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what it is
ABB sells the electrical gear, motors, factory software, and robots that keep power systems and industrial plants running.
how it gets paid
FY2025 revenue was about $33.2B (ABB annual reporting). Electrification is the largest business area—on the order of mid‑40% of group revenue; use the Integrated Report for the exact FY2025 split.
what just happened
ABB's latest quarter landed at $0.70 EPS versus a $0.51 estimate, while third-quarter revenue reached $9.1 billion and orders rose 12%.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
75/100 earnings predictability — reasonably predictable
34.8x trailing p/e — you're paying up for this one
1.2% dividend yield — cash in your pocket every quarter
~25% ROCE (FY2025, ABB reported)
xvary composite: 80/100 — above average
What they do
ABB sells the electrical gear, motors, factory software, and robots that keep power systems and industrial plants running.
ABB sits inside factories and power systems you do not swap casually once they are installed. Its four business areas split the same industrial wallet, with Electrification the largest slice. Switching costs (pain and expense of changing suppliers) → replacing wired equipment and retraining people → so what: your customer usually fixes around ABB before ripping it out.
How they make money
$33.2B
FY2025 revenue · ~9% reported growth (ABB)
Electrification
~46% of sales
Process Automation
~24% of sales
Motion
~22% of sales
Robotics & Discrete Automation
~8% of sales
The products that matter
electrical infrastructure systems
Electrification
largest business area
Electrification is the biggest slice of a ~$33.2B FY2025 revenue base—exact percentage is in ABB’s segment tables.
largest segment
industrial control and service contracts
Process Automation
~one-quarter of revenue
it makes up 25% of revenue and matters because complex automation systems tend to come with longer customer relationships.
stickier revenue
factory automation optionality
Robotics & Discrete Automation
single-digit to low‑teens %
Robotics & Discrete is the smallest of the four areas—easy to overhype in an AI/automation narrative.
story stock inside the stock
Key numbers
34.8x
trailing p/e
P/E → price divided by past earnings → so what: you are paying a premium for a company whose past earnings growth was -0.5%.
25.3%
ROCE (FY2025)
ABB reported about 25.3% return on capital employed for FY2025—well above typical industrial averages.
$7.8B
long-term debt
Long-term debt → money owed beyond one year → so what: at 5% of capital, debt is small enough that the balance sheet is not your main problem.
19.0%
operational EBITA margin
FY2025 operational EBITA margin was about 19.0% (ABB definition—reconcile to GAAP/IFRS in the annual suite).
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 85 / 100
- long-term debt $7.8B (5% of capital)
- net profit margin 13.0% — keeps 13 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in ABBNY 3 years ago → it's now worth $10,160.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
ABB's latest quarter landed at $0.70 EPS versus a $0.51 estimate, while third-quarter revenue reached $9.1 billion and orders rose 12%.
The beat came with another strong operating performance in the September period. Revenue rose 11% vs. prior year to $9.1 billion, demand stayed healthy, and management said margin and cash generation improved.
$9.1B
revenue
$0.70
eps
12%
orders growth
the number that mattered
The 12% order growth matters most because orders are tomorrow's revenue, and they grew faster than sales at 11%.
-
abb delivered another strong operating performance in the september period.
-
third-quarter revenues rose 11% vs. prior year to $9.1 billion, exceeding our estimate, while earnings of $0.66 per share increased 29% and also came in ahead of expectations.
-
demand remained healthy, with orders up 12%, supported by continued strength in electrification, automation, and data center related projects.
-
operating margins expanded, reflecting solid execution and favorable mix, and cash generation improved sequentially.management is looking for comparable revenue to 2024 in the fourth quarter, with margins expected to moderate seasonally but remain well above historical levels.
-
strategic actions are sharpening the company’s focus.abb has agreed to divest its robotics division to softbank for approximately $5.4 billion, a price that exceeded market expectations and removes a more cyclical, capital-intensive business from the portfolio.
source: company earnings report, 2026
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What could go wrong
the #1 risk is multiple compression on an industrial stock priced like a growth name.
high
valuation has no room for nostalgia
ABBNY trades at 34.8x trailing earnings even though full-year sales shrank 4%. You're paying for the comeback before it has fully happened.
The published 3–5 year midpoint is $82 versus a current price of $83.40. The stock is already leaning above the middle of the range.
med
order growth is the whole setup
Orders rose 12% in the latest quarter. That's the support beam under the bullish case. If that cools sharply, the market stops giving ABB the benefit of the doubt.
Electrification and Process Automation make up 65% of revenue, so a slowdown would hit the core business, not a side project.
med
portfolio reshaping changes the story
Selling the robotics unit for about $5.4B may improve focus, but it also removes one of the most obvious automation growth narratives attached to the stock.
Robotics & Discrete Automation is 12% of revenue. That's small enough to sell, but large enough to change how investors frame the company next.
You own a safe balance sheet and an expensive stock. If orders stop growing after this 12% burst, 34.8x earnings can compress fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
orders staying above revenue growth
Q3 orders grew 12% while revenue grew 11%. If that spread reverses, the growth narrative loses its cleanest proof.
calendar
fourth-quarter revenue guide
Management expects fourth-quarter revenue comparable to 2024. That's a fine guide, but not one that screams acceleration.
trend
what happens after the $5.4B robotics sale
The divestiture sharpens focus and strips out cyclicality. It also makes ABB more of an electrification-and-automation operator and less of a robotics story stock.
risk
valuation versus the published target range
Current price is $83.40 against a 3–5 year midpoint of $82. When you're already above the middle, execution misses get punished harder.
Analyst rankings
earnings predictability
75 / 100
in human-speak, management usually delivers numbers close to what it signals.
balance sheet grade
A+
Balance sheet quality is among the strongest parts of the story. Low distress risk. High flexibility.
risk rank
1
Safer than 95% of stocks on this measure. Not a bunker stock, but far from fragile.
price stability
85 / 100
The shares tend to move like a mature industrial, which makes the 34.8x valuation stand out even more.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 25 buyers vs. 20 sellers in 3q2025. total institutional holdings: 2.2M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$61
$102
$83
current price
$82
target midpoint · 2% from current · 3-5yr high: $102
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