The global woodworking industry continues to face economic uncertainty, with investment activity in the furniture manufacturing sector remaining under pressure during the first quarter of 2026. Against this backdrop, the HOMAG Group maintained relatively stable business performance, supported by continued demand for automated production systems used in timber-frame housing construction.
The Germany-based technology supplier reported order intake of €370 million for the first three months of 2026. Although this represented a decline of around seven per cent from the previous year’s strong figure of €397 million, the company demonstrated resilience amid ongoing market challenges.
Management stated that reluctance to invest continues to affect customers within the furniture sector. Many companies are delaying machinery purchases and production upgrades due to uncertain economic conditions. Investment decisions are being postponed further. Market visibility also remains limited.
The furniture manufacturing industry has experienced slower capital spending since trade disputes affected industrial activity during the second and third quarters of 2025. As a result, demand for new woodworking machinery has remained subdued across several international markets.
Despite these conditions, HOMAG maintained a substantial order backlog. As of 31 March 2026, the company recorded an order backlog of €801 million. This was only slightly below the €825 million reported during the same period in 2025.
Sales revenue declined during the quarter. Group sales fell by approximately nine per cent to €310 million, compared with €341 million in the previous year. The lower revenue level was linked primarily to weaker order intake recorded during earlier quarters.
Profitability was also impacted. EBIT before special items declined to €9.5 million from €12.9 million a year earlier. Several factors contributed to this reduction.
Lower sales volumes affected earnings performance. Additional costs were incurred through a planned upgrade of the company’s IT systems. Research and development expenditure also increased during the reporting period.
The company continues to invest in digital technologies and automation systems. These areas are considered essential for future competitiveness within the woodworking industry.
Demand for automated production solutions in timber-frame housing remained comparatively strong during the quarter. This segment continued to provide stability for the business while furniture-related markets weakened.
Timber-frame construction has gained momentum in several regions due to rising interest in sustainable building methods and industrialised housing production. Automated manufacturing technologies are increasingly being adopted to improve productivity and reduce material waste.
HOMAG’s management expects business conditions to improve gradually in the coming quarters. Sales and earnings are forecast to strengthen compared with the first quarter performance. However, uncertainty surrounding customer investment activity remains a key concern for the wider industry.
The company’s workforce was reduced slightly during the reporting period. Employee numbers declined to 6,712 as of 31 March 2026, compared with 6,979 employees one year earlier.
HOMAG remains one of the largest suppliers of integrated production systems for the woodworking sector globally. The group operates 13 specialised production facilities worldwide and maintains around 20 company-owned sales and service subsidiaries.
Its international footprint is further supported by approximately 60 exclusive sales partners operating across global markets. The company employs around 6,500 people worldwide.
The business focuses heavily on digitised production technologies. Its manufacturing systems are designed to support seamless digital data flow from the point of sale through to the complete production process.
Software integration remains a major component of HOMAG’s strategy. The company offers a broad software suite aimed at improving efficiency, automation and operational transparency for woodworking manufacturers.
Its tapio ecosystem also plays a central role within the business model. The open Internet of Things platform enables connected production processes across the wood industry value chain.
Industrial connectivity is becoming increasingly important within advanced manufacturing environments. Smart production systems allow manufacturers to monitor machinery, analyse operational performance and improve process efficiency in real time.
The adoption of digital manufacturing technologies continues to reshape the woodworking machinery market. Companies are investing in automation to address labour shortages, increase production flexibility and improve cost control.
HOMAG has remained focused on long-term innovation despite short-term market pressures. Increased research and development spending reflects the company’s strategy to strengthen its technological capabilities during a difficult market cycle.
The group has operated as a majority-owned subsidiary of the Dürr Group since October 2014. The partnership has supported expansion in automation and industrial technology solutions.
Industry analysts expect the woodworking sector to remain cautious in the near term. However, demand for digital production systems and sustainable construction technologies is anticipated to support long-term growth opportunities across global markets.
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