Robust orders, enhanced business performance, and elevated cash flow

• Order intake reached $11,298 million, reflecting a 32% year-over-year increase (24% on a comparable basis¹)
• Revenue totaled $8,734 million, representing 18% growth (11% on a comparable basis¹)
• Operating income $1,780 million; margin 20.4%
• Operational EBITA¹ $2,049 million; margin¹ 23.5%
• Basic EPS $0.73; +21%²
• Operating cash flow $1,029 million; +50%
• Return on Capital Employed¹ 27.2%

“ABB commenced the year with exceptional momentum, achieving elevated business performance and historic order levels. Backed by our substantial order backlog and effective execution amid favorable short-cycle market conditions, we elevate our 2026 growth and margin projections, while recognizing ongoing geopolitical uncertainties.”

Morten Wierod, CEO

CEO summary

The year commenced with robust momentum, bolstered by favorable market conditions and enhanced operational performance. Order intake achieved record levels with 24% comparable growth, driven by contributions across all business segments. Demand remained consistently strong throughout the reporting period.

Overall, the first quarter unfolded largely in line with strategic objectives, despite escalating geopolitical tensions. Our immediate focus centered on supporting employees affected by recent Middle East developments. While this conflict introduces global trade uncertainties, demand for our electrification and automation solutions has demonstrated resilience, reinforcing our upwardly revised 2026 targets.

Historic first-quarter free cash flow of $1.3 billion resulted from both improved earnings and effective net working capital optimization. Our 27.2% ROCE further underscored financial strength.

Recognition through CDP’s A scores for climate change and water stewardship validated our sustainability efforts. The February-published 2025 sustainability report highlighted meaningful progress toward 2030 objectives.

Book-to-bill ratio reached 1.29, with Motion and Automation business areas delivering 9% and 5% comparable order growth respectively, while Electrification achieved 44% expansion. Data center demand remains particularly strong, alongside favorable grid investment trends. Key growth areas include transport infrastructure electrification, marine and port automation, HVAC systems, and smart building technologies. As observed previously, process industry segments continue to show moderated activity.

Notably, the Automation division launched its Automation Extended initiative, representing a strategic advancement in distributed control systems (DCS). This innovation enables progressive integration of advanced analytics and AI capabilities while maintaining system integrity. It securely connects core control systems with digital environments through non-disruptive implementation, supported by unified lifecycle services. With ABB’s globally largest DCS installed base, this initiative strengthens our digital market position.

Capital allocation prioritizes organic investments in customer service capabilities through localized operational footprints. Following India’s emergence as our fourth-largest market, we will invest approximately $75 million this year to expand manufacturing and R&D capacities across all business areas. These enhancements will support India’s growth trajectory while strengthening regional market capabilities.

Outlook

For the second quarter of 2026, projections indicate growth in comparable revenues ranging from high single-digit to low double-digit percentages year-over-year. Operational EBITA margin is anticipated to improve year-on-year.

Full-year 2026 expectations include sustained positive book-to-bill ratios and comparable revenue growth within the high single-digit to low double-digit range year-over-year. Operational EBITA margin is forecast to increase year-on-year, maintaining upward trajectory even excluding Q1 2026 real estate gains.

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