Switzerland · Delayed Price · Currency is CHF ABB Ltd Earnings Call Transcripts
Fiscal Year 2026
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Q1 saw record orders and strong revenue growth across all segments, with robust demand in data centers and utilities. Operational margins improved, cash flow nearly doubled, and guidance was raised for both revenue and margin, despite ongoing geopolitical risks.
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The AGM highlighted record financial results, a rising dividend, and robust growth across all business areas. Shareholders approved all proposals, including compensation, sustainability, and board elections, while management emphasized ongoing innovation, talent development, and resilience amid global challenges.
Fiscal Year 2025
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Record 2025 results with all-time highs in orders, revenues, and margins, driven by strong Electrification and Automation demand. 2026 guidance calls for 6%-9% revenue growth and higher margins, supported by a robust backlog, disciplined capital allocation, and continued focus on operational excellence.
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New long-term targets set higher ambitions for growth, margins, and capital returns, with a focus on digitalization, sustainability, and disciplined M&A. All business areas are leveraging innovation and local strategies to capture growth in electrification, automation, and energy efficiency.
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Orders and revenues both grew 9% year-over-year, with all business areas contributing to record results. Free cash flow surged 32%, and the sale of the Robotics division to SoftBank for $5.4 billion will fund further growth and capital returns. Operational EBITDA margin reached 19.2%, and guidance points to continued mid-single-digit growth.
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Record order intake and revenue growth were achieved, with strong performance in utilities, data centers, and process automation. Margins improved, guidance for mid-single-digit growth is maintained, and investments in innovation and capacity continue amid ongoing market uncertainties.
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Major transformation since 2020 has focused on electrification and automation, driving record margins and balanced global revenues. Plans include spinning off the robotics business by Q2 2026, continued R&D investment, and targeting 5% revenue growth and higher margins in 2025.
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Q1 saw strong order and revenue growth, margin expansion, and robust free cash flow, aided by a one-time property sale. The robotics division will be spun off by 2026, and all business areas are expected to improve margins for the year. Economic uncertainty and tariffs are being managed with local production and price actions.
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Record financial results, a rising dividend, and strong sustainability progress were reported. All board proposals, including compensation, elections, and strategic investments in AI and electrification, were approved by large majorities.
Fiscal Year 2024
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Record 2024 results featured double-digit growth in electrification, record margins, and strong free cash flow, with robust outlook for 2025 despite ongoing challenges in China and E-mobility. Dividend and share buybacks were increased, and major transformation programs will conclude in 2025.
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Orders and revenues grew modestly, with record margins and strong cash flow driven by Electrification, Motion, and Process Automation, while E-mobility and Machine Automation remained weak. Full-year revenue growth is now expected below 5%, but margins are set to exceed 18% for a record year.
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Record operational EBITDA margin of 19% and 22% EPS growth were driven by strong Electrification, Motion, and Process Automation segments, while Robotics and E-mobility faced headwinds. Guidance for 5% full-year revenue growth is reaffirmed, with robust order backlog and continued investment in R&D and acquisitions.