Middle East Growth Supports Volvo CE Performance

Dubai (PlantAndEquipment.com) - Volvo Construction Equipment (CE) reported results in the fourth quarter of 2025, with growth in several regions, including the Middle East, Africa, Europe, and North America, despite a year-over-year decline in reported revenues.

The divestment of SDLG and currency impacts resulted in a 16% decline in net sales to approximately $1.76 billion in Q4 2025. Net sales increased by 12% on a like-for-like basis, after accounting for currency fluctuations and divestments. This increase was primarily due to increased machine sales and ongoing service growth. The operating margin increased to 13.9%, as operating income remained consistent at approximately $245 million.

The adjusted operating margin was 13.3%, with net sales of approximately $7.7 billion and adjusted operating income of approximately $1.02 billion for the full year 2025. The results were partially mitigated by lower volumes and higher US tariff-related costs, but they were supported by a stronger service business and a favorable product and market composition.

Despite the fact that market conditions were still unequal on a global scale, the Middle East experienced growth in tandem with Turkey and Australia, thereby solidifying its status as a significant contributor to emergent markets.

Africa's expansion was also facilitated by the demand for mining and infrastructure activities.

India experienced a decline, primarily as a result of a decrease in demand for large machinery, while Asia, excluding China, experienced modest growth.

Volvo CE continued to invest in long-term development during the quarter, confirming plans for a new crawler excavator assembly facility in Sweden, advancing the deployment of electric equipment, and progressing toward the conclusion of its Swecon acquisition, which is anticipated to close at the end of January 2026.

Volvo CE entered 2026 with robust momentum, bolstered by the demand for newly launched products, expanding service revenues, and consistent growth in the Middle East and Africa, despite the ongoing market uncertainty.