Slides
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Q3 2025 RESUL TS High order and revenue growth, improved margin and strong free cash flow Z U R I C H , S W I T Z E R L A N D | O C T O B E R 1 6 , 2 0 2 5 | M O R T E N W I E R O D , C E O ; T I M O I H A M U O T I L A , C F O
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— © 2025 ABB. All rights reserved. Slide 2 Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for ABB Ltd. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “guidance”, “plans,” “outlook,” “on track,” “framework” or similar expressions. There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others: • business risks associated with the volatile global economic environment and political conditions • costs associated with compliance activities • market acceptance of new products and services • changes in governmental regulations and currency exchange rates. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. This presentation contains alternative performance measures. Definitions of these measures and reconciliations between these measures and their US GAAP counterparts can be found in the “Supplemental Reconciliations and Definitions” section of the “Financial Information” booklet found under “Q3 2025” on our website at global.abb/group/en/investors/quarterly- results.
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— © 2025 ABB. All rights reserved. Slide 3 Q3 2025 Selected highlights 1. YoY comparable. Innovation Financial performance ABB and LandingAI unleash the power of generative AI for Robotic vision ABB launches next-gen machinery drive built for performance, connectivity and cybersecurity +9%1 order growth +9%1 revenues 19.2% Op. EBITA margin improved +20bps year-on-year +$379mn YoY FCF of $1,552 mn Investments ABB to invest an additional $110 million in US manufacturing ABB to invest approximately $100 million in Canadian R&D and manufacturing High order and revenue growth, improved margin and strong free cash flow
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— © 2025 ABB. All rights reserved. Slide 4 — Robust markets Orders and revenues up in all Business Areas 8,052 8,193 9,143 2% 2% 9% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Orders ($ mn) Orders growth (comparable % YoY) Orders +9%1 7,968 8,151 9,083 11% 2% 9% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Revenues ($ mn) Revenues growth (comparable % YoY) Revenues +9%1 Book-to-bill 1.01 Notable orders developments comparable % YoY, unless otherwise indicated Discrete Robotics broadly stable as weakness in automotive and general industries was offset by growth in consumer electronics and logistics; Machine builders orders increased from low comparable, market overall subdued Process Oil & Gas strong; Declines noted in chemicals, pulp & paper and mining Short-cycle High single-digit growth, up in all Business Areas Data centers & Utilities Underlying Utilities and power generation strong outside renewables Data centers up double-digit Transport & infrastructure Strong growth in rail; Underlying market in marine & ports strong but orders flat year-on-year; Strength in infrastructure Order backlog at $25.1 bn, +8%1 1. YoY comparable Buildings Up year-on-year driven by growth in commercial building in Europe and the US offsetting weakness in China
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— © 2025 ABB. All rights reserved. Slide 5 Strong growth in the Americas and Europe; AMEA stable Q3 2025 regional, country orders The Americas +19% USA Base orders Steep growth in all Business Areas +27% +9% Canada +2% Brazil +38% Europe +9% Germany Strong growth in EL, Stable in MO and RA, Steep decline in PA due to high large order comparable -4% Italy +18% Sweden +76% AMEA -1% China Steep growth in RA, growth in MO, Steep decline in EL and PA -4% India Base orders -7% +9% U.A.E. +18% All data presented on a YoY comparable basis; all growth comments refer to comparable growth trends. Performance highlighted for largest 3 countries in $ mn terms in each region. EL = Electrification. MO = Motion. PA = Process Automation. RA = Robotics & Discrete Automation.
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— © 2025 ABB. All rights reserved. Slide 6 — Operational EBITA Earnings improved in all Business Areas Operational EBITA margin +20 bps Improved business performance more than offset higher costs in Corporate and Other Profitability drivers 1. Constant currency. 1,392 1,553 1,738 17.4% 19.0% 19.2% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Op. EBITA ($ mn) Op. EBITA margin (%) Operational EBITA +12% Gross Profit • +11%1; improvements in all Business Areas • Gross margin improved 100 bps to 40.8%, driven mainly by higher volume and favorable unrealized FX & commodity timing differences Basic EPS Net income attributable to ABB $0.66 +$0.15 YoY $1,208 mn +$28% YoY Non-order related R&D • $355 million, +9%1 • Increased investment in 3 out of 4 BAs Corporate and Other Operational EBITA • -$134 mn, -$26 mn vs prior year of which: • Corporate costs and other -$108 mn vs -$48 mn in the prior year • E-mobility -$26 mn, improved by $34 mn vs prior year
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— © 2025 ABB. All rights reserved. Slide 7 Record high Revenues and Operational EBITA; positive book-to-bill Q3 2025 Electrification • Stable to positive order development in all customer segments • Double-digit growth in data centers • Buildings positive overall driven by commercial in the US and Europe while residential was broadly stable; market in China remains weak overall • Utilities underlying demand strong with orders broadly stable on a high comparable • Strength in infrastructure • Backlog $8.8 bn (prior Q-end $8.7 bn) • Strong improvement in virtually all divisions • Growth driven mainly by higher volume, with solid execution from the order backlog related to medium voltage and power protection offering as well as good customer activity in the short-cycle business • Additional support from slightly positive pricing • Book-to-bill 1.01x • Operational EBITA margin +40 bps YoY • Improvement was primarily supported by operational leverage on higher volumes which more than offset higher spend on R&D and SG&A, year-on-year • Tariff-related cost increases are not material and offset with productivity measures and price impacts 1% 10% 10% -5% 10% 25% 3,000 4,000 5,000 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Orders ($ mn) Orders growth (comparable % YoY) 20.8% 24.1% 24.5% 14% 18% 22% 26% 0 400 800 1,200 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Op. EBITA ($ mn) Op. EBITA margin (%) 6% 10% 13% -5% 10% 25% 2,500 3,500 4,500 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Revenues ($ mn) Revenues growth (comparable % YoY) Orders $4,522 mn Revenues $4,499 mn Operational EBITA $1,100 mn, +17% YoY
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— © 2025 ABB. All rights reserved. Slide 8 Strong Order intake; Revenues and Earnings improved versus prior year Q3 2025 Motion • Positive development in both the project and short-cycle businesses • Strength in commercial building HVAC, oil & gas, power generation, water & wastewater and F&B • Weakness in chemicals, pulp & paper and metals • Rail strong with support from large orders • Order growth in all regions • Backlog $6.2 bn (prior Q-end $6.1 bn) • Growth driven by positive development in the short-cycle as well as service, while deliveries in the project and system-related businesses were somewhat lower than anticipated • Additional support from positive price impacts • Book-to-bill 1.04x • Operational EBITA margin -60 bps YoY • Operational leverage on higher volumes and positive price impact had a positive impact on margins, which was more than offset mainly by higher SG&A and R&D expenses year-on-year 19.8% 20.7% 20.1% 14% 18% 22% 0 250 500 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Op. EBITA ($ mn) Op. EBITA margin (%) 11% 1% 3% -10% 0% 10% 20% 30% 1,000 1,400 1,800 2,200 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Revenues ($ mn) Revenues growth (comparable % YoY) -7% -4% 17% -10% 5% 20% 35% 1,000 1,500 2,000 2,500 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Orders ($ mn) Orders growth (comparable % YoY) Orders $2,162 mn Revenues $2,082 mn Operational EBITA $421 mn, +4% YoY
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— © 2025 ABB. All rights reserved. Slide 9 Resilient market and strong execution — Book-to-bill >1 for 20th straight quarter Q3 2025 Process Automation • Strong growth in base orders more than offset lower level of large orders • Orders increased in the oil & gas and conventional power generation segments; good momentum seen in nuclear partially offsetting weakness in renewables • Marine market outlook remains strong despite orders stable year-on-year • Declines in chemicals, pulp & paper and mining • Backlog $9.4 bn (prior Q-end $9.3 bn) • Growth driven by execution of the order backlog resulting in higher volumes and positive price/mix contribution • Book-to-bill 1.05x • Operational EBITA margin +30 bps YoY • Driven by higher volume and positive price impacts, more than offsetting increased spend for R&D as well as slightly higher SG&A 14.6% 15.2% 15.5% 10% 13% 16% 0 150 300 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Op. EBITA ($ mn) Op. EBITA margin (%) 23% 6% 7% 0% 10% 20% 30% 1,000 1,500 2,000 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Revenues ($ mn) Revenues growth (comparable % YoY) 38% -5% 4% -40% -20% 0% 20% 40% 60% 1,200 2,000 2,800 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Orders ($ mn) Orders growth (comparable % YoY) Orders $1,896 mn Revenues $1,801 mn Operational EBITA $277 mn, +10% YoY Reporting structure change, effective Q4 2025 Following the dissolvement of the Robotics & Discrete Automation Business Area, the Machine Automation division will become part of the Process Automation Business Area
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— © 2025 ABB. All rights reserved. Slide 10 Orders increased year-on-year and sequentially despite challenging market Q3 2025 Robotics & Discrete Automation • Robotics orders broadly stable as weakness in automotive and general industries was offset by growth in consumer electronics and logistics • Machine Automation orders increased sharply from low comparable; absolute order level remains subdued in a continued challenging market • Backlog $1.5 bn (prior Q-end $1.5 bn) • Operational EBITA margin +90 bps YoY • Robotics’ earnings and margin improved year-on- year and margin remained in double-digit territory supported by higher volumes and stable pricing • Machine Automation at break-even level as the impact of cost savings measures did not offset the adverse impacts from lower production volumes • Growth in both divisions and all regions from last year’s low comparable • Growth driven by higher volumes supported mainly by backlog execution and slightly positive pricing • Book-to-bill 0.92x 14.7% 8.3% 9.2% 5% 10% 15% 20% 0 75 150 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Op. EBITA ($ mn) Op. EBITA margin (%) 9% -20% 5% -35% -10% 15% 40% 0 400 800 1,200 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Revenues ($ mn) Revenues growth (comparable % YoY) -27% -4% 13% -35% -10% 15% 40% 0 400 800 1,200 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Orders ($ mn) Orders growth (comparable % YoY) Orders $744 mn Revenues $807 mn Operational EBITA $74 mn, +19% YoY Reporting structure change, effective Q4 2025 Following the dissolvement of the Robotics & Discrete Automation Business Area, the Robotics division will be reported in Discontinued operations. The Machine Automation division will become part of the Process Automation Business Area.
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— © 2025 ABB. All rights reserved. Slide 11 On track towards annual cash flow ambition to improve from $3.9 bn last year — Free cash flow $1,552 mn, +$379 mn YoY ($ mn) 162 551 652606 918 845 1,186 1,173 1,5521,713 1,295 1,954 2,642 3,049 3,667 3,937 2023 2024 2025 Q1 Q2 Q3 Q4 9M FY Q3 increase driven by: • Improved operational performance • Larger release of Trade NWC versus the prior year • Partially offset by higher CAPEX and taxes paid Strong Free cash flow generation during the quarter
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— © 2025 ABB. All rights reserved. Slide 12 Announced divestment of Robotics division to Softbank Group Strong customer value proposition combining ABB Robotics’ leading technology and industry expertise with Softbank’s state-of-the-art capabilities in AI, robotics and next-generation computing — Financials Divestment for $5.375 billion reflects long-term strengths of the robotics business and creates immediate value for ABB shareholders Non-operational pre-tax book gain of~$2.4 billion Expected Cash proceeds of ~$5.3 billion, net of transaction costs Closing expected mid-to-late 2026 Capital allocation ABB to deploy divestment proceeds in line with its capital allocation principles Reporting structure New reporting structure as of Q4 2025; ABB moves to 3 Business Areas • Machine Automation division moved to Process Automation • Robotics division reported as discontinued operations
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Q4 2025 FY 2025 — Outlook Revenues • Comparable growth in the mid-single digit range Operational EBITA % • Operational EBITA margin to sequentially soften from the third quarter by approximately -150 basis points, in line with historical pattern Revenues • Comparable growth in the mid-single digit range • Book-to-bill above 1 Operational EBITA % • Operational EBITA margin broadly at the higher end of the long-term target range of 16%-19% Acknowledging the uncertainty for the global business environment
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Q&A
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Appendix
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— © 2025 ABB. All rights reserved. Slide 16 $ mn unless otherwise stated Q3 25 Q4 25 framework 20251 framework Corporate and Other Operational EBITA2 (108) ~(110) ~(200) From ~(175) Non-operating items: PPA-related amortization (50) ~(45) ~(190) From ~(180) Restructuring and related3 (70) ~(125) ~(250) ABB Way transformation (35) ~(30) ~(150) 9M 25 2025 framework Finance net 45 ~75 From ~50 Effective tax rate4 27.6% ~25% Capital expenditure (648) ~(900) 2025 framework – Current reporting structure 1. Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc. 2. Excludes Operational EBITA from E-mobility business. 3. Includes restructuring and restructuring-related as well as separation & integration costs. 4. Excludes the impact of acquisitions or divestments or any significant non-operational items.
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— © 2025 ABB. All rights reserved. Slide 17 $ mn unless otherwise stated Q4 25 framework 20251 framework Corporate and Other Operational EBITA2 ~(150) ~(325) of which stranded costs ~(40) ~(125) Non-operating items: PPA-related amortization ~(40) ~(180) Restructuring and related3 ~(80) ~(125) ABB Way transformation ~(30) ~(150) 2025 framework Finance net ~75 Effective tax rate4 ~25% Capital expenditure ~(800) 2025 framework – New reporting structure Above numbers include only continued operations 1. Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc. 2. Excludes Operational EBITA from E-mobility business. 3. Includes restructuring and restructuring-related as well as separation & integration costs. 4. Excludes the impact of acquisitions or divestments or any significant non-operational items.
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— © 2025 ABB. All rights reserved. Slide 18 323 32 Q3 2024 Volume/price -169 Operations 3 Items impacting comparability FX -4 Portfolio changes Q3 2025 1,553 1,738 Operational EBITA bridge Operational performance $154 million Comparable revenues 9% growth 19.2%19.0% Operational EBITA ($ mn) Operational EBITA margin (%) Accretion / dilution (%) +0.2 0 Items impacting comparability: Non-core business. Portfolio changes: SEAM Group acquisition, Siemens Wiring Accessories acquisition, Niedax JV, Incharge divestment 0 0