Q2 2026 Abb Ltd Earnings Call Transcript
Key Points
- ABB Ltd (ABBNY) reported record levels for both orders and revenues in Q2, with orders reaching approximately $12 billion.
- The company announced three acquisitions, including Rotorque, which is expected to add approximately 3.5% to 2025 revenues and improve operational EBITDA margin by about 20 basis points.
- Strong order growth was observed in electrification (58%) and motion (20%), driven by robust market demand across various sectors.
- ABB Ltd (ABBNY) achieved a 20% increase in operational EBITDA, reflecting a margin improvement of 90 basis points to 20.2%.
- The backlog reached a record level of $30 billion, up 28% on a comparable basis, indicating strong future revenue potential.
- The automation business area experienced a year-on-year order decline of 14% due to a high comparable from the previous year.
- Gross margin pressure was noted, dropping by 50 basis points from last year, impacted by unrealized derivatives on FX and commodities.
- Operational inefficiencies in the high-power division of the motion segment are expected to persist throughout the year.
- The acquisition of Argumesa Electric is operating at a loss, diluting the motion segment's margin by around 70 basis points year-on-year.
- The e-mobility segment continues to incur losses, with a plan to reach break-even by the end of the year, but profitability remains a challenge.
Greetings and welcome to this presentation of ABB second quarter results. You will hear from our CEO, Moten Wirer and our CFO, Christian Nielsen, and they will talk through results as per usual tradition. And after this, we will run through the Q&A session. I'm Ans-Sofi Noot, Head of Investor Relations.
And with that, I will just simply hand over to you, Moten, for the presentation.
Thanks, Sansi.
So, let's talk through the building blocks that resulted in another record quarter for both orders and revenues, good earnings growth, a solid margin improvement, and good cash flow. In total, things progressed more or less as planned. We delivered on our guidance, so I'm pleased with the results. But I want to start with M&A. You have heard me talk about the teams being active on a good target pipeline. Now, we see these efforts result in three recently announced acquisitions, which
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