Service business remains stable as timber house construction orders reach new record, including largest order to date.

Maschinen

Homag's EBIT rises 50% on cost reductions despite challenging furniture market

Homag"s EBIT rises 50% on cost reductions despite challenging furniture market

Bild: The HOMAG Group

Homag Group reported EBIT before extraordinary effects of Euro 76.1 million for the 2025 fiscal year, a 50% increase from Euro 50.8 million in the previous year, driven by cost reductions from implemented personnel measures and a stable service business.

Sales declined slightly to Euro 1,372 million from Euro 1,413 million a year earlier. The EBIT margin improved to 5.5% from 3.6%. Order intake increased slightly to Euro 1,380 million from Euro 1,357 million, while orders on hand decreased to Euro 726 million.

The timber house construction segment achieved a new record order intake, including the largest order to date from the sector. In the furniture sector, no recovery was observed, and tariff conflicts further intensified industry uncertainty. The difficult order situation with furniture manufacturers contributed to the slight decline in overall sales.

Cost reductions from personnel measures implemented to address the continuing weakness in demand for furniture production equipment took full effect during the year. The service business remained stable.

For the current year, Homag expects the positive demand trend in timber house construction to continue. In the furniture industry, it remains difficult to predict when demand will recover on a sustained basis. The company expects overall sales and order intake to be at the same level as the previous year, with an EBIT margin target of 5.0% to 6.0%.

The Homag Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops.