ABB Ltd. reported record-high financial performance for the second quarter of 2025, with order intake reaching $9.8 billion, a 14% comparable increase. This included a substantial $600 million multiyear service order in Process Automation, contributing to an all-time high revenue of $8.9 billion, up 6%.
The company achieved a new all-time high operational EBITA of $1.7 billion, with the operational EBITA margin reaching 19.2%, exceeding expectations. Gross margin was successfully maintained at the 40% level, with the underlying margin improving by 50 basis points year-on-year.
The Electrification segment continued its strong trajectory, achieving new all-time highs for both orders ($4.5 billion) and revenues ($4.3 billion), with an operational EBITA exceeding $1 billion and a margin of 23.9%. Process Automation saw a remarkable 40% comparable order increase to $2.6 billion and a record operational EBITA margin of 15.9%.
ABB's liquidity remained robust, with a free cash flow of $845 million in Q2 2025, contributing to $1.5 billion for the first half of the year. The company's record $25 billion order backlog provides significant revenue visibility, with an estimated 5% conversion rate.
Management maintained its unchanged 2025 guidance, projecting mid-single-digit comparable revenue growth and a further improvement in the operational EBITA margin from last year. For Q3 2025, comparable growth is anticipated to be at least in the mid-single-digit range, with the operational EBITA margin remaining broadly stable at 19%.
Despite ongoing challenges in Machine Automation and E-mobility, the company expects sequential increases in order intake and an improved operational EBITA margin in Robotics & Discrete Automation for Q3 2025. ABB's strong balance sheet, with a net debt to EBITDA of approximately 1.4, offers substantial capacity for strategic acquisitions.
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