Volvo CE Reports Stronger Q3: Deliveries Up 8%, Order Intake Up 16%

Volvo Construction Equipment (Volvo CE) has reported improved earnings for the third quarter of 2026, with machine deliveries increasing by 8% and order intake rising by 16% year over year. The Swedish equipment maker said service sales grew by 5%, reflecting its continued transformation toward a more comprehensive offering for customers.

The Numbers

Net sales for Q3 2026 increased by 5% to SEK 19,904 million, up from SEK 18,926 million in the same period last year. Organic sales growth was 12%, of which net sales of machines increased by 13% and service sales by 5%. Adjusted operating income amounted to SEK 3,214 million, compared with SEK 2,722 million a year earlier, corresponding to an adjusted operating margin of 16.1%.

"We delivered another strong third quarter, with solid financial performance and continued growth across the business. Demand remained healthy, and we saw positive development in both our equipment and services operations," said Melker Jernberg, president of Volvo CE. "Despite ongoing inflationary pressures and higher energy and raw material costs, we remain focused on execution and delivering value for our customers. As we enter the final quarter of the year, we see opportunities to build on this momentum and are well positioned to deliver a solid full-year performance."

Market by Region

During the third quarter, the global machine market continued to expand year over year, with growth across Europe, North America, South America, Asia, Australia and Africa — while demand declined in the Middle East.

• Europe: The total market continued to increase, with growth in almost all countries supported by infrastructure investment and improving business sentiment — though Germany has yet to show a meaningful improvement.
• North America: The market continued to show good resilience, supported by investments in data centres, energy infrastructure and the onshoring of manufacturing.
• South America: Expansion in all markets, though at a somewhat slower pace as some customers in Brazil adopted a wait-and-see approach ahead of the election. Demand was driven by heavy infrastructure and mining.
• Asia: Growth in Southeast Asia and India, supported by infrastructure spending and strategic industrial investments such as semiconductors. China grew on replacement demand, farmland transformation and urban improvement construction.
• Australia and Africa: Strong growth driven by infrastructure and mining projects.

Volvo Mining and U.S. Manufacturing

A key event of the quarter was the creation of Volvo Mining, which brings the group's capabilities, expertise and offering for mining customers under a single integrated business structure. Starting January 1 next year, the new business will operate within Volvo CE, offering Volvo trucks, construction equipment and autonomous solutions to mining customers and their contractors.

In August, Volvo CE produced its first U.S.-built excavators and larger wheel loaders at its expanded Shippensburg facility in Pennsylvania — an investment the company says advances its strategy of strengthening local manufacturing capacity while improving responsiveness and resilience in the North American market. In Q3, the company also hosted the Masters World Final 2026 at its Customer Centre in Eskilstuna, Sweden, bringing together the top 14 aftermarket teams from its global dealer network, with Volvo Maszyny Budowlane Poland taking the world title.

For buyers and fleet operators, broad-based demand growth and expanding manufacturing capacity are generally positive signals: they support continued parts availability, dealer coverage and model support for machines already working in the field. For anyone weighing a used Volvo machine purchase, a manufacturer investing in both production and aftermarket capability is a reassuring backdrop.

Source: AggBusiness