GERMANY – The Homag Group has met its targets for the 2024 fiscal year, navigating a difficult market environment. While order intake remained stable at EUR 1.357 million, slightly down from EUR 1.395 million in 2023, the company faced a significant drop in sales.

However, earnings reached the upper end of expectations, thanks to cost reduction measures and a strong service business.

According to preliminary results, Homag ‘s sales revenue for 2024 decreased by 13% to EUR 1.413 million, compared to EUR 1.625 million in the previous year. This decline was attributed to the reduced order level following the completion of the high order backlog created by the pandemic’s impact on the furniture industry. Orders on hand as of December 31, 2024, totaled EUR 781 million, down from EUR 841 million a year earlier.

In response to the sales decline, the company implemented substantial cost-cutting initiatives, including short-time work and a workforce reduction of approximately 600 jobs globally. The adjustment, which started in the fourth quarter of 2023, helped Homag achieve the expected earnings, despite the tough market conditions. “We have successfully completed the capacity adjustment measures, which included reducing the workforce without operational redundancies in Germany,” said Dr. Daniel Smith, CEO of the Homag Group.

Earnings before interest and tax (EBIT) fell to EUR 43.7 million, down from EUR 71.1 million in 2023. Despite this drop, Homag exceeded its earnings expectations due to cost-saving efforts and a steady service business, which saw a slight increase.

Looking ahead, Homag does not expect a significant recovery in demand until the second half of 2025. For the current fiscal year, the company expects sales to remain in line with 2024, with order intake likely to match or slightly exceed the previous year’s level.

The company is optimistic that the LIGNA trade fair in May 2025 could provide a boost, with the event serving as a key industry platform.

“We aim to improve our earnings in 2025 as our cost reductions take full effect, and we continue to grow our service business,” Dr. Smith added.