ABB (ABB) Q3 2025 earnings summary

Executive summary

• Orders grew 12% year-over-year to $9,143 million, with revenues up 11% to $9,083 million, and all business areas contributing to growth, especially in electrification and automation, driven by strong demand in data centers and infrastructure.

• Operational EBITA increased 12% to $1,738 million, with a margin of 19.2%, and net income attributable to shareholders rose 28% to $1,208 million; basic EPS was $0.66, up 29%.

• Free cash flow improved 32% to $1,552 million, and return on capital employed reached 23.3%.

• Announced divestment of the Robotics division to SoftBank for $5.375 billion, with proceeds to be used per capital allocation priorities and closing expected in H2 2026.

• Share buyback program of up to $1.5 billion ongoing, with $344 million repurchased in Q3.

Financial highlights

• Gross profit margin improved by 100 bps to 40.8% in Q3 2025, with gross profit at $3,702 million.

• Book-to-bill ratio for Q3 was 1.01, with order backlog at a record $25.1 billion.

• Free cash flow conversion to net income was 101% for the trailing twelve months.

• Net debt at quarter-end was $2,697 million, with net debt/EBITDA at 0.4 and net debt/equity at 0.17.

• Return on capital employed (ROCE) reached 23.3% for the trailing twelve months.

Outlook and guidance

• Q4 2025: Comparable revenue growth expected in the mid-single digit range; Operational EBITA margin to soften sequentially by ~150 bps, in line with seasonal patterns.

• Full-year 2025: Operational EBITA margin expected at the higher end of the 16–19% long-term target range, with positive book-to-bill and mid-single digit comparable revenue growth.

• Segment realignment in Q4 2025: Machine Automation to Process Automation, Robotics to discontinued operations.