Volvo CE Continues To See Drop In Sales For Q2, 2025

The second quarter of the year 2025 has passed, and major OEMs have started showing the data. Volvo is not as appealing in its sales performance as it needs to be. The second quarter of the year might be more challenging for the company, as the continuous drop in equipment sales is not a good sign for the whole year. However, experts and industry leaders are still hoping for Volvo to come back with reasonable sales. 

What does the number say?

North American net sales fell 24.3% in the second quarter, to $553.9 million. This comes after a similarly weak first quarter, with Volvo CE’s total sales in the region for the first half of 2025 at $1.1 billion, down 21.4% year-on-year. 

The drop in machine deliveries adds another layer to the slowdown, with Q2 seeing a 15% drop to 1,623 machines delivered and a 16% drop in the year-to-date total, reaching 3,053.

Interestingly, despite declining deliveries and revenue, Volvo CE reported a 10% increase in new machine orders in North America during the quarter. The six-month figure also increased by 11%, implying that demand may be stabilizing or preparing for a delayed recovery. 

However, the difference between rising order intake and falling deliveries suggests either supply chain friction, cautious deployment, or delays in meeting demand on the ground.

Global business is not what it seems

While North America is slowing, Volvo CE’s global outlook is quite different. Heavy construction equipment deliveries in the second quarter increased by 11% year on year to 16,987 units worldwide. Large and medium equipment deliveries rose 7%, while compact machines increased by 25%. 

The electric segment, while still small, saw an 82% increase in global deliveries, with 1,037 units shipped in the second quarter alone.

Orders from global markets also saw significant growth. The total net order intake worldwide increased by 24%, with orders for Volvo CE-branded equipment increasing by 26%. 

Electric machine orders nearly doubled, while compact equipment orders increased by 45% over the same period last year. While North American sales are declining, other regions—particularly those that value sustainability and compact urban solutions—are driving the company’s expansion.

However, the global revenue figure was not immune to external pressures. Excluding currency fluctuations, Volvo CE’s net sales fell 6% to $2.4 billion in the second quarter. Global equipment revenue fell 7% in the first half of 2025, totaling $4.7 billion.

 In terms of profitability, adjusted operating income was $314.5 million for the second quarter, a 23% decrease year-on-year, with a compressed operating margin of 13.1%, compared to 15.9% in the same quarter in 2024.

Two Cents

As an equipment dealer and the construction contractors, this is the high time to reimagine and recalculate all your deals and projects. The fluctuating equipment market and the current situation may lead you to the big downfall, but with the right strategy and the right spending, you can actually pass this rough time.

This fall in sales of the world’s top OEM is the sign that the market may drop even further before rising again to its fullest. So if you are thinking of keeping a big inventory, you should rethink it, as the North American market is not even performing well.

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