Recently, several foreign construction machinery brands released their Q3 2025 earnings reports. Overall, apart from industry giant Caterpillar achieving growth against the trend, many companies, including Komatsu and John Deere, experienced varying degrees of decline in revenue and profit.
Caterpillar: Sales of $17.6 Billion, Up 10% Year-on-Year
Caterpillar delivered a strong performance this quarter, achieving sales of $17.6 billion, compared to $16.1 billion in the same period last year, representing a 10% year-on-year increase. Caterpillar stated that the revenue growth was driven by increased sales of end-user equipment, with the energy and transportation division performing particularly strongly, achieving a 17% year-on-year increase in sales, approximately $7.2 billion.
Profitability exceeded market expectations, with adjusted earnings per share of $4.95. However, operating profit margin faced some pressure, decreasing from 19.5% in Q3 2024 to 17.3%. Adjusted operating profit was $3.089 billion, with an operating profit margin of 17.5%, slightly lower than the same period last year, but still showing resilience under tariff cost pressures.
Komatsu reported third-quarter sales of nearly $6.8 billion, a 7% year-on-year increase. Sales growth in North America was driven by increased volume. Sales in Latin America declined due to unfavorable pricing factors, but this was partially offset by increased volume and favorable exchange rate factors related to the Brazilian Real. Sales in Europe, Africa, and the Middle East (EAME) increased.
Komatsu: Net sales of approximately $6.4 billion, a 2.6% year-on-year decrease
Komatsu's consolidated net sales for the second quarter of fiscal year 2025 (July 1 to September 30, 2025) were ¥982.1 billion (approximately $6.4 billion), a 2.6% year-on-year decrease; operating profit was ¥136.7 billion (approximately $890 million), a 6.7% year-on-year decrease; and the operating profit margin was 13.9%, a decrease of 0.6 percentage points.
Sales in the core construction, mining, and utilities equipment business increased in Europe, Africa, and the Middle East, but declined in Asia, North America, and Japan. Despite improved selling prices, both sales and profit decreased due to lower volume, a stronger yen, and increased costs.
Based on the current market environment, Komatsu has also lowered its full-year performance forecast for fiscal year 2025 (April 1, 2025 to March 31, 2026). Full-year net sales are projected at ¥3.888 trillion, a 5.3% decrease year-on-year; operating profit is projected at ¥500 billion, a 23.9% decrease year-on-year.
John Deere: Net Sales $12.018 Billion, Down 9% Year-on-Year
Affected by contracting demand in the agricultural and construction sectors, John Deere's third-quarter net sales were $12.018 billion, a 9% decrease year-on-year; profitability was also under pressure, with quarterly net profit at $1.289 billion, a 26% decrease year-on-year, mainly dragged down by declining sales volume and rising tariff costs.
Among them, construction and forestry sales were $3.059 billion, a 5% decrease year-on-year; operating profit was $237 million, a 47% decrease year-on-year, with an operating profit margin of 7.7%, a decrease of 6.1 percentage points, making it the most severely impacted sector in terms of profitability.
Faced with continued market uncertainty, John Deere narrowed its fiscal 2025 net profit forecast to $4.75 billion to $5.25 billion. The fourth quarter will continue to face weak industry demand and tariff cost pressures, with performance recovery relying on external factors such as the implementation of North American agricultural subsidies and a rebound in construction investment.
Volvo Construction Equipment: Net sales of approximately $1.98 billion, an increase of 8%
In the third quarter of 2025, Volvo Construction Equipment's net sales increased by 1% to SEK 18.926 billion (approximately $1.98 billion); after adjusting for currency fluctuations, net sales increased by 8%; excluding the Shandong Lingong (SDLG) business, net sales increased by 14%. Adjusted operating profit increased to SEK 2.722 billion, with an operating profit margin of 14.4%.
Looking at individual markets, the European market saw its first overall sales growth in over a year, driven by major markets such as Germany and the UK. The North American market also grew, partly due to market expectations of increased tariffs leading to higher prices. The South American market declined overall, primarily dragged down by the Brazilian market. Asian, Southeast Asian, Middle Eastern, and Turkish markets all showed growth, while the Japanese, South Korean, and Indian markets experienced declines.
According to the report "Review of the Performance of Listed Construction Machinery Companies in the First Three Quarters of 2025," the global construction machinery industry landscape will show significant divergence in 2025. Overseas giants, represented by Caterpillar, will generally face pressure, with the exception of a few companies. Meanwhile, Chinese companies, represented by XCMG, Sany Heavy Industry, and Zoomlion, will demonstrate strong growth momentum and achieve both revenue and profit growth, thanks to overseas market expansion and domestic policy support.
Looking ahead, Chinese construction machinery companies are transforming from "followers" to "leaders," and are expected to occupy a more important position in the global market.
