As the Q1 earnings season unfolds, major global construction equipment manufacturers have released their first significant financial reports of 2025. Lucy Barnard examines their core developments. (Published by Rental News, compiled by Machinery Intelligence Hub)
A Challenging Start to 2025
The year began amid significant headwinds, with Donald Trump's import tariffs (mostly suspended now) exacerbating difficulties for manufacturers in an already tough market. OEMs are using earnings reports to explain their strategies for navigating market challenges and mitigating tariff impacts. Key players' performances include:
Caterpillar
Performance: Q1 2025 results (Apr 30) showed construction equipment sales at $5.18 billion, down $1.24 billion YoY (-19%) due to lower volume ($820M impact) and price realization ($355M).
2025 Outlook: Full-year sales expected slightly below 2024 despite tariffs. Cautious optimism about U.S.-China trade agreement.
Tariff Impact: Full-year sales would see modest decline if tariffs remain at Apr 29 levels. Q2 tariff-related costs estimated at $250-350M (mitigation measures implemented). Prioritizing cost controls (delayed shipments, reduced travel) over long-term supply chain shifts.
Komatsu
Performance: FY2024 results (Apr 28) reported net sales up 6.2% to ¥4.10 trillion ($28.5B), operating profit up 8.2% to ¥657.1B ($4.6B) as of Mar 31, 2025.
2025 Outlook: Construction, mining & utility equipment sales projected to fall 9.4% to ¥3.40 trillion ($23.8B), profit down 28.5% due to stronger yen and U.S. tariffs.
Demand Trends: Japan sales -3.1%, North America +3.4% (mining equipment), Europe -1.4%, Middle East -2.5%, China +14.2%, Asia +14.1%.
Tariff Impact: ¥78B ($550M) direct cost increase + ¥50B ($350M) sales loss. Implementing rerouting via Canada; considering global supply chain adjustments.
Sany Heavy Industry
Performance: 2024 sales up 6% to $10.88B, net profit +31.98%. International markets contributed 64% of revenue (+12% YoY).
2025 Strategy: Deepening technological innovation and risk management.
Regional Highlights: Asia-Pacific revenue +15.47% ($2.88B); Africa sales surged 44%.
Tariff Response: Localized production in India, Brazil, Germany mitigating risks through globalization.
Volvo CE
Performance: Q1 sales down 8% to $2.21B (-10% currency-adjusted).
2025 Outlook: Geopolitical uncertainty driving demand decline in Europe/U.S.
Tariff Strategy: Maintaining zero-emission equipment focus; full U.S. production coverage.
JLG Industries
Performance: Q1 sales plummeted 22.7% to $957M (aerial work platforms -23.7%, telehandlers -35%+).
Demand Weakness: Primarily due to "softening demand" in North America.
Tariff Impact: Estimated $1 EPS reduction for 2025 (50% offset by cost cuts). Leveraging U.S. manufacturing and long-term steel contracts.
Haulotte
Performance: Q1 revenue down 18% to €131M (declines across all regions).
Demand: Rental companies delaying investments; Asia-Pacific revenue -41%.
Tariff Approach: Deferring major U.S. investments until market stabilizes.
Manitou Group
Performance: Q1 sales down 12% to €600M (in line with expectations).
Market Divergence: North American customers hesitant; European demand exceeded forecasts. Order book covers 9 months of production.
Tariff Response: Measures implemented to limit potential impact.
Zoomlion Heavy Industry
Performance: Q1 revenue up 2.9% to ¥12.12B ($1.71B), net profit +54%.
Global Growth: Overseas revenue contribution 54.2% (+15.2% YoY).
Tariff Immunity: U.S. market exposure <1%; tariff-affected components only 0.05% of cost.
CNH Industrial
Performance: Q1 revenue down 21% to $3.8B, net profit -64%.
Regional Demand: North America -11%, EMEA -9%, Asia-Pacific +7%.
Tariff Assessment: Analyzing impact of trade policy uncertainty on end-customers.
Conclusion
The 2025 opening quarter saw tariffs and geopolitics emerge as universal challenges. Giants are responding through localization, supply chain adjustments, and cost controls, while Chinese manufacturers demonstrate stronger resilience via global footprints. Amid market divergence, Asia-Pacific and Africa delivered growth momentum, while Europe and North America faced persistent headwinds.
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