ABB (ABB) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with all-time highs in orders, revenues, and operational EBITA margin of 19%, supported by strong Q4 results and robust cash flow.

• Double-digit growth in orders and revenues across all business areas, with Electrification and Automation leading, and significant demand from data centers and infrastructure.

• Announced divestment of Robotics division to SoftBank for $5.4B–$5.375B, expected to close mid-to-late 2026, and completed acquisition of Gamesa Electric's power electronics business.

• Updated financial targets include higher profitability, ROCE ambitions, and EPS growth at least high single digits.

• Proposed dividend per share of CHF 0.94 and a new $2B share buyback program.

Financial highlights

• FY 2025 orders: $36.8B (+17%); Q4 orders: $10.3B (+36%); FY revenues: $33.2B (+9%); Q4 revenues: $9.1B (+13%).

• Operational EBITA for 2025: $6.31B (+13%, margin 19.0%); Q4: $1.59B (+19%, margin 17.6%).

• Basic EPS for FY: $2.59 (+21%); Q4: $0.70 (+30%).

• Free cash flow for FY: $4.6B–$4.57B (+16%); Q4: $1.5B–$1.95B.

• Book-to-bill ratio at 1.11 for FY and 1.14 for Q4; order backlog at $25.3B (+18–27% YoY).

Outlook and guidance

• FY 2026 guidance: comparable revenue growth of 6–9%, with a slight increase in operational EBITA margin, excluding real estate gains.

• Q1 2026: expected revenue growth of 7–10% and year-on-year margin improvement.

• Upgraded long-term targets: operational EBITA margin 18–22%, ROCE >20%, free cash flow conversion >95%, and EPS growth at least high single digits.

• Approximately 65% of backlog expected to be fulfilled in 2026.