Monday, March 9, 2026
The HOMAG Group, the world’s leading provider of integrated solutions for the woodworking industry, achieved a significant improvement in earnings for the fiscal year 2025, despite a challenging market environment. The company’s preliminary figures reveal a slight increase in order intake, while sales dipped slightly compared to the previous year.
HOMAG Group’s total order intake for 2025 reached EUR 1,380 million, a modest rise from EUR 1,357 million in 2024. This growth reflects a strong demand for production systems in timber house construction, which saw a record order intake. The demand for timber construction has been one of the few bright spots in a market still grappling with uncertainty.
Timber Construction Sector Drives Growth
“The demand for production systems for timber house construction has developed positively,” said CEO Dr. Daniel Schmitt, highlighting this as a key factor in HOMAG’s earnings boost. The company achieved its largest-ever order from the timber construction sector in 2025, further cementing its position as a leader in this niche market. This success came despite the ongoing challenges faced by other segments, notably the furniture sector.
Furniture Sector Continues to Struggle
In contrast, the furniture sector remains a significant area of concern for HOMAG. Despite the company’s efforts to optimize operations, the furniture industry has continued to face challenges, including intensified tariff conflicts. “In the furniture sector, on the other hand, we have not seen any recovery; if anything, the tariff conflicts have further intensified the uncertainty in the furniture industry,” Schmitt noted. As a result, order intake in this segment remained flat, and the orders on hand decreased to EUR 726 million as of December 31, 2025, compared to EUR 781 million in 2024.
Cost-Cutting Measures Pay Off
Despite these mixed results, HOMAG’s strategic focus on cost reduction and optimization paid off handsomely. The company saw a notable improvement in its earnings before interest and tax (EBIT), which surged by approximately 50% to EUR 76.1 million (compared to EUR 50.8 million in 2024). This increase in EBIT translated into a higher margin of 5.5%, up from 3.6% the previous year.
The significant earnings boost was largely due to cost-saving measures, including personnel adjustments. The company reduced its workforce to 6,471 employees by the end of 2025, down from 6,802 in 2024. These personnel changes, combined with a stable service business, allowed HOMAG to fully capitalize on reduced costs. Dr. Schmitt emphasized the importance of these adjustments: “We benefited fully from our reduced costs for the first time in 2025. The past fiscal year has shown how important it was to adjust our capacities in view of the continuing weakness in demand in the furniture sector.”
Looking Ahead: Cautious Optimism for 2026
Looking ahead, HOMAG remains cautiously optimistic about its prospects in the timber house construction sector. The company expects the positive demand trend to continue, although it remains cautious about the furniture sector, where recovery remains uncertain. The company’s forecast for the current year suggests that sales and order intake will remain at similar levels to the previous year. HOMAG aims to achieve an EBIT margin before extraordinary effects between 5.0% and 6.0% for fiscal year 2026.
About HOMAG Group
The HOMAG Group is renowned for providing comprehensive, integrated solutions for the woodworking industry and woodworking shops worldwide. With 13 specialized production sites, approximately 20 group-owned sales and service companies, and about 60 exclusive sales partners across the globe, HOMAG is a unique system provider. The company employs around 6,500 people and offers cutting-edge solutions based on digital data continuity throughout the production process. Their open Internet-of-Things platform, “tapio,” maps data flow across the entire timber industry value chain, further enhancing HOMAG’s industry leadership. Since October 2014, the HOMAG Group has been majority-owned by the Dürr Group.
Stay updated, stay ahead, follow us on Linkedin.
Tags: earnings improvement, fiscal year 2025, Homag group, timber construction, woodworking industry
Comments: