ABB (ABB) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with all-time highs in orders, revenues, and operational EBITA margin of 19%, supported by strong Q4 results and robust cash flow.

• Strong demand for Electrification and Automation solutions, with double-digit growth across all business areas and large project bookings.

• Operational improvements, pricing, and efficiency gains drove profitability and margin expansion.

• Announced divestment of Robotics division and completed acquisition of Gamesa Electric's power electronics business.

• Free cash flow reached $4.6 billion, and return on capital employed (ROCE) was 25.3%.

Financial highlights

• Orders reached $36.8 billion (+17% reported, +15% comparable), with Q4 orders at $10.3 billion (+32% comparable); revenues grew 9% YoY in Q4 to $9.1 billion.

• Operational EBITA for 2025 was $6.3 billion (+13% YoY), margin 19.0% (+0.8 pts); Q4 margin at 17.6% (+100bps YoY).

• Basic EPS from continuing operations was $2.59 for FY (+21% YoY), $0.70 in Q4 (+30% YoY).

• Book-to-bill ratio at 1.11 for FY; Q4 at 1.14; backlog at $25.3 billion (+18% YoY).

• Free cash flow margin consistent at 12%-14% over the last three years.

Outlook and guidance

• 2026 guidance: comparable revenue growth of 6%-9%, with a slight increase in operational EBITA margin, and positive book-to-bill expected.

• Q1 2026: expected revenue growth of 7%-10% and margin improvement year-on-year, excluding real estate gains.

• Long-term targets: 5%-7% comparable growth, operational EBITA margin 18%-22%, ROCE >20%, and EPS growth at least high single digits.

• Free cash flow expected to remain at $4.6 billion in 2026.