2025 was in many ways a challenging year owing to geopolitical uncertainty, rapid market changes and a strong SEK. Despite this, engcon stood strong, continued to grow, strengthened its market position and took important steps for the future.
Strength in a changing world
Despite a challenging market situation, we continued to see healthy demand for our products in 2025. This was reflected in both the order intake and net sales. For full-year 2025, order intake increased 15 per cent to SEK 1,981 million, with organic growth of 20 per cent. Net sales amounted to SEK 1,889 million, corresponding to organic growth of 18 per cent. This growth was primarily driven by the Nordic region and Europe.
In the Nordic region, we saw a clear recovery early in the year. Low dealer inventory levels, pent up investment needs and an ageing machinery fleet led to a strong order intake ahead of the digging season. As inventory levels gradually normalised, demand from end customers had a direct impact on sales. This provided us with a stable foundation throughout the year and good conditions going forward.
Europe continued to be our most important growth region. We are seeing clear results from our long-term efforts to maintain a local presence, forge partnerships and provide training for end customers. It became particularly evident during the year that the tiltrotator is increasingly seen as an integral part of the excavator and the way of working in the industry, which confirms that our offering is meeting real everyday needs.
In the Americas, the year was characterised by a more cautious market. Uncertainty regarding the introduction and announcement of tariffs impacted the willingness to invest. It will therefore be important ahead of 2026 to carefully balance our presence, profitability and cost discipline. Our ambition is clear: to keep our long-term positioning while being ready to act when the market picks up pace.
In Asia-Oceania, we saw variations between the quarters, but with a clear positive underlying trend. Our performance in Japan was especially pleasing, with increased requirements for efficiency and governmental incentives leading to favourable conditions for continued growth.
Profitability in focus
Despite increased volumes, profitability was impacted during the year by a stronger SEK and fluctuations in the market and product mix. The operating margin amounted to 17 per cent, compared with 18 per cent in the preceding year, which is below our target. This is unsatisfactory and we will now be taking measures to ensure continued profitable growth with a focus on business-strategic priorities, price and product packaging and strengthened cost discipline. Together with a strong order book and the investments we have made in capacity, IT and organisation, this provides us with favourable conditions to create a better balance between growth and profitability moving forward.
Market in a phase of structural growth
An updated market study from Strategy& confirms that the tiltrotator market is currently in a phase of structural growth and is expected to grow an average of about 20 per cent per year until 2030. Global demand is becoming less dependent on cyclical fluctuations and more on long-term trends such as increased efficiency, labour shortage and a strengthened focus on safety and sustainability in the construction and civil engineering industry.
“It is estimated that about 93 per cent of excavators in our focus markets will still not be fitted with a tiltrotator by 2030, which demonstrates our significant long-term growth potential.”
While the Nordic region is a highly mature market with strong penetration, the greatest growth is expected to take place in immature markets in Europe, North America and APAC, where penetration rates remain low but driving forces for increased adoption are considered strong. At the same time, the study shows that about 93 per cent of excavators in our focus markets will still not be fitted with a tiltrotator by 2030, which demonstrates our significant long-term growth potential.
Partnerships that make a difference
Collaborating with leading excavator manufacturers is a key component of our strategy. During the year, we took several important steps to further strengthen engcon’s position and credibility.
Through closer partnerships with companies such as Komatsu and Develon, our solutions are now all the more clearly being integrated into the excavator ecosystem. As the tiltrotator becomes a natural part of the excavator from the start, this simplifies our customers’ every-day operations, boosts productivity and lowers the threshold for using the attachment, which is a critical factor for increased market penetration.
In parallel, we have strengthened our European presence with new and developed partnerships. Our partnership with Hitachi and collaboration with TM Benne in Italy are clear examples of how local presence and strong distribution channels make our offering more accessible. In Germany, this approach has led to increased use and a stronger position in Europe’s largest excavator market.
End customer in focus
For engcon, the end customer is always the starting point. Through close dialogue and direct contact, we strengthen relationships and our brand. As such, exhibitions and demo days are not just about displaying our products, but allow us to demonstrate opportunities – how our solutions can change and enhance the efficiency of daily work.
This became especially clear during Bauma, the world’s largest trade fair for the construction and civil engineering industry. The interest and curiosity we encountered there confirmed that the industry is undergoing a shift in which the tiltrotator is increasingly seen as an integral part of excavator work. At CSPI in Japan, which is a market with low penetration and considerable potential for future growth, we received a similar response after participating with our own stand for the first time.
Innovation as a driving force
Innovation has always been a driving force for engcon, and concerns always being one step ahead in a rapidly changing industry. In 2025, we took a further step in the development of our third generation tiltrotator, with the launch of two new models. These models further our ambition to fuse power, precision and smart technology to meet future demands for efficiency, safety and sustainability. The positive response we have received from the market is confirmation that the technological choices we have taken have been the right ones.
In 2026, this journey is continuing with the launch of an additional four models. All this while we continue to broaden our offering in tools, control systems and couplers. With a new method of presenting our product portfolio based on performance levels, we make it easier for customers to understand, compare and select the right solution for their needs.
Strong position for future growth
We are looking to the future with confidence. The long-term driving forces of increasing requirements for efficiency, safety and sustainability that are shaping our industry are continuing to create major opportunities. An updated market study shows that we currently account for 49 per cent of the global tiltrotator market. For me, this is more than just a figure, it is a clear indication of the confidence that our customers and partners around the world place in us. At the same time, I am aware that our continued success will primarily be based on people.
Given this, we commenced Group-wide efforts in 2025 to clarify our values. These efforts will take a further step in 2026 with the aim of creating a shared foundation for how we lead, collaborate and make decisions, and therefore strengthen both our culture and our long-term development.
Finally, I would like to extend my warm and sincere thanks to our employees, customers, partners and shareholders for your commitment and confidence. Together, we are continuing to change the world of digging.
Krister Blomgren, President and CEO
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