioasset valuation compared to quarter 1.
Speaker #1: On the cost side, the cost inflation or higher input cost amounted to 11 million euro quarter on quarter. So our cost basis increased by 11 million.
Speaker #1: That delivered an EBITDA increase of roughly 6% versus the first quarter. And more important on quarter 2, after the exclusion of positive one-off items like the sale of CO2 certificates, 5.5 million euro, positive FX development, which accounted for approximately 3 million euro, and positive valuation of the bioasset of approximately 10 million, the operational EBITDA is clearly above the 100 million euro run rate.
Mathias Breuer: More important on Q2, after the exclusion of positive one-off items like the sale of CO2 certificates, EUR +5.5 million, positive effects development, which accounted for approximately EUR +3 million, and positive valuation of the bio asset of approximately EUR +10 million. The operational EBITDA is clearly above the EUR 100 million run rate. This is a very important message that we wanted to provide you. The takeaway, the operational initiatives continue to deliver tangible improvements, successful execution coming through here in the numbers. In working capital, CapEx, and free cash flow, we see, and I think the overarching message for this slide is disciplined financial management and continued execution. This is what we also have proven in last year, and we continue on that path. Working capital remains a key focus area for us. Trading working capital is down to around 17.6% of revenue.
Mathias Breuer: More important on Q2, after the exclusion of positive one-off items like the sale of CO2 certificates, EUR +5.5 million, positive effects development, which accounted for approximately EUR +3 million, and positive valuation of the bio asset of approximately EUR +10 million. The operational EBITDA is clearly above the EUR 100 million run rate. This is a very important message that we wanted to provide you. The takeaway, the operational initiatives continue to deliver tangible improvements, successful execution coming through here in the numbers. In working capital, CapEx, and free cash flow, we see, and I think the overarching message for this slide is disciplined financial management and continued execution. This is what we also have proven in last year, and we continue on that path. Working capital remains a key focus area for us. Trading working capital is down to around 17.6% of revenue.
Speaker #1: So this is a very important message that we wanted to provide you. The takeaway, the operational initiatives continue to deliver tangible improvements. Successful execution coming through here in the numbers.
Speaker #1: On working capital, CAPEX, and free cash flow, we see—and I think the overarching message for this slide is—disciplined financial management and continued execution.
Speaker #1: This is what we also have proven in last year, and we continue on that path. Working capital, remains a key focus area for us, trading working capitalist down to around 17.6% of revenue.
Speaker #1: The main driver versus June 2025 was inventory optimization, so the inventories came down materially year on year. Versus Q1 2026, the small sequential uptick simply reflects higher trade receivables in line with stronger Q2 revenue.
Mathias Breuer: The main driver versus June 2025 was inventory optimization, so the inventories came down materially year-on-year versus Q1 2026. The small sequential uptick simply reflects higher trade receivables in line with stronger Q2 revenue. Underlying discipline is intact. Working capital optimization for sure remains an active ongoing focus for us. On CapEx, it is elevated compared to Q2 2025, but remains within our budget and plans. It was a deliberate step up to support the execution of the new strategy, like the investment in the tampon business. On unlevered free cash flow, the year-on-year comparison needs some context. Q2 2025 was flattered by one-off effects and a lower level of CapEx, as we can see. This year's Q2 looks lower, largely for those two reasons. If we look on a H1 level, we see an improving trend.
Mathias Breuer: The main driver versus June 2025 was inventory optimization, so the inventories came down materially year-on-year versus Q1 2026. The small sequential uptick simply reflects higher trade receivables in line with stronger Q2 revenue. Underlying discipline is intact. Working capital optimization for sure remains an active ongoing focus for us. On CapEx, it is elevated compared to Q2 2025, but remains within our budget and plans. It was a deliberate step up to support the execution of the new strategy, like the investment in the tampon business. On unlevered free cash flow, the year-on-year comparison needs some context. Q2 2025 was flattered by one-off effects and a lower level of CapEx, as we can see. This year's Q2 looks lower, largely for those two reasons. If we look on a H1 level, we see an improving trend.
Speaker #1: So, underlying discipline is intact. Working capital optimization, for sure, remains an active, ongoing focus for us. On CAPEX, it is elevated compared to Q2 2025 but remains within our budget and plans, and it was a deliberate step up to support the execution of the new strategy, like the investment in the Tampon business.
Speaker #1: On unlevered free cash flow, the year on year comparison needs some context. Quarter 2, 2025 was flattered by one-off effects and a lower level of CAPEX, as we can see.
Speaker #1: So this year's Q2 looks lower, largely for those two reasons. If we look on a half-year level, we see an improving trend.
Speaker #1: If we take a step into working capital development, and here I think this reiterates the point that I have made on the last slide, trade working capital overall improved one of the key drivers.
Mathias Breuer: If you take a step into working capital development, here I think this reiterates the point that I have made on the last slide. Trade working capital overall improved. One of the key drivers, you can see it here, was the optimization of the inventory level, both in fibers and dissolving wood pulp. This is certainly the standout contributor to that development. Trade receivables, trade payables have remained relatively stable over the recent quarters. This again underlines the broader point. We continue to actively identify and realize optimization opportunities on the way. With regards to net debt and cash position, the net debt position remains very stable. Net debt has come down slightly year-on-year, which demonstrates disciplined balance sheet management that we have.
Mathias Breuer: If you take a step into working capital development, here I think this reiterates the point that I have made on the last slide. Trade working capital overall improved. One of the key drivers, you can see it here, was the optimization of the inventory level, both in fibers and dissolving wood pulp. This is certainly the standout contributor to that development. Trade receivables, trade payables have remained relatively stable over the recent quarters. This again underlines the broader point. We continue to actively identify and realize optimization opportunities on the way. With regards to net debt and cash position, the net debt position remains very stable. Net debt has come down slightly year-on-year, which demonstrates disciplined balance sheet management that we have.
Speaker #1: You can see it here was the optimization of the inventory level, both in fibres and dissolving wood pulp, this is certainly the standout contributor to that development.
Speaker #1: Trade receivables and trade payables have remained relatively stable over the recent quarters. And this, again, underlines the broader point: we continue to actively identify and realize optimization opportunities along the way.
Speaker #1: With regard to net debt and cash position, the net debt position remains very stable. Net debt has come down slightly year on year, which demonstrates the disciplined balance sheet management that we have.
Speaker #1: Leverage is by end of second quarter at 3.6 times EBITDA, net financial debt to EBITDA, up from 3.3 times by end of 2025. Reason behind is the last 12 months view, which includes now the weaker performance of quarter 3, quarter 4, 2025, while eliminating the strong quarter 1, 2025.
Mathias Breuer: Leverage is by end of Q2 at 3.6x EBITDA, net financial debt to EBITDA, up from 3.3x by end of 2025. Reason behind is the last 12 months view, which includes now the weaker performance of Q3, Q4 2025, while eliminating the strong Q1 2025. Liquidity remains very strong, provides a solid cushion. The slight decline reflects the repayment of outstanding maturities rather than any deterioration. The theme throughout is prudent financial management and continued progress towards the lower leverage we're targeting over the midterm. On the maturities, I need to state out that this maturity profile shown here is a snapshot as of today. It does not include any announced or potential capital structure initiatives. Proactive and disciplined management of the maturities remains key priorities, as I said, in order to support the implementation of the new strategy with ample financial headroom.
Mathias Breuer: Leverage is by end of Q2 at 3.6x EBITDA, net financial debt to EBITDA, up from 3.3x by end of 2025. Reason behind is the last 12 months view, which includes now the weaker performance of Q3, Q4 2025, while eliminating the strong Q1 2025. Liquidity remains very strong, provides a solid cushion. The slight decline reflects the repayment of outstanding maturities rather than any deterioration. The theme throughout is prudent financial management and continued progress towards the lower leverage we're targeting over the midterm. On the maturities, I need to state out that this maturity profile shown here is a snapshot as of today. It does not include any announced or potential capital structure initiatives. Proactive and disciplined management of the maturities remains key priorities, as I said, in order to support the implementation of the new strategy with ample financial headroom.
Speaker #1: Liquidity remains very strong. Provides a solid cushion. The slight decline reflects the repayment of outstanding maturities rather than any deterioration. The theme throughout is prudent financial management and continued progress toward the lower leverage we are targeting over the midterm.
Speaker #1: On the maturities, I need to state out that this maturity profile shown here is a snapshot as of today, it does not include any announced or potential capital structure initiatives.
Speaker #1: Proactive and disciplined management of the maturities remains a key priority. As I said, in order to support the implementation of the new strategy with ample financial headroom, over time the intention is to further smooth and balance the profile by proactively addressing maturities and improving the debt structure.
Mathias Breuer: Over time, the intention is to further smoothen and balance the profile by proactively addressing maturities and improving the debt structure. With the financial picture covered, let me now hand back to Georg for the outlook.
Mathias Breuer: Over time, the intention is to further smoothen and balance the profile by proactively addressing maturities and improving the debt structure. With the financial picture covered, let me now hand back to Georg for the outlook.
Speaker #1: With the financial picture covered, let me now hand back to Georg for the outlook.
Speaker #2: Thank you, Matthias. So let me briefly reiterate the strategy. We communicated recently to create a more focused, more profitable, and resilient leader in supplying fibre and pulp.
Georg Kasperkovitz: Thank you, Mathias. Let me briefly reiterate the strategy. We communicated recently to create a more focused, more profitable, and resilient leader in supplying fiber and pulp. We remain focused on executing on two fronts, growing nonwovens and resetting the fiber textile business. Together with our cost and capital efficiency measures and continued innovation, this is what creates a more focused, more profitable, and more resilient business, moving towards a balanced portfolio, a leaner cost base, and fewer stronger sites. Turning to the outlook. On the market, the pricing environment is expected to remain constructive and is currently at elevated levels. On costs, headwinds expected to remain elevated, particularly energy and raw materials, and we expect them to persist. We are actively mitigating this through continuous monitoring of pricing and costs, active cost pass-through, and our profitability enhancement initiatives. On execution, we remain laser-focused on delivering the new strategy.
Georg Kasperkovitz: Thank you, Mathias. Let me briefly reiterate the strategy. We communicated recently to create a more focused, more profitable, and resilient leader in supplying fiber and pulp. We remain focused on executing on two fronts, growing nonwovens and resetting the fiber textile business. Together with our cost and capital efficiency measures and continued innovation, this is what creates a more focused, more profitable, and more resilient business, moving towards a balanced portfolio, a leaner cost base, and fewer stronger sites. Turning to the outlook. On the market, the pricing environment is expected to remain constructive and is currently at elevated levels.
Speaker #2: We remain focused on executing on two fronts: growing non-woven and resetting the fibre textile business. Together with our cost and capital efficiency measures, and continued innovation, this is what creates a more focused, more profitable, and more resilient business.
Speaker #2: Moving toward the balanced portfolio, a leaner cost base, and fewer stronger sites. Turning to the outlook. On the market, the pricing environment is expected to remain constructive and is currently at elevated levels.
Speaker #2: On costs, headwinds are expected to remain elevated, particularly in energy and raw materials, and we expect them to persist. We are actively mitigating this through continuous monitoring of pricing and costs, active cost pass-through, and our profitability enhancement initiatives.
Georg Kasperkovitz: On costs, headwinds expected to remain elevated, particularly energy and raw materials, and we expect them to persist. We are actively mitigating this through continuous monitoring of pricing and costs, active cost pass-through, and our profitability enhancement initiatives. On execution, we remain laser-focused on delivering the new strategy. That is the management team's single largest priority.
Speaker #2: On focused on delivering the new strategy. That is the management team's single largest priority.
Georg Kasperkovitz: That is the management team's single largest priority.
Speaker #1: On the financial guidance, over the midterm, the strategic ambition is clear: return to revenue growth, deliver an EBITDA uplift of approximately euro 150 million, and thus achieve an EBITDA margin of 20 to 25%, and reduce the leverage to below 2.5 times.
Mathias Breuer: On the financial guidance, over the midterm, the strategic ambition is clear. Return to revenue growth, deliver an EBITDA uplift of approximately EUR 150 million, and thus achieve an EBITDA margin of 20% to 25%, and reduce the leverage to below 2.5x. Everything we are here executing, the cost program, capital efficiency measures, and continued innovation, is geared towards delivering these midterm targets.
Mathias Breuer: On the financial guidance, over the midterm, the strategic ambition is clear. Return to revenue growth, deliver an EBITDA uplift of approximately EUR 150 million, and thus achieve an EBITDA margin of 20% to 25%, and reduce the leverage to below 2.5x. Everything we are here executing, the cost program, capital efficiency measures, and continued innovation, is geared towards delivering these midterm targets.
Speaker #1: Everything we are here executing, the cost program, capital efficiency measures, and continued innovation is geared toward delivering these midterm targets.
Speaker #2: Thank you, Matthias. With that, I would like to conclude today's presentation. Thank you very much for your attention, and we are very much looking forward to your questions.
Georg Kasperkovitz: Thank you, Mathias. With that, I would like to conclude today's presentation. Thank you very much for your attention. We are very much looking forward to your questions.
Georg Kasperkovitz: Thank you, Mathias. With that, I would like to conclude today's presentation. Thank you very much for your attention. We are very much looking forward to your questions.
Speaker #1: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue.
Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast. Anyone who has a question may press star and one at this time. Our first question comes from the line of Patrick Steiner with Oddo. Please go ahead.
Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast. Anyone who has a question may press star and one at this time. Our first question comes from the line of Patrick Steiner with Oddo. Please go ahead.
Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Questionnaire on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast.
Speaker #1: Anyone who has a question may press star and one at this time. Our first question comes from the line of Patrick Steiner with Otto.
Speaker #1: Please go ahead.
Speaker #3: Good afternoon, Patrick Steiner speaking. Few questions from my side. I'll start with the first two or three. Firstly, on cost, so the prices, if I understood this correctly, you said prices went up again after an easing Q1.
Patrick Steiner: Good afternoon, Patrick Steiner speaking. Few questions from my side. I start with the first two or three. Firstly, on caustic soda prices, if I understood this correctly, you said prices went up again after an ease in Q1. A few questions related to that. Firstly, how much do you spend on caustic soda in absolute terms in Q2, if you have that number for me? Are these higher costs already reflected in the Q2 results, or should we expect some kind of lag effect with higher costs in Q3? That's the first one. A second one on volumes. If I see it correctly, volumes in Q2 were quite stable, actually. Most of the revenue increase came from pricing. Can you explain to us why?
Patrick Steiner: Good afternoon, Patrick Steiner speaking. Few questions from my side. I start with the first two or three. Firstly, on caustic soda prices, if I understood this correctly, you said prices went up again after an ease in Q1. A few questions related to that. Firstly, how much do you spend on caustic soda in absolute terms in Q2, if you have that number for me? Are these higher costs already reflected in the Q2 results, or should we expect some kind of lag effect with higher costs in Q3? That's the first one. A second one on volumes. If I see it correctly, volumes in Q2 were quite stable, actually. Most of the revenue increase came from pricing. Can you explain to us why?
Speaker #3: Few questions related to that. I mean, firstly, how much do you spend on cost, so then absolute terms in the second quarter, if you have the number for me?
Speaker #3: And are these higher costs already reflected in the Q2 results, or should we expect some kind of lag effect with higher costs in the third quarter?
Speaker #3: That's the first one. Second one, on volumes—if I see it correctly, volumes in Q2 were quite stable, actually, right? And most of the revenue increase came from pricing.
Speaker #3: Can you explain to us why? Because we're actually a bit expecting of a more pronounced volume increasement related to pre-buying activities of Asian customers.
Patrick Steiner: We're actually a bit expecting of a more pronounced volume increase related to pre-buying activities of Asian customers, and also maybe what your views are on volumes into Q3 and Q4. Thank you.
Patrick Steiner: We're actually a bit expecting of a more pronounced volume increase related to pre-buying activities of Asian customers, and also maybe what your views are on volumes into Q3 and Q4. Thank you.
Speaker #3: And also, maybe what your views are on volumes into Q3 and Q4. Thank you.
Speaker #1: Yeah, good afternoon, Patrick. I'm going to take the first question on cost, soda. So the monthly spend on cost, soda, which we use in four production sites, is slightly above 10 million euros.
Mathias Breuer: Good afternoon, Patrick. I'm going to take the first question on caustic soda. The monthly spend on caustic soda, which we use in four production sites, is slightly above EUR 10 million per month. With regards to will that now peak or is the peak already in Q2, with regard to caustic soda, we at the moment expect a similar level into Q3 compared to Q2. What we currently see is that sulfur is peaking potentially in Q3, with a higher price compared to Q2. The spend on sulfur is approximately less than EUR 5 million a month. On the volumes, I hand over to Gerold.
Mathias Breuer: Good afternoon, Patrick. I'm going to take the first question on caustic soda. The monthly spend on caustic soda, which we use in four production sites, is slightly above EUR 10 million per month. With regards to will that now peak or is the peak already in Q2, with regard to caustic soda, we at the moment expect a similar level into Q3 compared to Q2. What we currently see is that sulfur is peaking potentially in Q3, with a higher price compared to Q2. The spend on sulfur is approximately less than EUR 5 million a month. On the volumes, I hand over to Gerold.
Speaker #1: Per month, and with regard to, will that now peak or is the peak already in Q2? With regard to cost, soda, we at the moment expect a similar level into Q3 compared to Q2.
Speaker #1: What we currently see is that sulfur is peaking potentially in quarter three, with a higher price compared to quarter two. The spend on sulfur is approximately yeah, less than 5 million euros a month.
Speaker #1: On the volumes, I hand over to Georg.
Speaker #2: Thank you for the question on volumes. So let me start with volumes on fibre, because that also spoke through to pulp. In Q2, demand for our fibre products was strong, for a couple of reasons.
Georg Kasperkovitz: Thank you for the question on volume. Let me start with volumes on fiber, because that also pulls through to pulp. In Q2, our demand for our fiber products was strong for a couple of reasons. First of all, man-made cellulosic fibers became more cost competitive than alternative fibers, so oil-based fibers. Second thing, we have a new sales organization, which is more effective. I think this is all reflected in our Q2 volumes. If you look at Q3, the outlook is very promising, and also for Q4, as of today, looks good. I need to say, especially textile fibers, that is spot market. If customers tell us now that they will order in Q4, that can change. Over to you.
Georg Kasperkovitz: Thank you for the question on volume. Let me start with volumes on fiber, because that also pulls through to pulp. In Q2, our demand for our fiber products was strong for a couple of reasons. First of all, man-made cellulosic fibers became more cost competitive than alternative fibers, so oil-based fibers. Second thing, we have a new sales organization, which is more effective. I think this is all reflected in our Q2 volumes. If you look at Q3, the outlook is very promising, and also for Q4, as of today, looks good. I need to say, especially textile fibers, that is spot market. If customers tell us now that they will order in Q4, that can change. Over to you.
Speaker #2: First of all, man-made cellulosic fibres became more cost competitive than alternative fibres, such as oil-based fibres. Second, we have a new sales organisation, which is more effective.
Speaker #2: I think this is all reflected in our Q2 volumes. If you look at Q3, the outlook is very promising. And also for Q4, as of today, it looks good.
Speaker #2: But I need to say, I mean, especially textile fibres, that's a spot market, so if customers tell us now that they will order in Q4, that can change it.
Speaker #1: Always, yeah. And with regard to the question why not increase the volumes, so in principle, we are running on full capacity, and whatever we produce is currently being sold out.
Mathias Breuer: With regards to the question, why not increase the volume? In principle, we are running on full capacity and whatever we produce is currently being sold out. One lever also reducing the inventory was we could also sell off some of our, let's say, warehouse stocks that we have upheld over the last month. We simply don't have more capacity to increase volumes at the moment.
Mathias Breuer: With regards to the question, why not increase the volume? In principle, we are running on full capacity and whatever we produce is currently being sold out. One lever also reducing the inventory was we could also sell off some of our, let's say, warehouse stocks that we have upheld over the last month. We simply don't have more capacity to increase volumes at the moment.
Speaker #1: So one lever also reducing the inventory was we could also sell off some of our, let's say, warehouse stocks that we have upheld over the last month.
Speaker #1: We simply don't have more capacity to increase volumes at the moment.
Speaker #3: Thank you very much. That's very helpful.
Patrick Steiner: Thank you very much. That's very helpful.
Patrick Steiner: Thank you very much. That's very helpful.
Speaker #1: As a reminder, if you wish to register for a question, you may press star and one. Ladies and gentlemen, we have no more registration for other questions.
Operator: As a reminder, if you wish to register for a question, you may press star and one. Ladies and gentlemen, we have no more registration for other questions. I would like to turn the conference back over to Mr. Kasper. Apologies, Mr. Steiner wants to ask another question.
Operator: As a reminder, if you wish to register for a question, you may press star and one. Ladies and gentlemen, we have no more registration for other questions. I would like to turn the conference back over to Mr. Kasper. Apologies, Mr. Steiner wants to ask another question.
Speaker #1: I would like to turn the conference back over to Mr. Kasper apologies, Mr. Steiner wants to ask another question.
Speaker #3: Yes, thank you, Maretta. A few more left from my side. First of all, I saw SG&E costs going up in Q2 compared to Q1.
Patrick Steiner: Yes, thank you very much. A few more left from my side. First of all, I saw SG&A costs going up in Q2 compared to Q1. I suppose that is related to annual inflation in salaries, basically. If not, then please correct me. Should we expect a further increase in Q3? Secondly, can you maybe give us more information on your pricing negotiations with customers going forward? I would probably expect for Q4 and beyond. What's the feedback from customers? It's getting tougher, or how is the situation? Thanks.
Patrick Steiner: Yes, thank you very much. A few more left from my side. First of all, I saw SG&A costs going up in Q2 compared to Q1. I suppose that is related to annual inflation in salaries, basically. If not, then please correct me. Should we expect a further increase in Q3? Secondly, can you maybe give us more information on your pricing negotiations with customers going forward? I would probably expect for Q4 and beyond. What's the feedback from customers? It's getting tougher, or how is the situation? Thanks.
Speaker #3: I suppose that is related to annual inflation in salaries, basically. If not, then please correct me. But should we expect a further increase in Q3?
Speaker #3: And secondly, can you maybe give us more information on your pricing negotiations with customers going forward? I would probably expect that for Q4 and beyond.
Speaker #3: What's the feedback from customers? Is it getting tougher, or how is the situation? Thanks.
Speaker #2: So let me start with a question on pricing negotiations and demand from the customers. I mean, of course, the increased price level for all types of fibres, not only man-made cellulosic fibres, puts pressure on a longer supply chain.
Georg Kasperkovitz: Let me start with your question on pricing negotiations and demand from the customers. Of course, the increased price level for all types of fibers, not only man-made cellulosic fibers, puts pressure along the supply chain. So far, we are able to defend the current price level, and customers also understand that it's also partly driven by underlying costs. I'm confident that we can keep the price level until the end of the year as of today. Mathias, will you cover SG&A?
Georg Kasperkovitz: Let me start with your question on pricing negotiations and demand from the customers. Of course, the increased price level for all types of fibers, not only man-made cellulosic fibers, puts pressure along the supply chain. So far, we are able to defend the current price level, and customers also understand that it's also partly driven by underlying costs. I'm confident that we can keep the price level until the end of the year as of today. Mathias, will you cover SG&A?
Speaker #2: But so far, we are able to defend the current price level and customers also understand that this is also partly driven by underlying costs.
Speaker #2: I'm confident that we can keep the price level until the end of the year, as of today. Matthias, will you cover SG&A?
Speaker #1: Yeah. So I'm going to take over for SG&A. So first, on SG&A costs, we certainly had the, let's say, inflationary increases or given the labour or the salaries.
Mathias Breuer: Yeah. I'm going to take over for SG&A. First, on SG&A cost, we certainly had the, let's say, inflationary increases or given the labor or the salaries, the tariffs increase. Secondly, we are also reporting outgoing freight in the SG&A bucket, which heavily increased over the quarters.
Mathias Breuer: Yeah. I'm going to take over for SG&A. First, on SG&A cost, we certainly had the, let's say, inflationary increases or given the labor or the salaries, the tariffs increase. Secondly, we are also reporting outgoing freight in the SG&A bucket, which heavily increased over the quarters.
Speaker #1: So the tariff increase and secondly, we are also reporting outgoing freight in the SG&A bucket, which heavily increased over the quarters.
Speaker #3: All right, thank you very much. So thinking about Q3, Q4, we should expect stable volumes and stable to maybe slightly increasing prices as a result of prices having increased over the months and maybe we see another positive effect in Q3 in terms of prices, while we see maybe a slightly higher cost base with this makes sense in your view?
Patrick Steiner: All right. Thank you very much. Thinking about Q3, Q4, we should expect stable volumes and stable to maybe slightly increasing prices as a result of prices having increased over the months, and maybe we see another positive effect in Q3 in terms of prices, while we see maybe a slightly higher cost base. Would this make sense in your view?
Patrick Steiner: All right. Thank you very much. Thinking about Q3, Q4, we should expect stable volumes and stable to maybe slightly increasing prices as a result of prices having increased over the months, and maybe we see another positive effect in Q3 in terms of prices, while we see maybe a slightly higher cost base. Would this make sense in your view?
Speaker #2: I would say Q3, you can I would say it's more or less confirmed. It's all planned, so we continue to run all lines at full capacity.
Georg Kasperkovitz: Q3, it's more or less confirmed. It is all planned. We continue to run all lines at full capacity, stable volumes compared to Q2. As of today, I would expect the same thing for Q4. In terms of prices, they might go up a little bit if underlying costs increase, because then we need to pass it through.
Georg Kasperkovitz: Q3, it's more or less confirmed. It is all planned. We continue to run all lines at full capacity, stable volumes compared to Q2. As of today, I would expect the same thing for Q4. In terms of prices, they might go up a little bit if underlying costs increase, because then we need to pass it through.
Speaker #2: So stable volumes compared to Q2. And as of today, I would expect the same thing for Q4. In terms of prices, they might go up a little bit if underlying costs increase, because then we need to pass it through.
Speaker #2: But at current, it's foreseeable cost developments, I would expect stable prices.
Patrick Steiner: Yeah.
Patrick Steiner: Yeah.
Georg Kasperkovitz: At foreseeable cost developments, I would expect stable prices.
Georg Kasperkovitz: At foreseeable cost developments, I would expect stable prices.
Speaker #3: Yeah, thank you very much. Last one from my side on CapEx for full year 2020, 6. Maybe in absolute terms, what you would expect and also how much do you preserve for maintenance CapEx?
Patrick Steiner: Thank you very much. Last one from my side on CapEx for full year 2026. Maybe in absolute terms, what you would expect, and also how much do you preserve for maintenance CapEx? Thank you.
Patrick Steiner: Thank you very much. Last one from my side on CapEx for full year 2026. Maybe in absolute terms, what you would expect, and also how much do you preserve for maintenance CapEx? Thank you.
Speaker #3: Thank you.
Speaker #1: Yeah, so 2026 is going to be a year that is, I would say, characterised by LTO. CapEx, there is not big strategic CapEx except for the Tempon business that we invest in lensing, which in total is 15 million euro.
Mathias Breuer: Yeah. 2026 is going to be a year that is, I would say, characterized by LTO CapEx. There is no big strategic CapEx except for the tampon business that we invest in Lenzing, which in total is EUR 15 million. The amount for 2026 that we expect is in the area of approximately EUR 150 million.
Mathias Breuer: Yeah. 2026 is going to be a year that is, I would say, characterized by LTO CapEx. There is no big strategic CapEx except for the tampon business that we invest in Lenzing, which in total is EUR 15 million. The amount for 2026 that we expect is in the area of approximately EUR 150 million.
Speaker #1: So the amount for 2026 that we expect is in the area of approximately 150 million euros.
Speaker #3: Right, thank you very much.
Patrick Steiner: Right. Thank you very much.
Patrick Steiner: Right. Thank you very much.
Speaker #1: Ladies and gentlemen, there are no further questions. I would like to hand over back to Mr. Kasperkovic for any closing remarks.
Operator: Ladies and gentlemen, there are no further questions. I would like to hand over back to Mr. Kasperkovic for any closing remarks.
Operator: Ladies and gentlemen, there are no further questions. I would like to hand over back to Mr. Kasperkovic for any closing remarks.
Speaker #2: Thank you, everyone, for joining today. If there are no further questions, we close today's call. Thanks again. Have a nice day.
Georg Kasperkovitz: Thank you everyone for joining today. If there are no further questions, we close today's call. Thanks again. Have a nice day.
Georg Kasperkovitz: Thank you everyone for joining today. If there are no further questions, we close today's call. Thanks again. Have a nice day.
Speaker #1: And enjoy the summer. Goodbye. Ladies and gentlemen, the conference is now over. Thank you for choosing CourseCall, and thank you for participating in the conference.
Mathias Breuer: Enjoy the summer. Goodbye.
Mathias Breuer: Enjoy the summer. Goodbye.
Operator: Ladies and Gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
Operator: Ladies and Gentlemen, the conference is now over. Thank you for choosing Chorus Call and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
