Volvo Construction Equipment (Volvo CE) delivered improved earnings in Q3, with machine deliveries increasing by 8% and order intake increasing by 16%. Service sales grew by 5%, reflecting the company’s continued transformation towards a more comprehensive offering that delivers greater business value to customers. Adjusted operating margin was 16.1%.
During the third quarter, the global machine market continued to expand year over year, with growth across all regions including Europe, North America, South America, Asia, Australia, South America and Africa. On the other hand, there was a decline in the Middle East.
In 3Q26, net sales increased by 5% to SEK 19,904 M (18,926). The organic sales growth was 12%, of which net sales of machines increased by 13% and service sales increased by 5%. Adjusted operating income amounted to SEK 3,214 M (2,722), corresponding to an adjusted operating margin of 16.1%.
In the third quarter, Volvo CE maintained positive performance and stability despite uncertain market conditions. Melker Jernberg, President of Volvo CE, said: “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. 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 through continued focus and operational excellence.”
Key milestones and investments
On October 19, Volvo Group announced the creation of Volvo Mining. A dedicated entity that will bring together the Group's capabilities, expertise, and offering for mining customers under a single, integrated business structure. Effective January 1, 2027, the new business entity will operate within Volvo CE with the plan to offer Volvo trucks, construction equipment and autonomous solutions to mining customers and their contractors, strengthening our ability to serve this strategically important segment. In August, Volvo CE produced its first US-built excavators and larger wheel loaders at its expanded Shippensburg, Pennsylvania facility. The investment advances Volvo CE’s strategy of building closer to customers, strengthening local manufacturing capacity while improving responsiveness, flexibility and resilience in the North American market.
In Q3, Volvo CE hosted the Masters World Final 2026 at its Customer Center in Eskilstuna, Sweden, bringing together the top 14 aftermarket teams from around the world. The event showcased the expertise, product knowledge and teamwork of Volvo CE’s global dealer network in supporting customer uptime and productivity, with Volvo Maszyny Budowlane Poland taking the world title.
Market development
The total market in Europe continued to increase, with growth in almost all countries, supported by continued infrastructure investments and a more positive business sentiment. However, demand in Germany has yet to show a meaningful improvement. The North American market continued to show good resilience supported by investments in data centers, energy infrastructure and the onshoring of manufacturing. South America saw expansion in all markets, although at a somewhat slower pace than earlier in the year due to a wait-and-see approach among some customers in Brazil ahead of the election. Demand was driven by heavy infrastructure and mining.
The Asian market increased, with growth in Southeast Asia and India supported by infrastructure spending and strategic industrial investments such as semiconductors. There was a decline in demand in the Middle East.
The markets in Australia and Africa had strong growth, driven by infrastructure and mining projects. The Chinese market grew driven by replacement demand, farmland transformation and urban improvement construction.
