Volvo Construction Equipment (Volvo CE) maintained a solid performance throughout the third quarter of 2025, marked by two key strategic milestones: the completion of the SDLG divestment and the continuation of its biggest product launch to date.
During the third quarter, the global machine market grew compared to last year. When looking at the different markets, Europe, North America, and Asia grew, while South America contracted.
Volvo CE net sales increased by 1% to SEK 18,926 million; adjusted for currency movements, net sales increased by 8%. Excluding SDLG, the increase was 14%, with machine sales up 17% and service sales up 6%. Adjusted operating income increased to SEK 2,722 million, corresponding to an adjusted operating margin of 14.4%. Compared with Q3 2024, a positive product mix and an improved service business offset increased tariff costs and lower volumes.
The third quarter saw a net order intake decrease by 2%, impacted by the divestment of SDLG. Adjusting for SDLG, order intake increased by 22%. Order intake for the Volvo brand was driven by continued dealer inventory replenishment in Europe and by fleet resizing and stock level adjustments in North America, preparing for 2026. Deliveries in Q3 were 4% lower than in the prior year, driven by the divestment of SDLG. Adjusting for SDLG, deliveries increased by 14%. The Volvo brand saw higher deliveries in Europe and the Middle East, partly offset by lower deliveries in North America, as dealers balance their inventory levels.
On September 1, Volvo CE completed the previously announced divestment of its ownership stake in SDLG, a China-based company, enabling Volvo CE to focus on Volvo-branded solutions within its targeted segments. It also allows Volvo CE to further capitalise on its strong industrial presence in China, supported by both its assembly and technology centres. Volvo CE also continued the rollout of its recently launched products, with events for the latest articulated haulers across Asia.
Melker Jernberg, Head of Volvo CE, said: “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 sharpen our focus further, capitalising on our robust industrial presence in China while making substantial investments in our global manufacturing footprint. During the quarter, we also continued our largest-ever product launch, alongside the introduction of new services, now expanding to additional continents and markets.”
In Q3, the total market in Europe grew for the first time in more than a year, supported by major markets such as Germany and the UK, while France and Italy contracted. The North American market also grew, partly driven by the anticipation of higher prices due to tariffs. In South America, the market declined, driven by Brazil, while sentiment was more positive in other markets, such as Argentina and Colombia. The Chinese market continued to grow, driven by government policies to stimulate the real estate sector, which mainly drives demand for smaller machines. Asia excluding China, as a region, showed growth, as did Southeast Asia, the Middle East, and Turkey. Japan, South Korea, and the Indian market declined.
