Q2 2025 Abb Ltd Earnings Call Transcript
Key Points
- ABB Ltd (ABBNY) achieved a record high order intake of $9.8 billion, with significant contributions from process automation.
- The company was recognized by Time magazine as one of the top 15 most sustainable companies globally, highlighting its commitment to sustainability.
- ABB Ltd (ABBNY) launched three new robot families, expanding its market scope and strengthening its position in China.
- The electrification segment delivered new all-time highs for both orders and revenues, supported by strong demand in utilities and data centers.
- Operational EBITDA reached a new all-time high of $1.7 billion, with a margin of 19.2%, driven by electrification and process automation.
- The machine automation and e-mobility businesses require improvement, indicating areas of underperformance.
- The automotive segment remains challenging, putting pressure on robotics orders.
- Revenues in process automation came in slightly below expectations due to short-term timing of deliveries.
- The residential building segment continues to be weak, particularly in China, affecting the electrification business.
- Free cash flow decreased slightly from last year, impacted by growth-related buildup of networking capital and increased CapEx expenditure.
Greetings, and welcome to this presentation of ABB second quarter results. And as you can see, we're in our we're shooting from our new ABB studio. And as per usual, we have our CEO, Morten Wierod; and our CFO, Timo Ihamuotila.
And without further ado, I will ask Morten to kick off the presentation.
Thank you, Ann-Sofie. And a warm welcome also from my side. In the second quarter, we delivered on plan with mid single digit revenue growth and increased operational earnings in three out of four business areas. I'm pleased with the overall results. That said, acknowledge that not all is perfect. We still have work to do to improve, for example, the machine automation and e-mobility business.
When it comes to the market, I would say that the business environment was more or less unchanged compared with the first quarter. Our broader markets remain fundamentally strong as the world turns to
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