Monday, November 17, 2025
The first nine months of 2025 have been a period of notable earnings improvement for the HOMAG Group, despite ongoing challenges in the global furniture industry. The company’s cost-saving measures, particularly related to personnel restructuring, have played a significant role in enhancing profitability.
During this period, HOMAG Group’s order intake experienced a decline, falling by 9% to EUR 939 million compared to EUR 1,031 million in the previous year. This downturn is attributed to continued weakness in the furniture sector, compounded by uncertainty from global trade policy disruptions. Consequently, several investment projects in the furniture industry were delayed or postponed, reflecting a cautious approach by customers in the face of the global economic climate.
Despite these challenges, the company witnessed a slight decline in overall sales, which dropped to EUR 1,026 million for the first three quarters of 2025, down from EUR 1,055 million in 2024. However, the reduction in sales did not translate into a decline in earnings. In fact, HOMAG Group posted a remarkable 53% increase in EBIT (Earnings Before Interest and Taxes), which surged to EUR 53.6 million, compared to EUR 35.0 million in the same period last year.
“Added to the already subdued market environment in the furniture sector was the uncertainty caused by trade policy turbulence. Against this backdrop, an increasing number of investment projects by customers from the furniture industry were postponed,” said Dr. Daniel Schmitt, CEO of HOMAG Group. This reflects the broader trend of economic caution among businesses in the wake of geopolitical uncertainty.
Nevertheless, there were positive developments within the company’s diverse operations. The trend for production facilities in the timber house construction sector remained upward. After a prolonged period of subdued demand during the construction crisis, the timber industry is experiencing a resurgence. An increasing number of both small and large projects are being awarded, reflecting a stabilising trend in the construction market.
This sector’s growth has helped mitigate the impacts of the ongoing weakness in furniture-related orders. Timber house construction is expected to remain a crucial growth driver for HOMAG, as the demand for sustainable and energy-efficient buildings continues to rise.
Furthermore, HOMAG’s service business also contributed to the positive earnings development. While order intake and sales declined slightly, HOMAG’s focus on expanding its service offerings has proven successful. This growth in services provided a cushion against the market weakness and helped improve the company’s resilience during challenging times.
Cost Reductions and Personnel Measures Contribute to Earnings Resilience
The significant improvement in HOMAG Group’s earnings can largely be attributed to successful cost reduction efforts. These measures were implemented through personnel restructuring, which helped streamline operations and optimise efficiency. The reduction in the workforce, from 6,875 employees at the end of September 2024 to 6,579 employees a year later, is part of these cost-cutting efforts.
“We have significantly increased our earnings resilience and are therefore much better able to compensate for the consequences of the market weakness. HOMAG has become more robust and is well equipped to return to profitable growth when demand picks up,” added Dr. Schmitt.
The company’s strategic focus on digital solutions for production has also enhanced its position in the global market. With 13 production sites worldwide and approximately 20 owned sales and service companies, HOMAG Group remains the leading global provider of integrated solutions for the woodworking industry. The group’s ability to leverage its expertise in digital production systems, backed by its “tapio” IoT platform, provides an edge in connecting the entire timber production value chain.
Global Operations and Strategic Focus on Digitalisation
HOMAG Group’s position as the world’s leading provider of integrated production solutions for the woodworking industry is reinforced by its global network. In addition to its 13 production sites, the company benefits from a network of around 60 exclusive sales partners worldwide, expanding its reach and capabilities.
The company’s ongoing investment in digital production solutions is set to future-proof its business. By offering a comprehensive software suite and maintaining a strong focus on data continuity from point of sale through the entire production process, HOMAG Group provides unmatched value to its customers.
Looking ahead, the company is well positioned to capitalise on emerging trends within the construction sector and the continued demand for innovative production solutions. The digitalisation of manufacturing, particularly in timber house construction, is expected to drive future growth for the HOMAG Group, even as it navigates a challenging market environment in the short term.
In conclusion, while the first three quarters of 2025 presented challenges, HOMAG Group’s resilience, cost-saving initiatives, and diversification into new markets ensure it remains a robust player in the woodworking industry. The company is poised for a return to profitable growth as market conditions improve in the coming years.
Read more news on HOMAG
Get more updates on American woodworking industry through: www.woodandpanel.us
Tags: digital production, homag, timber house construction, Timber Industry, woodworking and processing, woodworking industry
Comments: