title: The Big Three's H1 Reports: Overseas Revenue Tops 60%, FX Erodes Profits

date: 2026-09-26

category: Industry Deep Dive

tags: [Construction Machinery Earnings, SANY Heavy Industry, XCMG, Zoomlion, Overseas Revenue, Foreign Exchange Losses]

In the first half of 2026, China's construction machinery industry delivered a "revenue up, profit down" scorecard. SANY Heavy Industry, XCMG, and Zoomlion — the three sector leaders — all posted double-digit revenue growth, but net profits came under collective pressure. Foreign exchange losses from RMB appreciation, the cost of overseas expansion, and growing pains from product-mix restructuring are reshaping the industry's profitability landscape.

Industry Overview: Revenue Across the Board Gains, Profit Growth Diverges

Comparison of the Big Three's Core Financial Data for H1 2026

In H1 2026, SANY Heavy Industry reported revenue of RMB 53.306 billion, up 19.7% YoY; net profit attributable to shareholders was RMB 5.69 billion, up 9.1% YoY. XCMG posted revenue of RMB 61.247 billion, up 11.75% YoY; net profit attributable to shareholders was RMB 3.962 billion, down 9.09% YoY. Zoomlion reported revenue of RMB 27.135 billion, up 9.17% YoY; net profit attributable to shareholders was RMB 2.102 billion, down 23.97% YoY.

On the surface, all three companies maintained revenue growth between 9% and 20%, indicating that market demand continues to release steadily. However, the divergence on the profit side is already stark: SANY leveraged strong overseas performance to sustain positive profit growth, while XCMG and Zoomlion fell into the "revenue up, profit down" trap.

SANY Heavy Industry: Overseas Engine Roars On, FX Drags Core Earnings

SANY's H1 performance remained solid. Of its RMB 53.3 billion in revenue, overseas income reached RMB 32.04 billion, surpassing 61% of total revenue for the first time — a record high. This means that for every RMB 10 SANY earned, more than RMB 6 came from overseas markets.

SANY's Revenue Growth Across Four Major Overseas Regions

By region, Africa led with 47.66% growth, generating RMB 5.36 billion in revenue; the Americas grew 24.70% to RMB 6.31 billion; Asia-Pacific grew 17.38% to RMB 13.44 billion; and Europe grew 12.68% to RMB 6.93 billion. On the product side, pile-driving machinery revenue surged 63.11%, while excavator revenue grew 21.77% to RMB 21.306 billion.

However, FX volatility proved to be SANY's biggest "hidden killer" in H1. Due to RMB appreciation, the company recorded a foreign exchange loss of RMB 2.103 billion, compared to a forex gain of RMB 670 million in the same period last year — a swing of RMB 2.77 billion that directly eroded profit. Net profit excluding non-recurring items declined 13.45% YoY, reflecting significant pressure on the company's core operating earnings.

XCMG: Revenue Crown Holds Firm, But Profit Growth Turns Negative

XCMG maintained its position as China's construction machinery industry "revenue king" with RMB 61.247 billion in sales, but profit-side pressure is hard to ignore. H1 net profit attributable to shareholders was RMB 3.962 billion, down 9.09% YoY; net profit excluding non-recurring items was RMB 3.829 billion, down 14.28% YoY.

XCMG's H1 Financial Indicator Trend Chart

Notably, XCMG's overseas revenue share surpassed 50% for the first time in H1, with export sales becoming the primary growth driver. Its marketing network covers more than 190 countries and regions, and the transition from product exports to localized manufacturing and service upgrades is well underway. However, the inventory-to-total-assets ratio climbed from 18.16% in the H1 2024 report to 21.22%, signaling rising inventory management pressure.

As the world's third-largest construction machinery manufacturer on the Yellow Table 2026 (annual sales of USD 1.4207 billion, 5.8% global market share), XCMG has held a top-three global ranking for three consecutive years. Yet the slowdown in profit growth casts a shadow over this "third in the world" status.

Zoomlion: Ex-Non-Recurring Net Profit Plummets 57%; One-Off Gains Mask Underlying Weakness

Zoomlion's H1 report is the most revealing. On the surface, net profit attributable to shareholders of RMB 2.102 billion, while down 23.97% YoY, appeared passable. But dig deeper and non-recurring items totaled RMB 1.271 billion — a full 60% of reported net profit. In other words, six-tenths of Zoomlion's H1 profit came from government subsidies, asset disposals, and other one-time items. Core operating profit (net profit excluding non-recurring items) was only RMB 831 million, plunging 56.82% YoY.

On the overseas front, Zoomlion's international revenue was RMB 15.535 billion, accounting for 57.25% of total revenue, up 12.45% YoY. However, overseas gross margin slipped 2.68 percentage points, exposing intensified overseas competition and the reality of pricing concessions. Stripping out the impact of FX losses, net profit attributable to shareholders was RMB 2.802 billion, up 17.19% YoY — suggesting that the core business fundamentals remain reasonably healthy.

Zoomlion is accelerating its second growth curve: earth-moving, mining, aerial work platforms, and agricultural machinery collectively generated approximately RMB 12.5 billion, representing over 46% of total revenue and significantly reducing dependence on traditional crane and concrete machinery. The Hungary plant has entered production, and new-energy mining equipment has obtained EU CE certification — internationalization has not slowed despite profit headwinds.

Industry Trends: Overseas Expansion Is the Biggest Upside; FX Is the Biggest Wild Card

The H1 reports of the three leaders reflect three critical trends in China's construction machinery industry:

First, overseas expansion has become the core growth engine. SANY's overseas revenue share is 61%, XCMG has surpassed 50%, and Zoomlion is at 57%. All three have achieved the milestone of overseas revenue matching or exceeding domestic revenue. The transition from product exports to industrial globalization is reshaping the global competitive landscape for Chinese construction machinery firms.

Second, FX volatility is fundamentally altering the earnings structure. Against the backdrop of RMB appreciation, the three companies' combined forex losses exceeded RMB 4 billion, directly eroding the profit gains from overseas expansion. SANY is pursuing RMB-denominated settlement for overseas operations and hedging strategies, but near-term pressure will persist.

Third, product-mix restructuring brings short-term growing pains. New-energy products, intelligent equipment, and mining machinery all require substantial upfront investment, with gross margins temporarily below those of legacy products. Zoomlion's second-curve businesses already exceed 46% of revenue, but the profit contribution will take time to materialize.

Investment Takeaways: Value Lies in Growth; Risk Lies in Transition

According to Yellow Table 2026, total sales of the world's top 50 construction machinery companies reached USD 246.5 billion, another all-time high. China's 13 listed companies posted combined sales of USD 48.9 billion, capturing 20.4% of the global market. SANY, XCMG, and Zoomlion rank sixth, third, and eleventh globally, respectively — the Chinese contingent's overall competitiveness continues to strengthen.

However, the divergence in profitability serves as a reminder that revenue scale growth does not equal enhanced investment value. SANY stands out with the strongest risk resilience among the three, driven by high-quality overseas growth (overseas gross margin of 32.5%, up 1.32 percentage points) and robust cash flow (operating cash flow of RMB 9.768 billion).

For industry end-users, innovation and product iteration at all three leaders continue to accelerate. SANY's electric excavators, XCMG's mining machinery, and Zoomlion's new-energy equipment are all making breakthroughs in their respective segments. For the latest pricing and equipment selection guidance on SANY pump trucks, XCMG cranes, and other brands, feel free to contact our specialist team through EquipNode for a tailored solution.

H2 2026 Outlook

Looking ahead to the second half of the year, the three leaders face a complex macro backdrop. Factors including RMB exchange rate trajectory, domestic infrastructure investment cadence, and overseas market demand dynamics will continue to shape earnings performance. But in the long run, the globalization of Chinese construction machinery firms is irreversible, and improvements in product capability and brand strength are translating into tangible market share gains.

At its investor briefing, SANY Heavy Industry emphasized its commitment to accelerating globalization, digitalization, and low-carbon strategies. XCMG stated it will leverage its global strategy to continue expanding market orders. Zoomlion, following the Hungary plant's commissioning, is deepening its localized footprint. The competitive landscape in construction machinery is set to intensify in the second half of 2026.