Swiss tech giant ABB posts record $9.8b orders

Swiss engineering firm ABB reported a record-high order intake of US$9.8 billion in Q2 2025, marking a 16% year-on-year increase (14% on a comparable basis).

Revenues rose 8% to US$8.9 billion, supported by growth across most business areas.

Income from operations reached US$1.57 billion with a margin of 17.7%. Operational EBITA grew 9% to US$1.71 billion, reflecting a 19.2% margin.

During the quarter, ABB launched three new robot families in China and introduced the SACE Emax 3, a cybersecurity-certified circuit breaker.

The company reaffirmed plans to spin off its Robotics division by mid-2026.

For Q3 2025, ABB expects mid-single-digit comparable revenue growth and a stable operational EBITA margin.

The company anticipates continued revenue growth and margin improvements for the full year, despite global economic uncertainties.

🔗 Source: ABB

🧠 Food for thought

1️⃣ ABB’s exceptional capital efficiency signals successful portfolio transformation

ABB’s return on capital employed of 23.1% continues to exceed their long-term target, reflecting a multi-year strategic shift away from low-margin businesses toward more profitable segments.

This performance isn’t coincidental but the result of deliberate portfolio restructuring, with the company’s current Return on Equity of 29.75% significantly outperforming its historical 10-year average of 17.23% 1.

The substantial increase in ROE compared to the average of the last four quarters demonstrates how the company’s focus on electrification and automation is paying dividends in terms of capital efficiency 1.

This financial discipline contrasts sharply with ABB’s past struggles, particularly evident when ROE dropped to -0.50% in December 2020, highlighting the effectiveness of their strategic pivot 1.

The planned spinoff of their Robotics division by Q2 2026 continues this portfolio optimization strategy, suggesting management’s ongoing commitment to focusing capital on their highest-performing segments.