ABB Robotics makes industrial techniques reminiscent of this IRB robotic demonstrating friction stir welding. Supply: ABB
One among world’s prime industrial automation suppliers is changing into extra impartial. ABB Group introduced throughout its earnings name right now that it plans to spin off its whole robotics division. The Zurich-based firm stated it intends for the enterprise to begin buying and selling as a individually listed firm within the second quarter of 2026.
“Immediately, we additionally introduced our plan to spin off the Robotics division as a individually listed firm,” stated Martin Wierod, CEO of ABB Group, in the course of the first-quarter 2025 earnings name. “In overview, this modification will help worth creation for each firms.”
“Our robotics enterprise had elevated orders from the automotive section, and our paint know-how is the most effective available on the market, and we had clients selecting to stay with us as they expanded their worldwide footprint,” he famous. “One can say we journey with the shopper.”
“The staff did job additionally on operational EBITDA. Margin improved in three out of our 4 enterprise areas,” added Wierod. “Solely robotics and discrete automation declined from final yr. However importantly, they confirmed a constructive sequential improvement, and the machine automation division improved to a break-even stage.”
The corporate reported that, excluding Europe, international Q1 robotics orders improved over a $1 billion drop from 2023 to 2024. It added that “the automotive section stays difficult” however pointed to growing demand for robots in portray, shopper electronics, meals and beverage, attire, and industrial equipment.
Robotics orders and revenues improved in Q1 of 2025 after a steep drop in 2023. Supply: ABB
Machine Automation to hitch Course of Automation unit
With greater than 140 years in enterprise and about 110,000 staff worldwide, ABB stated it’s a international know-how chief in electrification and automation to handle labor shortages, security, and productiveness wants. It reported slower-than-expected development however remained optimistic for continued progress in sustainability initiatives.
The firm missed its income prediction for the primary quarter of 2025 by $260 million and acknowledged that macroeconomic uncertainty from tariffs has affected its enterprise. It stated that robotics gross sales had declined yr over yr however stated it has carried out properly retaining clients.
The corporate’s Machine Automation division, which is presently a part of its Robotics & Discrete Automation unit, will grow to be a part of its Course of Automation enterprise space within the first quarter of 2026. It stated the Machine Automation division is a number one provider of programmable logic controllers (PLCs), clever pump controls (IPCs), servo movement, industrial transport techniques, and imaginative and prescient and software program merchandise. Its earnings reportedly elevated in Q1.
ABB’s Electrification and Movement enterprise areas will likely be unaffected by the spinoff.
“The board believes itemizing ABB Robotics as a separate firm will optimize each firms’ capability to create buyer worth, develop and appeal to expertise,” said ABB Chairman Peter Voser. “Each firms will profit from a extra centered governance and capital allocation. ABB will proceed to concentrate on its long-term technique, constructing on its main positions in electrification and automation.”
ABB’s product line consists of AMRs, industrial arms, cobots, and software program. Supply: ABB
ABB Robotics is international No. 2
“ABB Robotics holds a world No. 2 market place, with revenues of $2.3 billion in 2024, and as a robust performer in its business, it could profit from being measured extra straight in opposition to its friends,” Wierod said. “As well as, there are restricted synergies between the ABB Robotics enterprise and the rest of the ABB divisions with completely different demand and market traits.”
Different main automation suppliers, by way of annual gross sales, embody Japan-based FANUC, Mitsubishi, and Denso, plus Switzerland-based Stäubli, and Germany-based KUKA (owned by China’s Midea Group). No main industrial robotics distributors are headquartered within the U.S.
The corporate cited the “ABB Method” decentralized enterprise mannequin, underneath which “ABB Robotics has confirmed its double-digit margin resilience in most quarters since 2019.” It noticed that “the market has seemingly stabilized – supporting the divisional order development – after what has been an unusually risky market state of affairs, which has included the normalization of order patterns after the interval of pre-buys when the availability chain was strained.”
The robotics unit’s product line features a full vary of industrial robots, collaborative robotic arms, and autonomous cell robots or AMRs (acquired with ASTI in 2021). Final yr, it expanded its modular IRB line and acquired Sevensense, which offered to navigation capabilities for its AMRs, rebranded because the Flexly line.
Like different main robotics suppliers, ABB has positioned growing concentrate on software program and synthetic intelligence, saying that greater than 80% of its choices are “software program/AI-enabled.” Final month, it launched the RoboMasters coaching software.
The firm stated its robotics spinoff will proceed to function with regional manufacturing hubs in Sweden, China, and the U.S. In 2023, ABB deliberate to spend $20 million to increase U.S. manufacturing.
ABB Robotics presently has about 7,000 staff, and its U.S. workplace is in Auburn Hills, Mich. With 2024 revenues of $2.3 billion, it represented about 7% of ABB Group’s revenues and had an operational EBITA (earnings earlier than curiosity, taxes, and amortization) margin of 12.1%.
If ABB shareholders approve the spin-off, it is going to be carried out by means of a share distribution, whereby ABB Ltd.’s shareholders will obtain shares within the firm to be listed (with the working identify “ABB Robotics”) as a dividend in-kind in proportion to their present shareholdings.
The Robotic Report has communicated with ABB and can share additional data because it turns into accessible. ABB Robotics is among the prime RBR50 winners of all time, incomes recognition yearly within the innovation award’s historical past. Study extra on the RBR50 Gala on the Robotics Summit & Expo later this month.
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