FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
===== SIDA 1 =====
—
ZURICH, SWITZERLAND, APRIL 17, 2025
Q1 2025 results
Strong start to the year; optimizing value creation
with portfolio management
• Orders $9,213 million, +3%; comparable1 +5%
• Revenues $7,935 million, +1%; comparable1 +3%
• Income from operations $1,567 million; margin 19.7%
• Operational EBITA1 $1,597 million; margin1 20.2%
• Basic EPS $0.60; +22%3
• Cash flow from operating activities $684 million; -6%
—
“ABB had a strong start to the year with progress on most lines of the income statement and solid
cash flow. We confirm our 2025 outlook, but acknowledge that uncertainty for the business
environment has increased. At the same time, we expect to create further value by actively
managing our portfolio and spinning off our Robotics business.”
Morten Wierod, CEO
KEY FIGURES
CHANGE
($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable1
Orders 9,213 8,974 3% 5%
Revenues 7,935 7,870 1% 3%
Gross Profit2 3,311 3,064 8%
as % of revenues2 41.7% 38.9% +2.8 pts
Income from operations 1,567 1,217 29%
Operational EBITA1 1,597 1,417 13% 16% 4
as % of operational revenues1 20.2% 17.9% +2.3 pts
Income from continuing operations, net of tax 1,119 914 22%
Net income attributable to ABB 1,102 905 22%
Basic earnings per share ($) 0.60 0.49 22%3
Cash flow from operating activities 684 726 -6%
Free cash flow1 652 551 18%
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q1 2025 Financial Information.
2 Prior period amounts have been restated to reflect a change in accounting policy for IS expenses, see “Note 1 - The Company and Basis of Presentation” in the attached Q1 2025 Financial
Information for details. 3 EPS growth rates are computed using unrounded amounts.
4 Constant currency (not adjusted for portfolio changes).
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q1 2025
FIRST THREE MONTHS
PRESS RELEASE
===== SIDA 2 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 2
A robust business environment in the first quarter of 2025
supported the order increase of 3% (5% comparable).
Despite the slightly slower than expected revenue growth
of 1% (3% comparable) we delivered an Operational EBITA
margin of 20.2%. All our business areas outpaced our
original expectations with a strong finish in the quarter.
Additional margin support stemmed from a capital gain
linked to a real estate sale which lifted profitability by
approximately 170 basis points. Free cash flow1 of
$652 million is a good start to us improving our full year
2025 free cash flow from last year’s $3.9 billion. Overall, I am
pleased with the outcome.
We built order backlog as we again achieved another
quarter with a positive book-to-bill, reaching 1.16. Order
intake increased in three out of four business areas, with
only Motion declining from last year’s record high level.
Customer inventories in the Machine Automation division
are seemingly approaching normalized levels, with some
final adjustments spilling over into the second quarter.
Sequentially, the general business activity remained largely
stable, but with some signs of longer investment decision
lead times towards the end of the quarter, linked to
unclarity regarding trade tariffs.
As part of the annual reporting suite, we published our
annual sustainability statement, and I am pleased about the
progress we have made. Some highlights include that we
are already close to fulfilling our 2030 target of 80% CO2e
emissions reduction as we ended 2024 at 78% below the
2019 base level. It makes me proud to see that our leading
technology helped customers avoid another 66 megatons
of emissions throughout the lifetime of products sold, and
importantly our diligent focus on zero harm to our people
resulted in another low score for Lost Time Injury Frequency
Rate (LTIFR) of 0.15.
We acknowledge the increased uncertainty for the global
business environment on the back of trade tariffs. We focus
on what we can control and take action to defend our
market position and profitability. Our legacy of a local-for-
local footprint serves us well and in the United States we
cover as much as 75%-80% of our sales with domestic
production, with additional support from certain tariff
exemptions. In Europe and China we have reached an even
higher local footprint. The energy transition and expansion
means increasing demand for advanced electrification
technologies and we incrementally invest in the United
States to support the anticipated long-term market
development. We announced investments of $120 million in
two of our manufacturing sites to expand local production
of low voltage electrification products. This is in addition to
the more than $500 million of US investments over the past
three years.
We continue to be active with portfolio management and
the Smart Building division completed the acquisition of
Siemens’ Wiring Accessories business in China. This adds a
comprehensive product portfolio and a robust distribution
network across 230 cities. It generated more than $150
million in revenues in 2024 and will be margin accretive.
We have also decided to initiate the preparations to
spin off our Robotics division as a separately listed pure play
robotics company, planned for the second quarter of 2026.
ABB Robotics holds a global number two market position
with revenues of $2.3 billion in 2024 and as a strong
performer in its industry it would benefit from being
measured more directly against its peers. In addition, there
are limited synergies between the ABB Robotics business and
the remainder of the ABB divisions with different demand
and market characteristics. We believe this change will
support value creation in both units and now is a good time
for both ABB and for the Robotics business. When it comes to
ABB, the period of major operational change is behind us as
we are on the final stretch of pushing the ABB Way operating
model further down in the organization. For the Robotics
business, it has proven its double-digit margin resilience and
solid cash flow profile over the past few years in our
decentralized operating model. It is well invested in their
state-of-the-art main hubs in China and US and are just now
starting the construction work for a major upgrade of the
European hub in Sweden. It has the broadest customer
offering and R&D efforts resulted in the unique Omnicore
platform being launched last year. They have also made
important acquisitions adding Autonomous Mobile Robots
(AMRs) and Visual Simultaneous Localization and Mapping
(VSLAM) technology. It is our view that a spin-off will
optimize both companies’ abilities to create customer value,
grow and attract talent and both will benefit from a more
focused governance and capital allocation.
Upon completion of the spin-off ABB will consist of three
business areas with clear sales and technology synergies. The
Machine Automation division, which together with Robotics
currently forms the Robotics & Discrete Automation business
area, will become part of the Process Automation business
area where customer value creation will benefit from
synergies for software and control technologies, for example
towards hybrid industries.
As part of our capital allocation strategy we launched a share
buy-back program of up to $1.5 billion, which is in addition to
the dividend of CHF 0.90 per share approved by shareholders
at the annual general meeting.
Morten Wierod
CEO
In the second quarter of 2025, we anticipate comparable
revenue growth in the mid-single digit range, and the
Operational EBITA margin to remain broadly stable with last
year’s 19.0%; however acknowledging the increased
uncertainty for the global business environment. We expect
improved business results in 2025 to offset the year-on-
year headwind from favorable net non-repeats of 30 basis
points in Corporate & Other in the second quarter of 2024.
In full-year 2025, we expect a positive book-to-bill,
comparable revenue growth in the mid-single digit range
and the Operational EBITA margin to improve year-on-year,
however acknowledging the increased uncertainty for the
global business environment.
CEO summary
Outlook
===== SIDA 3 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 3
Orders increased by 3% (5% comparable) to $9,213 million,
supporting the book-to-bill of 1.16. There was positive
momentum for both short-cycle and project and systems
orders in three out of four business areas. Short-cycle
orders improved also in Motion, however total orders
declined from last year’s record-high level due mainly to
lower project orders in the Traction division. Order backlog
at the end of the first quarter reached $23 billion.
Comparable orders increased in all geographical regions.
The market environment in the Americas was strong and
orders were up by 8% (11% comparable), supported by the
United States which improved by 9% (9% comparable). In
Europe, the positive comparable development was more
than offset by the impact of changes in exchange rates,
resulting in total orders declining by 2% (up 1%
comparable). Asia, Middle East and Africa improved by 2%
(4% comparable) mainly driven by strong growth in China
which was up by 13% (13% comparable).
In transport & infrastructure, the trading environment was
strong in marine and ports as well as in rail, for which
however quarterly orders declined from last year’s
challenging comparable, which included some larger orders.
Land transport infrastructure benefited from upgrades of
electrical equipment.
In the industrial areas a particularly strong development
was seen in utilities. The general sentiment in the data
center segment remains very strong, although quarterly
orders declined slightly.
Orders in the buildings segment improved as weakness in
China was more than offset by favorable developments in
other regions driven by commercial areas while the
residential segment remained overall stable.
In the robotics-related segments, the general trading
environment in the automotive segment remains challenging,
but orders increased on the back of certain customers
broadening their geographical exposure, similar to the
consumer electronics segment. Orders increased in food &
beverage and the general industry segment benefited from
increased orders related to industrial machinery and the
fashion industry. Orders in the machine builder segment
increased sharply from a low level.
In the process-related areas, orders were stable or improved
in most customer segments, with a muted environment
mainly in chemicals and pulp & paper.
Revenues improved by 1% (3% comparable) to $7,935 million,
with the increase on a comparable basis offset mainly by the
adverse impacts from changes in exchange rates. The higher
revenues year-on-year was supported by execution of the
order backlog and an increase in service. Higher volumes was
the main driver to the revenue growth, with some added
support from slightly positive pricing.
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 5% 3%
FX -2% -2%
Portfolio changes 0% 0%
Total 3% 1%
Orders by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q1 2025 Q1 2024 US$ Comparable
Europe 3,234 3,298 -2% 1%
The Americas 3,139 2,904 8% 11%
Asia, Middle East
and Africa 2,840 2,772 2% 4%
ABB Group 9,213 8,974 3% 5%
Revenues by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q1 2025 Q1 2024 US$ Comparable
Europe 2,773 2,748 1% 4%
The Americas 2,918 2,789 5% 8%
Asia, Middle East
and Africa 2,244 2,333 -4% -2%
ABB Group 7,935 7,870 1% 3%
Orders and revenues
===== SIDA 4 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 4
Gross profit
Gross profit increased by 8% (11% constant currency) year-on-
year to $3,311 million, reflecting a gross margin of 41.7%, up
280 basis points year-on-year, with approximately 110 basis
points support from foreign exchange/commodity timing
differences. Gross margin improved in three out of four
business areas.
Income from operations
Income from operations amounted to $1,567 million and
improved by 29% year-on-year. This improvement was driven
mainly by a stronger business performance, an operational
capital gain linked to a real estate sale, favorable impacts from
exchange rate and commodity timing differences. In total, the
Income from operations margin was 19.7%, up by 420 basis
points.
Operational EBITA
Operational EBITA improved by 13% year-on-year to $1,597
million and the margin increased by 230 basis points to 20.2%.
The increases were supported both by improved operational
results driven by leverage on higher volumes as well as slightly
positive pricing. In addition, the net gain of approximately
$140 million related to a real estate sale had positive margin
impact of around 170 basis points. These combined benefits
more than offset the higher expenses related to Sales, General
& Administrative. Earnings improved in three business areas
reflecting the higher margin run rate compared with last year.
This more than offset a significant decline in Robotics &
Discrete Automation which was impacted by lower revenues in
a weak, but sequentially stabilizing, market environment.
Operational EBITA in Corporate and Other amounted to $22
million including the impact of the real estate capital gain.
Underlying corporate costs were $68 million while the E-
mobility business reported a loss of $47 million as the
operational performance was hampered by low volumes and
the ongoing reorganization to ensure a more focused
portfolio.
Finance net
Net finance income contributed to results with a positive
$7 million, lower than last year’s income of $20 million. The
change was due to higher interest charges on income tax
contingencies offset partially by lower interest charges on
debt.
Income tax
Income tax expense was $469 million, and the effective tax rate
was 29.5%.
Net income and earnings per share
Net income attributable to ABB was $1,102 million,
representing an increase of 22% from last year, mainly helped
by the impacts of improved business performance and the
gain, net of tax for a real estate divestment, which more than
offset the adverse impact from higher tax rate year-on-year.
This resulted in an increase of 22% in basic earnings per share
to $0.60, up from $0.49 in the last year period.
Earnings
Corporate and Other
Operational EBITA
($ in millions) Q1 2025 Q1 2024
Corporate and Other
E-mobility (47) (54)
Corporate costs, intersegment
eliminations and other1 69 (64)
Total 22 (118)
1 Majority of which relates to underlying corporate
===== SIDA 5 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 5
Trade net working capital1
Trade net working capital amounted to $4,664 million,
decreasing year-on-year from $4,818 million as an
increase in trade receivables and contract assets were
more than offset by higher customer advances. The
average trade net working capital as a percentage of
revenues1 was 14.4% which declined from 16.1% one year
ago.
Capital expenditures
Purchases of property, plant and equipment and
intangible assets amounted to $195 million.
Net debt
Net debt1 amounted to $1,460 million at the end of the
quarter and decreased from $2,086 million year-on-year.
The sequential increase from $1,285 million in the fourth
quarter was mainly due to share buyback activity and the
completed acquisitions of businesses, which was partly
offset by a solid free cash flow during the quarter.
Cash flows
Cash flow from operating activities was $684 million,
representing a decline from last year’s $726 million as the
impact of stronger earnings was offset by higher taxes and
interest, while the buildup of Net working capital was
broadly stable. Free cash flow amounted to $652 million
and improved from last year’s $551 million mainly
supported by the proceeds from the real estate sale with a
cash impact of about $100 million.
Share buyback program
A share buyback program of up to $1.5 billion was launched
on February 10, 2025, after the previous program of up to
$1 billion as completed on January 31, 2025. During the first
quarter, under the new program ABB repurchased a total of
3,886,309 shares for a total amount of approximately
$216 million. As of March 31, 2025, ABB’s total number of
issued shares, including shares held in treasury, amounts to
1,860,614,888.
Balance sheet & Cash flow
($ in millions,
unless otherwise indicated)
Mar. 31
2025
Mar. 31
2024
Dec. 31
2024
Short-term debt and current
maturities of long-term debt 805 1,957 293
Long-term debt 7,015 6,346 6,652
Total debt 7,820 8,303 6,945
Cash & equivalents 4,494 4,120 4,326
Marketable securities and
short-term investments 1,866 2,097 1,334
Cash and marketable securities 6,360 6,217 5,660
Net debt (cash)* 1,460 2,086 1,285
Net debt (cash)* to EBITDA ratio 0.2 0.4 0.2
Net debt (cash)* to Equity ratio 0.10 0.16 0.09
* March 31, 2025, March, 31, 2024 and Dec. 31, 2024, net debt(cash) excludes net pension
(assets)/liabilities of $(266) million, $(189) million and $(227) million, respectively.
===== SIDA 6 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 6
Orders and revenues
The overall business environment was healthy in the
first quarter and total order intake remained on par with
last year’s record level. Orders increased in most
customer segments, however the comparable positive
development was offset by the impact from changes in
exchange rates. In total, orders amounted to
$4,394 million, stable year-on-year (up 2% comparable).
Book-to-bill was strong at 1.15, and the order backlog
increased to all-time-high level of $8.2 billion.
• Customer activity was stable to positive in most of
the customer segments, including the two largest of
utilities as well as buildings where commercial
demand improved and residential remained overall
stable. The general sentiment in the data center
segment remains very strong, although quarterly
orders declined slightly due to slower activity noted
for a specific customer within the hyperscale field.
• Orders improved in two out of three regions, from
last year’s record order level. The Americas increased
by 4% (6% comparable) supported by the United
States at 7% (6% comparable). Europe declined by
7% (4% comparable) with a mixed picture between
the largest countries. Asia, Middle East and Africa
improved by 3% (4% comparable) driven by China
which was up by 8% (6% comparable).
• Revenues of $3,825 million increased by 4% (6%
comparable) from last year, improving in virtually all
divisions. Higher volumes was the main driver to
comparable growth with solid execution of the order
backlog mainly linked to the medium voltage and
power protection businesses as well as good
customer activity in the short-cycle business.
Profit
Operational EBITA increased by 7% year-on-year to
$886 million, resulting in a margin improvement of
80 basis points to 23.2%.
• A strong improvement in gross margin was the main
driver to the profitability increase, supported
primarily by operational leverage on higher volumes
and improved operational efficiency which combined
more than offset a slight increase in SG&A expenses.
—
Electrification
CHANGE
($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable
Orders 4,394 4,392 0% 2%
Order backlog 8,173 7,389 11% 11%
Revenues 3,825 3,680 4% 6%
Gross Profit 1,638 1,498 9%
as % of revenues 42.8% 40.7% +2.1 pts
Operational EBITA 886 826 7%
as % of operational revenues 23.2% 22.4% +0.8 pts
Cash flow from operating activities 521 547 -5%
No. of employees (FTE equiv.) 53,100 50,700
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 2% 6%
FX -3% -2%
Portfolio changes 1% 0%
Total 0% 4%
===== SIDA 7 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 7
Orders and revenues
Book-to-bill was strong at 1.17 as Motion delivered yet
another quarter with order intake at the +$2 billion level.
The decline from last year’s all-time-high by 6% (4%
comparable) to $2,156 million was mainly due to the
high large order comparable.
• Strong growth was recorded in the service business,
and short-cycle orders were up slightly. This was
however offset by lower large order bookings as last
year’s high level included one specific order of $150
million in the Traction division.
• A stable to favorable order development was recorded
in the segments of HVAC for commercial buildings,
water & wastewater and power generation. Orders
declined in the process related areas of oil & gas,
chemicals and food & beverage; but also in rail due to
the challenging large order comparable.
• Orders improved in the Americas by 6% (8% comparable),
supported by a strong improvement of 9% (10%
comparable) in the United States. Comparable orders
were stable in Europe while the total declined by 3% (0%
comparable) primarily reflecting changes in exchange
rates. Asia, Middle East and Africa declined sharply by
19% (18% comparable) impacted by the large order
comparable although orders in China increased by 7%
(9% comparable).
• Revenues of $1,840 million improved by 1% (3%
comparable). Strong growth in the long-cycle divisions
through backlog execution was partially offset by
declines in service, while short-cycle was broadly stable.
Further support was derived from a positive price
component.
Profit
Operational EBITA increased by 5% from last year,
representing a 110 basis point improvement in the
Operational EBITA margin.
• The largest driver for the higher profitability level was the
increase in gross margin. This was mainly supported by
the impact from positive pricing as well as improved
operational efficiency.
—
Motion
CHANGE
($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable
Orders 2,156 2,303 -6% -4%
Order backlog 5,716 5,612 2% 2%
Revenues 1,840 1,829 1% 3%
Gross Profit 733 646 13%
as % of revenues 39.8% 35.3% +4.5 pts
Operational EBITA 360 343 5%
as % of operational revenues 19.6% 18.5% +1.1 pts
Cash flow from operating activities 310 352 -12%
No. of employees (FTE equiv.) 22,330 22,380
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable -4% 3%
FX -2% -2%
Portfolio changes 0% 0%
Total -6% 1%
===== SIDA 8 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 8
Orders and revenues
Orders exceeding $2 billion signal a healthy business
environment. Order intake increased by 19% (23%
comparable) and amounted to $2,024 million with a
positive development across the divisions. Book-to-bill
was strong at 1.24, making it another quarter adding to
the order backlog which amounted to $8.1 billion, up by
10% from last year.
• Customer activity remained very strong in the marine
and ports segment, where the main exposure is
passenger and specialized vessels, as well as port
automation. A stable to positive order development
was noted in most of the energy and process
industry-related segments.
• Towards the end of the quarter there were some
emerging signs of delayed investment decisions
linked to uncertainty surrounding tariff impacts. On
the other hand, customer activity remains strong for
security of energy supply and geopolitical self-
sufficiency.
• Revenues were mainly supported by execution of the
project order backlog. The volume increase was the key
driver to the year-on-year growth of 2% (5% comparable)
with some additional support from positive pricing, for
total revenues of $1,633 million.
Profit
Operational EBITA of $255 million was up by 1%
representing an Operational EBITA margin of 15.8%.
• Operational EBITA margin improved in the project and
systems related divisions which executed the order
backlog with high gross margin. This was partially
offset by the product division where weaker revenues
weighed on profitability year-on-year.
—
Process Automation
CHANGE
($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable
Orders 2,024 1,697 19% 23%
Order backlog 8,076 7,343 10% 10%
Revenues 1,633 1,601 2% 5%
Gross Profit 647 594 9%
as % of revenues 39.6% 37.1% +2.5 pts
Operational EBITA 255 253 1%
as % of operational revenues 15.8% 15.6% +0.2 pts
Cash flow from operating activities 264 229 15%
No. of employees (FTE equiv.) 22,760 21,340
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 23% 5%
FX -4% -3%
Portfolio changes 0% 0%
Total 19% 2%
===== SIDA 9 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 9
Orders and revenues
The business area turned a corner in the first quarter with
both divisions recording strong order growth year-on-year,
and improving also sequentially. Order intake was up by
14% (17% comparable) to $799 million and book-to-bill was
positive at 1.07.
• Orders in the Robotics division improved from last year
at a double-digit pace. The general trading environment
in the automotive segment remains challenging, but
orders increased as certain customers stick with our
leading technology, particularly for paint solutions, as
they expand their geographical exposure. A similar
pattern supported orders also in the consumer
electronics segment. Other positive drivers were food &
beverage, the fashion industry and industrial machinery.
Orders increased sharply in the Americas and the Asia,
Middle East & Africa regions, while a low single digit
decline was recorded in Europe.
• Orders in the Machine Automation division increased
sharply from last year’s low level and customers’
inventory levels are seemingly approaching normalized
inventory levels, with some final adjustments spilling over
into the second quarter. We expect a slight sequential
improvement in absolute order intake also going into the
second quarter of 2025.
• Revenues for the business area declined sharply by
14% (11% comparable) to $744 million. The two
divisions show diverging patterns, with increased
volumes in Robotics, while it declined sharply in
Machine Automation.
Profit
Sequentially the Operational EBITA margin improved more
than expected. However, year-on-year the impact from
operational leverage on significantly lower volumes in the
Machine Automation division put pressure on the
Operational EBITA which declined by 35% to $74 million.
The Operational EBITA margin dropped by 330 basis points
year-on-year to 9.9%.
• The Robotics division continued to deliver a double-digit
profitability level.
• Machine Automation improved to a break-even level as
savings from cost measures were increasingly realized to
offset the adverse impacts from still low utilization rates
in production.
—
Robotics & Discrete Automation
CHANGE
($ millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable
Orders 799 701 14% 17%
Order backlog 1,518 1,918 -21% -21%
Revenues 744 864 -14% -11%
Gross Profit 256 320 -20%
as % of revenues 34.4% 37.0% -2.6 pts
Operational EBITA 74 113 -35%
as % of operational revenues 9.9% 13.2% -3.3 pts
Cash flow from operating activities 65 95 -32%
No. of employees (FTE equiv.) 10,280 11,380
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 17% -11%
FX -3% -3%
Portfolio changes 0% 0%
Total 14% -14%
===== SIDA 10 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 10
Events from the Quarter
• ABB has launched an innovative collaboration with
Stena Recycling AB, to streamline and improve the
recycling of wood waste from its robotics factory in
Västerås, Sweden. Stena Recycling processes the
waste into wood chips that will eventually be utilized
to produce particle boards for new furniture
production. This partnership has contributed to ABB
Robotics increasing its material recycling rate in our
factory in Västerås, Sweden, from 36 percent to over
90 percent annually.
• ABB has been selected by GreenIron, an innovative
Swedish company working in the mining and metals
industries with its patented materials reduction
technology, to provide automation and control
system solutions for a first commercial facility in
Sweden. GreenIron is a pioneer for fossil-free metal
production and has chosen ABB’s distributed control
system to manage and automate its process
supporting its ambition of leading the industries’
transformation to a circular economy and reducing
CO₂ emissions. The latest version of ABB technology
will create optimizations and efficiencies and is key to
GreenIron’s scale up and commercialization.
• ABB's high-efficiency motors and drives have enabled
Aurubis, Europe's leading copper producer, to save 25
GWh of electricity annually at its Pirdop plant in
Bulgaria. The upgrade involved replacing 460
outdated motors with IE4 and IE5 models,
significantly reducing energy consumption and
carbon emissions. The upgrade is expected to save so
much energy that the project will pay for itself in only
3.5 years. Other benefits include reduced carbon
emissions, increased process flexibility and improved
performance.
• ABB invested in two energy efficiency start-ups in North
America to accelerate innovation and sustainability for
its Electrification business. In March, ABB has acquired
a minority stake in US company DG Matrix to support
the commercialization of solid-state power electronics
for generative AI data centers and renewable
microgrids. The company’s Power Router platform
replaces conventional systems with an all-in-one
solution that is up to five times smaller and has best-in-
class energy efficiency of 98 percent. In January, ABB
also invested in Edgecom Energy, a Canadian energy
management startup. The company’s unique energy
management platform uses artificial intelligence to help
industrial and commercial users manage and reduce
peaks in their power demand.
• One of ABB’s largest sites in the United States, in
South Carolina, has launched a major sustainability
initiative aimed at reducing its environmental impact
and boosting energy efficiency. Key upgrades include
transitioning to LED lighting, implementing water-
saving measures, and deploying advanced energy
monitoring software. The site is also planning to
install a solar farm and battery energy storage
system, supporting its goal of energy self-sufficiency.
These efforts are expected to significantly cut carbon
emissions and save over $150,000 in annual energy
costs.
—
Sustainability
Q1 2025 Q1 2024 CHANGE 12M ROLLING
CO₂e own operations emissions,
Ktons scope 1 and 21 35 35 0% 129
Total recordable incident frequency rate (TRIFR),
frequency / 1,000,000 working hours 2 1.31 1.44 -9% 1.43
Proportion of women in senior management roles
in % 21.8 21.5 +0.3 pts 21.5
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter
2 To align with CSRD reporting requirements, we have replaced our primary safety KPI, Lost Time Injury Frequency Rate (LTIFR), with Total Recordable Incident Frequency Rate (TRIFR). This new
measure includes all incidents and injuries except first aid cases and near misses, promoting improved system learning, enhanced transparency, and greater openness in reporting. Current quarter
Includes all incidents reported by April 7, 2025
===== SIDA 11 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 11
During Q1 2025
• On February 10, ABB launched its previously
announced new share buyback program of up to $1.5
billion. Based on the ABB share price at that time this
represents a maximum of approximately 27.6 million
shares. The maximum number of shares that may be
repurchased under this new program on any given
trading day is 663,417. The new share buyback
program is for capital reduction purposes and will be
executed on a second trading line on the SIX Swiss
Exchange. It is planned to run from February 10, 2025,
until January 28, 2026.
The total number of ABB’s issued shares is
1,860,614,888. This includes 16,715,684 shares that
were repurchased under the 2024 share buyback
program and are expected to be cancelled in Q2 2025.
ABB will use the capital band authorized at its Annual
General Meeting 2023 for cancellation of these
shares. On 7 February, 2025, ABB owned
approximately 24 million treasury shares.
• On March 27, ABB held its Annual General Meeting in
Zurich, Switzerland where shareholders approved all
proposals. This included the dividend of CHF 0.90 and
the election of Claudia Nemat as a new Board
Director, replacing Lars Förberg who did not stand
for re-election.
• On March 3, ABB announced the completion of the
acquisition of Siemens’ Wiring Accessories business
in China which generated over $150 million in revenue
in 2024. The acquisition enhances ABB’s portfolio to
address the growing demand for safe, reliable and
energy-efficient building solutions as it provides
access to expansive distributor network, extending
ABB’s reach across China and Southeast Asia, and
further into the retail market.
After Q1 2025
• On April 17, ABB announced that it will launch a
process to propose to its Annual General Meeting
2026 to decide on a 100 percent spin-off of its
Robotics division. The intention is for the business to
start trading as a separately listed company during
the second quarter of 2026.
Significant events
===== SIDA 12 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 12
Acquisitions Company/unit Closing date Revenues, $ in
millions1 No. of employees
2025
Electrification Siemens Wiring Accessories 3-Mar ∼150 360
Electrification Sensorfact 3-Feb ∼15 260
Electrification Coulomb Inc. 13-Jan ∼2 30
2024
Electrification Solutions Industry & Building (SIB) 2-Dec ∼27 100
Process Automation Dr. Födisch Umweltmesstechnik AG 1-Oct ∼53 250
Electrification SEAM Group 31-Jul ∼90 250
Process Automation DTN Europe 3-Jun ∼14 84
Acquisitions and divestments, last twelve months
ABB Group Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025
EBITDA, $ in million 1,418 1,578 1,503 1,374 5,873 1,763
Return on Capital Employed, % 20.5 21.3 22.0 22.4 22.4 23.0
Net debt/Equity 0.16 0.18 0.15 0.09 0.09 0.10
Net debt/ EBITDA 12M rolling 0.4 0.4 0.4 0.2 0.2 0.2
Net working capital 3,497 3,516 3,512 2,739 2,739 3,371
Trade net working capital 4,818 4,825 4,931 4,428 4,428 4,664
Average trade net working capital as a % of revenues 16.1% 15.6% 15.1% 14.6% 14.6% 14.4%
Earnings per share, basic, $ 0.49 0.59 0.51 0.54 2.13 0.60
Earnings per share, diluted, $ 0.49 0.59 0.51 0.53 2.13 0.60
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.90 n.a.
Share price at the end of period, CHF 41.89 49.92 48.99 49.07 49.07 45.22
Number of employees (FTE equivalents) 108,700 109,390 109,970 109,930 109,930 110,970
No. of shares outstanding at end of period (in millions) 1,851 1,849 1,843 1,838 1,838 1,833
Additional figures
Divestments Company/unit Closing date Revenues, $ in
millions1 No. of employees
2024
E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a.
Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110
Electrification Service repair shops in US/CA 30-Aug ∼35 115
E-mobility Numocity 30-Jun <5 56
Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million.
1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated.
Additional 2025 guidance
($ in millions, unless otherwise
stated)
FY 20251 Q2 2025
Corporate and Other
Operational EBITA2
~(200) ~(75)
from ~(300)
Non-operating items
Acquisition-related amortization ~(180) ~(55)
Restructuring and related3 ~(250) ~(60)
ABB Way transformation ~(150) ~(50)
($ in millions, unless otherwise stated) FY 2025
Finance net ~40
Effective tax rate ~25% 4
Capital Expenditures ~(900)
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc.
2 Excludes Operational EBITA from E-mobility business.
3 Includes restructuring and restructuring-related as well as separation and integration costs.
4 Excludes the impact of acquisitions or divestments or any significant non-operational items.
===== SIDA 13 =====
AB B IN TE RIM RE P ORT I Q1 2 02 5 13
This press release includes forward-looking information
and statements as well as other statements concerning
the outlook for our business, including those in the
sections of this release titled “CEO summary,”
“Outlook,” “Sustainability” and “Additional 2025
guidance”. These statements are based on current
expectations, estimates and projections about the
factors that may affect our future performance,
including global economic conditions and the economic
conditions of the regions and industries that are major
markets for ABB. These expectations, estimates and
projections are generally identifiable by statements
containing words such as “anticipates,” “expects,”
“estimates,” “intends,” “plans,” “targets,” “guidance,” or
similar expressions. However, there are many risks and
uncertainties, many of which are beyond
our control, that could cause our actual results to differ
materially from the forward-looking information and
statements made in this press release and which could
affect our ability to achieve any or all of our stated
targets. These include, among others, business risks
associated with the volatile global economic
environment and political conditions, market
acceptance of new products and services, changes in
governmental regulations and currency exchange rates.
Although ABB Ltd believes that its expectations
reflected in any such forward looking statement are
based upon reasonable assumptions, it can give no
assurance that those expectations will be achieved.
The Q1 2025 results press release and presentation
slides are available on the ABB News Center at
www.abb.com/news and on the Investor Relations
homepage at www.abb.com/investorrelations.
Media will be able to join a conference call at 9:00 a.m.
CET. A conference call and webcast for analysts and
investors is scheduled to begin at 10:00 a.m. CET. To
pre-register for the conference call or to join the
webcast, please refer to the ABB website:
www.abb.com/investorrelations.
The recorded session will be available after the event on
ABB’s website.
Important notice about forward-looking information
For additional information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Q1 results presentation on April 17, 2025
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The
company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss
Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
Financial calendar
2025
July 17 Q2 2025 results
October 16 Q3 2025 results
November 18 Capital Markets Day in New Berlin, United States
===== SIDA 14 =====
1 Q1 2025 FINANCIAL INFORMATION
April 17, 2025
Q1 2025
Financial Information
===== SIDA 15 =====
2 Q1 2025 FINANCIAL INFORMATION
FINANCIAL
INFORMATION
Contents
03 ─ 05 Key Figures
06 ─ 27 Consolidated Financial Information (unaudited)
28 ─ 41 Supplemental Reconciliations and Definitions
===== SIDA 16 =====
3 Q1 2025 FINANCIAL INFORMATION
—
Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Comparable(1)
Orders 9,213 8,974 3% 5%
Order backlog (end March) 23,036 22,015 5% 5%
Revenues 7,935 7,870 1% 3%
Gross Profit(2) 3,311 3,064 8%
as % of revenues(2) 41.7% 38.9% +2.8 pts
Income from operations 1,567 1,217 29%
Operational EBITA(1) 1,597 1,417 13% 16%(3)
as % of operational revenues(1) 20.2% 17.9% +2.3 pts
Income from continuing operations, net of tax 1,119 914 22%
Net income attributable to ABB 1,102 905 22%
Basic earnings per share ($) 0.60 0.49 22%(4)
Cash flow from operating activities 684 726 -6%
Free cash flow(1) 652 551 18%
(1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 28.
(2) Prior period amounts have been restated to reflect a change in accounting policy for IS expenses , see “Note 1 - The Company and basis of presentation” for details.
(3) Constant currency (not adjusted for portfolio changes).
(4) EPS growth rates are computed using unrounded amounts.
===== SIDA 17 =====
4 Q1 2025 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) Q1 2025 Q1 2024 US$ Local Comparable
Orders ABB Group 9,213 8,974 3% 5% 5%
Electrification 4,394 4,392 0% 3% 2%
Motion 2,156 2,303 -6% -4% -4%
Process Automation 2,024 1,697 19% 23% 23%
Robotics & Discrete Automation 799 701 14% 17% 17%
Corporate and Other 128 142
Intersegment eliminations (288) (261)
Order backlog (end March) ABB Group 23,036 22,015 5% 5% 5%
Electrification 8,173 7,389 11% 11% 11%
Motion 5,716 5,612 2% 2% 2%
Process Automation 8,076 7,343 10% 10% 10%
Robotics & Discrete Automation 1,518 1,918 -21% -21% -21%
Corporate and Other
(incl. intersegment eliminations) (447) (247)
Revenues ABB Group 7,935 7,870 1% 3% 3%
Electrification 3,825 3,680 4% 6% 6%
Motion 1,840 1,829 1% 3% 3%
Process Automation 1,633 1,601 2% 5% 5%
Robotics & Discrete Automation 744 864 -14% -11% -11%
Corporate and Other 96 125
Intersegment eliminations (203) (229)
Income from operations ABB Group 1,567 1,217
Electrification 922 769
Motion 361 301
Process Automation 263 234
Robotics & Discrete Automation 56 91
Corporate and Other
(incl. intersegment eliminations) (35) (178)
Income from operations % ABB Group 19.7% 15.5%
Electrification 24.1% 20.9%
Motion 19.6% 16.5%
Process Automation 16.1% 14.6%
Robotics & Discrete Automation 7.5% 10.5%
Operational EBITA ABB Group 1,597 1,417 13% 16%
Electrification 886 826 7% 11%
Motion 360 343 5% 8%
Process Automation 255 253 1% 5%
Robotics & Discrete Automation 74 113 -35% -32%
Corporate and Other
(incl. intersegment eliminations) 22 (118)
Operational EBITA % ABB Group 20.2% 17.9%
Electrification 23.2% 22.4%
Motion 19.6% 18.5%
Process Automation 15.8% 15.6%
Robotics & Discrete Automation 9.9% 13.2%
Cash flow from operating activities ABB Group 684 726
Electrification 521 547
Motion 310 352
Process Automation 264 229
Robotics & Discrete Automation 65 95
Corporate and Other
(incl. intersegment eliminations) (476) (497)
===== SIDA 18 =====
5 Q1 2025 FINANCIAL INFORMATION
Operational EBITA
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24
Revenues 7,935 7,870 3,825 3,680 1,840 1,829 1,633 1,601 744 864
Foreign exchange/commodity timing
differences in total revenues (21) 65 (5) 13 (3) 29 (19) 25 6 (5)
Operational revenues 7,914 7,935 3,820 3,693 1,837 1,858 1,614 1,626 750 859
Income from operations 1,567 1,217 922 769 361 301 263 234 56 91
Acquisition-related amortization 45 56 26 23 9 9 4 1 7 21
Restructuring, related and
implementation costs(1) 16 26 6 10 2 8 2 7 5 –
Changes in obligations related to
divested businesses (1) – – – – – – – – –
Gains and losses from sale of businesses (11) 2 (11) – – – – – – –
Acquisition- and divestment-related
expenses and integration costs 9 19 10 10 1 – 1 – 2 2
Certain other non-operational items 21 63 (31) 3 6 3 (2) – – 1
Foreign exchange/commodity timing
differences in income from operations (49) 34 (36) 11 (19) 22 (13) 11 4 (2)
Operational EBITA 1,597 1,417 886 826 360 343 255 253 74 113
Operational EBITA margin (%) 20.2% 17.9% 23.2% 22.4% 19.6% 18.5% 15.8% 15.6% 9.9% 13.2%
(1) Includes impairment of certain assets.
Depreciation and Amortization
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions) Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24
Depreciation 139 133 71 66 31 28 12 12 14 15
Amortization 57 68 32 28 11 10 5 2 8 22
including total acquisition-related amortization of: 45 56 26 23 9 9 4 1 7 21
Orders received and revenues by region
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
Q1 25 Q1 24 US$ Local parable Q1 25 Q1 24 US$ Local parable
Europe 3,234 3,298 -2% 1% 1% 2,773 2,748 1% 4% 4%
The Americas 3,139 2,904 8% 10% 11% 2,918 2,789 5% 7% 8%
of which United States 2,321 2,139 9% 9% 9% 2,257 2,110 7% 7% 8%
Asia, Middle East and Africa 2,840 2,772 2% 5% 4% 2,244 2,333 -4% -1% -2%
of which China 1,191 1,050 13% 15% 13% 958 998 -4% -3% -4%
ABB Group 9,213 8,974 3% 5% 5% 7,935 7,870 1% 3% 3%
===== SIDA 19 =====
6 Q1 2025 FINANCIAL INFORMATION
—
Consolidated Financial Information
ABB Ltd Consolidated Income Statements (unaudited)
Three months ended
($ in millions, except per share data in $) Mar. 31, 2025 Mar. 31, 2024
Sales of products 6,567 6,503
Sales of services and other 1,368 1,367
Total revenues 7,935 7,870
Cost of sales of products (3,883) (4,041)
Cost of services and other (741) (765)
Total cost of sales (4,624) (4,806)
Gross profit 3,311 3,064
Selling, general and administrative expenses (1,604) (1,528)
Non-order related research and development expenses (329) (345)
Other income (expense), net 189 26
Income from operations 1,567 1,217
Interest and dividend income 54 57
Interest and other finance expense (47) (37)
Non-operational pension (cost) credit 14 16
Income from continuing operations before taxes 1,588 1,253
Income tax expense (469) (339)
Income from continuing operations, net of tax 1,119 914
Loss from discontinued operations, net of tax (1) (1)
Net income 1,118 913
Net income attributable to noncontrolling interests and redeemable noncontrolling interests (16) (8)
Net income attributable to ABB 1,102 905
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 1,103 906
Loss from discontinued operations, net of tax (1) (1)
Net income 1,102 905
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.60 0.49
Loss from discontinued operations, net of tax – –
Net income 0.60 0.49
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.60 0.49
Loss from discontinued operations, net of tax – –
Net income 0.60 0.49
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders 1,836 1,839
Diluted earnings per share attributable to ABB shareholders 1,841 1,852
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 20 =====
7 Q1 2025 FINANCIAL INFORMATION
—
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Three months ended
($ in millions) Mar. 31, 2025 Mar. 31, 2024
Total comprehensive income, net of tax 1,293 1,063
Total comprehensive (income) loss attributable to noncontrolling interests and
redeemable noncontrolling interests, net of tax (22) 8
Total comprehensive income attributable to ABB shareholders, net of tax 1,271 1,071
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 21 =====
8 Q1 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Mar. 31, 2025 Dec. 31, 2024
Cash and equivalents 4,494 4,326
Marketable securities and short-term investments 1,866 1,334
Receivables, net 7,560 7,388
Contract assets 1,210 1,115
Inventories, net 6,070 5,768
Prepaid expenses 354 287
Other current assets 521 541
Total current assets 22,075 20,759
Property, plant and equipment, net 4,301 4,177
Operating lease right-of-use assets 861 840
Investments in equity-accounted companies 377 368
Prepaid pension and other employee benefits 735 689
Intangible assets, net 1,183 1,048
Goodwill 11,088 10,555
Deferred taxes 1,364 1,363
Other non-current assets 480 489
Total assets 42,464 40,288
Accounts payable, trade 5,032 5,036
Contract liabilities 3,248 2,969
Short-term debt and current maturities of long-term debt 805 293
Current operating leases 260 235
Provisions 1,536 1,539
Dividends payable to shareholders 1,872 –
Other current liabilities 4,495 4,582
Total current liabilities 17,248 14,654
Long-term debt 7,015 6,652
Non-current operating leases 625 631
Pension and other employee benefits 579 569
Deferred taxes 727 675
Other non-current liabilities 2,159 2,116
Total liabilities 28,353 25,297
Commitments and contingencies
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,861 million shares issued at March 31, 2025, and December 31, 2024) 162 162
Additional paid-in capital 38 50
Retained earnings 19,883 20,648
Accumulated other comprehensive loss (5,181) (5,350)
Treasury stock, at cost
(28 million and 22 million shares at March 31, 2025, and December 31, 2024, respectively) (1,387) (1,091)
Total ABB stockholders’ equity 13,515 14,419
Noncontrolling interests 596 572
Total stockholders’ equity 14,111 14,991
Total liabilities and stockholders’ equity 42,464 40,288
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 22 =====
9 Q1 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Three months ended
($ in millions) Mar. 31, 2025 Mar. 31, 2024
Operating activities:
Net income 1,118 913
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 196 201
Changes in fair values of investments (12) (13)
Pension and other employee benefits (21) (13)
Deferred taxes 27 (6)
Net gain from derivatives and foreign exchange (59) (8)
Net gain from sale of property, plant and equipment (133) (5)
Net loss (gain) from sale of businesses (11) 2
Other (7) 32
Changes in operating assets and liabilities:
Trade receivables, net 4 (33)
Contract assets and liabilities 141 38
Inventories, net (103) (205)
Accounts payable, trade (112) 82
Accrued liabilities (511) (473)
Provisions, net (55) 37
Income taxes payable and receivable 212 122
Other assets and liabilities, net 10 55
Net cash provided by operating activities 684 726
Investing activities:
Purchases of investments (846) (877)
Purchases of property, plant and equipment and intangible assets (195) (181)
Acquisition of businesses (net of cash acquired) and increases in cost - and equity-accounted companies (552) (30)
Proceeds from sales of investments 329 727
Proceeds from sales of property, plant and equipment 163 6
Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost - and
equity-accounted companies 43 (8)
Net cash from settlement of foreign currency derivatives 110 31
Other investing activities 2 1
Net cash used in investing activities (946) (331)
Financing activities:
Net changes in debt with original maturities of 90 days or less 400 (20)
Increase in debt 295 1,358
Repayment of debt (7) (565)
Delivery of shares – 390
Purchase of treasury stock (289) (291)
Dividends paid – (919)
Other financing activities 1 (3)
Net cash provided by (used in) financing activities 400 (50)
Effects of exchange rate changes on cash and equivalents 30 (134)
Net change in cash and equivalents 168 211
Cash and equivalents, beginning of period 4,326 3,909
Cash and equivalents, end of period 4,494 4,120
Supplementary disclosure of cash flow information:
Interest paid 118 94
Income taxes paid 258 228
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 23 =====
10 Q1 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
($ in millions)
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total ABB
stockholders’
equity
Non-
controlling
interests
Total
stockholders’
equity
Balance at January 1, 2024 163 7 19,655 (5,070) (1,414) 13,341 647 13,988
Net income(1) 905 905 9 914
Foreign currency translation
adjustments, net of tax of $3 131 131 (16) 115
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 (1) (1) (1)
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $16 33 33 33
Change in derivative instruments
and hedges, net of tax of $0 3 3 3
Changes in noncontrolling interests (1) (30) (31) 1 (30)
Dividends to
noncontrolling shareholders – (1) (1)
Dividends to shareholders (1,804) (1,804) (1,804)
Share-based payment arrangements 20 20 1 21
Purchase of treasury stock (314) (314) (314)
Delivery of shares (14) (174) 578 390 390
Other (3) (3) 2 (1)
Balance at March 31, 2024 163 9 18,553 (4,904) (1,150) 12,671 642 13,313
Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991
Net income 1,102 1,102 16 1,118
Foreign currency translation
adjustments, net of tax of $0 182 182 6 188
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 3 3 3
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $(8) (18) (18) (18)
Change in derivative instruments
and hedges, net of tax of $0 2 2 2
Changes in noncontrolling interests – 1 1
Dividends to shareholders (1,867) (1,867) (1,867)
Share-based payment arrangements 17 17 1 18
Purchase of treasury stock (326) (326) (326)
Delivery of shares (31) 31 – –
Balance at March 31, 2025 162 38 19,883 (5,181) (1,387) 13,515 596 14,111
(1) Amount attributable to noncontrolling interests for the three months ended March 31, 2024, excludes the net loss of $1 million, related to redeemable noncontrolling
interests.
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 24 =====
11 Q1 2025 FINANCIAL INFORMATION
—
Notes to the Consolidated Financial Information (unaudited)
─
Note 1
The Company and basis of presentation
ABB Ltd and its subsidiaries (collectively, the Company) together form a global technology leader in electrification and automation, enabling a more
sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform .
The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted a ccounting principles
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the informa tion and notes required under
U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction w ith the audited
consolidated financial statements in the Company’s Annual Report for the year ended December 31, 2024.
The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates t hat directly affect the
amounts reported in the Consolidated Financial Information. These accounting assumptions and estimates include:
• estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,
• estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other rece ivables, loans and
other instruments,
• estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environme ntal damages,
product warranties, self-insurance reserves, regulatory and other proceedings,
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the
percentage-of-completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company
expects to be entitled to,
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,
• estimates used to record expected costs for employee severance in connection with restructuring programs,
• assumptions used in determining inventory obsolescence and net realizable value,
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for
impairment,
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations, and
• estimates and assumptions used in determining the initial fair value of retained noncontrolling interest s and certain obligations in connection
with divestments.
The actual results and outcomes may differ from the Company’s estimates and assumptions.
For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contracts as its operating cycle.
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provisions related to these cont racts which will not be realized
within one year that have been classified as current. Long -term system integration activities comprise the majority of the Company’s activities which
have an operating cycle in excess of one year that have been classified as current.
Basis of presentation
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial
position, results of operations and cash flows for the reported periods. Management considers all such adjustments to be of a normal recurring nature.
The Consolidated Financial Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, nu mbers presented in the
Consolidated Financial Information may not add to the totals provided.
Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the current year’s
presentation, as mentioned below in this Note.
Change in accounting policy
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Previously, the Company allocated information system expenses in the income statement to the functional area based on a
headcount approach while, in connection with this change, information systems expenses are allocated to the relevant income statement caption based
on the nature of the underlying system.
The Company’s consolidated financial statements have been retroactively restated to reflect this accounting policy change. In connection with this
change, the Company recorded a cumulative-effect reduction of $69 million to the balance of Retained earnings on January 1, 2023, representing the
impact of the policy change on Inventories and the related deferred tax balance. The effect on Net income for the years 2023 and 2024 was not
considered significant and therefore no changes have been recorded.
As a result, the Company’s Consolidated Balance Sheet amounts at December 31, 2024, for Inventories, Deferred taxes (asset), and Retained earnings
have changed from $5,859 million, $1,341 million and $20,717 million, respectively, to $5,768 million, $1,363 million and $20,648 million, respectively.
===== SIDA 25 =====
12 Q1 2025 FINANCIAL INFORMATION
The following table details the reclassification of information systems expenses within the Consolidated Income Statement:
Three months ended March 31, 2024
($ in millions) Before After
Cost of sales of products 4,145 4,041
Cost of services and other 790 765
Selling, general and administrative expenses 1,381 1,528
Non-order related research and development expenses 363 345
Warranty provision split
In 2025, the Company split the amount previously reported in Provision for warranties into current and non-current components and retroactively recast
the amounts for all periods presented. The balance at December 31, 2024, which was previously recorded on a combined basis, of $1,248 million has been
reclassified into Provisions ($686 million) and Other non-current liabilities ($562 million). See Note 10 - Commitments and contingencies for additional
information.
─
Note 2
Recent accounting pronouncements
Applicable for current periods
Improvements to Income tax disclosures
In January 2025, the Company adopted an accounting standard update which requires the Company to disclose additional information related to income
taxes. Under the update, the Company is required to annually disclose by jurisdiction (i) additional disaggregated information within the tax rate
reconciliation and (ii) income taxes paid. The Company is currently evaluating the impact of adopting this update prospectively or retrospectively on its
consolidated financial statements. Apart from the additional disclosure requirements, this update does not have a significant impact on the Company’s
consolidated financial statements.
Applicable for future periods
Disaggregation of Income Statement Expenses
In November 2024, an accounting standard update was issued which requires the Company to disclose additional information for certain types of
expenses, including purchases of inventory, employee compensation, depreciation, and amortization, presented in each relevant income statement
expense caption (such as cost of sales, selling, general and administrative expenses). This update is effective for the Compa ny prospectively, with
retrospective adoption permitted, for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. The Company is currently
evaluating the impact of adopting this update on its consolidated financial statements.
─
Note 3
Acquisitions and divestments
Acquisition of controlling interests
Acquisitions of controlling interests were as follows:
Three months ended March 31,
($ in millions, except number of acquired businesses) 2025 2024
Purchase price for acquisitions (net of cash acquired) (1) 546 29
Aggregate excess of purchase price over
fair value of net assets acquired(2) 426 29
Number of acquired businesses 3 2
(1) Excluding changes in cost - and equity -accounted companies.
(2) Recorded as goodwill.
In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired ” in the three
months ended March 31, 2025, relate primarily to the acquisitions of Sensorfact BV and the Siemens Wiring Accessories Business in China.
Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Comp any’s consolidated
financial statements since the date of acquisition.
On February 3, 2025, the Company acquired all of the shares of Sensorfact BV. Sensorfact BV , headquartered in Utrecht, Netherlands, offers a scalable
software as a service (SaaS) solution that helps small and medium sized enterprises use AI in their operations and energy man agement to lower costs
and increase efficiency. The cash outflows to complete the transaction amounted to $1 48 million (net of cash acquired). This acquisition will expand the
Company’s portfolio of energy management solutions that use big data and AI within its Electrification segment.
On March 3, 2025, the Company acquired through numerous share and asset purchases all of the assets, liabilities and business activities of the Siemens
Wiring Accessories Business in China. The Siemens Wiring Accessories Business offering, which distributes throughout China, includes wiring
accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction
amounted to $380 million (net of cash acquired). This acquisition will broaden the market reach of the Company’s Electrification segment and
complement the segments’ regional customer offering within smart buildings .
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.
===== SIDA 26 =====
13 Q1 2025 FINANCIAL INFORMATION
─
Note 4
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short -term investments consisted of the following:
March 31, 2025
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,329 1,329 1,329
Time deposits 3,686 3,686 3,165 521
Equity securities 1,300 34 (1) 1,333 1,333
6,315 34 (1) 6,348 4,494 1,854
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
Other government obligations 12 12 12
12 – – 12 – 12
Total 6,327 34 (1) 6,360 4,494 1,866
December 31, 2024
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,328 1,328 1,328
Time deposits 3,518 3,518 2,998 520
Equity securities 794 22 (2) 814 814
Total 5,640 22 (2) 5,660 4,326 1,334
===== SIDA 27 =====
14 Q1 2025 FINANCIAL INFORMATION
─
Note 5
Derivative financial instruments
The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The
Company uses derivative instruments to reduce and manage the economic impact of these exposures.
Currency risk
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering
into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies r equire its subsidiaries to
hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forec asted foreign currency
denominated sales of standard products and the related foreign currency denominated purchases, the Company’s policy is to hed ge up to a maximum
of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Foreca sted exposures
greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the vol atility
of future cash flows (caused by changes in exchange rates) of contracted and forecasted sales and purchases denominated in fo reign currencies. In
addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange cont racts to manage the
currency and timing mismatches arising in its liquidity management activities.
Commodity risk
Various commodity products are used in the Company’s manufacturing activities. Consequently , it is exposed to volatility in future cash flows arising
from changes in commodity prices. To manage the price risk of commodities, the Com pany’s policies require that its subsidiaries hedge the commodity
price risk exposures from binding contracts, as well as at least 50 percent (up to a maximum of 100 percent) of the forecasted commodity exposure over
the next 12 months or longer (up to a maximum of 18 months). Primarily swap contracts are used to manage the associated price risks of commodities.
Interest rate risk
The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and
foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to tim e, the
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manag e interest rate risk
arising from the Company’s balance sheet structure but does not designate such instruments as hedges.
Volume of derivative activity
In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its busines s, certain derivatives are
designated and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge acco unting.
Foreign exchange and interest rate derivatives
The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not) were as follows:
Type of derivative Total notional amounts at
($ in millions) March 31, 2025 December 31, 2024 March 31, 2024
Foreign exchange contracts 14,970 12,800 14,331
Embedded foreign exchange derivatives 1,409 1,159 1,106
Cross-currency interest rate swaps 865 833 863
Interest rate contracts 1,625 1,510 3,075
Derivative commodity contracts
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver,
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is,
to reflect the Company’s requirements for these commodities:
Type of derivative Unit Total notional amounts at
March 31, 2025 December 31, 2024 March 31, 2024
Copper swaps metric tonnes 37,364 40,699 38,116
Silver swaps ounces 2,138,318 2,648,681 2,689,981
Steel swaps metric tonnes 18,144 20,185 10,251
Aluminum swaps metric tonnes 4,300 4,525 5,875
Cash flow hedges
As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations and commodity
swaps to manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, th e effective portion of
the changes in their fair value is recorded in Accumulated other comprehensive loss and subsequently reclassified into earnin gs in the same line item
and in the same period as the underlying hedged transaction affects earnings. For the three months ended March 31, 2025 and 2024, there were no
significant amounts recorded for cash flow hedge accounting activities.
Fair value hedges
To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swap s and cross-currency interest
rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the
fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and losses in Interest and other finance expense.
===== SIDA 28 =====
15 Q1 2025 FINANCIAL INFORMATION
The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows:
Three months ended March 31,
($ in millions) 2025 2024
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges (5) 13
Hedged item 5 (14)
Cross-currency interest rate swaps Designated as fair value hedges (1) (3)
Hedged item 2 3
Derivatives not designated in hedge relationships
Derivative instruments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are economic hedges used for risk
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as
the economically hedged transaction.
Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency deriva tives that are embedded
within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsid iary and the counterparty.
The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships we re as follows:
Type of derivative not Gains (losses) recognized in income
designated as a hedge Three months ended March 31,
($ in millions) Location 2025 2024
Foreign exchange contracts Total revenues 80 (168)
Total cost of sales (17) 47
SG&A expenses(1) (19) 13
Non-order related research and development – (2)
Interest and other finance expense 50 247
Embedded foreign exchange contracts Total revenues (2) 18
Total cost of sales 3 (4)
Commodity contracts Total cost of sales 41 9
Other Interest and other finance expense – (2)
Total 136 158
(1) SG&A expenses represent “Selling, general and administrative expenses”.
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:
March 31, 2025
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – – –
Interest rate contracts – 3 – –
Cross-currency interest rate swaps – – – 223
Other 3 – – –
Total 3 3 – 223
Derivatives not designated as hedging instruments:
Foreign exchange contracts 102 19 103 8
Commodity contracts 25 – 3 –
Embedded foreign exchange derivatives 18 7 12 3
Other 1 1 1 –
Total 146 27 119 11
Total fair value 149 30 119 234
===== SIDA 29 =====
16 Q1 2025 FINANCIAL INFORMATION
December 31, 2024
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – 1 –
Interest rate contracts – 7 – –
Cross-currency interest rate swaps – – – 256
Other 4 – – –
Total 4 7 1 256
Derivatives not designated as hedging instruments:
Foreign exchange contracts 151 17 111 15
Commodity contracts 4 – 20 –
Embedded foreign exchange derivatives 22 6 11 5
Other – 5 – –
Total 177 28 142 20
Total fair value 181 35 143 276
Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions betw een two
counterparties on the occurrence of one or more pre-defined trigger events.
Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the
Consolidated Balance Sheets at March 31, 2025, and December 31, 2024, have been presented on a gross basis.
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At March 31, 2025, and December 31,
2024, information related to these offsetting arrangements was as follows:
($ in millions) March 31, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 154 (80) – – 74
Total 154 (80) – – 74
($ in millions) March 31, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 338 (80) – – 258
Total 338 (80) – – 258
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 188 (90) – – 98
Total 188 (90) – – 98
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 403 (90) – – 313
Total 403 (90) – – 313
===== SIDA 30 =====
17 Q1 2025 FINANCIAL INFORMATION
─
Note 6
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, when necessary, to record
certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis i nclude foreign currency,
commodity and interest rate derivatives, as well as available -for-sale securities. Non-financial assets recorded at fair value on a non -recurring basis
include long-lived assets that are reduced to their estimated fair value due to impairments.
Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transactio n between market participants at
the measurement date. In determining fair value, the Company uses various valuation techniques including the market approach (using observable
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a
market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and liabilit ies are defined by a
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobser vable. An observable input
is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions abo ut market data.
The levels of the fair value hierarchy are as follows:
Level 1: Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (observable quoted prices). Assets and liabilities
valued using Level 1 inputs include exchange‑traded equity securities, listed derivatives which are actively traded such as commodity futures,
interest rate futures and certain actively traded debt securities .
Level 2: Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively quoted prices for similar assets, quoted prices in
inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs derived fr om other observable
data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in valuation models
may be both observable and unobservable. In these cases, the fair value measurement is classified as Level 2 unless the unobs ervable portion of
the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as
Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt s ecurities that are not
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign
exchange swaps and forward rate agreements, time deposits, as well as financing receivables and debt.
Level 3: Valuation inputs are based on the Company’s assumptions of relevant market data (unobservable input).
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid -market quotes. When determining fair
values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financi al instrument has significantly
decreased or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be disclosed . If the market is
considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach.
Recurring fair value measures
The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:
March 31, 2025
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities – 1,333 – 1,333
Debt securities—Other government obligations 12 – – 12
Derivative assets—current in “Other current assets” – 149 – 149
Derivative assets—non-current in “Other non-current assets” – 30 – 30
Total 12 1,512 – 1,524
Liabilities
Derivative liabilities—current in “Other current liabilities” – 119 – 119
Derivative liabilities—non-current in “Other non-current liabilities” – 234 – 234
Total – 353 – 353
December 31, 2024
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities – 814 – 814
Derivative assets—current in “Other current assets” – 181 – 181
Derivative assets—non-current in “Other non-current assets” – 35 – 35
Total – 1,030 – 1,030
Liabilities
Derivative liabilities—current in “Other current liabilities” – 143 – 143
Derivative liabilities—non-current in “Other non-current liabilities” – 276 – 276
Total – 419 – 419
===== SIDA 31 =====
18 Q1 2025 FINANCIAL INFORMATION
The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a
recurring basis:
• Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available,
these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices
are not available, fair value is determined using market prices for similar assets or present value techniques, applying an a ppropriate risk-free
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level 2 category.
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market, if
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value
techniques, based on available market data, or option pricing models are used. The fair values obtained using price quotes fo r similar
instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used.
Non-recurring fair value measures
There were no significant non-recurring fair value measurements during the three months ended March 31, 2025 and 2024.
Disclosure about financial instruments carried on a cost basis
The fair values of financial instruments carried on a cost basis were as follows:
March 31, 2025
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,329 1,329 – – 1,329
Time deposits 3,165 – 3,165 – 3,165
Marketable securities and short-term investments
(excluding securities):
Time deposits 521 – 521 – 521
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 780 199 581 – 780
Long-term debt (excluding finance lease obligations) 6,843 6,155 734 – 6,889
December 31, 2024
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,328 1,328 – – 1,328
Time deposits 2,998 – 2,998 – 2,998
Marketable securities and short-term investments
(excluding securities):
Time deposits 520 – 520 – 520
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 265 188 77 – 265
Long-term debt (excluding finance lease obligations) 6,486 6,012 551 – 6,563
The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost b asis:
• Cash and equivalents (excluding securities with original maturities up to 3 months) and Marketable securities and short-term investments
(excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in banks, are
equal to the deposit amount.
• Short-term debt and current maturities of long -term debt (excluding finance lease obligations): Short-term debt includes commercial paper,
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease
obligations, approximate their fair values.
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using quoted market prices (Level 1 inputs), if
available. For bonds without available quoted market prices and other long -term debt, the fair values are determined using a discounted cash
flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate adjustments for non -performance risk
(Level 2 inputs).
===== SIDA 32 =====
19 Q1 2025 FINANCIAL INFORMATION
─
Note 7
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) March 31, 2025 December 31, 2024 March 31, 2024
Contract assets 1,210 1,115 1,135
Contract liabilities 3,248 2,969 2,866
Contract assets primarily relate to the Company’s right to receive consideration for work completed but for which no invoice has been issued at the
reporting date. Contract assets are transferred to receivables when rights to receive payment become unconditional. Management expects that the
majority of the amounts will be collected within one year of the respective balance sheet date.
Contract liabilities primarily relate to up-front advances received on orders from customers as well as amounts invoiced to customers in excess of
revenues recognized predominantly on long-term projects. Contract liabilities are reduced as work is performed and as revenues are recognized .
The significant changes in the Contract assets and Contract liabilities balances were as follows:
Three months ended March 31,
2025 2024
Contract Contract Contract Contract
($ in millions) assets liabilities assets liabilities
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2025/2024 (673) (724)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 877 819
Receivables recognized that were included in the Contract assets balance at Jan 1, 2025/2024 (392) (408)
The Company considers its order backlog to represent its unsatisfied performance obligations. At March 31, 2025, the Company had unsatisfied
performance obligations totaling $23,036 million and, of this amount, the Company expects to fulfill approximately 60 percent of the obligations in
2025, approximately 24 percent of the obligations in 2026 and the balance thereafter.
─
Note 8
Supplier finance programs
The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng as paying agent. These
programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms
related to suppliers’ finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements an d are typically consistent
with local market practices. Outstanding supplier finance obligations are included in Accounts payable, trade in the Consolid ated Balance Sheets and are
reported as operating or investing (if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At Marc h 31, 2025, and December 31,
2024, the total obligation outstanding under supplier finance programs amounted to $439 million and $435 million, respectively.
─
Note 9
Debt
The Company’s total debt at March 31, 2025, and December 31, 2024, amounted to $7,820 million and $6,945 million, respectively.
Short-term debt and current maturities of long-term debt
The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:
($ in millions) March 31, 2025 December 31, 2024
Short-term debt 588 83
Current maturities of long-term debt 217 210
Total 805 293
Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks. At March 31, 2025, $508 million
was outstanding under the $2 billion Euro-commercial paper program, no amount was outstanding under this program at December 31, 2024.
===== SIDA 33 =====
20 Q1 2025 FINANCIAL INFORMATION
Long-term debt
The Company’s long-term debt at March 31, 2025, and December 31, 2024, amounted to $7,015 million and $6,652 million, respectively.
Significant long-term borrowings (including maturities within the next 12 months) were as follows:
March 31, 2025 December 31, 2024
(in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1)
Bonds:
2.1% CHF Bonds, due 2025 CHF 150 $ 170 CHF 150 $ 166
1.965% CHF Bonds, due 2026 CHF 325 $ 368 CHF 325 $ 359
3.25% EUR Instruments, due 2027 EUR 500 $ 539 EUR 500 $ 518
0.75% CHF Bonds, due 2027 CHF 425 $ 481 CHF 425 $ 468
3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382
1.9775% CHF Bonds, due 2028 CHF 150 $ 170 CHF 150 $ 165
3.125% EUR Instruments, due 2029 EUR 500 $ 543 EUR 500 $ 523
1.0% CHF Bonds, due 2029 CHF 170 $ 192 CHF 170 $ 188
0% EUR Instruments, due 2030 EUR 800 $ 759 EUR 800 $ 727
2.375% CHF Bonds, due 2030 CHF 150 $ 170 CHF 150 $ 165
3.375% EUR Instruments, due 2031 EUR 750 $ 801 EUR 750 $ 770
Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539
2.1125% CHF Bonds, due 2033 CHF 275 $ 311 CHF 275 $ 303
3.375% EUR Instruments, due 2034 EUR 750 $ 807 EUR 750 $ 780
4.375% USD Notes, due 2042(2) USD 609 $ 591 USD 609 $ 591
Total $ 6,823 $ 6,644
(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.
(2) Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD
Notes, due 2042, was USD 750 million.
─
Note 10
Commitments and contingencies
Contingencies—Regulatory, Compliance and Legal
General
The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and
other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters, as well as potentia l ranges of probable
losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue, with assistance, when
necessary, from internal and external legal counsel and technical experts.
At March 31, 2025, and December 31, 2024, the Company had aggregate liabilities of $45 million and $83 million, respectively, included in Provisions and
Other non‑current liabilities, for the regulatory, compliance and legal contingencies, and none of the individual liabilities recognize d was significant. As it
is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and as it is not possi ble, based on information
currently available to management, to estimate the maximum potential liability on other matters, there could be adverse outco mes beyond the amounts
accrued.
Guarantees
General
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a
“worst-case scenario”, and do not reflect management’s expected outcomes.
Maximum potential payments ($ in millions) March 31, 2025 December 31, 2024
Performance guarantees 2,043 2,299
Financial guarantees 20 22
Total(1) 2,063 2,321
(1) Maximum potential payments include amounts in both continuing and discontinued operations.
The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may
incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amounts of liabilities at March 31, 2025, and
December 31, 2024, were not significant.
The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guar antees, which have
various maturities up to 2034, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s
product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a pro ject will be completed
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party in cash or in kind. The
original maturity dates for the majority of these performance guarantees range from one to ten years.
In conjunction with the divestment of the high -voltage cable and cables accessories businesses in 2017, the Company has entered into various
performance guarantees with other parties with respect to certain liabilities of the divested business. At March 31, 2025, and December 31, 2024, the
maximum potential payable under these guarantees amounts to $784 million and $747 million, respectively, and these guarantees have various original
maturities up to ten years.
===== SIDA 34 =====
21 Q1 2025 FINANCIAL INFORMATION
The Company retained obligations for financial and performance guarantees related to its former Power Grids business (reporte d as discontinued
operations prior to its sale to Hitachi Ltd in 2020), which at both March 31, 2025, and December 31, 2024, have been fully indemnified by Hitachi Ltd.
These guarantees, having various maturities up to 203 4, primarily consist of bank guarantees, standby letters of credit, business performance
guarantees and other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount
payable under these guarantees at March 31, 2025, and December 31, 2024, is approximately $0.9 billion and $1.1 billion, respectively.
Commercial commitments
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance
bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customers can draw on such per formance bonds in the
event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse t he financial institution for
amounts paid under the performance bonds. At March 31, 2025, and December 31, 2024, the total outstanding performance bonds aggregated to
$3.3 billion and $3.2 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements
in the three months ended March 31, 2025 and 2024.
Product and order-related contingencies
The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts. The
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:
($ in millions) 2025 2024
Balance at January 1, 1,248 1,210
Claims paid in cash or in kind (43) (37)
Net increase in provision for changes in estimates, warranties issued and warranties expired 59 55
Exchange rate differences 29 (37)
Balance at March 31, 1,293 1,191
Included in:
”Provisions” — current liabilities 693 621
”Other non-current liabilities” — non-current liabilities 600 570
Provisions for warranties - Total 1,293 1,191
─
Note 11
Employee benefits
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local
regulations and practices. At March 31, 2025, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the
United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event
of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates other
postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requirements.
Net periodic benefit cost of the Company’s defined benefit pension plans consist s of the following:
($ in millions) Defined pension benefits
Switzerland International
Three months ended March 31, 2025 2024 2025 2024
Operational pension cost:
Service cost 13 11 6 8
Operational pension cost 13 11 6 8
Non-operational pension cost (credit):
Interest cost 5 9 38 39
Expected return on plan assets (27) (31) (41) (43)
Amortization of prior service cost (credit) – (2) (1) (1)
Amortization of net actuarial loss – – 12 13
Non-operational pension cost (credit) (22) (24) 8 8
Net periodic benefit cost (credit) (9) (13) 14 16
The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the
Consolidated Income Statements.
Employer contributions were as follows:
($ in millions) Defined pension benefits
Switzerland International
Three months ended March 31, 2025 2024 2025 2024
Total contributions to defined benefit pension plans 15 13 9 11
The Company expects to make contributions totaling approximately $87 million to its defined benefit pension plans for the full year 2025.
===== SIDA 35 =====
22 Q1 2025 FINANCIAL INFORMATION
─
Note 12
Stockholder's equity
At the Annual General Meeting of Shareholders on March 27, 2025, shareholders approved the proposal of the Board of Directors to distribute 0. 90 Swiss
francs per share to shareholders. The declared dividend , scheduled for payment in the second quarter of 2025, amounted to $1,867 million.
In February 2025, the Company announced the completion of its $1 billion share buyback program that was launched in April 2024. This program was
executed on a second trading line on the SIX Swiss Exchange. Also in February 2025, the Company launched a new share buyback program of up to
$1.5 billion, as announced in late January 2025. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to
run until January 2026. Under these buyback programs, the Company purchased approximately 6 million shares in the three months ended March 31,
2025, resulting in an increase in Treasury stock of $314 million.
─
Note 13
Earnings per share
Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per
share is calculated by dividing income by the weighted -average number of shares outstanding during the period, assuming that all potentially dilutive
securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options, and outsta nding options and shares
granted subject to certain conditions under the Company’s share -based payment arrangements.
Basic earnings per share
Three months ended March 31,
($ in millions, except per share data in $) 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 1,103 906
Loss from discontinued operations, net of tax (1) (1)
Net income 1,102 905
Weighted-average number of shares outstanding (in millions) 1,836 1,839
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.60 0.49
Loss from discontinued operations, net of tax – –
Net income 0.60 0.49
Diluted earnings per share
Three months ended March 31,
($ in millions, except per share data in $) 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 1,103 906
Loss from discontinued operations, net of tax (1) (1)
Net income 1,102 905
Weighted-average number of shares outstanding (in millions) 1,836 1,839
Effect of dilutive securities:
Call options and shares 5 13
Adjusted weighted-average number of shares outstanding (in millions) 1,841 1,852
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.60 0.49
Loss from discontinued operations, net of tax – –
Net income 0.60 0.49
===== SIDA 36 =====
23 Q1 2025 FINANCIAL INFORMATION
─
Note 14
Reclassifications out of accumulated other comprehensive loss
The following table shows changes in “Accumulated other comprehensive loss” (OCI) attributable to ABB, by component, net of t ax:
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2024 (3,977) (8) (1,075) (10) (5,070)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications 115 (1) 27 – 141
Amounts reclassified from OCI – – 6 3 9
Total other comprehensive (loss) income 115 (1) 33 3 150
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests (16) – – – (16)
Balance at March 31, 2024 (3,846) (9) (1,042) (7) (4,904)
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2025 (4,248) (3) (1,091) (8) (5,350)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications 188 3 (26) (1) 164
Amounts reclassified from OCI – – 8 3 11
Total other comprehensive (loss) income 188 3 (18) 2 175
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests 6 – – – 6
Balance at March 31, 2025 (4,066) – (1,109) (6) (5,181)
The amounts reclassified out of OCI for the three months ended March 31, 2025 and 2024, were not significant.
─
Note 15
Operating segment data
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of each
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services:
Electrification, Motion, Process Automation and Robotics & Discrete Automation. The remaining operations of the Company are i ncluded in Corporate
and Other.
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Under the new policy, information systems expenses are now allocated to the relevant income statement caption based on the
nature of the underlying system and the Total segment assets of each individual operating segment have been retroactively restated for the impact of
the policy change on Inventories and the related deferred tax balance (see Note 1). The segment information for the three months ended March 31, 2024,
and at December 31, 2024, has been recast to reflect this change.
A description of the types of products and services provided by each reportable segment is as follows:
• Electrification: manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution
of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power
solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit
breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and
building solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The
products and services are delivered through five operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation
Products and Service.
===== SIDA 37 =====
24 Q1 2025 FINANCIAL INFORMATION
• Motion: designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low -carbon future for
industries, cities, infrastructure and transportation. These products, digital technology and related services enable industr ial customers to
increase energy efficiency, improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of
cumulative experience in electric powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide
range of applications in all industrial segments. In addition, Motion, along with its partners, has a leading global service presence. These
products and services are delivered through seven operating Divisions: Large Motors and Generators, IEC LV Motors, NEMA Motors, Drive
Products, System Drives, Service and Traction.
• Process Automation: offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle
services for the process, hybrid and marine industries. The product portfolio includes control technologies, industrial software, advanced
analytics, sensing and measurement technology, and marine propulsion systems. In addition, Process Automation offers a comprehensive
range of services, from repair to advanced digital capabilities such as remote monitoring, preventive maintenance, asset performance
management, emission monitoring and cybersecurity. The products, systems and services are delivered through four operating Divisions:
Energy Industries, Process Industries, Marine & Ports and Measurement & Analytics.
• Robotics & Discrete Automation: delivers its products, solutions and services through two operating Divisions. Robotics provides industrial
and collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts and
digital services. Machine Automation specializes in automation solutions based on its programmable logic controllers (PLC), industrial PCs
(IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, including engineering and
simulation software as well as a comprehensive range of digital solutions.
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other inclu des
the E-mobility operating segment and other non-core operating activities as well as the operating activities of certain divested businesses.
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations
excluding:
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial
resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of this review process, current
year-to-date budget-to-actual variances are provided (inclusive of key deviations) along with forecasted annual expectations and plans to address an y
negative variances. Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the
compensation of the Company’s employees.
The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory sales between segments.
Segment results below are presented before these eliminations, with a total deduction for intersegment profits to arrive at t he Company’s consolidated
Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at current market prices.
For a category of expense to be classified as a significant segment expense, it must be significant to the segment, regularly provided to or easily
computed from information regularly provided to the CODM and included in the primary measure of profitability. Significant se gment expenses include
Operational cost of sales, Operational selling, general and administrative expenses, and Operational non -order related research and development costs,
which respectively are comprised of Cost of sales, Selling, general and administrative expenses (excluding bad debt expense), and Non-order related
research and development costs, with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and
any relevant non-operational items (as defined above).
Other segment items represent Other income (expense) excluding its respective components of non -operational items (as defined above), bad debt
expense, and foreign exchange/commodity timing differences in total revenues.
===== SIDA 38 =====
25 Q1 2025 FINANCIAL INFORMATION
The following tables present disaggregated segment revenues from contracts with customers, significant segment expenses, and Operational EBITA for
the three months ended March 31, 2025 and 2024.
Three months ended March 31, 2025
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,154 540 684 356 39 2,773
The Americas 1,692 635 437 124 30 2,918
of which: United States 1,357 524 284 72 20 2,257
Asia, Middle East and Africa 935 536 502 259 12 2,244
of which: China 408 243 131 172 4 958
3,781 1,711 1,623 739 81 7,935
Product type
Products 3,522 1,456 922 597 70 6,567
Services and other 259 255 701 142 11 1,368
3,781 1,711 1,623 739 81 7,935
Third-party revenues 3,781 1,711 1,623 739 81 7,935
Intersegment revenues 44 129 10 5 (188) –
Total revenues(1) 3,825 1,840 1,633 744 (107) 7,935
Operational cost of sales (2,189) (1,113) (975) (480)
Operational selling, general and
administrative expenses (650) (289) (306) (149)
Operational non-order related
research and development
expenses (105) (73) (78) (46)
Other segment items 5 (5) (19) 5
Operational EBITA 886 360 255 74
Three months ended March 31, 2024
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,154 488 555 490 61 2,748
The Americas 1,529 630 447 140 43 2,789
of which: United States 1,186 516 285 85 38 2,110
Asia, Middle East and Africa 936 558 593 231 15 2,333
of which: China 415 256 165 157 5 998
3,619 1,676 1,595 861 119 7,870
Product type
Products 3,380 1,395 911 711 106 6,503
Services and other 239 281 684 150 13 1,367
3,619 1,676 1,595 861 119 7,870
Third-party revenues 3,619 1,676 1,595 861 119 7,870
Intersegment revenues 61 153 6 3 (223) –
Total revenues(1) 3,680 1,829 1,601 864 (104) 7,870
Operational cost of sales (2,163) (1,179) (1,013) (527)
Operational selling, general and
administrative expenses (600) (263) (281) (166)
Operational non-order related
research and development
expenses (106) (79) (75) (56)
Other segment items 15 35 21 (2)
Operational EBITA 826 343 253 113
===== SIDA 39 =====
26 Q1 2025 FINANCIAL INFORMATION
The following tables present Operational EBITA, the reconciliations of consolidated Operational EBITA to Income from continuing operations before
taxes, as well as Depreciation and amortization, and Capital expenditures for the three months ended March 31, 2025 and 2024, and Total assets at
March 31, 2025, and December 31, 2024:
Three months ended
March 31,
($ in millions) 2025 2024
Operational EBITA:
Electrification 886 826
Motion 360 343
Process Automation 255 253
Robotics & Discrete Automation 74 113
Corporate and Other
‒ E-mobility (47) (54)
‒ Corporate costs, intersegment eliminations and other 69 (64)
Total 1,597 1,417
Acquisition-related amortization (45) (56)
Restructuring, related and implementation costs (1) (16) (26)
Changes in obligations related to divested businesses 1 –
Gains and losses from sale of businesses 11 (2)
Acquisition- and divestment-related expenses and integration costs (9) (19)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) 78 (77)
Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized – 1
Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities) (29) 42
Certain other non-operational items:
Other income/expense relating to the Power Grids joint venture 3 8
Business transformation costs(2) (44) (50)
Certain other fair value changes, including asset impairments 16 (14)
Other non-operational items 4 (7)
Income from operations 1,567 1,217
Interest and dividend income 54 57
Interest and other finance expense (47) (37)
Non-operational pension (cost) credit 14 16
Income from continuing operations before taxes 1,588 1,253
(1) Includes impairment of certain assets.
(2) Amount includes ABB Way process transformation costs of $43 million and $46 million for the three months ended March 31, 2025 and 2024, respectively.
($ in millions) Depreciation and
amortization Capital expenditures(1)
Three months ended March 31, 2025 2024 2025 2024
Electrification 103 94 79 84
Motion 42 38 46 44
Process Automation 17 14 14 15
Robotics & Discrete Automation 22 37 19 21
Corporate and Other 12 18 37 17
Consolidated 196 201 195 181
(1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only.
Total assets(1)
($ in millions) March 31, 2025 December 31, 2024
Electrification 14,387 13,089
Motion 6,960 6,870
Process Automation 5,383 5,308
Robotics & Discrete Automation 4,777 4,753
Corporate and Other 10,957 10,268
Consolidated 42,464 40,288
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.
===== SIDA 40 =====
27 Q1 2025 FINANCIAL INFORMATION
===== SIDA 41 =====
28 Q1 2025 FINANCIAL INFORMATION
—
Supplemental Reconciliations and Definitions
The following reconciliations and definitions include alternative performance measures which ABB uses to supplement its Consolidated Financial
Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of
these financial measures are not defined under U.S. GAAP.
While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance wit h U.S. GAAP.
Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited)
prepared in accordance with U.S. GAAP as of and for the three months ended March 31, 2025.
Effective January 1, 2025, ABB changed its accounting policy related to the functional classification of its information system expenses in the
income statement . As a result, the consolidated financial statements for 2024 and 2023 have been retroactively restated to reflect this
accounting policy change. See Note 1 - The Company and basis of presentation for details .
Comparable growth rates
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measures growth on a
constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars i s affected by foreign
currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current -year periods’ reported key
figures into U.S. dollar amounts using the exchange rates in effect for the comparable periods in the previous year.
Comparable growth rates are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions,
divestments, or by exiting specific business activities or customer markets. The adjustment for portfolio changes is calculated as follows: where the
results of any business acquired or divested have not been consolidated and reported for the entire duration of both the curr ent and comparable
periods, the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quar ters which are not
comparable when computing the comparable growth rate. Certain portfolio changes which do not qualify as divestments under U.S . GAAP have been
treated in a similar manner to divestments. Changes in our portfolio where we have exited certain business activities or cust omer markets are adjusted
as if the relevant business was divested in the period when the decision to cease business activities was taken. We do not ad just for portfolio changes
where the relevant business has annualized revenues of less than $50 million.
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate.
Comparable growth rate reconciliation by Business Area
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 0% 3% -1% 2% 4% 2% 0% 6%
Motion -6% 2% 0% -4% 1% 2% 0% 3%
Process Automation 19% 4% 0% 23% 2% 3% 0% 5%
Robotics & Discrete Automation 14% 3% 0% 17% -14% 3% 0% -11%
ABB Group 3% 2% 0% 5% 1% 2% 0% 3%
===== SIDA 42 =====
29 Q1 2025 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe -2% 3% 0% 1% 1% 3% 0% 4%
The Americas 8% 2% 1% 11% 5% 2% 1% 8%
of which: United States 9% 0% 0% 9% 7% 0% 1% 8%
Asia, Middle East and Africa 2% 3% -1% 4% -4% 3% -1% -2%
of which: China 13% 2% -2% 13% -4% 1% -1% -4%
ABB Group 3% 2% 0% 5% 1% 2% 0% 3%
Regional comparable growth rate reconciliation by Business Area - Quarter
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe -7% 3% 0% -4% 0% 3% 0% 3%
The Americas 4% 2% 0% 6% 11% 2% 0% 13%
of which: United States 7% 1% -2% 6% 14% 1% -1% 14%
Asia, Middle East and Africa 3% 2% -1% 4% -2% 3% -1% 0%
of which: China 8% 1% -3% 6% -2% 1% -2% -3%
Electrification 0% 3% -1% 2% 4% 2% 0% 6%
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe -3% 3% 0% 0% 9% 3% 0% 12%
The Americas 6% 2% 0% 8% 0% 2% 0% 2%
of which: United States 9% 1% 0% 10% 1% 0% 0% 1%
Asia, Middle East and Africa -19% 1% 0% -18% -7% 3% 0% -4%
of which: China 7% 2% 0% 9% -6% 2% 0% -4%
Motion -6% 2% 0% -4% 1% 2% 0% 3%
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 6% 4% 0% 10% 24% 4% 0% 28%
The Americas 22% 5% 0% 27% -2% 2% 0% 0%
of which: United States 14% 0% 0% 14% -1% 1% 0% 0%
Asia, Middle East and Africa 36% 2% 0% 38% -16% 2% 0% -14%
of which: China 56% 0% 0% 56% -20% 0% 0% -20%
Process Automation 19% 4% 0% 23% 2% 3% 0% 5%
Q1 2025 compared to Q1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 10% 3% 0% 13% -27% 3% 0% -24%
The Americas 21% 7% 0% 28% -11% 4% 0% -7%
of which: United States 1% 0% 0% 1% -15% 0% 0% -15%
Asia, Middle East and Africa 16% 3% 0% 19% 12% 2% 0% 14%
of which: China 4% 2% 0% 6% 10% 1% 0% 11%
Robotics & Discrete Automation 14% 3% 0% 17% -14% 3% 0% -11%
===== SIDA 43 =====
30 Q1 2025 FINANCIAL INFORMATION
Order backlog growth rate reconciliation
March 31, 2025 compared to March 31, 2024
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 11% 0% 0% 11%
Motion 2% 0% 0% 2%
Process Automation 10% 0% 0% 10%
Robotics & Discrete Automation -21% 0% 0% -21%
ABB Group 5% 0% 0% 5%
Other growth rate reconciliations
Q1 2025 compared to Q1 2024
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 19% 3% -8% 14% 8% 3% -6% 5%
Motion 13% 4% 0% 17% -9% 3% 0% -6%
Process Automation 5% 3% 0% 8% 3% 2% 0% 5%
Robotics & Discrete Automation -5% 3% 0% -2% -5% 2% 0% -3%
ABB Group 9% 4% -2% 11% 0% 3% -1% 2%
===== SIDA 44 =====
31 Q1 2025 FINANCIAL INFORMATION
Operational EBITA as % of operational revenues (Operational EBITA margin)
Definition
Operational EBITA margin
Operational EBITA margin is Operational EBITA as a percentage of operational revenues.
Operational EBITA
Operational earnings before interest, taxes and acquisition -related amortization (Operational EBITA) represents Income from operations excluding:
• acquisition-related amortization (as defined below),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
Operational EBITA is our measure of segment profit but is also used by management to evaluate the profitability of the Compan y as a whole.
Acquisition-related amortization
Amortization expense on intangibles arising upon acquisitions.
Restructuring, related and implementation costs
Restructuring, related and implementation costs consists of restructuring and other related expenses, as well as internal and external costs relating to
the implementation of group-wide restructuring programs.
Operational revenues
The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are
Total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives,
(ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange
movements on receivables (and related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent
our revenues measured in accordance with U.S. GAAP.
Reconciliation
The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA margin by business.
Reconciliation of consolidated Operational EBITA to Net Income
Three months ended March 31,
($ in millions) 2025 2024
Operational EBITA 1,597 1,417
Acquisition-related amortization (45) (56)
Restructuring, related and implementation costs (1) (16) (26)
Changes in obligations related to divested businesses 1 –
Gains and losses from sale of businesses 11 (2)
Acquisition- and divestment-related expenses and integration costs (9) (19)
Certain other non-operational items (21) (63)
Foreign exchange/commodity timing differences in income from operations 49 (34)
Income from operations 1,567 1,217
Interest and dividend income 54 57
Interest and other finance expense (47) (37)
Non-operational pension (cost) credit 14 16
Income from continuing operations before taxes 1,588 1,253
Income tax expense (469) (339)
Income from continuing operations, net of tax 1,119 914
Loss from discontinued operations, net of tax (1) (1)
Net income 1,118 913
(1) Includes impairment of certain assets.
===== SIDA 45 =====
32 Q1 2025 FINANCIAL INFORMATION
Reconciliation of Operational EBITA margin by business
Three months ended March 31, 2025
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 3,825 1,840 1,633 744 (107) 7,935
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (34) (9) (23) (2) (3) (71)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) 1 (5) – – (5)
Unrealized foreign exchange movements
on receivables (and related assets) 30 5 9 8 3 55
Operational revenues 3,820 1,837 1,614 750 (107) 7,914
Income (loss) from operations 922 361 263 56 (35) 1,567
Acquisition-related amortization 26 9 4 7 (1) 45
Restructuring, related and
implementation costs(1) 6 2 2 5 1 16
Changes in obligations related to
divested businesses – – – – (1) (1)
Gains and losses from sale of businesses (11) – – – – (11)
Acquisition- and divestment-related expenses
and integration costs 10 1 1 2 (5) 9
Certain other non-operational items (31) 6 (2) – 48 21
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (57) (23) (19) – 21 (78)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 1 1 (2) – – –
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 20 3 8 4 (6) 29
Operational EBITA 886 360 255 74 22 1,597
Operational EBITA margin (%) 23.2% 19.6% 15.8% 9.9% n.a. 20.2%
(1) Includes impairment of certain assets.
In the three months ended March 31, 2025, Certain other non-operational items in the table above includes the following:
Three months ended March 31, 2025
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (3) (3)
Business transformation costs(1) 1 2 – – 41 44
Certain other fair values changes,
including asset impairments (25) 3 (2) – 8 (16)
Other non-operational items (7) 1 – – 2 (4)
Total (31) 6 (2) – 48 21
(1) Amounts include ABB Way process transformation costs of $43 million for the three months ended March 31, 2025.
===== SIDA 46 =====
33 Q1 2025 FINANCIAL INFORMATION
Three months ended March 31, 2024
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 3,680 1,829 1,601 864 (104) 7,870
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 47 46 44 6 5 148
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (3) – 2 – – (1)
Unrealized foreign exchange movements
on receivables (and related assets) (31) (17) (21) (11) (2) (82)
Operational revenues 3,693 1,858 1,626 859 (101) 7,935
Income (loss) from operations 769 301 234 91 (178) 1,217
Acquisition-related amortization 23 9 1 21 2 56
Restructuring, related and
implementation costs(1) 10 8 7 – 1 26
Gains and losses from sale of businesses – – – – 2 2
Acquisition- and divestment-related expenses
and integration costs 10 – – 2 7 19
Certain other non-operational items 3 3 – 1 56 63
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 22 33 22 4 (4) 77
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) – 1 – (1) (1)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (10) (11) (12) (6) (3) (42)
Operational EBITA 826 343 253 113 (118) 1,417
Operational EBITA margin (%) 22.4% 18.5% 15.6% 13.2% n.a. 17.9%
(1) Includes impairment of certain assets.
In the three months ended March 31, 2024, Certain other non-operational items in the table above includes the following:
Three months ended March 31, 2024
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (8) (8)
Business transformation costs(1) 2 1 – 1 46 50
Certain other fair values changes,
including asset impairments 1 2 – – 11 14
Other non-operational items – – – – 7 7
Total 3 3 – 1 56 63
(1) Amounts include ABB Way process transformation costs of $46 million for the three months ended March 31, 2024.
===== SIDA 47 =====
34 Q1 2025 FINANCIAL INFORMATION
Net debt
Definition
Net debt
Net debt is defined as Total debt less Cash and marketable securities.
Total debt
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.
Cash and marketable securities
Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments.
Reconciliation
($ in millions) March 31, 2025 December 31, 2024
Short-term debt and current maturities of long -term debt 805 293
Long-term debt 7,015 6,652
Total debt 7,820 6,945
Cash and equivalents 4,494 4,326
Marketable securities and short-term investments 1,866 1,334
Cash and marketable securities 6,360 5,660
Net debt 1,460 1,285
Net debt/Equity ratio
Definition
Net debt/Equity ratio
Net debt/Equity ratio is defined as Net debt divided by Equity.
Equity
Equity is defined as Total stockholders’ equity.
Reconciliation
($ in millions, unless otherwise indicated) March 31, 2025 December 31, 2024
Total stockholders' equity 14,111 15,060
Net debt (as defined above) 1,460 1,285
Net debt / Equity ratio 0.10 0.09
Net debt/EBITDA ratio
Definition
Net debt/EBITDA ratio
Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.
EBITDA
EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for
the same trailing twelve-month period.
Reconciliation
($ in millions, unless otherwise indicated) March 31, 2025 March 31, 2024
Income from operations for the three months ended:
June 30, 2024 / 2023 1,376 1,298
September 30, 2024 / 2023 1,309 1,259
December 31, 2024 / 2023 1,169 1,116
March 31, 2025 / 2024 1,567 1,217
Depreciation and Amortization for the three months ended:
June 30, 2024 / 2023 202 196
September 30, 2024 / 2023 194 194
December 31, 2024 / 2023 205 199
March 31, 2025 / 2024 196 201
EBITDA 6,218 5,680
Net debt (as defined above) 1,460 2,086
Net debt / EBITDA 0.2 0.4
===== SIDA 48 =====
35 Q1 2025 FINANCIAL INFORMATION
Net working capital
Definition
Net working capital
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade,
(vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and
other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring -related activities); and
including the amounts related to these accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
($ in millions, unless otherwise indicated) March 31, 2025 March 31, 2024
Net working capital:
Receivables, net 7,560 7,385
Contract assets 1,210 1,135
Inventories, net 6,070 6,079
Prepaid expenses 354 314
Accounts payable, trade (5,032) (5,018)
Contract liabilities (3,248) (2,866)
Other current liabilities(1) (3,543) (3,532)
Net working capital 3,371 3,497
(1) Amounts exclude $952 million and $1,063 million at March 31, 2025 and 2024, respectively, related primarily to (a) income taxes payable, (b) current derivative
liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring -related
activitie s.
===== SIDA 49 =====
36 Q1 2025 FINANCIAL INFORMATION
Average trade net working capital as a percentage of revenues
Definition
Average trade net working capital as a percentage of revenues
Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the
trailing twelve months (being the total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date).
Average trade net working capital
Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during
the trailing twelve-month period (4-quarter average)
Trade net working capital
Trade net working capital is the sum of (i) trade receivables (comprised of trade accounts receivable net of related allowance, presented within
Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract
liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating
expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these
accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
March 31, December 31, September 30, June 30, March 31,
($ in millions, unless otherwise indicated) 2025 2024 2024 2024 2024
Trade net working capital:
Trade receivables 6,887 6,816 6,821 6,898 6,790
Contract assets 1,210 1,115 1,236 1,118 1,135
Inventories, net 6,070 5,768 6,465 6,166 6,079
Accounts payable, trade (5,032) (5,036) (5,167) (5,118) (5,018)
Contract liabilities (3,248) (2,969) (3,081) (2,973) (2,866)
Accrued expenses, operating (1,223) (1,266) (1,363) (1,266) (1,302)
Trade net working capital in assets and liabilities held for sale – – 20 – –
Trade net working capital 4,664 4,428 4,931 4,825 4,818
Average of opening and closing Trade net working capital 4,546 4,680 4,878 4,822
Average trade net working capital 4,732
Total revenues for the three months ended:
June 30, 2024 8,239
September 30, 2024 8,151
December 31, 2024 8,590
March 31, 2025 7,935
Total revenues for the trailing twelve months 32,915
Average trade net working capital as a percentage of revenues
(%)
14.4%
March 31, December 31, September 30, June 30, March 31,
($ in millions, unless otherwise indicated) 2024 2023 2023 2023 2023
Trade net working capital:
Trade receivables 6,790 6,822 6,863 6,786 6,532
Contract assets 1,135 1,090 1,073 1,010 1,009
Inventories, net 6,079 6,058 6,241 6,357 6,178
Accounts payable, trade (5,018) (4,847) (4,777) (4,881) (4,945)
Contract liabilities (2,866) (2,844) (2,610) (2,394) (2,339)
Accrued expenses, operating (1,302) (1,445) (1,524) (1,341) (1,354)
Trade net working capital in assets and liabilities held for sale – – – 143 138
Trade net working capital 4,818 4,834 5,266 5,680 5,219
Average of opening and closing Trade net working capital 4,826 5,050 5,473 5,450
Average trade net working capital 5,200
Total revenues for the three months ended:
June 30, 2023 8,163
September 30, 2023 7,968
December 31, 2023 8,245
March 31, 2024 7,870
Total revenues for the trailing twelve months 32,246
Average trade net working capital as a percentage of revenues
(%)
16.1%
===== SIDA 50 =====
37 Q1 2025 FINANCIAL INFORMATION
Return on Capital employed (ROCE)
In the first quarter of 2025, the Company modified its definition of Return on Capital employed (ROCE) to utilize a four -quarter average of Capital
employed in place of a simple average of the annual period’s opening and closing Capital employed . The change in averaging method allows a
comparable ratio that can be presented quarterly compared to our previous annual disclosure. In addition, a fixed notional tax rate (subject to review for
significant changes) is used. The new definition is provided below.
Definition
Return on Capital employed (ROCE)
Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the average of the ope ning and
closing Capital employed for each of the four quarters during the trailing twelve -month period (4-quarter average).
Capital employed
Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital (as defined above).
Adjusted total fixed assets
Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) other intangible assets, net, (iv) investments in
equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities
recognized in certain acquisitions.
Notional tax on Operational EBITA
The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the Company’s weighted -
average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant changes in the Company’s
weighted-average global tax rate.
Reconciliation
March 31, December 31, September 30, June 30, March 31,
($ in millions, unless otherwise indicated) 2025 2024 2024 2024 2024
Adjusted total fixed assets:
Property, plant and equipment, net 4,301 4,177 4,248 4,095 4,047
Goodwill 11,088 10,555 10,582 10,525 10,494
Other intangible assets, net 1,183 1,048 1,036 1,089 1,128
Investments in equity-accounted companies 377 368 185 189 178
Operating lease right-of-use assets 861 840 873 861 863
Fixed assets included in assets held for sale – – 176 – –
Total fixed assets 17,810 16,988 17,100 16,759 16,710
Less: Deferred taxes recognized in certain acquisitions (1) (231) (242) (253) (265) (281)
Adjusted total fixed assets 17,579 16,746 16,847 16,494 16,429
Net working capital - (as defined above) 3,371 2,739 3,512 3,516 3,497
Capital employed 20,950 19,485 20,359 20,010 19,926
Average of opening and closing Capital employed 20,218 19,922 20,185 19,968
Operational EBITA for the three months ended 1,597 1,434 1,553 1,564
Operational EBITA for the trailing twelve months 6,148
Notional tax on Operational EBITA (1,537)
Operational EBITA after tax for the trailing twelve months 4,611
Average Capital employed (4 quarters) 20,073
Return on Capital Employed (ROCE) 23.0%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 51 =====
38 Q1 2025 FINANCIAL INFORMATION
March 31, December 31, September 30, June 30, March 31,
($ in millions, unless otherwise indicated) 2024 2023 2023 2023 2023
Adjusted total fixed assets:
Property, plant and equipment, net 4,047 4,142 3,891 3,923 3,888
Goodwill 10,494 10,561 10,356 10,420 10,381
Other intangible assets, net 1,128 1,223 1,181 1,257 1,285
Investments in equity-accounted companies 178 187 186 154 153
Operating lease right-of-use assets 863 893 850 852 870
Fixed assets included in assets held for sale – – – 293 290
Total fixed assets 16,710 17,006 16,464 16,899 16,867
Less: Deferred taxes recognized in certain acquisitions (1) (281) (297) (312) (328) (343)
Adjusted total fixed assets 16,429 16,709 16,152 16,571 16,524
Net working capital - (as defined above) 3,497 3,166 3,950 4,494 4,073
Capital employed 19,926 19,875 20,102 21,065 20,597
Average of opening and closing Capital employed 19,901 19,989 20,584 20,831
Operational EBITA for the three months ended 1,417 1,333 1,392 1,425
Operational EBITA for the trailing twelve months 5,567
Notional tax on Operational EBITA (1,392)
Operational EBITA after tax for the trailing twelve months 4,175
Average Capital employed (4 quarters) 20,326
Return on Capital Employed (ROCE) 20.5%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 52 =====
39 Q1 2025 FINANCIAL INFORMATION
Free cash flow
Definition
Free cash flow
Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible
assets, and (ii) proceeds from sales of property, plant and equipment .
Reconciliation
Three months ended March 31,
($ in millions, unless otherwise indicated) 2025 2024
Net cash provided by operating activities 684 726
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (195) (181)
Proceeds from sale of property, plant and equipment 163 6
Free cash flow 652 551
Free cash flow conversion to net income
Definition
Free cash flow conversion to net income
Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income attributable to ABB.
Adjusted net income attributable to ABB
Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for gains or losses arising on sale of certain businesses
and certain other significant items within net income which are also excluded / adjusted for when calculating operating cashflows.
Free cash flow for the trailing twelve months
Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the rele vant balance sheet date.
Net income for the trailing twelve months
Net income for the trailing twelve months includes net income recorded by ABB (as adjusted) in the twelve months preceding th e relevant balance sheet
date.
Reconciliation
Trailing twelve months to
($ in millions, unless otherwise indicated) March 31, 2025 December 31, 2024
Net cash provided by operating activities 4,633 4,675
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (859) (845)
Proceeds from sale of property, plant and equipment 264 107
Free cash flow 4,038 3,937
Adjusted net income attributable to ABB (1) 4,109 3,949
Free cash flow conversion to net income 98% 100%
(1) Adjusted net income attributable to ABB for the year ended December 31, 2024, is adjusted to exclude the fair value adjustment of $88 million on assets and liabilities held
for sale related to In-Charge, the net gain on the sale of a business within the Electrification Business Area of $64 million and adjustments to the gain on sale of Power
Grids of $10 million.
Reconciliation of the trailing twelve months to March 31, 2025
($ in millions)
Net cash provided by
operating activities
Purchases of
property, plant and
equipment and
intangible assets
Proceeds
from sale of
property, plant and
equipment
Adjusted net income
attributable to ABB(1)
Q2 2024 1,067 (185) 36 1,096
Q3 2024 1,345 (196) 24 1,026
Q4 2024 1,537 (283) 41 922
Q1 2025 684 (195) 163 1,065
Total for the trailing twelve
months to March 31, 2025 4,633 (859) 264 4,109
(1) Adjusted net income attributable to ABB for Q4 2024 is adjusted to exclude an increase in the gain on sale of the Power Conversion Division of $6 million; Q3 2024
is adjusted to exclude the fair value adjustment of $89 million on assets and liabilities held for sale related to In -Charge and adjustments to the gain on sale of
Power Grids of $10 million ; and Q1 2025 is adjusted to exclude $37 million of gains arising on sale of certain investments and intangibles assets.
===== SIDA 53 =====
40 Q1 2025 FINANCIAL INFORMATION
Free cash flow margin
Definition
Free cash flow margin
Free cash flow margin is calculated as Free cash flow divided by total revenue s.
Reconciliation
Three months ended March 31,
($ in millions, unless otherwise indicated) 2025 2024
Free cash flow (as defined above) 652 551
Total revenues 7,935 7,870
Free cash flow margin 8.2% 7.0%
===== SIDA 54 =====
41 Q1 2025 FINANCIAL INFORMATION
Net finance income (expense)
Definition
Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.
Reconciliation
Three months ended March 31,
($ in millions) 2025 2024
Interest and dividend income 54 57
Interest and other finance expense (47) (37)
Net finance income (expense) 7 20
Book-to-bill ratio
Definition
Book-to-bill ratio is calculated as Orders received divided by Total revenues.
Reconciliation
Three months ended March 31,
2025 2024
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 4,394 3,825 1.15 4,392 3,680 1.19
Motion 2,156 1,840 1.17 2,303 1,829 1.26
Process Automation 2,024 1,633 1.24 1,697 1,601 1.06
Robotics & Discrete Automation 799 744 1.07 701 864 0.81
Corporate and Other (incl. intersegment eliminations) (160) (107) n.a. (119) (104) n.a.
ABB Group 9,213 7,935 1.16 8,974 7,870 1.14
===== SIDA 55 =====
ABB Ltd
Corporate Communications
P.O. Box 8131
8050 Zurich
Switzerland
Tel: +41 (0)43 317 71 11
www.abb.com