Q4 2025 results

Strong Q4 orders, improved operational performance with good cash flow completes a new record year

Q4 2025

• Orders $10.3 billion, +36%; comparable¹ +32%
• Revenues $9.1 billion, +13%; comparable +9%
• Income from operations $1,505 million; margin 16.6%
• Operational EBITA¹ $1,588 million; margin¹ 17.6%
• Basic EPS $0.70, +30%²
• Cash flow from operating activities $1,949 million; +27%

FY 2025

• Orders $36.8 billion, +17%; comparable¹ +15%
• Revenues $33.2 billion, +9%; comparable +7%
• Income from operations $6,047 million; margin 18.2%
• Operational EBITA¹ $6,314 million; margin¹ 19.0%
• Basic EPS $2.59, +21%²
• Cash flow from operating activities $5,469 million; +17%
• Return on Capital Employed 25.3%
• Dividend proposal of CHF 0.94 per share
   

“Q4 was a strong finish to a record year for ABB. We lead in markets with strong secular trends and we will further build on our ABB Way operating model, which gives me confidence in our updated financial targets and that 2026 will be yet another all-time-high result.”

Morten Wierod, CEO
 

CEO summary

We ended the year on a high note and delivered the strongest annual performance yet for ABB. The fourth quarter was a landmark quarter as we for the first time exceeded the $10 billion order level, at $10.3 billion. In addition to a strong development in the base business, orders were positively impacted by timing of large project bookings. Overall, it was reassuring that the strong order development was broad-based with double-digit growth across all three business areas. So, while we delivered the highest quarterly revenues on record, orders were even higher, resulting in a book-to-bill of 1.14.

In my view, we perform well in overall favorable market conditions. In addition to leveraging on strong comparable growth, we generate internal efficiency gains which successfully mitigate for example tariff and rising material inflation. We grew operational EBITA by 19% and expanded margins by 100 basis points.

I was pleased with the strong free cash flow of $1.5 billion in the quarter. This led to us achieving our ambition to improve annual free cash flow, which reached the record level of $4.6 billion. It was also good to see our strong return on capital employed at 25.3%.

In the Electrification business area, demand increased in all customer segments, led by data centers which recorded a very strong double-digit growth. Our medium voltage power technology is at the forefront of the industry. One example of how it puts us in a front-row position for future data center architecture is the extended partnership with Applied Digital where we introduce innovative power designs for large-scale AI-ready data centers. Another future potential demand driver is our cutting-edge direct current (DC) and solid-state electronics technology. This sits at the heart of our collaboration with NVIDIA where ABB will support their 800 VDC architecture to accelerate the development of gigawatt scale next-generation data centers.

In the Motion business area, the strong order growth was supported by continued high demand for rail projects, as well as in the recently formed High Power division, along with positive developments in the short-cycle demand for both low voltage motors and drives. In the Automation business area, we saw persistently strong activity related to marine and ports, and the large Rotterdam port order is yet another proof point of the unique customer value we generate when combining know-how from across our three business areas. Our solution will feature combined shore power systems expected to be the world’s largest to date, able to charge up to 32 container ships simultaneously during loading and unloading operations. We also provide a SCADA system to monitor and control the shore power system while tracking energy usage for precise customer billing.

We have also updated our financial targets, aiming for strong growth, a higher profitability range and strong EPS expansion with a good cash conversion. We raised our ROCE ambition even as we pursue a higher pace of acquired growth. In my view, these new targets are both ambitious and realistic.

To achieve these updated long-term targets, we will further enhance our operational accountability and speed as we continue to build on the ABB Way operating model. Couple this with overall strong external markets where we will capitalize on our position within global trends of energy expansion, the need for energy efficiency and the transition to cleaner energy sources. I am confident in our market position, our leading technology and our ability to help customers become more productive and energy efficient. I expect these factors to support our operational performance in 2026 and long-term.

Based on our strong performance, the Board of Directors has decided to propose an ordinary dividend of CHF 0.94 per share, up from CHF0.90 in the previous year. We also intend to launch a new share buyback program of up to $2.0 billion, running until January 27, 2027.

Morten Wierod

CEO

Outlook

In the first quarter of 2026, we anticipate comparable revenue growth in the 7% - 10% range. The operational EBITA margin should increase year-on-year, excluding the announced real estate gains in the first quarters of 2025 and 2026.

In full-year 2026, we expect a positive book-to-bill, and comparable revenue growth in the range of 6% - 9% year-on-year. The operational EBITA margin should slightly improve year-on-year, even when excluding the announced real estate gain in the first quarter of 2026.

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).