Tuesday, May 12, 2026
Dürr Group began the 2026 financial year with improved profitability despite continued geopolitical and economic uncertainty affecting industrial markets worldwide.
The German engineering and manufacturing specialist increased its EBIT margin before extraordinary effects to 4.2% during the first quarter. In the same period of 2025, the margin stood at 3.9%. The company confirmed that further margin growth is expected over the remaining quarters of the year.
Order intake reached €957 million during the first quarter. This represented an 11% decline compared with the previous year. Sales totalled €940 million, reflecting a 7% reduction year-on-year. However, stronger business momentum is anticipated during the coming quarters.
Free cash flow remained clearly positive. It reached €27 million in the opening quarter of 2026. The performance was supported by disciplined financial management and lower net working capital.
Dr. Jochen Weyrauch stated that the company had delivered a robust start to the year, particularly in its automotive painting and woodworking technology operations.
He noted that growth in sales, orders, and earnings is expected later in the year, provided that global economic conditions are not further destabilised. According to the company, opportunities for new business remain particularly strong in North America and Asia.
The automotive painting and final assembly technology division secured several major orders during the quarter. New contracts were received from customers in China and the United States. Total order intake for the division reached €459 million.
Management indicated that investment opportunities within the automotive sector remain substantial. However, decision-making timelines have become longer because customers continue to face economic and political uncertainty.
The company’s woodworking technology subsidiary, HOMAG, delivered stable performance during the quarter. Order intake amounted to €370 million.
Demand for automated production systems used in timber house construction continued to perform positively. By contrast, furniture manufacturing markets remained under pressure. Investment activity from furniture producers was reported to be subdued.
The Industrial Automation division produced mixed results. Balancing technology operations recorded noticeable growth in both order intake and EBIT before extraordinary effects.
However, investment hesitation persisted in the automotive sector for automation systems related to electric vehicle drive component assembly. As a result, total order intake within the division reached €130 million.
Despite lower sales volumes and increased research and development expenditure, EBIT before extraordinary effects remained stable at €39.1 million. Operational improvements contributed positively to earnings performance.
Several efficiency measures introduced during the previous year also supported profitability. Administrative structures had been streamlined, while the OneDürrGroup synergy programme was completed successfully. Service business operations additionally delivered solid margins.
Earnings after tax increased significantly. Net profit rose by 22% to €20.8 million. The improvement was supported by a stronger financial result and reduced extraordinary expenses.
Dietmar Heinrich explained that the positive free cash flow reflected a continued reduction in net working capital, which declined to €291 million.
He also stated that working capital requirements are expected to rise later in the year as project execution activity accelerates. Nevertheless, disciplined operational spending will continue to be maintained.
Net financial liabilities declined further during the quarter. The figure fell to €47 million. This represented a substantial reduction from €482 million recorded during the previous year.
The improvement was mainly attributed to the sale of the environmental technology business during the fourth quarter of 2025. Additional support came from strong operating cash flow generated throughout 2025.
The company’s workforce totalled 17,731 employees as of 31 March 2026. This represented a 4% decline compared with the previous year.
The reduction followed structural adjustments linked to lower order intake and operational streamlining after the disposal of environmental technology activities and Agramkow. Around 500 administrative roles are expected to be eliminated by the end of 2026.
Annual savings of approximately €50 million are anticipated from these restructuring measures. Administrative costs are expected to decrease further over the next several quarters.
Despite ongoing geopolitical tensions and trade-policy challenges, the company has maintained its full-year guidance for 2026. Management stated that the outlook assumes no prolonged market disruption resulting from international conflicts, including the war in the Middle East.
Order intake for the full year is forecast to range between €3.8 billion and €4.2 billion. Sales are expected to reach between €3.9 billion and €4.3 billion.
The EBIT margin before extraordinary effects is projected to range from 5.0% to 6.5%. Management continues to target additional margin improvement through operational optimisation and stronger earnings contributions across multiple divisions.
Future profitability is expected to be supported by further performance improvements at HOMAG, reduced losses in battery-related operations, and continued optimisation within the automation business managed by BBS Automation.
Dürr Group remains focused on strengthening operational efficiency while maintaining competitiveness in the global engineering and automation markets.
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Tags: automotive painting technology, Dürr Group, HOMAG woodworking technology, plant engineering sector, woodworking and processing, woodworking industry, woodworking machinery
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