Despite challenging market conditions, The HOMAG Group successfully met its 2024 targets. Order intake remained stable at the previous year’s level. While a significant decline in sales revenue led to a notable drop in earnings, they still reached the upper end of expectations, supported by sustained cost reductions and a strong service business.
According to preliminary figures, the HOMAG Group’s order intake in fiscal year 2024, at €1,357 million, came close to the previous year’s figure (€1,395 million). “There was no significant improvement in demand in 2024, but we were able to stabilize our order intake,” explains CEO Dr. Daniel Schmitt. “The furniture industry’s reluctance to invest continued, particularly in the standalone machine business, while project business, especially in timber construction, performed quite well.” After the HOMAG Group processed the high order backlog resulting from the pandemic-related boom in the furniture industry, the lower order level is reflected in sales revenue, which fell by the expected 13 percent to €1,413 million (previous year: €1,625 million). The order backlog decreased to €781 million as of December 31, 2024 (December 31, 2023: €841 million).
The company countered the decline in sales revenue with cost reductions and flexibility measures, such as short-time work. Dr. Schmitt: “We have largely completed the package of measures initiated in the fourth quarter of 2023 to adjust capacity and increase efficiency, which included, among other things, the reduction of around 600 jobs worldwide. In Germany, the reduction was carried out without any compulsory layoffs.” Accordingly, the number of employees has decreased from 7,482 on September 30, 2023, to 6,802 as of December 31, 2024, since the capacity adjustment measures began (December 31, 2023: 7,348).
EBIT before special items decreased to EUR 50.8 million (previous year: EUR 129.7 million). “With the savings achieved, our earnings are at the upper end of our own expectations,” emphasizes Dr. Daniel Schmitt. “The service business, which grew slightly despite the weak market, also provided positive earnings momentum.”
The HOMAG Group anticipates a recovery in demand no sooner than the second half of 2025. For the current fiscal year, sales revenue is expected to remain on par with the previous year, while order intake is projected to be stable or see a slight increase. The Management Board is optimistic about gaining positive momentum from LIGNA, the world’s largest industry trade fair, set to take place in Hanover this May.
“We aim to increase our earnings again in 2025, as the cost reductions will take full effect for the first time and we want to further increase service revenue,” explains Dr. Daniel Schmitt.
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