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, Automation, and data center solutions, with double-digit growth across all business areas.

• Book-to-bill ratio reached 1.11 for the year and 1.14 in Q4, resulting in a record backlog of $25.3 billion.

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

• Announced divestment of Robotics division, completed acquisition of Gamesa Electric's power electronics business, and CFO transition planned for February 2026.

Financial highlights

• FY 2025 orders: $36.8 billion (+17% reported, +15% comparable); revenues: $33.2 billion (+9% reported, +7% comparable).

• Q4 2025 orders: $10.3 billion (+36% reported, +32% comparable); revenues: $9.1 billion (+13% reported, +9% comparable).

• Operational EBITA for 2025 was $6.314 billion (+13% YoY), margin 19.0% (+0.8 pts); Q4 margin 17.6% (+1 pt YoY).

• Basic EPS: $0.70 in Q4 (+30%), $2.59 for FY (+21%).

• Free cash flow for 2025 was $4.6 billion, with margin maintained at 12–14%.

Outlook and guidance

• Q1 2026: Expected comparable revenue growth of 7–10% and year-on-year operational EBITA margin improvement, excluding real estate gains.

• FY 2026: Guidance for comparable revenue growth of 6–9%, positive book-to-bill, and slight operational EBITA margin improvement, excluding real estate gain.

• Long-term targets: Operational EBITA margin 18–22%, ROCE >20%, EPS growth at least high single digits, and improved free cash flow conversion.