Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

Zurich, Switzerland, October 16, 2025

Q3 2025 results

High order and revenue growth, improved margin and strong free cash flow

• Orders $9,143 million, +12%; comparable1 +9%
• Revenues $9,083 million, +11%; comparable1 +9%
• Income from operations $1,662 million; margin 18.3%
• Operational EBITA1 $1,738 million; margin1 19.2%
• Basic EPS $0.66; +29%3
• Cash flow from operating activities $1,777 million; +32%
• Return on Capital Employed 23.3%

“I am proud of ABB achieving good order growth, further improving operational performance and delivering a strong cash flow in the third quarter. We continue to invest to support robust long-term demand for our electrification and automation technologies.”

Morten Wierod, CEO

CEO summary

In the third quarter 2025, I was pleased to see a robust overall market situation as customers continue to invest behind electrical power and automation. We achieved a positive book-to-bill of 1.01, supported by three out of four business areas, with Robotics & Discrete Automation still hampered by a challenging discrete automation market. Our operational results were even a bit better than originally expected with a strong revenue growth of 11% (9% comparable), a 20 basis points margin improvement to 19.2% and a strong free cash flow of $1.6 billion. All combined, we are on a good path towards our ambition of delivering another record year for ABB.

We improved orders by 12% (9% comparable) to $9.1 billion, with a positive development in all four business areas. Demand was particularly strong in the data center segment which improved orders at a double-digit rate. Positive development was seen in the electrification areas of infrastructure and commercial buildings. Orders in the machine builder segment increased significantly, but this relates more to last year’s low comparable as the general market conditions remain muted. Customer activity in the energy segment is robust. Similar to recent quarters, demand was muted in the process industry-related areas of pulp & paper, chemicals and mining; and with weakness in automotive and residential buildings.

US tariff-related market uncertainties remain, but so far we have not seen any material impact on demand or profitability. We continue to focus on what we can control: serving our customers and taking action to improve our market position and profitability.

Our long-standing local-for-local footprint serves us well, and we continue to invest in increasing localization levels. During the quarter we announced combined investments of $210 million in North America to expand the Electrification business area’s local R&D and manufacturing capabilities in the United States and Canada. These investments will support the long-term demand from the surging power needs of AI in data centers, grid modernization and resilience and customers improving energy efficiency and up-time to reduce their costs.

It was good to see the Motion Drive Products division further strengthening their customer value proposition by launching the next-gen machinery drive. This new drive is engineered specifically for performance and connectivity in industrial machinery applications with stringent cybersecurity requirements, while offering customers reduced complexity and installation time. Well done by the team. 

After the close of the third quarter, we announced the changed plans for the ABB Robotics division. Instead of doing a spin-off, as communicated earlier this year, we have signed an agreement to divest the business to SoftBank Group for an enterprise value of $5.375 billion. In our view, the bid reflects the long-term strengths of ABB Robotics, which will benefit from combining its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing. Upon closing of the deal, anticipated for mid-to-late 2026, we will use the proceeds from the transaction in accordance with our capital allocation priorities. As a result of the signing of the agreement, ABB will move to three business areas as from the fourth quarter 2025. The Robotics division will be reported as Discontinued operations and the Machine Automation division will become a part of the Process Automation business area.

We have also announced that CFO, Timo Ihamuotila, will step down from the Executive Committee effective February 1, 2026, as he has decided to focus on non-operational roles. Timo will be succeeded by the internal candidate Christian Nilsson who joined ABB in 2017 as CFO of the Electrification business area.

Morten Wierod

CEO

Outlook

Guidance based on new reporting structure effective as from fourth quarter 2025

In the fourth quarter of 2025, we anticipate comparable revenue growth to be in the mid-single digit range, and the Operational EBITA margin to sequentially soften from the third quarter by approximately -150 basis points, in line with historical pattern; however acknowledging the uncertainty for the global business environment.

In full-year 2025, we expect a positive book-to-bill, comparable revenue growth in the mid-single digit range and an Operational EBITA margin broadly at the higher end of the long-term target range of 16%-19%, however acknowledging the uncertainty for the global business environment. 

The complete press release including the appendices is available at www.abb.com/news

ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).