Abb Stock Earnings Reports

ABB reported a strong Q2 with record orders (~$12B) and record revenues ($9.5B), broad-based demand across Electrification, Motion and Automation, and improved Operational EBITA ($1.9B, 20.2% margin). Electrification was a standout: orders +58% (>$7B) with strong data center demand and pricing progress (~+2%). Motion orders grew ~20% but margins were pressured by acquisitions (Gamesa Electric) and operational inefficiencies that should be largely resolved in H2. Automation saw stable sequential orders, a year-on-year decline versus an easy comparable, and margin improvement to 15.4% (benefitting partly from a one-off). Backlog reached a record ~$30B (+28% comparable). ABB announced three acquisitions (Specialtrasfo, Høglund and a proposed offer for Rotork ~£5.03/share (~$5.5B)) that would expand actuator and marine/transformer capabilities and are expected to be accretive (Rotork: ~3% revenue uplift to 2025 run-rate, ~20bps Operational EBITA margin uplift, EPS accretive in year two). Free cash flow remained strong ($881M in the quarter) and management raised 2026 growth guidance to low double-digit to low-teens comparable revenue growth and reiterated margin improvement for the year and sequential margin improvement in Q3. Key investor considerations: continued robust end-market demand (especially data centers), execution risk around integrating recent acquisitions and near-term margin pressure in Motion (partly from prior acquisitions), and notable M&A that targets strengthening the Sense-Control-Act automation loop with upside from service and cross-selling.