GERMANY –  In the first quarter of 2025, the Homag Group reported stable order intake and sales compared to the same period last year, with improved earnings driven by cost reductions and a strong performance in the service segment. However, signs of a broader market recovery remain absent.

Order intake increased by 3.7% year-over-year to EUR 391 million (1Q 2024: EUR 377 million), driven by slight growth in demand for stand-alone machines. Despite this, the order backlog declined to EUR 814 million as of March 31, 2025, from EUR 871 million a year earlier.

Sales declined by 3.5% to EUR 335 million (1Q 2024: EUR 347 million), reflecting lower capacity utilization across several locations. However, the service business—particularly in spare parts—continued to perform strongly.

Earnings before extraordinary effects (EBIT) rose 25% to EUR 13.5 million, up from EUR 10.8 million in the previous year. This improvement was supported by cost savings following workforce reductions in 2024 and a higher contribution from the service segment. The company’s headcount decreased to 6,665 employees as of March 31, 2025, down from 7,097 a year earlier.

Despite ongoing market challenges, Homag anticipates a potential improvement in demand in the second half of the year. The company looks ahead to the Ligna trade fair in Hanover at the end of May as a key indicator of industry sentiment and a platform to reinforce its leadership in woodworking technology.