Despite a year of declining sales, Volvo Construction Equipment (Volvo CE) saw a positive shift in the final quarter of 2024, with net order intake rising by 19%. Although net sales for both Q4 and the full year dropped by 16%, the company maintained profitability while continuing its investments in innovation and new product launches.
The construction equipment market faced a slowdown in 2024, particularly in Europe and North America. Compared to the high levels seen in late 2023, demand in Europe fell by 25% due to a saturated market, while North America saw an 8% decline as dealer and rental fleets normalized. However, South America recorded a 5% market growth, mainly driven by Brazil, and saw a 19% increase in net sales alongside a 29% rise in deliveries during Q4. China benefited from government policies to stimulate the real estate sector, resulting in a 6% market expansion, while India and the Middle East also showed positive growth. Southeast Asia, South Korea, and Turkey, however, experienced weaker demand.
In Q4, Volvo CE’s net sales fell to SEK 22,197 million (from SEK 26,578 million in Q4 2023), with machine sales declining by 19% and service sales by 2%. Adjusted operating income for the quarter stood at SEK 2,609 million (compared to SEK 3,320 million in the previous year), with an adjusted operating margin of 11.8% (down from 12.5%). For the full year 2024, net sales reached SEK 88,305 million, reflecting the same 16% decrease seen in Q4. Adjusted operating income amounted to SEK 12,737 million (compared to SEK 16,993 million in 2023). Despite the decline, Volvo CE’s order intake surged by 19% in Q4, signaling renewed demand in key markets across Europe, North America, Africa, and Oceania.
Looking ahead to 2025, Volvo CE remains optimistic, following a year of significant investments and product expansions. New excavators were introduced, including the EC650 in China and the EC300 in South Korea, while in Europe, the mid-size crawler excavator lineup was expanded with three new models. A newly updated range of articulated haulers was also launched, featuring seven models from 25 to 60 tons, including the brand-new A50.
Melker Jernberg, President of Volvo CE, emphasized the company’s commitment to innovation and resilience:
“Despite lower volumes, we have been able to maintain a healthy profitability, whilst at the same time introducing new products and services, including a new range of Articulated Haulers to our existing portfolio.
As we navigate challenging market conditions, we stand firm in our commitments and continue to invest. This last quarter has seen us move forward with our biggest launch year ever, balancing tomorrow’s innovations with our customers’ needs for today. 2025 will see us continue with these exciting developments, strengthened by an incredible performance from all our employees around the world.”
As Volvo CE prepares for 2025, it remains focused on strengthening its portfolio, capitalizing on improving market conditions, and ensuring long-term profitability.
