Excavator Sector Reports 19.5% Sales Growth in Q1 2026, Operating Leverage Expected to Gradually Improve

Stock News04-23 16:06

Guotai Haitong Securities has released a research report indicating that the domestic construction machinery industry is experiencing a cyclical recovery, while export conditions are showing structural improvements. As counter-cyclical policies gradually take effect, industry sentiment is expected to continue improving. With the implementation of counter-cyclical fiscal measures and the industry's upward cycle, the growth rate of domestic excavator sales is projected to further rebound. Leading companies with well-established overseas operations are gradually entering a harvest period, and industry operating leverage is anticipated to be progressively released. Key views from Guotai Haitong are as follows:

Both domestic and export sales maintained rapid growth. In March 2026, sales of various types of excavators reached 37,402 units, a year-on-year increase of 26.4%. Domestic sales accounted for 24,101 units (including 43 electric excavators), up 23.5% year-on-year, while exports totaled 13,301 units (including 33 electric excavators), rising 32% year-on-year. From January to March 2026, total excavator sales reached 73,336 units, an increase of 19.5% compared to the same period last year. Domestic sales amounted to 39,579 units (including 86 electric excavators), up 8.25% year-on-year, while exports reached 33,757 units (including 60 electric excavators), growing 36.1% year-on-year.

Average operating hours increased month-on-month but declined year-on-year. In March 2026, the average monthly operating hours for major construction machinery products were 70.5 hours, down 21.8% year-on-year but up 28% month-on-month. Specific figures include: excavators at 63.9 hours; loaders at 84.9 hours; truck cranes at 75.3 hours; crawler cranes at 67.8 hours; tower cranes at 39.3 hours; road rollers at 14.5 hours; pavers at 12.8 hours; rotary drilling rigs at 50.6 hours; off-highway mining dump trucks at 146 hours; concrete pump trucks at 25.8 hours; concrete mixer trucks at 36 hours; and forklifts at 104 hours.

Operating rates increased month-on-month but declined year-on-year. In March 2026, the average monthly operating rate for major construction machinery products was 50.5%, down 10.3 percentage points year-on-year but up 14.6 percentage points month-on-month. Specific rates include: excavators at 54.9%; loaders at 49.7%; truck cranes at 53.5%; crawler cranes at 46.7%; tower cranes at 34.3%; road rollers at 22.3%; pavers at 21.8%; rotary drilling rigs at 32.8%; off-highway mining dump trucks at 45.2%; concrete pump trucks at 23.6%; concrete mixer trucks at 17.1%; and forklifts at 66.4%.

Risk warnings include fluctuations in macroeconomic conditions and market demand, intensifying trade frictions, increased market competition, and a decline in overseas demand.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment