23.09.2024

Another solid year for JCB

UK based telehandler manufacturer JCB has reported higher revenues and profits for 2023.

Total revenues for the main telehandler and earthmoving businesses etc increased 14 percent compared to 2023 to £6.5 billion, while pre-tax profits jumped 44.5 percent to £805 million.

These are the results for J.C.B Service, which is not the entirety of JCB. JCB Access for example is directly owned by Anthony Bamford while JCB Finance is a joint venture and JCB Holdings is registered offshore.
The group overall maintained a very strong balance sheet with no borrowings or net debt.

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 £6.5 billion. 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. The full year market outlook for 2024 is less positive, with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024. In the UK, housebuilding activity has contracted, which is having a negative impact on machine utilisation.”

Chairman Anthony Bamford added: “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.”

Vertikal Comment

This is a sparkling performance from JCB which over the years has retained earnings and reinvested in the business, making it highly resistant to the cyclical nature of the construction equipment business. While the access numbers have yet to be posted, there is a good chance that they will exceed £100 million revenue for the first time with a decent profit.

Once the full accounts have been published we will update this item if there is anything to add.