Outlook
The IMF1 recently raised its growth forecast for 2026 to 3.3 percent. Declining global inflation, which is continuing to move closer to target levels, albeit at different speeds across regions, together with technology-related investments and still favorable financial conditions, is encouraging. Headwinds are coming from ongoing trade policy uncertainty, although its effects should gradually ease in 2026. Falling energy prices and expected interest rate cuts in the USA and UK should provide additional stimulus to the global economy. By contrast, possible trend corrections in the AI sector, geopolitical tensions and high levels of government debt could have a negative impact.
Declining energy prices and a further normalization of inflation would ease pressure on households’ disposable incomes and should therefore have a positive effect on consumer sentiment and consumers’ propensity to spend. However, uncertainty remains high, which typically leads to restraint and closer attention to prices in purchasing decisions.
As exchange rates react strongly to economic policy developments, the currency environment in the key currencies for Lenzing (EUR, USD, CNY, BRL and CZK) remains volatile.
In the trend-setting market for cotton, analysts expect stocks to expand to around 16.8 mn tons in the current 2025/2026 harvest season, according to preliminary estimates.2 Estimates for the previous season have been revised downward. If no decisive price impulses emerge on the supply side (such as due to adverse weather conditions or pest infestations) or on the demand side (such as due to trade agreements), pressure on cotton prices is likely to remain high.
Lenzing will continue to consistently pursue and continuously evaluate the transformation of the company through its holistic performance program in order to unlock additional cost potentials and further improve revenue and margin generation. The overarching goal to make the company more profitable, more resilient and more agile remains unchanged.
From a structural perspective, Lenzing continues to assume rising demand for environmentally responsible fibers for the textile and apparel industry as well as the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its business model and is driving ahead with not only profitable growth in premium fibers but also the further expansion of its market leadership in the sustainability area.
1Source: IMF, World Economic Outlook, January 2026
2Source: ICAC