China's construction machinery exports are strong, and XCMG says its target is to account for more than 60 percent overseas.
The construction machinery industry is gradually returning to an upward trajectory. Recently, Everbright Securities released a research report stating that sales in the construction machinery industry have maintained a growth trend recently, and the industry has good short-term catalysts. Policies from the Two Sessions have strongly supported the construction machinery industry, ensuring the sustained recovery of medium-term demand. At the same time, with the continuous advancement of the industry's internationalization and electrification processes, leading enterprises in the construction machinery sector are expected to achieve simultaneous growth in sales volume and profits.
According to the financial report data of 18 construction machinery mainframe manufacturers and 9 construction machinery parts manufacturers, listed companies in China's construction machinery industry achieved double growth in revenue and profit in the first quarter of 2025. Specifically, the mainframe segment achieved revenue of 91.55 billion yuan, a year-on-year increase of 10.3%; net profit attributable to shareholders was 8.88 billion yuan, a year-on-year increase of 33%. The parts segment achieved revenue of 4.58 billion yuan, a year-on-year increase of 14.2%; net profit attributable to shareholders was 840 million yuan, a year-on-year increase of 6.2%.
However, there is still room for improvement in gross profit margin. In the first quarter of 2025, the overall gross profit margin of listed companies in China's construction machinery industry was 25.1%, a year-on-year decrease of 0.4 percentage points. Among them, the gross profit margin of the mainframe segment was 24.7%, a year-on-year decrease of 0.3 percentage points; the gross profit margin of the parts segment was 31.9%, a year-on-year decrease of 2.6 percentage points.
Construction machinery is commonly used in infrastructure real estate, municipal rural areas, mining and other fields, and is regarded as a barometer of the macroeconomy. Compared with the Chinese domestic market, construction machinery is continuing to gain incremental growth in overseas markets.
According to data from the China Construction Machinery Industry Association, from January to April 2025, China's construction machinery import and export volume reached $18.947 billion, an year-on-year increase of 8.51%. Among them, the import value was $877 million, a year-on-year decrease of 0.86%; however, the export value was $18.07 billion, a year-on-year increase of 9.01%.
Recently, the 7th International Customer Festival of XCMG Group attracted more than 2,000 business clients from over 80 countries and regions worldwide. Yang Dongsheng, Chairman and Party Secretary of XCMG Group, stated: "Facing the future, XCMG Group has established a new strategic goal: on the basis of a scale exceeding 100 billion yuan, by 2030, the scale will double again, with international revenue accounting for more than 60%."
A XCMG dealer from Thailand said that Chinese construction machinery surpasses competitors in price and quality overseas, creating a competitive gap, and more Thai companies are willing to purchase Chinese excavators and other construction vehicles. The dealer added that he has purchased new energy loaders worth over 100 million yuan from XCMG, and China's electrification trend is also spreading overseas.
From January to April 2025, China sold 8,139 electric loaders, a year-on-year increase of 254.8%; the electrification rate reached 19.3%, a year-on-year increase of 14.3 percentage points. The trend of electrification in construction machinery has become increasingly evident.
Everbright Securities believes that greenization and electrification are among the key future development directions for the construction machinery industry. Domestic manufacturers are continuously overtaking competitors by leveraging the momentum of electrification, which is expected to accelerate the electrification process of construction machinery and further boost the revenue and profits of mainframe manufacturers. At the same time, the large-scale export of used construction machinery to developing countries overseas has objectively reduced domestic inventory levels, serving as a factor driving new machine sales.
The brokerage firm believes that in 2025, China's construction machinery exports will face opportunities and challenges such as changes in the Russia-Ukraine situation, rising demand for infrastructure and mining machinery in Southeast Asia, Africa and the Middle East markets, and increased penetration in high-end European and American markets. Meanwhile, they also face risks from uncertainties in China-US tariffs. However, with leading Chinese construction machinery enterprises increasing their overseas presence, exports are expected to maintain a growth trend.
