ABB (ABB) investor relations material

Executive summary

• Q3 orders rose 40% to $12,055 million; revenue increased 14% to $9,701 million, and operational EBITA rose 24% to $2,026 million, lifting margin 160 bps to 20.8%.

• Backlog reached $32,256 million, up 37% comparable; book-to-bill was 1.24.

• Data centers and electrification led demand; 9M free cash flow grew 22% to $3,707 million and ROCE reached 29.9%.

Financial highlights

• Q3 gross profit rose 13% to $3,939 million; gross margin declined 60 bps to 40.6%, with unrealized FX and commodity derivatives among the adverse drivers.

• Income from operations increased 15% to $1,846 million; net income attributable to shareholders and basic EPS each fell 2%, to $1,181 million and $0.65.

• 9M revenue rose 15% to $27,910 million; operational EBITA increased 27% to $6,000 million and net income attributable to shareholders rose 8% to $3,736 million.

• Q3 operating cash flow was $1,862 million, up 5%, and free cash flow was $1,576 million, up 2%; 9M free cash flow reached $3,707 million, up 22%.

• Q3 net income included $115 million of non-cash finance expense from revaluation of the deal-contingent FX hedge and $43 million from discontinued operations.

Outlook and guidance

• Q4 comparable revenue growth is expected broadly similar to Q3; operational EBITA margin is expected to soften sequentially, but less than its historical pattern, excluding the ~CHF240 million property-sale gain.

• FY2026 comparable revenue growth is guided at low teens, with positive book-to-bill; reported operational EBITA margin is expected to improve at least 270 bps YoY.

• 2026 free cash flow is expected to improve from $4.6 billion in 2025; full-year capex framework is ~$1 billion and is not expected to rise further in the mid-term.

• Backlog fulfillment expectations are 26% in 2026, 41% in 2027 and the remainder thereafter.