The HOMAG Group achieved its targets in 2024 in a difficult market environment. Order intake stabilized at the previous year's level. As a result of the expected significant decline in sales, earnings fell considerably, but reached the upper end of expectations. Sustainable cost reductions and a robust service business contributed to this.
According to preliminary figures, the HOMAG Group's order intake of EUR 1.357 million in the 2024 fiscal year almost matched the previous year's figure (EUR 1.395 million). “There was no significant improvement in demand in 2024, but we were able to stabilize our order intake,” explains CEO Dr. Daniel Smith. “In the individual machine business in particular, the furniture industry remained reluctant to invest, while the project business developed quite well, especially in the timber construction sector.” After the HOMAG Group had worked through the high order backlog caused by the exceptional economic situation in the furniture industry due to the pandemic, the lower order level is reflected in sales revenue, which fell by 13 percent to EUR 1.413 million (previous year: EUR 1.625 million). The orders on hand decreased to EUR 781 million as of December 31, 2024 (12/31/2023: EUR 841 million).
The company has countered the decline in sales with cost reductions and flexibilization measures such as short-time work. Dr. Schmitt: “We have substantially completed the package of measures to adjust capacity and increase efficiency, which was initiated in the fourth quarter of 2023 and included the reduction of around 600 jobs worldwide. In Germany, the reduction was accomplished without operational redundancies.” Accordingly, since the start of the capacity adjustment measures, the number of employees has decreased from 7,482 as of September 30, 2023, to 6,802 as of December 31, 2024 (12/31/2023: 7,348).
EBIT before extraordinary effects decreased to EUR 50.8 million (previous year: EUR 129.7 million). “With the savings achieved, we are at the upper end of our own expectations in terms of earnings,” emphasizes Dr. Daniel Smith. “The service business, which increased slightly despite the weak market, also provided positive earnings momentum.”
The HOMAG Group does not anticipate a recovery in demand until the second half of 2025 at the earliest and expects sales for the current fiscal year to be on par with the previous year. Order intake is expected to be at or slightly above the previous year's level. The Board of Management is hoping for a positive stimulus from LIGNA, the world's leading industry trade fair, which will be held in Hanover in May. “We aim to increase our earnings again in 2025, as the cost reductions will take full effect for the first time and we want to further increase service revenue,” explains Dr. Daniel Smith.
