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Homag catches its breath on earnings
Timber construction is booming – furniture market remains weak
When it comes to machinery for the furniture industry, there are few ways around the Homag Group. The machine builder from Schopfloch is one of the global heavyweights in the sector, so its economic performance is watched closely. For 2025, Homag can at least report some relief on the earnings side.
According to preliminary figures, incoming orders increased slightly to €1.38 billion (previous year: €1.36 billion). The driver? A segment that has recently looked almost like an outlier in the furniture industry: timber construction. Homag reported a record order intake here, including the largest single order in the company’s history from this sector.
In the traditional business with furniture manufacturers, however, the situation remains difficult. A real recovery is not yet visible, CEO Dr. Daniel Schmitt said. On the contrary, tariff conflicts have recently added further uncertainty to the furniture industry.
Revenue declined slightly to €1.37 billion (previous year: €1.41 billion). Earnings, however, developed much more positively. EBIT before special items rose by around 50 percent to €76.1 million (previous year: €50.8 million). The margin improved from 3.6 to 5.5 percent.
The main reason: Homag has tightened its cost structure significantly. Personnel measures and efficiency programs are showing an effect, supported by a stable service business. As CEO Schmitt puts it, the company is now benefiting for the first time from the full impact of its lower cost base.
The program did not come entirely without side effects. The number of employees fell to 6,471 at the end of the year, down from 6,802 a year earlier.
For 2026, Homag expects a mixed picture. Demand in timber house construction is likely to remain strong, while in the larger furniture manufacturing business it is still unclear when investment activity will pick up again. For now, the company expects both revenue and order intake to remain roughly at the level of 2025.
For a machinery supplier whose business is closely tied to the investment climate of the furniture industry, that is not bad news. Put differently: when Homag sells more machines again, it usually means the furniture sector is recovering as well. Until then, the cost-cutting program at least ensures that the company in Schopfloch is making a bit more money again.
When it comes to machinery for the furniture industry, there are few ways around the Homag Group. The machine builder from Schopfloch is one of the global heavyweights in the sector, so its economic performance is watched closely. For 2025, Homag can at least report some relief on the earnings side.
According to preliminary figures, incoming orders increased slightly to €1.38 billion (previous year: €1.36 billion). The driver? A segment that has recently looked almost like an outlier in the furniture industry: timber construction. Homag reported a record order intake here, including the largest single order in the company’s history from this sector.
In the traditional business with furniture manufacturers, however, the situation remains difficult. A real recovery is not yet visible, CEO Dr. Daniel Schmitt said. On the contrary, tariff conflicts have recently added further uncertainty to the furniture industry.
Revenue declined slightly to €1.37 billion (previous year: €1.41 billion). Earnings, however, developed much more positively. EBIT before special items rose by around 50 percent to €76.1 million (previous year: €50.8 million). The margin improved from 3.6 to 5.5 percent.
The main reason: Homag has tightened its cost structure significantly. Personnel measures and efficiency programs are showing an effect, supported by a stable service business. As CEO Schmitt puts it, the company is now benefiting for the first time from the full impact of its lower cost base.
The program did not come entirely without side effects. The number of employees fell to 6,471 at the end of the year, down from 6,802 a year earlier.
For 2026, Homag expects a mixed picture. Demand in timber house construction is likely to remain strong, while in the larger furniture manufacturing business it is still unclear when investment activity will pick up again. For now, the company expects both revenue and order intake to remain roughly at the level of 2025.
For a machinery supplier whose business is closely tied to the investment climate of the furniture industry, that is not bad news. Put differently: when Homag sells more machines again, it usually means the furniture sector is recovering as well. Until then, the cost-cutting program at least ensures that the company in Schopfloch is making a bit more money again.