ABB has emerged from its multi-year overhaul as a lean, decentralized electrification-and-automation powerhouse—leveraging AI-driven data-center demand, superior margins, and disciplined portfolio pruning (Robotics sale) to compound cash returns and ROCE into the late 2020s.
Overview
By 2025–Q1 2026, ABB’s multi-year transformation into a focused electrification-and-automation technology leader is translating into record financial outcomes and a major portfolio pivot. Under “The ABB Way,” decentralization has increased divisional and business-line accountability, supporting strong pricing/cost execution in a volatile macro backdrop. 2025 delivered ~$33.2B revenue, 19.0% operational EBITA margin, ~96% FCF conversion, and ROCE of 25.3%, with a ~$25.3B backlog entering 2026. Q1 2026 results were exceptionally strong (23.5% operational EBITA margin, boosted partly by real estate gains but also by underlying improvement), driven especially by surging Electrification orders tied to AI data centers and grid upgrades. Strategically, ABB agreed to sell its Robotics division to SoftBank for $5.375B (closing expected H2 2026), reclassifying Robotics as discontinued operations and moving Machine Automation (B&R) into Process Automation to better serve hybrid industrial customers. The combined picture is a leaner, higher-return ABB with substantial capital return capacity (rising dividends, large buybacks) and meaningful exposure to AI infrastructure buildouts.