Homag Group reported improved earnings for the first half of 2025, driven by cost reductions and a stable service business, but confirmed that a long-awaited recovery in the global furniture manufacturing sector has yet to materialize.<\/p>\n
The German machinery manufacturer posted EBIT before extraordinary effects of EUR 29.2 million in H1 2025, up 36% from EUR 21.5 million in the same period last year. However, both order intake and sales slipped slightly, reflecting continued weakness in core markets.<\/p>\n
Order intake declined to EUR 671 million from EUR 699 million in H1 2024, while sales fell to EUR 674 million from EUR 706 million. Homag\u2019s order backlog dropped by over EUR 100 million year-on-year, standing at EUR 724 million as of June 30.<\/p>\n
\u201cWe 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,\u201d said CEO Dr. Daniel Schmitt in a statement.<\/p>\n
Demand from furniture producers remains subdued, but Homag reported continued growth in its timber construction division, which manufactures production plants for prefabricated wooden houses. The segment has helped offset pressure from the core business.<\/p>\n
Headcount was reduced to 6,621 employees at the end of June, down from 6,978 a year earlier. The company cited completed staff cuts and improved efficiency as contributing factors to the earnings increase.<\/p>\n
Despite a subdued order environment, Homag received encouraging feedback at the LIGNA trade fair held in Hannover in May. \u201cOur product innovations have been very well received,\u201d said Schmitt. \u201cWe are therefore optimistic that we will return to profitable growth once the market recovers. However, it is difficult to predict when this will occur.\u201d<\/p>","protected":false},"excerpt":{"rendered":"
Homag Group reported improved earnings for the first half of 2025, driven by cost reductions and a stable service business, but confirmed that a long-awaited recovery in the global furniture manufacturing sector has yet to materialize. The German machinery manufacturer … Continue reading