ABB (ABB) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with robust order and revenue growth, record-high operational EBITA and margins, and strong performance in electrification, offsetting weaker robotics, discrete automation, and E-mobility.

• Operational EBITDA/EBITA rose 10% year-over-year to $6.0bn, with a record margin of 18.1% and gross margin at an all-time high of 37.4%.

• Free cash flow reached $3.9bn (12% margin), and ROCE improved to 22.9%.

• Board proposed a dividend increase to CHF 0.90 per share and announced a new $1.5bn share buyback program.

• Launched new brand positioning "Engineered to Outrun" and made several acquisitions to future-proof the business.

Financial highlights

• Q4 2024 orders grew 7% year-over-year to $8.1bn, revenues reached $8.6bn (up 5%), and operational EBITA margin improved by 40bps to 16.7%.

• Gross margin for Q4 was 35.5% (up 100bps YoY); full-year gross margin reached 37.4%.

• Basic EPS for Q4 was $0.54 (up 7% YoY); full-year basic EPS $2.13 (up 6% YoY).

• Free cash flow for Q4 was $1.54bn, and for the full year $3.9bn.

• ROCE reached an all-time high of 22.9%, up 180bps YoY.

Outlook and guidance

• 2025 is expected to see mid-single digit comparable revenue growth and improved operational EBITA margin.

• Q1 2025 guidance: mid-single digit revenue growth and stable or slightly improved EBITDA/EBITA margin.

• Free cash flow for 2025 expected to be similar to 2024, with higher CapEx investments, especially in electrification and growth markets like North America and India.

• Book-to-bill expected to remain above 1.