Volvo Construction Equipment (Volvo CE) has announced several global strategic announcements over the second quarter of 2025 to stay closer to the customer and drive earnings resilience, as lower sales remain in Europe and North America.
While order intake and deliveries have increased, and the total machine market has also grown, compared to the same period last year, the second quarter also saw a continued decline in sales for Europe and North America due to market uncertainty.
In Q2 2025, net sales decreased by 6% to SEK 22,906 million (SEK 24,423 million). 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 million (3,888 million), corresponding to an adjusted operating margin of 13.1% (15.9%).
The second quarter has seen a 24% increase in net order intake, with orders for the Volvo brand rising by 26%, driven by growth in Europe and Asia. In Europe, dealer orders increased as inventory replenishment continued. Order intake in North America increased, but remained at a relatively low level. Deliveries in Q2 were also 11% higher than in the previous year.
Volvo CE has continued to strengthen its position through a series of strategic moves over the past few months. These include an expansion of its crawler excavator footprint globally, with investments in three main production sites: South Korea, Sweden, and North America.
The company has also decided to sell its entire stake in SDLG for SEK 8 billion to a fund predominantly owned by the Lingong Group, and acquire Swecon’s operations in Sweden, Germany, and the Baltic countries, 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.”
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. Meanwhile, the North American market declined due to the repositioning of rental fleets, as well as lower end-customer demand resulting from market outlook uncertainty.
The Chinese market has responded positively to recent government policies aimed at stimulating the real estate sector, primarily driving demand for smaller machines. This has helped secure a 26% increase in market development for the region. South America has seen an 8% rise due to improved market sentiment in Argentina and Peru. At the same time, Asia, excluding China, has increased by 6% thanks to growth in Southeast Asia, the Middle East, Turkey and India.
