Volvo CE Delivers Record Event, New Excavator Factory, and First Electric Haulers in Strong Q2 2026

Volvo Construction Equipment posted a 13% organic sales increase in the second quarter of 2026, marked by a string of strategic milestones that underscore the company's dual focus on growth and electrification.

The Swedish OEM reported adjusted operating income of SEK 3,114 million for the quarter, up from SEK 2,993 million a year earlier, pushing the adjusted operating margin to 14.4% — a solid improvement from 13.1% in Q2 2025. Net sales came in at SEK 21,603 million, down 6% from SEK 22,906 million, a decline that is entirely attributable to the divestment of SDLG. On an organic basis, machine sales grew 14% and service sales rose 9%.

"We continue to grow our total offer while maintaining our focus on long-term investments and innovation to transform our industry," said Melker Jernberg, President of Volvo CE.

Excavator Factory Groundbreaking in Eskilstuna

One of the quarter's most symbolic events was the groundbreaking of Volvo CE's new SEK 700 million excavator factory in Eskilstuna, Sweden. Swedish Prime Minister Ulf Kristersson and Deputy Prime Minister Ebba Busch attended the ceremony, taking the controls of EC230 Electric excavators for the ceremonial first dig.

The new facility — spanning approximately 30,000 square meters — will produce crawler excavators in the 14- to 50-ton range, supporting both electric and combustion engine models. With an annual capacity of up to 3,500 machines, the factory is set for completion in 2028 and represents a major vote of confidence in European manufacturing at a time of global trade uncertainty.

With the addition, Volvo CE will manufacture all its core products in Sweden: articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna, and cabs in Hallsberg. The company has invested more than SEK 9 billion in European industrial capacity and retail networks in recent years.

World's First Serial-Produced Electric Haulers Deployed in Norway

Q2 also saw the delivery of the world's first serial-produced A30 Electric articulated haulers to Norwegian contractor LNS (Leonhard Nilsen & Sønner AS). Four units have been delivered, with three more scheduled to follow, for use on Hafslund Kraft's Hemsil 3 hydropower project in Hallingdal.

The machines — produced at Volvo CE's Braås facility and transported 700 km by Volvo trucks — will work in tunnel construction for the 20 km underground system that feeds the power plant. Their zero-emission operation makes them particularly well-suited for enclosed tunnel environments, where exhaust-free work improves both air quality and working conditions.

"Hafslund has a strong environmental focus and takes a forward-leaning approach to electrifying construction operations on our projects," said Lars Oust, Project Manager at Hafslund Kraft.

The Hemsil 3 project is expected to increase annual energy production by around 110 GWh when completed in 2029.

Volvo Days 2026: Biggest Event Yet

In June, Volvo Days 2026 in Eskilstuna drew more than 8,000 visitors — the largest event in the company's history. The gathering showcased around 80 new and updated machine models introduced in recent years alongside a 50% extension to Volvo CE's services portfolio, from digital solutions to customer support packages.

Regional Market Performance

Order intake for the Volvo brand rose 8% overall, with growth in North America (+8%) and South America, Africa, and Oceania, while Europe and Asia saw declines. North America's resilience, Jernberg noted, is driven by continued investment in data centers, energy infrastructure, and the onshoring of manufacturing capacity.

The European market also saw increased demand, supported by infrastructure investment and healthy fleet replacement. In Asia, Indonesia continued growing on the back of GDP growth and infrastructure spending, while China showed modest expansion driven by real estate stimulus policies.

Outlook

With a 14.4% adjusted operating margin, SEK 700 million in new factory investment, and the first commercial deployment of battery-electric heavy haulers, Volvo CE is positioning itself for the next phase of the construction equipment cycle — balancing near-term profitability with long-term industrial capacity and zero-emission technology.

This article was written based on Volvo CE's official Q2 2026 press release and supporting materials. All financial figures are in SEK.