Volvo Construction Equipment has reported 13% organic sales growth, an 8% increase in order intake, 9% organic growth in service sales and a 14.4% adjusted operating margin in the second quarter of 2026.
During the quarter the global machine market continued to grow, with all regions contributing.
Net sales decreased by 6% to SEK21,603M (22,906), because of the divestment of SDLG. Organic sales growth was 13%, and service sales increased by 9%. Adjusted operating income amounted to SEK3,114M (2,993), corresponding to an adjusted operating margin of 14.4% (13.1).
Order intake for the Volvo brand increased by 8%, with higher intake in South America, Africa and Oceania as well as North America, while it decreased in Europe and Asia.
“It’s been a positive quarter that demonstrates growth in organic sales and continued stability driven by a strong product mix. We continue to grow our total offer while maintaining our focus on long-term investments and innovation to transform our industry,” says Melker Jernberg, president of Volvo CE.
In June, Volvo Days 2026 became the largest event in the company’s history, welcoming more than 8,000 visitors to Eskilstuna, Sweden. The event showcased Volvo CE’s offering of machines, services and digital solutions, demonstrating how the company’s continued product and services renewal is delivering value for customers.
The quarter also saw the groundbreaking of Volvo CE’s new excavator factory in Eskilstuna, supported by a SEK700 million investment. Together with Volvo Days, these milestones highlight the company’s ongoing investments in competitiveness, industrial capabilities and the transition to sustainable transport and infrastructure solutions.
“The second quarter demonstrated our ability to turn strategy into action,” says Jernberg. “The milestones we reached demonstrate our commitment to strengthening our competitiveness, accelerating innovation and supporting customers with solutions that help them succeed both today and in the future.”
The European market showed increased demand, supported by continued infrastructure investments, good machine utilisation and a healthy level of fleet replacement. The market in North America continued to show resilience, supported by investments in data centres, energy infrastructure and the onshoring of manufacturing. The South American market expanded, driven by rebounds in Brazil, Colombia and Peru, with mining and heavy infrastructure leading the way.
In Asia, Indonesia continued to grow on the back of resilient GDP growth and sustained infrastructure and food security investments. South Korea and Southeast Asia also grew, while India, Turkey and the Middle East contracted. There was strong growth in Australia and Africa, driven by infrastructure projects and mining. The Chinese market grew, supported by government policies to stimulate the real estate market.
Image: Volvo Construction Equipment
