Wedoany.com Report-Oct. 20, Volvo Construction Equipment (Volvo CE) reported solid Q3 2025 results, maintaining profitability despite global market pressures. The quarter included two major strategic developments: the completion of the SDLG divestment and continuation of Volvo CE’s largest product launch to date.

Volvo CE reports strong performance for Q3 2025, with the firm having continued its biggest ever launch of new products such as the innovative electric ADT

During Q3, the global construction machinery market grew compared with 2024, with Europe, North America, and Asia showing expansion, while South America contracted. Volvo CE’s net sales rose 1% to SEK 18,926 million, or 8% adjusted for currency effects. Excluding SDLG, net sales grew 14%, with machine sales up 17% and service sales up 6%. Adjusted operating income reached SEK 2,722 million, corresponding to a 14.4% adjusted operating margin, with a positive product mix and service growth offsetting tariff costs and lower volumes.

Net order intake fell 2%, affected by SDLG’s divestment. Adjusted for SDLG, order intake increased 22%, driven by dealer inventory replenishment in Europe and fleet resizing in North America in preparation for 2026. Q3 deliveries were 4% lower, but 14% higher excluding SDLG. Volvo-branded deliveries rose in Europe and the Middle East, partly offset by lower shipments in North America as dealers adjusted inventories.

On September 1, Volvo CE completed its divestment of SDLG, a move enabling greater focus on Volvo-branded solutions in target segments. The divestment allows Volvo CE to leverage its industrial presence in China, supported by assembly and technology centers, and strengthen global manufacturing investments. The quarter also saw the continued rollout of newly launched articulated haulers, with events across Asia.

CEO Melker Jernberg commented: “Despite a quarter characterised by global market uncertainty, we have continued to demonstrate resilience and deliver a solid performance throughout. The completion of the SDLG divestment allowed us to further sharpen our focus, capitalising on our robust industrial presence in China while making substantial investments in our manufacturing footprint globally. During the quarter, we also continued our largest-ever product launch, alongside the introduction of new services, now expanding to additional continents and markets.”

Regional performance varied. Europe’s market grew for the first time in over a year, supported by Germany and the UK, though France and Italy contracted. North America expanded partly due to expected price increases from tariffs. South America declined, largely due to Brazil, while Argentina and Colombia showed more stable conditions. The Chinese market continued growth, fueled by government policies supporting the real estate sector, which drives demand for smaller machines. Asia excluding China, Southeast Asia, the Middle East, and Turkey also grew, while Japan, South Korea, and India saw declines.

Overall, Volvo CE demonstrated resilience and strategic focus, combining market growth, operational efficiency, and continued global product expansion to deliver a stable and profitable quarter.