ABB shines with strong earnings growth in the first quarter of 2025 and exceeds analysts’ expectations. The Swiss technology group plans to spin off its Robotics division and float it on the stock market in 2026 – a significant step in its global automation strategy.
The electrical engineering group ABB recorded a slight increase in sales in the first quarter of 2025. Order intake increased more strongly compared to the previous year. The operating profit margin increased significantly, mainly due to a real estate sale. Order intake grew by three percent to 9.21 billion US dollars (8.11 billion euros), as the manufacturer of industrial robots, e-car charging stations and automation solutions announced on Thursday.
On a comparable basis, growth amounted to 5%. Turnover developed somewhat more moderately, rising by 1% to just under USD 8 billion, with comparable growth of 3%. Profitability improved significantly thanks to the sale of a property. The operating margin (EBITA) rose by 2.3 basis points to 20.2%, with the property sale contributing 1.7 percentage points to the increase.
Analysts’ expectations exceeded
Net income increased by 22 percent to 1.12 billion US dollars. With the exception of sales, ABB exceeded analysts’ expectations in all areas. The forecasts for the full year 2025 are confirmed. Revenue growth in the mid-single-digit range and a higher margin than in the previous year are targeted.
For the current second quarter, management is forecasting mid-single-digit growth in comparable sales and a stable EBITA margin compared to the previous year.
Robotics division spin-off planned
ABB has announced its intention to spin off its Robotics division and list it on the stock exchange as an independent company. The listing is to take place next year. ABB will initiate a process to submit a complete spin-off of the Robotics division to the 2026 Annual General Meeting for a vote, it said in a statement. The business is expected to go public as an independent, listed company in the second quarter of 2026.
ABB’s Board of Directors is convinced that the listing of ABB Robotics as an independent company will strengthen the competitiveness of both companies. ABB will continue to focus on its long-term strategic direction. If approved by shareholders, the spin-off will take the form of a share distribution in which ABB shareholders will receive shares in the newly listed company as a dividend in kind in proportion to their existing shareholdings.
ABB Robotics offers “intelligent automation solutions”. Over 80 percent of the portfolio is software or AI-based. According to the information provided, the Robotics division employs around 7,000 people. In 2024, it generated revenue of 2.3 billion US dollars, contributing around 7 percent to the Group’s total revenue. The operating margin was 12.1 percent.