Net profit growth exceeds 30%! These leading engineering machinery companies are tapping into a 'new blue ocean'

By Chengcheng, Edited by Lizhuang

More than half of the engineering machinery companies have achieved revenue growth in 2025, with overseas income accounting for over 60% for industry leaders. These phenomena indicate a rapid recovery in the sector.

The engineering machinery industry is showing clear signs of recovery. As of April 7, 2026, among the 23 listed companies in the engineering machinery sector that have disclosed their 2025 financial performance, 13 reported year-on-year revenue growth, representing 56.5%. Leading enterprises have performed exceptionally well, with Sany Heavy Industry and Zoomlion achieving 'double-digit revenue growth and net profit increase exceeding 30%.' However, the current recovery in the industry is not simply driven by traditional infrastructure but is the result of domestic policy support combined with overseas market expansion and optimization of global revenue structure.The recovery in industry prosperity has extended from corporate financial statements to sales data and market indices, signaling the start of a new cycle driven by synchronized domestic and external demand.

Industry prosperity is continuing to recover.

The prosperity of the construction machinery industry is steadily recovering, with clear signals of market revival. As of April 7, 2026, eight companies in the Shenwan Construction Machinery Industry have released their official 2025 annual reports, and another eight have disclosed 2025 annual earnings previews (excluding overlapping data). Statistical data shows that whether in official annual reports or earnings previews, four companies (50%) achieved year-over-year earnings growth.

Among the companies that disclosed official annual reports, Jindao Technology (301279.SZ), Sany Heavy Industry (600031.SH), and Zoomlion Heavy Industry Science & Technology Co., Ltd. (000157.SZ) all achieved high-quality growth marked by double-digit revenue growth and net profit increases exceeding 30%. Shantui International (000680.SZ), a leader in the bulldozer industry, also reported steady earnings growth of 9.86%. Among companies disclosing earnings previews, Wantong Hydraulics was the only one among the eight to achieve double-digit growth in both revenue (11.14% increase year-over-year) and net profit (16.45% increase year-over-year).

In addition to the aforementioned companies, seven other construction machinery firms disclosed 2025 earnings forecasts (excluding those that already disclosed annual reports or earnings previews). Five of these companies achieved year-over-year earnings growth, accounting for 71.43% of the total.V-One Seals and Zhongji United stood out, forecasting an upper limit of 84.31% and 74.71%, respectively, for 2025 net profit growth.

A comprehensive analysis of the performance of the 23 companies mentioned above reveals that 13 companies achieved year-over-year growth, accounting for 56.5%, indicating that the industry's profitability is expanding.

Regarding the 2025 industry outlook, industry leader Sany Heavy Industry provided an analysis in its 2025 annual report, stating: In 2025, China’s construction machinery industry entered a new phase of moderate recovery and structural optimization. Supported by policies promoting 'large-scale equipment upgrades,' a package of incremental macroeconomic measures, and the ongoing trend of 'machine replacing humans,' domestic market activity steadily improved. Overseas construction machinery markets demonstrated strong resilience, with robust demand from emerging markets like Africa and Southeast Asia, allowing Chinese construction machinery manufacturers to steadily increase their global market share and profitability.

Shantui International similarly noted in its annual report, 'In 2025, the construction machinery industry maintained a high but gradually stabilizing trend, showing progress amid stability. Construction machinery sales improved, foreign trade grew rapidly, and overall, the industry exhibited strong resilience.'

Dongwu Securities stated in a research report that the construction machinery industry entered a recovery phase starting in the second half of 2025.In their view, the industry is currently at the starting point of an upward cycle. The profit growth rate for the sector is expected to remain above 20% over the next two to three years. Core targets are valued at only 10 to 16 times earnings for 2026, indicating investment potential.

Notably, the recently disclosed March CMI (Construction Machinery Market Index) also supports the recovery phase in the construction machinery industry. Public data shows that the March CMI reached 132.96, representing a year-on-year increase of 3.42% and a month-on-month increase of 26.12%. After 11 months, this index returned to the expansion zone, marking the gradual entry of the domestic construction machinery market into its peak season.

Additionally, the 2026 government work report explicitly supports equipment upgrades and 'two major' construction projects through ultra-long-term special treasury bonds. Combined with equipment from the sales peak period between 2016 and 2020 entering the replacement phase, as well as the 'National IV' emission standards driving out older equipment, domestic update demand is steadily being released, providing solid support for the continued recovery of the industry.

XCMG Machinery (000425.SH), one of the leading companies in the industry, noted during a recent institutional visit that the domestic construction machinery market is showing positive signs, particularly in earthmoving machinery, which has seen consecutive months of positive sales. In the long term, the continuous advancement of the nation’s 'two-step' strategy, investment opportunities arising from uneven urbanization, natural equipment replacement needs, new energy industry growth, and emerging niche markets all provide momentum for industry recovery. With the implementation of key projects, it is expected that the domestic market will continue to recover throughout 2026, and the industry may enter an upward cycle.

Sany Heavy Industry noted in its annual report that the construction machinery market is expected to continue improving in 2026.In the domestic market, infrastructure investment, new urbanization, and demands from mining and water conservancy projects will be further unleashed under policy guidance. Coupled with the gradual implementation of ultra-long-term special treasury bonds and local debt resolution funds, the market is expected to recover at an accelerated pace. Additionally, increased penetration of new energy and intelligent products will spur significant replacement demand, further driving industry growth. In overseas markets, global infrastructure and mining investments maintain high levels of activity. Despite uncertainties due to geopolitical tensions and trade barriers, Chinese construction machinery manufacturers are making significant strides in global market share and brand value through proactive 'localization' strategies and technological innovation.

Sany Heavy Industry and Zoomlion achieve earnings growth exceeding 30%

The construction machinery industry is a core component of China's high-end equipment manufacturing sector, with Sany Heavy Industry and Zoomlion being prominent leaders within the segment.

According to the latest disclosed annual reports, Sany Heavy Industry achieved revenue of 89.7 billion yuan in 2025, a year-on-year increase of 14.44%; net profit attributable to shareholders was 8.408 billion yuan, up 41.18% year-on-year; non-recurring net profit attributable to shareholders was 8.221 billion yuan, a year-on-year increase of 54.13%. Zoomlion reported total operating revenue of 52.107 billion yuan in 2025, a year-on-year increase of 14.58%; net profit attributable to shareholders was 4.858 billion yuan, up 38.01% year-on-year; non-recurring net profit attributable to shareholders was 3.37 billion yuan, a year-on-year increase of 31.93%.

In Sany Heavy Industry's revenue composition, excavator machinery contributed 34.54 billion yuan, concrete machinery 15.74 billion yuan, and lifting machinery 15.56 billion yuan. These three categories account for more than 70% of total revenue. Among them, excavator machinery has ranked first in domestic sales for 15 consecutive years, while concrete machinery remains firmly the global leader, and lifting machinery continues to expand its global market share steadily.

Overseas revenue has become a new engine for Sany Heavy Industry's performance growth, with its proportion continuously expanding.According to the company’s financial report, overseas revenue accounted for only 45.25% in 2022, but by 2025, this share had increased to 62.73%. The amount also rose from 36.571 billion yuan in 2022 to 56.269 billion yuan in 2025. Notably, among Sany Heavy Industry's overseas markets, the fastest growth in main business revenue came from the African region, with a growth rate of 55.29%.

In Zoomlion's revenue composition, classified by industry, construction machinery revenue reached 48.12 billion yuan, accounting for 92.34%; agricultural machinery revenue was 3.54 billion yuan, accounting for 6.8%; and financial services revenue was 450 million yuan, accounting for 0.86%.Currently, Zoomlion's industrial echelon is well-formed, with emerging businesses accelerating their growth. In traditional sectors, concrete machinery revenue reached 10.057 billion yuan, growing by 25.5% year-on-year; lifting machinery revenue amounted to 16.637 billion yuan, increasing by 12.5% year-on-year. For emerging sectors, earthmoving machinery revenue hit 9.672 billion yuan, surging by 44.99% year-on-year. The domestic market share of mining excavators above 100 tons ranked among the top three in the industry, while excavator exports ranked among the top three domestically. Aerial work platform machinery revenue stood at 5.971 billion yuan, decreasing by 12.63% year-on-year. The ultra-high meter straight boom products lead globally, and high-meter products have achieved scale exports in Europe, the Americas, and the Asia-Pacific region. Overseas sales of agricultural machinery grew by 21% year-on-year.

Similar to Sany Heavy Industry's revenue structure, overseas revenue is also a new driver of Zoomlion's performance growth. According to Zoomlion’s financial data, overseas revenue accounted for only 38.04% in 2023, but by 2025 it had reached 58.56%, an increase of 20 percentage points.

Specifically, Zoomlion's overseas revenue in 2025 reached 30.515 billion yuan, growing by 30.52% year-on-year. Regionally, revenue in Africa surged by more than 157% year-on-year, while emerging markets such as Latin America, Southeast Asia, and the Middle East all experienced rapid growth. In terms of network layout, the company has established over 30 primary aviation hubs and more than 430 outlets, with about 6,000 local employees abroad. Regarding overseas R&D and manufacturing bases, Zoomlion operates production facilities in countries like Italy, Germany, Mexico, Brazil, Turkey, the United States, and Hungary. The Hungary high-rise factory has been completed and put into operation, and the expansion and upgrade project of the Wilhelmshaven plant in Germany has been implemented.

“Accelerate the formation of a new global development pattern.” Zoomlion noted in its annual report that the company adheres to “end-to-end, localization, digitalization, and compliance” as its overseas strategic guidance. Leveraging its advantages in high-end manufacturing, high-end products, and high-end services, it accelerates the expansion of overseas markets.Specific measures include: continuously deepening the end-to-end business management system, accelerating localized deployment, speeding up digital transformation, strengthening the compliance risk control system, and promoting the globalization of overseas R&D and manufacturing bases.

Compared to Sany Heavy Industry and Zoomlion's “double-digit revenue growth and net profit increase of over 30%,” Shantui, the leader in bulldozers, showed relatively moderate performance. In 2025, Shantui achieved revenue of 14.62 billion yuan, increasing by 2.82% year-on-year, and net profit attributable to shareholders of 1.211 billion yuan, growing by 9.86% year-on-year. However, the company’s overseas revenue grew rapidly, reaching 8.741 billion yuan in 2025, a year-on-year increase of 17.94%. Overseas revenue accounted for 59.79% of total revenue, up by 7 percentage points from 52.12% in 2024.

Shantui’s operating target for 2026 is “revenue of 16.1 billion yuan, including 10.5 billion yuan in overseas income.”

Institutions actively conduct research

Currently, institutions maintain a high level of attention on the construction machinery industry. According to Wind data statistics, as of March 31, among the 35 constituent stocks in the Shenwan Construction Machinery sector, 16 companies received institutional research in the first quarter of this year, includingsix companies that were researched more than twice, namely Shantui Co., Ltd., XCMG Machinery, Fostar, Tetra Machinery, Zhongji United, and Zoomlion Heavy Industry Science and Technology. The number of research visits were 6 times, 3 times, 3 times, 3 times, 2 times, and 2 times respectively.

Moreover, from the currently gradually released fund annual reports, compared with the mid-2025 data, several companies that received institutional research in the first quarter of this year have been increased in fund positions.For example, the proportion of Shantui Co., Ltd.'s fund holdings increased from 9.89% at mid-2025 to the current 12.08%, while Zoomlion's fund holding ratio rose from 8.06% at mid-year to the current 10.38%, and Liugong’s rose from 15.42% at mid-year to the current 19.71%. In short, as fund annual reports continue to be disclosed, the fund holding ratio is expected to continue to rise.

During the institutional research on March 20, institutions raised multiple questions to Shantui Co., Ltd., including the question regarding “sales of high-horsepower bulldozers and targets for 2026.” Shantui responded: 'Since 2025, leveraging Russia's extreme cold working conditions, we have continuously iterated and upgraded our products and promoted mature sales and service experiences to other major mining markets worldwide, achieving progress from zero to one in multiple regions and countries. On this basis, our company’s high-horsepower bulldozers already possess the confidence and capability to strive for historic best performance.' Shantui further noted during the research, 'The company closely monitors market changes, and if necessary, will consider implementing price increase strategies.'

Regarding the business layout in Africa and the sales share of different tonnage products in excavators, Shantui also provided explanations during the research. It pointed out: Sales in Africa have achieved full coverage. In 2025, Africa has become the largest single overseas export market for the company. Regarding excavators, sales in Africa are mainly large and medium-sized equipment. Additionally, mining excavators have also made sales breakthroughs in Africa this year. With product structures mainly focusing on large and medium-sized equipment, the company is confident enough to allocate more resources and prioritize it as one of the key areas to focus on over the next five years.

As a leading domestic enterprise in the construction machinery industry, XCMG Machinery has achieved a leap from a local state-owned enterprise to a global modern listed company through technological innovation and systemic reform.Currently, the company maintains its leading position in traditional strong fields like cranes and earthmoving machinery, while aggressively expanding into emerging strategic sectors such as aerial work platforms and mining machinery, forming a comprehensive product matrix.

XCMG Machinery has not yet disclosed its 2025 annual report, but according to its 2025 third-quarter report, revenue and net profit attributable to shareholders in the first three quarters have already achieved double-digit growth (up 11.61% and 11.67% year-on-year). During the earnings call for the third-quarter results, the company stated that its overall target for 2025 is to achieve revenue growth of over 10%. In a recent institutional survey, when asked about their plans for mining machinery, XCMG Machinery responded, 'Our current mining machinery products include two-axle mining trucks, excavators, electric shovels, articulated dump trucks, and wide-body dump trucks, all developed in synergy. This forms the industry's most comprehensive and competitive open-pit mining machinery solution for digging, loading, and transportation, providing one-stop services for global mining customers. Our mining machinery business belongs to an emerging sector, ranking first domestically and within the top five globally.'

XCMG Machinery is highly confident about the future of its mining machinery business, citing three main reasons: First, driven by increasing demand for new energy minerals, global mineral resource production is showing steady growth. Second, with the deepening of mining techniques, there will be continuous demand for upgrading mining equipment, and the mining machinery sector will also enter a peak period for equipment replacement. Third, after a decade of development, the company has built solid technological reserves, earning recognition and support from high-end international clients. According to the '15th Five-Year Plan,' the company's mining machinery division (including surface and underground mining equipment, spare parts, etc.) aims to exceed 40 billion yuan by 2030.

(This article was published in the April 11 issue of the Securities Market Weekly. Any mention of individual stocks is for illustrative analysis only and should not be considered as buy or sell recommendations.)

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