ZURICH, Switzerland — ABB today published its Q2 2026 results.
CEO summary
Our second quarter results reflect high demand in the majority of our customer segments, strong execution and solid cash flow. In my view, we show great overall progress and I want to acknowledge the commitment from the ABB team.
We achieved a new record-high order intake of $12 billion. It was good to see the quarter developing according to plan with strong comparable revenue growth of 12% and an Operational EBITA margin increase of 90 basis points to 20.2%. In total, we improved Operational EBITA by 20% and Earnings per share by 8%.
The strong earnings increase combined with disciplined Trade net working capital management contributed to Free cash flow of $881 million. We are tracking well towards improved annual Free cash flow in 2026.
The combined technology strengths of our business areas – the Power of ABB – were exemplified by Motion and Automation. They extended the partnership with VoltaGrid, a US-based microgrid power generation company. Under this agreement, Motion will supply their industry-leading synchronous condensers with flywheel technology that act like shock absorbers for the grid to keep electricity stable. These go alongside associated prefabricated eHouse units delivered by Automation, including their leading electrical distribution panels for low voltage and medium voltage distribution, variable frequency converters and PLC’s for power control. These systems act as critical stabilization assets within VoltaGrid’s behind-the-meter power solutions, enabling the voltage stability required by next-generation AI chips.
We are at the forefront of medium voltage technology. It is good to see Electrification strengthening our position further by introducing HiPerGuard 34.5kV, a new version of its market breakthrough medium voltage UPS (Uninterrupted Power Supply). This enables data centers to connect directly to the grid without voltage conversion, cutting conversion energy losses and reducing infrastructure complexity. With this latest innovation, HiPerGuard’s microgrid-ready architecture enables flexible integration of battery storage, gas turbines, and renewables with grid support and peak shaving capabilities.
ABB is positioned at the core of secular electrification and automation trends. To remain a reliable supplier and support long-term organic growth, we will invest approximately $200 million in our medium-voltage manufacturing capabilities across Europe over the next three years. This will expand our production capacity, accelerate the transition to next-generation technologies for power distribution and strengthen supply for customers that are modernizing their power infrastructure.
Additional capital allocation decisions include the three recently announced acquisitions which combined would add approximately 3.5% to 2025 revenues. The largest being the offer to acquire Rotork plc (“Rotork”), representing an important step to expand the ABB Automation portfolio. Adding actuators and building on ABB’s broad market reach will further strengthen our competitive position and enhance ability to support our customers through increasingly digital, connected and autonomous solutions across energy and process industries. Some of the customer benefits with electric actuators are the higher precision and accuracy in control of position, speed and force, they are energy efficient as they consume power only in the actual movement and they facilitate a higher level of digital diagnostics. In our view, there is a strong strategic fit between Rotork and the ABB purpose and our leading position in electrification and automation. This deal will bring together two businesses with highly complementary technology portfolios and similar customer relationships, geographic footprints and strong installed bases.
The offer of 503 pence per share – representing a total cash deal of ∼$5.5 billion – is recommended by the Rotork Board of Directors. There would be an immediate positive impact on the ABB Operational EBITA margin and it should be EPS accretive in the second year after integration. From a funding perspective, we would redeploy the expected ∼$4.8 billion in net cash proceeds from the divestment of ABB Robotics, anticipated to be completed in the second half of 2026. Consequently, our balance sheet remains strong – Net debt/EBITDA of 0.3 at end of the second quarter – leaving headroom for additional acquisitions and utilization of the share buyback program of up to $2 billion.
Outlook
In the third quarter of 2026, we expect a low- to mid-teens growth in comparable revenues, year-on-year. The Operational EBITA margin should show sequential improvement from the second quarter.
In full-year 2026, we expect a positive book-to-bill, and a low double-digit to low-teens growth in comparable revenues, year-on-year. The Operational EBITA margin should improve year-on-year, even when excluding the real estate gain in the first quarter of 2026.
Tagged with ABB, financial results