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ABB Ltd (ABBNY)
OTHER OTC:ABBNY
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ABB Ltd
(OTC:ABBNY)
Select Model
Select Model
Rating:70Outperform
Price Target:
$95.00
â–²(2.89% Upside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong profitability and cash generation, reinforced by a positive earnings update (order growth, record backlog, and strong free cash flow). Offsetting factors are stretched technical conditions (overbought signals) and a relatively expensive valuation with a low dividend yield, alongside pockets of regional/segment weakness highlighted on the call.
Positive Factors
Revenue Growth
Record revenue growth indicates strong demand across all business areas, supporting long-term expansion and market presence.
Cash Flow Generation
Strong cash flow generation enhances liquidity, allowing ABB to fund operations, invest in growth, and maintain financial stability.
Order Backlog
A robust order backlog ensures future revenue streams, reflecting sustained demand and operational resilience.
Negative Factors
Weakness in China
Weak performance in China, a key market, could hinder growth prospects and affect overall regional performance.
Challenges in Machine Automation
Ongoing challenges in the Machine Automation division may impact profitability and require strategic adjustments.
Stranded Costs from Robotics Sale
Stranded costs from the Robotics sale could affect short-term financials, requiring efficient cost management.
ABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.99B
Dividend Yield0.8%
Average Volume (3M)70.67K
Price to Earnings (P/E)35.1
Beta (1Y)0.85
Revenue Growth6.26%
EPS Growth16.05%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.70
Shares Outstanding1,843,899,200
10 Day Avg. Volume131,649
30 Day Avg. Volume70,665
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)8.40
Price to Sales (P/S)4.07
P/FCF Ratio30.25
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue4.95
Enterprise Value/Gross Profit12.19
Enterprise Value/Ebitda24.32
Forecast
1Y Price Target
$85.00Price Target Upside-7.94% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.12
Revenue Forecast (FY)$36.67B
ABB Ltd Business Overview & Revenue Model
Company DescriptionABB Ltd manufactures and sells electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboards and panel boards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Robotics & Discrete Automation segment offers industrial robots, software, autonomous mobile robotics, robotic solutions, field services, spare parts, and digital services. This segment also provides solutions based on its programmable logic controllers, industrial PCs, servo motion, transport systems, and machine vision. Its Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Process Automation segment develops and sells control technologies, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation, marine propulsion systems, and turbochargers. This segment also offers remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services. It serves aluminum, automotive, battery manufacturing, buildings and infrastructure, cement, channel partners, chemical, data centers, food and beverage, process automation, life sciences, ports, marine, mining, oil and gas, ports, power generation, printing, pulp and paper, railway, smart cities, water, and wind power industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.
How the Company Makes MoneyABB generates revenue through multiple streams, primarily by selling hardware, software, and services that facilitate electrification and automation. The Electrification segment provides products like circuit breakers, switches, and transformers, which are essential for power distribution. The Industrial Automation segment offers control systems and software that optimize manufacturing processes. The Motion segment focuses on drives, motors, and generators, which are critical for industrial applications. Additionally, the Robotics & Discrete Automation segment involves the sale of robotic solutions and automation technology. ABB also earns revenue from maintenance and support services, as well as software subscriptions. Significant partnerships with industries such as energy and transportation enhance its market reach and contribute to its earnings, allowing ABB to leverage technological advancements and customer needs effectively.
ABB Ltd Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyABB Ltd Earnings Call Summary
Earnings Call Date:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant order growth, record revenue, improved operational EBITA, and increased free cash flow. However, challenges remain in specific areas, particularly in China and the Machine Automation division, and there are some transition costs related to the sale of the Robotics division.Q3-2025 Updates
Positive Updates
9% Order Growth
Orders increased by a comparable 9%, reaching $9.1 billion, with all four business areas showing improvement in orders ranging from 4% to 17%.
Record Revenue and Strong Book-to-Bill Ratio
Revenue reached an all-time high of $9.1 billion, up 9% like-for-like, with a book-to-bill ratio of 1.01x, adding to a record-high order backlog of $25.1 billion.
Operational EBITA and Margin Improvement
Operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%.
Significant Free Cash Flow
Free cash flow improved by 32% to $1.6 billion despite higher cash tax expenses and CapEx spend.
Strong Geographical Performance
The Americas was the main growth engine, with orders increasing by 19% like-for-like, and the U.S. market saw a 27% rise in orders.
Positive EPS Growth
EPS was up by 29% to $0.66.
Negative Updates
Weakness in China
AMEA region declined by 1%, hampered by weakness in China, with specific weakness noted in the residential building market.
Challenges in Machine Automation
Machine Automation division is at a breakeven level, with volumes in production not yet recovered enough to cover costs.
E-Mobility Losses
E-mobility reported a loss of $26 million, although improvement is expected moving into Q4.
Stranded Costs from Robotics Sale
There will be an impact of stranded costs reported in corporate and other until the closing of the robotics sale deal.
Company Guidance
In the third quarter of 2025, ABB reported a strong performance, achieving a 9% increase in orders, reaching $9.1 billion. The company also reported record revenues of $9.1 billion, supported by growth across all business areas, and a significant free cash flow of $1.6 billion. The operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%. ABB's earnings per share rose by 29% to $0.66. Geographically, the Americas led growth with a 19% like-for-like increase, notably with a 27% rise in the U.S. market. Europe saw a 9% increase, while the AMEA region experienced a slight decline of 1%, impacted by weakness in China. ABB also announced the decision to sell its Robotics division to SoftBank Group, shifting its focus towards strengthening its core business areas. The company's order backlog reached a record high of $25.1 billion, with a book-to-bill ratio of 1.01x, indicating strong future demand. ABB's guidance anticipates mid-single-digit revenue growth in the fourth quarter, with operational EBITA margins expected to soften due to seasonal patterns.ABB Ltd Financial Statement Overview
Summary
Strong profitability and improved margin structure (2025 gross margin ~41%, net margin ~14%, EBIT margin ~19%) supported by solid and improving free cash flow (~$4.5B, +~8% YoY). Key offsets are weaker growth (2025 revenue down ~3.6%) and moderate leverage with debt rising versus 2024 (debt-to-equity ~0.57).Income Statement
Profitability has strengthened meaningfully versus earlier years, with 2025 gross margin at ~41% and net margin at ~14% (up from ~37% and ~12% in 2024). Operating profitability is solid (2025 EBIT margin ~19%), and earnings have been resilient despite modest top-line pressure. The key weakness is growth: 2025 revenue declined (~-3.6%) after small gains in prior years, indicating a slower near-term demand/price environment even as margins improved.78
Positive
Balance Sheet
Leverage looks manageable with debt-to-equity around ~0.57 in 2025 (moderate for an industrial/electrical equipment profile) and equity building over time (2023–2025). That said, total debt has risen versus 2024, and leverage remains a notable factor to monitor if revenue softness persists. Overall balance sheet appears stable, but not conservatively positioned.74
Positive
Cash Flow
Cash generation is a clear strength: 2025 operating cash flow was ~$5.5B and free cash flow ~$4.5B, with free cash flow growth up ~8% versus 2024. Free cash flow runs at ~0.82x net income in 2025 (similar to 2023–2024), suggesting earnings are largely backed by cash. The main watch-out is that cash flow relative to revenue remains modest and was meaningfully weaker in 2022, pointing to periodic working-capital or cycle-driven volatility.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 33.22B | 32.85B | 32.23B | 29.45B | 28.95B |
| Gross Profit | 13.64B | 12.27B | 11.21B | 9.71B | 9.47B |
| EBITDA | 7.12B | 6.13B | 5.83B | 4.34B | 6.83B |
| Net Income | 4.73B | 3.94B | 3.75B | 2.48B | 4.55B |
Balance Sheet | |||||
| Total Assets | 44.88B | 40.36B | 40.94B | 39.15B | 40.26B |
| Cash, Cash Equivalents and Short-Term Investments | 6.62B | 5.64B | 5.82B | 4.88B | 5.33B |
| Total Debt | 9.09B | 7.81B | 8.74B | 8.55B | 6.48B |
| Total Liabilities | 28.24B | 25.30B | 26.79B | 25.88B | 24.30B |
| Stockholders Equity | 16.09B | 14.49B | 13.41B | 12.78B | 15.58B |
Cash Flow | |||||
| Free Cash Flow | 4.47B | 3.83B | 3.52B | 525.00M | 2.51B |
| Operating Cash Flow | 5.47B | 4.67B | 4.29B | 1.29B | 3.33B |
| Investing Cash Flow | -2.39B | -725.00M | -1.61B | 981.00M | 2.31B |
| Financing Cash Flow | -2.88B | -3.33B | -2.90B | -2.39B | -4.97B |
ABB Ltd Technical Analysis
Positive
92.33
Price Trends
80.61
Positive
76.44
Positive
69.90
Positive
Market Momentum
3.31
Positive
72.96
Negative
67.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBNY, the sentiment is Positive. The current price of 92.33 is above the 20-day moving average (MA) of 88.57, above the 50-day MA of 80.61, and above the 200-day MA of 69.90, indicating a bullish trend. The MACD of 3.31 indicates Positive momentum. The RSI at 72.96 is Negative, neither overbought nor oversold. The STOCH value of 67.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABBNY.
ABB Ltd Risk Analysis
ABB Ltd disclosed 27 risk factors in its most recent earnings report. ABB Ltd reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ABB Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.00B | 31.82 | 25.07% | 1.18% | 0.82% | 16.05% | |
77 Outperform | $6.36B | 21.37 | 16.74% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $19.12B | 45.41 | 12.30% | 0.84% | 5.31% | 5.76% | |
77 Outperform | $96.85B | 74.20 | 41.81% | 0.11% | 28.76% | 76.31% | |
70 Outperform | $163.99B | 35.07 | 31.03% | 0.80% | 6.26% | 16.05% | |
70 Outperform | $9.30B | 23.34 | 15.61% | 0.18% | 13.14% | -6.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.