ABB Ltd reported its fourth‑quarter 2025 results, posting revenue of $9.1 billion, a 13% year‑over‑year increase and 9% comparable growth, driven by robust demand in its Electrification and Automation segments. Basic earnings per share rose to $0.70 from $0.54 in Q4 2024, a 30% jump that reflects disciplined cost management and higher operating leverage as volumes expanded.
Orders for the quarter surged to $10.3 billion, up 36% year‑over‑year and 32% comparable, creating a record backlog of $25.3 billion. The book‑to‑bill ratio of 1.14 indicates that orders received exceeded revenue recognized, underscoring strong demand for ABB’s electrification and automation solutions.
Operating EBITA climbed to $1.59 billion, with the margin expanding to 17.6% from 16.6% in the prior year. The margin lift is attributable to a favorable mix of high‑margin automation contracts, pricing power in key markets, and effective cost controls that offset commodity and R&D expense increases.
Free cash flow for the quarter reached $1.5 billion, contributing to an annual free cash flow of $4.6 billion. ABB announced a dividend of CHF 0.94 per share, an increase from the previous year, and a new share‑buyback program of up to $2 billion, signaling confidence in future cash generation.
Management guided for 2026 revenue growth of 6%–9% comparable and a slight improvement in operating EBITA margin. CEO Morten Wierod highlighted the quarter as ABB’s best year yet, citing strong demand in electrification and automation and reaffirming the company’s “ABB Way” operating model as a driver of continued performance.
Investors responded positively to the results, citing the combination of revenue growth, margin expansion, record order intake, and enhanced shareholder returns as evidence of ABB’s solid execution and forward‑looking outlook.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.