ABB (ABB) Q1 2025 earnings summary

Executive summary

• Orders grew 5% year-over-year on a comparable basis to $9.2 billion, with a 5% increase in order backlog to $23.0 billion, reflecting strong demand in Process Automation and Robotics & Discrete Automation segments.

• Revenues rose 3% year-over-year on a comparable basis to $7.9 billion, with growth in Electrification and Process Automation offsetting declines in Robotics & Discrete Automation.

• Operational EBITA margin improved to 20.2%, up 230 bps year-over-year, aided by a $140 million property sale and operational leverage.

• Free cash flow was $652 million, up 18% year-over-year, with positive cash flow in all business areas.

• Net income attributable to shareholders increased 22% year-over-year to $1.1 billion, with basic EPS up 22% to $0.60.

Financial highlights

• Gross margin improved by 280 basis points to 41.7%, with 110 basis points from FX and commodity timing.

• Operational EBITA rose 13% to $1.6 billion, with margin expansion in Electrification (23.2%) and Motion (19.6%).

• Book-to-bill ratio at 1.16, order backlog at $23.0 billion (+5% YoY).

• ROCE reached 23%, up 250 basis points year-over-year.

• Basic EPS was $0.60, up $0.11 year-over-year.

Outlook and guidance

• 2025 outlook unchanged: positive book-to-bill, mid-single digit comparable revenue growth, and further operational EBITA margin improvement expected.

• Q2 guidance: mid-single digit comparable revenue growth and stable operational EBITA margin around 19%.

• Electrification and Process Automation expected to deliver growth, while Robotics & Discrete Automation faces headwinds.

• Order backlog of $23.0 billion provides strong visibility, with 60% expected to be fulfilled in 2025.