VOLVO Construction Equipment has reported a ‘solid’ performance in Q3 2025, marked by the completion of the SDLG divestment and the continuation of the manufacturer’s largest product launch to date.
The global machine market grew compared to the same period last year. Europe, North America, and Asia grew, while South America contracted.
Volvo revealed net sales increased by 1% to SEK 18,926 M. Adjusted for currency movements, net sales increased by 8%. Excluding SDLG the increase was 14%, of which machine sales increased by 17% and service sales increased by 6%.
Adjusted operating income increased to SEK 2,722 M, corresponding to an adjusted operating margin of 14.4%. Compared with Q3 2024, a ‘positive product mix and an improved service business’ are said to have offset increased tariff costs and lower volumes.
On September 1, Volvo CE completed the previously announced divestment of its ownership stake in China-based SDLG.
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 resizing of fleets and stock levels in North America preparing for 2026.
Volvo added that 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 had higher deliveries in Europe and the Middle East, partly offset by lower deliveries in North America as dealers balance inventory levels.
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 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.”
In Q3, the total market in Europe grew for the first time in more than a year, with support from major markets such as Germany and the UK, while France and Italy contracted.
