Strong growth for JCB but outlook becomes less certain

Construction machinery manufacturer JCB saw its global sales grow 14% last year and profits were up by more than 40%.

JCB celebrating 70 years of manufacturing backhoe loaders in 2023 with platinum editions of the 3CX and 4CX models

JCB’s sales turnover for 2023 reached £6.5bn, up from £5.7bn in 2022, while machine sales increased from 105,148 to 123,228.

Pre-tax profit increased to £805.8m (2022: £557.7m).

JCB chief executive Graeme Macdonald said: “Despite a global market for construction and agricultural machinery which shrank by 4.3% in 2023, JCB's sales increased by 14% to £6.5bn.

“North America remains the world’s largest market for construction equipment and JCB’s sales there grew strongly during 2023. JCB’s business in India also performed well in a growing market and while the UK market remained largely flat in 2023, JCB increased its share of the market.

And while JCB’s balance sheet remains strong, with no net borrowings throughout 2023, such buoyant numbers might not be repeated this year, he warned.

“The full year market outlook for 2024 is less positive,” Macdonald said, “with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024. In the UK, house-building activity has contracted, which is having a negative impact on machine utilisation.”

Chairman and owner Anthony Bamford said: “Our family company, JCB, continues to invest both in new production capacity and in product innovation. Earlier this year, we broke ground on our new factory in San Antonio, Texas. The company’s ongoing investment in innovative new machines, such as the recently launched JCB Pothole Pro designed to tackle the global scourge of potholes, together with our continued focus on the development of hydrogen combustion engines for our equipment in the future, puts JCB in a strong position for further long-term growth.”