Earnings improved in the first half of the year, but there are still no signs of a market recovery

08/07/2025

Earnings improved in the first half of the year, but there are still no signs of a market recovery

Schopfloch, August 7, 2025. The HOMAG Group significantly improved its earnings in the first half of 2025. The main factors behind this were cost reductions and a modestly growing service business. Order intake and sales were slightly below last year’s figures. The expected market recovery in the business with the furniture industry has not yet materialized.

“We are still operating in a challenging market environment in the furniture sector, where tariff disputes are adding to uncertainty among customers. Recently they have tended to postpone their investments,” explains CEO Dr. Daniel Schmitt. Accordingly, the HOMAG Group’s order intake declined slightly to EUR 671 million in the first six months of 2025 (previous year: EUR 699 million). The weaker furniture sector has been offset by the positive development of business with production plants for timber house construction, continuing the previous year's upward trend. The order backlog of the HOMAG Group decreased to EUR 724 million as of June 30, 2025 (June 30, 2024: EUR 833 million).

Sales dropped to EUR 674 million in the first half of 2025 (previous year: EUR 706 million). EBIT before extraordinary effects increased by 36 percent to EUR 29.2 million (previous year: EUR 21.5 million). In addition to the cost savings resulting from the staff reductions completed in the previous year, the stable service business also had a positive impact in this regard. The number of employees was reduced to 6,621 as of June 30, 2025 (June 30, 2024: 6,978 employees).

At LIGNA, the world's leading industry trade fair, held in Hannover at the end of May, HOMAG received strong positive feedback from customers. “Our product innovations have been very well received,” emphasizes Dr. Schmitt. “We are therefore optimistic that we will return to profitable growth once the market recovers. However, it is difficult to predict when this will occur.”

Company Background
The HOMAG Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops. Its 13 specialized production sites, about 20 Group-owned sales and service companies, and approximately 60 exclusive sales partners worldwide make the company a unique system provider. Backed by a workforce of around 7,000 employees the HOMAG Group offers its customers solutions for digitized production, based on digital data continuity from point of sale through the entire production process, combined with a comprehensive software suite. In addition, the open ecosystem “tapio” (open Internet-of-Things platform) maps the data flow along the entire value chain of the timber industry. The HOMAG Group has been majority-owned by the Dürr Group since October 2014.

Disclaimer
This press release contains certain statements relating to the future. Future oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as “believes”, “estimates”, “assumes”, “forecasts”, “intend”, “may”, “will”, “should” or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this press release, it cannot be guaranteed that the same will hold true in the future.