Volvo Construction Equipment (Volvo CE) reported net sales of SEK18.69bn ($2.12bn) for the fourth quarter of 2025, marking a 16% decrease from SEK22.19bn ($2.51bn) in the same period last year.
Despite the decline, the company experienced a 13% increase in machine sales and an 8% rise in service sales. The operating income for the quarter stood at SEK 2.59bn, resulting in an operating margin of 13.9%.
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The results reflect a positive shift in product and market mix, alongside an improved service sector, although these gains were tempered by lower sales volumes and increased US tariff costs.
For the full year, Volvo CE’s net sales totalled SEK81.64bn, down from SEK88.3bn in 2024, while adjusted operating income reached SEK10.86bn, corresponding to an adjusted operating margin of 13.3%.
Volvo CE head Melker Jernberg said: “This has been a positive quarter, driven by increased sales of recently launched products and higher revenue from our services business.
“Customer response to our new equipment has been strong across key markets, while our solutions offerings continue to gain traction. We enter the new year with solid momentum and a clear focus on driving the industry’s transformation forward.”
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By GlobalDataIn a strategic move to enhance its market position, Volvo CE confirmed the establishment of a new crawler excavator assembly plant in Eskilstuna, Sweden.
The facility, spanning 30,000m2, aims to increase production capacity and flexibility to meet growing demand in the excavator segment.
The company also continued to expand its electric model range, with the first L120 Electric wheel loaders delivered to selected markets in Europe and Asia.
Volvo CE showcased its latest products at the EXCON 2025 construction equipment exhibition in India, emphasising its commitment to supporting growth across construction, mining, and material handling sectors.
Earlier this month, the company secured approval from the European Commission to acquire Swecon, following the conclusion of all required regulatory reviews. The transaction is expected to close on 31 January 2026.
