While order intake and deliveries have risen, and the total machine market has also grown – when compared to the same period last year – this second quarter was also impacted by a continuing decline in sales for Europe and North America due to market uncertainty.
In Q2 2025, net sales decreased by 6% to SEK 22,906 M (24,423). Adjusted for currency movements net sales increased by 2%, of which machine sales increased by 2% and service sales were flat. Adjusted operating income declined to SEK 2,993 M (3,888), corresponding to an adjusted operating margin of 13.1% (15.9).
The second quarter has seen net order intake increase by 24%, with orders for the Volvo brand increasing by 26%, driven by Europe and Asia. In Europe, dealer orders increased as inventory replenishment continued. Order intake in North America increased but continued to be on a relatively low level. Deliveries in Q2 were also 11% higher than in the previous year.
Strategic investments to strengthen Volvo CE’s position
Volvo CE has continued to strengthen its position by making a number of strategic moves over the last few months. These include an expansion of its crawler excavator footprint globally with investment in three main production sites: South Korea, Sweden and North America.
The company has also decided to divest its entire 70% stake in SDLG for SEK 8 billion to a fund predominantly owned by Lingong Group, and acquire Swecon’s operations in Sweden, Germany, and the Baltics, including Entrack for SEK 7 billion from Lantmännen. These are expected to close in the second half of the year.
Melker Jernberg, Head of Volvo CE, said: “At a time of market uncertainty, we focus on staying closer to our customers than ever before, while maintaining a solid performance and investing in the future. These strategic agreements not only help us to meet growing customer demand, but with the addition of Swecon, our ambition is to own and manage the majority of our construction business in Europe, strengthening our total solution sales capabilities and service business in the region.”
Market development
While the total machine market grew compared to the previous year, Q2 has also been impacted by a 10% drop in both Europe and North America. In Europe, end customer demand remained somewhat saturated and increased dealer stock had yet to reach end customers, while the North American market declined due to repositioning of rental fleets as well as lower end customer demand due to market outlook uncertainty.
The Chinese market has responded positively to recent government policies to stimulate the real estate sector, mainly driving demand for smaller machines. This has helped secure a 26% increase in market development for the region. South America has risen by 8% due to improved market sentiment in Argentina and Peru, while Asia excluding China has increased by 6% thanks to growth in Southeast Asia, the Middle East, Turkey and India.
Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona (SEK).