Robust Q4 orders, enhanced operational efficiency, and strong cash flow culminated in a record-breaking year

Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange

Q4 2025

• Order intake reached $10.3 billion, representing a 36% year-over-year increase, with comparable growth at 32%
• Revenue totaled $9.1 billion, up 13% year-on-year; comparable growth at 9%
• Operating income amounted to $1,505 million; operating margin of 16.6%
• Operational EBITA¹ stood at $1,588 million; margin¹ of 17.6%
• Basic EPS reached $0.70, reflecting 30% growth²
• Operating cash flow totaled $1,949 million, a 27% increase

FY 2025

1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q4 2025 Financial Information.
2 EPS growth rates are computed using unrounded amounts.3Constant currency (not adjusted for portfolio changes).
3 Constant currency (not adjusted for portfolio changes).

Q4 was a strong finish to a record year for ABB. We lead in markets with strong secular trends and we will further build on our ABB Way operating model, which gives me confidence in our updated financial targets and that 2026 will be yet another all-time-high result.

Morten Wierod, CEO

CEO summary

The year concluded on an impressive note, delivering ABB’s highest-ever annual performance. Fourth-quarter order intake surpassed $10 billion for the first time, reaching $10.3 billion. Alongside robust base business growth, strategic timing of major project bookings contributed to this result. Notably, the order surge was widespread, with double-digit growth across all three business segments. While achieving record quarterly revenues, orders exceeded revenues, resulting in a book-to-bill ratio of 1.14.

In favorable market conditions, we effectively combined strong comparable growth with internal efficiency improvements to counteract challenges like tariff increases and material cost inflation. Operational EBITA grew 19%, with margins expanding by 100 basis points.

Quarterly free cash flow of $1.5 billion enabled us to achieve annual free cash flow of $4.6 billion, a new company record. Return on capital employed remained strong at 25.3%.

Electrification business demand strengthened across all customer segments, led by data centers experiencing exceptional double-digit growth. Our medium voltage power solutions continue leading industry innovation. For instance, our expanded partnership with Applied Digital introduces advanced power architectures for AI-ready large-scale data centers. Additionally, our pioneering direct current (DC) and solid-state electronics technology positions us strategically in collaborations like NVIDIA’s 800 VDC architecture project, accelerating gigawatt-scale next-generation data center development.

Motion business growth was driven by sustained rail project demand, High Power division expansion, and increased short-cycle demand for low voltage motors and drives. Automation business demonstrated continued strength in marine and port applications, exemplified by the landmark Rotterdam port project. This integrated solution features the world’s largest shore power system, capable of simultaneously charging 32 container ships during loading operations, complemented by a SCADA system for energy monitoring and billing precision.

We’ve established updated financial targets targeting elevated growth, expanded profitability ranges, and accelerated EPS growth with strong cash conversion. ROCE targets increased despite plans for accelerated acquisition-driven growth. These revised objectives balance ambition with feasibility.

Achieving these long-term goals requires continued refinement of our operational agility and accountability through the ABB Way operating model. Combined with favorable external markets, we will leverage our position in global energy expansion, efficiency improvements, and clean energy transitions. Our technological leadership and customer value proposition position us to enhance client productivity and energy efficiency, supporting sustained operational excellence through 2026 and beyond.

Outlook

For the first quarter of 2026, forecasted comparable revenue growth is projected between 7% and 10%. Operational EBITA margin is expected to improve year-over-year, excluding announced real estate gains from Q1 2025 and Q1 2026.

Full-year 2026 projections indicate positive book-to-bill ratios and comparable revenue growth between 6% and 9%. Operational EBITA margin should see slight year-over-year improvement, maintaining growth trajectory even excluding Q1 2026 real estate gains.

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