Q1 2026 Abb Ltd Earnings Call Transcript
Key Points
- ABB Ltd (ABBNY) achieved a record order intake of over $11 billion for the first time, indicating strong demand across all business areas.
- The company reported a record cash flow for the first quarter and a return on capital employed (ROCE) of 27%, showcasing strong financial performance.
- ABB Ltd (ABBNY) made significant progress in sustainability, reaching nearly 23% of women in senior leadership roles and achieving an 80% reduction in Scope 1 and 2 emissions.
- The company's Automation Extended program is strategically positioned to help customers modernize without disrupting critical operations, leveraging ABB's unique capabilities.
- ABB Ltd (ABBNY) has a strong order backlog of $27.5 billion, providing confidence in future revenue growth and stability.
- The gross margin declined by 290 basis points due to unrealized FX and commodity hedges, impacting profitability.
- The Motion division experienced operational inefficiencies in its High Power division, affecting margins by 15 basis points.
- The Gamesa acquisition, while contributing to revenue, resulted in a margin dilution of 70 basis points and is expected to be dilutive for 2026 as a whole.
- The Middle East conflict has introduced uncertainty, particularly affecting the Automation segment's energy-linked customer base.
- Despite strong performance, the US Electrification business remains dilutive to the overall Electrification segment, indicating room for improvement.
Greetings, and welcome to this presentation of our first quarter results. As always, we have our CEO, Morten Wierod. And now for the first time, we meet our new CFO, Christian Nilsson. Christian, you may be new in this setting, but you've been with ABB for about nine years as CFO of Electrification. So by no means a newbie to ABB in that matter.
Great to have you here at the quarterly desk.
Great to be here.
I'm Ann-Sofie Nordh. I'm Head of Investor Relations. Morten and Christian will talk you through the results, presentation as per usual, and then we open up for Q&A.
And without further ado, I hand over to you, Morten, to kick off the presentation.
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