ABB’s net profit rose 13% in the first half of the year (H1) to $2.55 billion, on a 16% increase in revenue.
ABB’s second-quarter results reflect strong demand across most customer segments, solid execution and strong cash flow, the company said.
“We achieved a record order intake of $12 billion. It was encouraging to see the quarter progress as planned, with solid comparable revenue growth of 12% and operating EBITA margin increasing by 90 basis points to 20.2%. Overall, we improved operating EBITA by 20% and earnings per share by 8%,” said Morten Wierod, CEO, ABB.
“T2 reflects ABB’s strong performance and our position at the heart of the electrification and automation megatrends. With the acquisition of Rotork, we expect to create additional value by expanding our automation portfolio,” adds Morten Wierod.
Strong profit growth, combined with disciplined management of commercial working capital, contributed to free cash flow of $881 million. ABB is on track to improve its annual free cash flow in 2026.
The combined technological strengths of the business units – the “Power of ABB” – were exemplified by the Motion and Automation divisions. They have extended their partnership with VoltaGrid, a US company specializing in microgrid power generation. Under the agreement, Motion will supply leading-edge synchronous capacitors equipped with flywheel technology, which act as shock absorbers for the grid, maintaining electrical stability. These are accompanied by the associated pre-fabricated eHouse units supplied by Automation, including their leading-edge power distribution panels for low and medium voltage distribution, variable frequency drives and PLCs for energy control. These systems function as critical stabilization assets within VoltaGrid’s behind-the-meter energy solutions, enabling the voltage stability required for next-generation AI chips.
“We are at the forefront of medium voltage technology. It is encouraging to see the Electrification division further strengthen our position with the launch of HiPerGuard 34.5kV, a new version of its medium voltage UPS (Uninterruptible Power Supply) that has marked a remarkable evolution in the market. It allows data centers to connect directly to the grid without voltage conversion, reducing energy losses in conversion and infrastructure complexity. With this latest innovation, the microgrid-ready HiPerGuard architecture enables the flexible integration of battery storage, gas turbines and renewables, with grid support and peak load reduction capabilities,” says Morten Wierod.
ABB is positioned at the heart of structural trends in electrification and automation. To remain a trusted supplier and support long-term organic growth, it will invest approximately $200 million in medium-voltage manufacturing capacity in Europe over the next three years. This will expand manufacturing capacity, accelerate the transition to next-generation technologies for power distribution, and strengthen supply for customers modernizing their energy infrastructure.
Additional capital allocation decisions include three recently announced acquisitions, which together would add approximately 3.5% to 2025 revenues. The most significant is the proposed acquisition of Rotork plc (“Rotork”), a significant step in expanding ABB’s automation portfolio. The addition of actuators and strengthening ABB’s broad market reach will further strengthen its competitive position and enhance its ability to support customers with increasingly digital, connected, and autonomous solutions in the power and process industries. Customer benefits of electric actuators include greater precision and accuracy in position, speed and force control, energy efficiency – as they only consume power during actual movement – and the facilitation of a higher level of digital diagnostics.
“In our view, there is a strong strategic fit between Rotork and ABB’s purpose, as well as our leadership in electrification and automation. This transaction will bring together two businesses with highly complementary technology portfolios and similar customer relationships, similar geographical coverage and strong installed bases.”
The offer of 503 pence per share – representing a total cash transaction of approximately $5.5 billion – is recommended by the Rotork Board. It will have an immediate positive impact on ABB’s operational EBITA margin and should be EPS accretive in the second year of integration. From a financing perspective, we will redirect the approximately $4.8 billion in net cash proceeds expected from the sale of ABB Robotics, which is expected to close in the second half of 2026. As a result, our balance sheet remains strong – with a Net Debt/EBITDA ratio of 0.3 at the end of the second quarter – leaving room for further acquisitions and the use of up to $2 billion of our share buyback programme.
“In the third quarter of 2026, we expect low- to mid-teens year-on-year comparable revenue growth. The operating EBITA margin should improve sequentially compared to the second quarter. For the full year of 2026, we expect a positive book-to-bill ratio and low double-digit to low-teens year-on-year comparable revenue growth. The operating EBITA margin should improve year-on-year, even excluding the gain from real estate transactions in the first quarter of 2026,” concludes Morten Wierod.
