ABB (ABB) Q1 2026 earnings summary

Executive summary

• Orders reached a record $11.3 billion, up 24% year-over-year, with strong demand across all regions and business areas.

• Revenues increased 11% year-over-year to $8.7 billion, driven by higher volumes, positive pricing, and strong execution.

• Operational EBITA rose 37% to just over $2 billion, with margin improving to 23.5%, supported by operational leverage and a $377 million real estate gain.

• Net income attributable to shareholders increased 20% year-over-year to $1.32 billion; basic EPS up 21% to $0.73.

• Sustainability progress includes nearly 23% women in senior leadership and an 80% reduction in Scope 1 and 2 emissions.

Financial highlights

• Gross margin declined 290 bps to 39.4%, mainly due to unrealized FX and commodity hedges and portfolio changes.

• Book-to-bill ratio at 1.29; backlog at a record $27.5 billion, up 22% year-over-year.

• Free cash flow reached $1.25 billion, up 92% year-over-year, including $425 million from real estate sale.

• ROCE at 27.2%, up 280 bps year-over-year.

• Net debt to EBITDA at 0.3, providing significant headroom for acquisitions.

Outlook and guidance

• Raised full-year guidance: now expecting high single-digit to low double-digit comparable revenue growth and improved operational EBITA margin year-over-year, even excluding real estate gains.

• Q2 expected to see positive book-to-bill, high single-digit to low double-digit revenue growth, and margin improvement.

• Free cash flow for the year expected to slightly improve from last year's $4.6 billion.