Zurich, Jan 29, 2026, 08:11 CET
- ABB is moving forward with a $2 billion share buyback and has put forward a proposal to raise its dividend
- Q4 orders climbed 36%, hitting $10.3 billion; operating profit metric showed gains
- The company aims for 6%-9% comparable revenue growth in 2026 and projects 7%-10% growth in Q1.
On Thursday, ABB revealed a $2 billion share buyback program and expressed confidence about the year ahead following a robust close to 2025.
The Swiss industrial group is betting that its hefty investments in electrification and automation will pay off with consistent growth and improved margins, despite uneven conditions in parts of Europe’s factory sector.
Buybacks catch attention because they’re straightforward, quick, and obvious. When an industrial firm opts for one, it’s often signaling a focus on cash flow rather than just the next shift in orders.
Orders surged 36% in the fourth quarter, hitting $10.316 billion, ABB reported. Revenue climbed 13% to $9.052 billion. Operational EBITA, ABB’s adjusted operating profit metric, grew 19% to $1.588 billion, pushing the margin up to 17.6%. Book-to-bill—the ratio of orders to sales—stood at 1.14. 1
Operational EBITA topped the consensus estimate of $1.54 billion collected by the company, and revenue exceeded the $8.73 billion forecast from analysts, according to Reuters calculations. “Q4 was a strong finish to a record year for ABB,” said CEO Morten Wierod. 2
The quarterly results left out ABB’s robotics division, currently being sold, Reuters reported. 2
ABB posted full-year orders totaling $36.8 billion and revenue hitting $33.2 billion. The company proposed raising its ordinary dividend to 0.94 Swiss francs per share, up from 0.90 francs. It projects comparable revenue growth—excluding currency fluctuations and portfolio shifts—of 7% to 10% in Q1, with a 6% to 9% climb expected in 2026. 3
ABB announced it plans to kick off a new buyback in early February, running through Jan. 27, 2027. The company also wrapped up its 2025 programme, having repurchased 20.7 million shares for roughly $1.3 billion, which it intends to cancel. 4
Kepler Cheuvreux boosted ABB to a “buy” rating earlier this week, lifting its target price from 56 to 70 Swiss francs. The firm highlighted stronger profitability and cash flow as key drivers. Analyst William Mackie pointed to the Electrification and Motion units as growth engines, noting steady demand in utilities, infrastructure, and data centres. 5
ABB goes head-to-head with Siemens and Schneider Electric in electrification and industrial automation. Investors in these sectors have favored companies that manage to protect their margins while still investing in growth and rewarding shareholders.
ABB continues to emphasize that successful execution and a smooth split of its robotics division are key. The company forecasts net cash proceeds around $5.3 billion from the sale but has also warned of costs tied to separation and related cash tax expenses. The transaction is slated to wrap up in mid-to-late 2026. 6
