40. Financial guarantee contracts, contingent assets and liabilities, other financial obligations and legal risks

There are guarantees for which no liabilities have yet been recognized, in particular to secure claims from suppliers and for potential payment defaults by third parties outside the Group, amounting to EUR 10,019 thousand (December 31, 2024: EUR 10,324 thousand) and, to a lesser extent, guarantees granted in the form of retention amounts. The reported amounts represent the maximum payment obligation from the viewpoint of the Lenzing Group, and there is only a limited potential for recoveries.

There are lines of credit granted to third parties in the amount of EUR 0 thousand (December 31, 2024: EUR 1,376 thousand), which can be utilized until December 31, 2025, at the latest. These credit lines were not utilized as at December 31, 2025, and December 31, 2024 (see also note 21).

The Lenzing Group bears obligations for severance payments and anniversary benefits for former employees of certain sold equity investments up to the amount of the notional claims at the sale date. Provisions were recognized for these obligations as at the reporting date at an amount equal to their present value calculated in accordance with actuarial principles. Lenzing AG, in particular, has also assumed liabilities to secure third-party claims against consolidated companies; these claims are considered unlikely to be realized. The Managing Board is not aware of any other financial obligations with a significant impact on the financial position and financial performance of the Group

The obligations arising from outstanding orders for intangible assets and property, plant and equipment amounted to EUR 24,420 thousand as at December 31, 2025 (December 31, 2024: EUR 30,482 thousand). The Lenzing Group has long-term purchase obligations related to raw material supplies, in particular for wood, pulp, chemicals and energy.

As an international corporation, the Lenzing Group is exposed to a variety of legal and other risks. These risks are related, above all, to product defects, competition and antitrust law, patent law, tax law, employees and environmental protection. It is impossible to predict the outcome of pending or future legal proceedings. Consequently, rulings by the courts or government agencies or settlement agreements can lead to expenses that are not fully covered by insurance and hence could have a material impact on the group’s future financial position and financial performance. Additional information can be found in the risk report in the Lenzing Group management report as at December 31, 2025.