With the increasing proportion of overseas revenue, product portfolio expansion, and cost reduction squeezing profits, leading construction machinery companies are expected to see a further increase in overseas revenue in 2025. In 2026, major OEMs will accelerate the improvement of their overseas sales networks and capacity expansion, entering a period of accelerated globalization.
The domestic replacement cycle will begin in 2025, leading to a recovery in domestic sales of construction machinery. "Going global" remains a key focus for domestic construction machinery OEMs and component manufacturers seeking profits.
With the gradual recovery of demand in Europe and the United States, coupled with the deepening cooperation between my country and countries along the "Belt and Road," the market share of domestic OEMs is steadily increasing.
Several industry insiders told reporters from Caijing.com that in 2026, with the gradual commencement of large-scale projects in China, the demand for construction machinery is expected to continue its steady upward trend. With the overseas market focusing on the improvement of mid-to-high-end product portfolios, major manufacturers will continue to increase resource investment in overseas markets next year, with profit increases primarily driven by the increased proportion of overseas revenue. Cost Reduction + Expanding Overseas Market Share Boosts Profits
Domestic excavator sales are accelerating their recovery, while non-excavator sales are showing signs of bottoming out and trending upwards. The revenue share from overseas markets continues to increase, leading construction machinery manufacturers are expected to see quarter-on-quarter profit improvement in 2025. Data from the China Construction Machinery Association shows that from January to November this year, a total of 212,162 excavators were sold, a year-on-year increase of 16.7%. Domestic sales reached 108,187 units, a year-on-year increase of 18.6%; exports reached 103,975 units, a year-on-year increase of 14.9%.
With cost reduction, efficiency improvement, and increased overseas market share, the profit margin of construction machinery companies is expected to improve significantly in 2025. Statistics from Caixin Securities Research show that in the first three quarters, the total operating revenue and net profit attributable to the parent company of my country's construction machinery industry increased by 8.69% and 18.87% year-on-year, respectively. Quarterly revenue growth improved quarter by quarter; net profit margin also increased quarter by quarter.
The reason for this is that the scale effect brought about by increased overseas sales has boosted net profit margins. The net profit growth rates of the four major construction machinery manufacturers-Sany Heavy Industry, XCMG, Zoomlion, and LiuGong-in the first three quarters were approximately 47%, 12%, 25%, and 10% year-on-year, respectively.
Taking Zoomlion as an example, its overseas market share continued to rise this year. In the first three quarters, overseas revenue reached 21.313 billion yuan, accounting for 57.36% of total revenue. Looking at Sany Heavy Industry, which had the highest profit growth, the company's net profit margin for the first three quarters of 2025 was 11.01%, an increase of 2.41 percentage points year-on-year. Besides the growth in overseas revenue, cost reduction and efficiency improvement were another driving force behind its improved profitability.
A business insider from a leading construction machinery manufacturer told reporters from Caijing.com that the current capacity utilization rate of domestic OEMs is not high, and there is still considerable room for improvement. Once there is greater demand in domestic and international markets next year, the larger OEMs will be able to generate profit elasticity through increased capacity utilization.
Accelerating Overseas Expansion: Mining Machinery and Other Emerging Fields Add Growth
Chinese construction machinery companies are shifting from a "product export" model to an "industry export" model focused on establishing overseas centers and localized operations. From January to October 2025, my country's cumulative construction machinery exports reached US$48.526 billion, a year-on-year increase of 12%, and are projected to reach or exceed US$59 billion by 2025. Leading companies such as Zoomlion, XCMG, and Sany have built global production bases and service networks through overseas factory construction, mergers and acquisitions, and the establishment of digital service platforms, resulting in a continuously increasing proportion of overseas business revenue.
A representative from Zoomlion told reporters from Caijing.com that the company has invested more than half of its R&D resources overseas. The company's overseas manufacturing bases cover all product categories and continue to expand its market network in Europe, Africa, Latin America, and Southeast Asia. Construction of the second phase of its German and Hungarian factories is accelerating, and a localized supply chain system in Europe is taking shape. Public information shows that the company plans to issue no more than RMB 6 billion in convertible bonds on the Hong Kong stock market, with all funds to be invested in R&D innovation and overseas system construction.
Coincidentally, LiuGong, during an institutional survey at the end of December, frankly stated that in 2026, it will continue to increase resource investment in overseas markets, deeply cultivate all value chain links such as product R&D, channel construction, and after-sales service, to achieve its planned goal of continuously outperforming the industry average growth rate.
Sany Heavy Industry has established an "A+H" dual platform this year. Approximately 45% of the funds raised will be used for expanding its global sales and service network, and 20% for expanding overseas manufacturing. This allocation of funds is highly consistent with the company's "globalization, digitalization, and low-carbon" strategy. For example, on November 19, 2025, Sany Group's South African Industrial Park was completed in Johannesburg. The South African Industrial Park integrates manufacturing, logistics, and a talent center, covering an area of ??28,000 square meters, and is expected to produce 1,000 excavators annually, radiating throughout the African market, further advancing the company's globalization.
It is worth noting that the upward trend in overseas mining capital expenditure is driving up demand for mining machinery. Many industry insiders hold optimistic predictions for the increased production of mining machinery. XCMG stated that global mineral resource development output is showing a stable growth trend. With the deepening development of mining technology, the demand for upgrading and replacing mining equipment will continue to grow, and the mining machinery industry will usher in a peak period of equipment replacement.
An industry insider told reporters from CLS that the domestic recovery trend is expected to continue, and 2025 may be the starting point of a new cycle. This cycle will last for a relatively long time, and the penetration rate of new energy machinery will increase rapidly. Emerging industries such as earthmoving machinery, mining machinery, and agricultural machinery will see higher growth rates than traditional machinery. In overseas markets, demand will be relatively stronger in Latin America, Africa, and the Middle East, especially in the fields of mineral development and energy infrastructure.
