Q4 2025 Abb Ltd Earnings Call Transcript
Key Points
- ABB Ltd (ABBNY) achieved an all-time high financial performance in 2025, with strong demand for electrification and automation solutions.
- The company reported a strong free cash flow of $4.6 billion and an outstanding return on capital employed of 25.3%.
- ABB Ltd (ABBNY) ended the year with a strong balance sheet, with net debt to EBITDA of 0.3, allowing for M&A, dividends, and buybacks.
- The company proposed a dividend per share of CHF0.94 for 2025, marking an annual increase higher than previous years.
- ABB Ltd (ABBNY) delivered a record backlog of $25.3 billion, supported by a book-to-bill ratio of 1.11, indicating strong future revenue potential.
- The margin of 18.2% on income from operations was 80 basis points lower than the previous year, reflecting some pressure on profitability.
- Valuations in the M&A pipeline have been demanding, leading ABB Ltd (ABBNY) to step away from some deals.
- The process industry-related markets, such as pulp and paper, remain generally cautious, with orders down from last year.
- The residential building market, particularly in China, remains weak, posing challenges for growth in that segment.
- The recently acquired Gamessa Electric's power electronic business is currently making a small loss and is expected to be dilutive for 2026 as a whole.
Greetings and welcome to this presentation of ABB's full year and 4th quarter results. As usual, we have our CEO Moten Virod here.
And now also for the last time in this forum, our CFO Timoy Yamutla. I am, Anso Foud, head of investor relations, and as per tradition, Motton and Timor will talk through the results, after which we open up for Q&A.
So now I'll leave it up to you, Motton, to kick off the presentation with some comments on 25 as a whole.
Thanks.
Yes, 2025 was our best year yet. We delivered an all-time high financial performance, and we also continue to be recognized with good sustainability ratings. I want to thank and give credit to the team who worked hard to achieve this.
Through the year we saw demand for electrification and automation solutions continue its overall strong trend. From a top-line perspective, I would say that we have performed well in
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