FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2026
===== SIDA 1 =====
—
ZURICH, SWITZERLAND, APRIL 22, 2026
Q1 2026 results
Strong orders, business driven performance
improvement and high cash flow
• Orders $11,298 million, +32%; comparable1 +24%
• Revenues $8,734 million, +18%; comparable1 +11%
• Income from operations $1,780 million; margin 20.4%
• Operational EBITA1 $2,049 million; margin1 23.5%
• Basic EPS $0.73; +21%2
• Cash flow from operating activities $1,029 million; +50%
• Return on Capital Employed1 27.2%
—
“ABB had a strong start to the year, delivering higher business performance and record
orders. Supported by our high order backlog and good execution in a strong short-cycle
market, we raise our growth and margin expectations for 2026, although acknowledging
risks from geopolitical uncertainties.”
Morten Wierod, CEO
KEY FIGURES
CHANGE
($ millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Comparable1
Orders 11,298 8,589 32% 24%
Revenues 8,734 7,382 18% 11%
Gross Profit 3,440 3,122 10%
as % of revenues 39.4% 42.3% -2.9 pts
Income from operations 1,780 1,474 21%
Operational EBITA1 2,049 1,495 37% 28% 3
as % of operational revenues1 23.5% 20.3% +3.2 pts
Income from continuing operations, net of tax 1,351 1,055 28%
Net income attributable to ABB 1,324 1,102 20%
Basic earnings per share ($) 0.73 0.60 21%2
Cash flow from operating activities 1,029 684 50%
Cash flow from operating activities in continuing
operations 1,011 608 66%
Free cash flow1 1,250 652 92%
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q1 2026 Financial Information.
2 EPS growth rates are computed using unrounded amounts.
3 Constant currency (not adjusted for portfolio changes).
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q1 2026
FIRST THREE MONTHS
PRESS RELEASE
===== SIDA 2 =====
AB B IN TE RIM RE P ORT I Q1 2 026 2
We have had a strong start to the year with a supportive
overall market environment and improved business
performance. Orders were at a record-high level and
increased 24% on a comparable basis, supported by all
three business areas. Overall demand remained robust
throughout the period.
All in all, the first quarter progressed largely according to
plan, despite a backdrop of yet another escalation in
geopolitical tension. Our priority has been to support our
employees directly impacted by the recent developments in
the Middle East. Admittedly, this conflict adds uncertainty
to the global trading climate, although to date, demand for
our electrification and automation offerings has remained
overall resilient and supportive to our raised ambitions for
2026.
We executed well on revenue growth which at 18% (11%
comparable) was just above our original expectation and
converted to a 37% (28% in local currencies) improvement
in Operational EBITA and a margin of 23.5%. The margin
improved by 320 basis points, out of which 250 basis points
were attributable to the net impact of the gains on sale of
real estate, and a robust 70 basis points was driven mainly
by improved business performance. As a net total for the
quarter, earnings per share increased by 21%.
Free cash flow of $1.3 billion is the strongest ever for a first
quarter, with good contribution from both the earnings
increase as well as net working capital management.
Another stand-out number was our ROCE of 27.2%.
It was also good to receive the CDP sustainability
recognition of A scores for both climate change and water
stewardship. Our 2025 sustainability report was published
in February, showing progress towards our 2030 targets.
We achieved book-to-bill of 1.29 with strong comparable
order growth of 9% and 5% respectively in the Motion and
Automation business areas, while Electrification surged
44%. Market momentum remains strongest in the data
center segment, but also positive for grid investments.
Other strong areas include electrical upgrades of land-
based transport infrastructure, marine, port automation,
HVAC and buildings. Similar to previous quarters, customer
activity is more muted in parts of the process industry-
related areas.
I was also pleased to see the Automation business area
introduce the Automation Extended program, a strategic
evolution of its distributed control systems (DCS). It is a
step towards the next era of industrial operations. It
enables customers to progressively introduce new
capabilities, including advanced analytics and AI, while
preserving system integrity. It securely and without
operational disruption bridges the core control and the
digital environment, supported by a unified lifecycle service
for management and maintenance. ABB has the world’s
largest DCS installed base and Automation Extended
increases our presence in the digital environment.
Our capital allocation principles prioritize organic
investments in our ability to serve customers through our
local-for-local footprint. In recent years, India has grown to
our tied for fourth largest market and this year we will
invest approximately $75 million to expand our
manufacturing footprint and R&D capabilities in all
business areas. Our expanded facilities will support growth
prospects in India as well as enhance our capabilities to
serve other markets in the region.
Also on the topic of capital allocation – our balance sheet is
strong and we strive to deploy more cash towards
acquisitions. However, we will not compromise on value
creation – every deal should deliver sustainable value and
make strategic sense. In March, we rewarded our
shareholders with a dividend distribution of CHF 0.94 per
share, the equivalent of approximately 1.3% yield based on
the recent share price. Additionally, in early February, we
launched our previously announced share buyback program
of up to $2.0 billion, corresponding to approximately 1.2%
of recent market capitalization.
Morten Wierod
CEO
In the second quarter of 2026, we expect a high single-
digit to low double-digit growth in comparable
revenues, year-on-year. The operational EBITA margin
should improve year-on-year.
In full-year 2026, we expect a positive book-to-bill, and a
high single-digit to low double-digit growth in
comparable revenues, year-on-year. The operational
EBITA margin should improve year-on-year, even when
excluding the real estate gain in the first quarter of
2026.
CEO summary
Outlook
based on current market environment
===== SIDA 3 =====
AB B IN TE RIM RE P ORT I Q1 2 026 3
Market dynamics were strong and order intake was up by
32% (24% comparable) reaching a new all-time-high of
$11,298 million. The increase from last year was primarily
driven by comparable growth, with an additional 7% from
favorable changes in exchange rates and 1% from portfolio
changes. Book-to-bill was 1.29 and was positive in all
business areas.
Overall for ABB, demand was robust throughout the period
with no material impact from the Middle East conflict. Only
in the business area Automation, some regional market
disruption was noted at the end of the quarter.
Demand was positive across the majority of our main
customer segments, resulting in strong order increase in all
three business areas. In total, double-digit growth in the
short-cycle businesses was further supported by higher
large order bookings. Electrification recorded surging
growth of 51% (44% comparable), Motion was up by 18%
(9% comparable) and Automation improved by 12% (5%
comparable). The order backlog reached the new record
high of $27,515 million, up by 27% (22% comparable), year-
on-year.
All regions improved orders at a double-digit rate. Americas
was up by 52% (48% comparable), led by United States up
70% (67% comparable). Europe increased by 26% (13%
comparable) with stable to positive developments in the top-
five countries. Asia, Middle East and Africa was up 14% (10%
comparable) including an increase of 9% (3% comparable) in
China.
Transport-linked demand continued to be strong in the
marine and ports segments. Rail is generally robust, although
quarterly orders declined. Demand for land-based
infrastructure benefited from upgrades of electrical
equipment in airports, tunnels etc.
In the industrial space, a good development in utilities was
clearly outpaced by a buoyant data center market.
The buildings segment improved, supported by increases in
the US and Europe for both commercial and residential areas.
China orders increased in a market which remains generally
challenging.
Orders in the machine builder segment increased sharply
in a still cautious market.
Sentiment in the oil & gas segment remained overall solid,
although orders declined in the quarter. There was increased
activity among nuclear customers. Mining orders increased
slightly in a generally capex-muted market environment.
Revenues amounted to $8,734 million, up 18% (11%
comparable) year-on-year. Despite the backdrop of high
geopolitical tension, there was no real slowdown in
customers’ willingness to receive deliveries. In contrast,
short-cycle business remained strong and the order backlog
was executed largely as planned. Strong comparable growth
was driven by higher volumes, with added support from a
positive price of approximately 1%. Favorable changes in
exchange rates contributed 6% to total growth.
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 24% 11%
FX 7% 6%
Portfolio changes 1% 1%
Total 32% 18%
Orders by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q1 2026 Q1 2025 US$ Comparable
Europe 3,755 2,977 26% 13%
The Americas 4,584 3,011 52% 48%
Asia, Middle East
and Africa 2,959 2,601 14% 10%
ABB Group 11,298 8,589 32% 24%
Revenues by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q1 2026 Q1 2025 US$ Comparable
Europe 2,992 2,548 17% 3%
The Americas 3,391 2,810 21% 18%
Asia, Middle East
and Africa 2,351 2,024 16% 12%
ABB Group 8,734 7,382 18% 11%
Orders and revenues
===== SIDA 4 =====
AB B IN TE RIM RE P ORT I Q1 2 026 4
Gross profit
Gross profit increased by 10% (3% constant currency) year-on-
year to $3,440 million, reflecting a gross margin of 39.4%,
down 290 basis points. The gross margin decline was primarily
due to the impact from unrealized FX and commodity
derivatives, which in contrast, were margin accretive in the
prior year period. This impacted the gross margin in all
business areas.
Income from operations
Income from operations amounted to $1,780 million,
increasing 21% from last year and reflecting a margin of
20.4%, up by 40 basis points. The year-on-year earnings
increase was the net outcome of higher operational result,
which was partially offset by the combined adverse effects of
$235 million from higher expenses linked to mark-to-market of
unrealized FX and commodity derivatives, other non-
operational items like fair value adjustments of equity
investments mainly in Motion and E-mobility, as well as some
higher Restructuring and restructuring-related expenses
mainly in the Electrification business area.
Operational EBITA
Operational EBITA increased by 37% (28% in local currencies)
to $2,049 million, representing a margin of 23.5%. The margin
improved by 320 basis points year-on-year, out of which
250 basis points were attributable to the net impact of the
gains on sale of real estate, and a robust 70 basis points was
driven mainly by improved business performance.
The higher business result was primarily due to operational
leverage on higher volumes, which combined with positive
pricing more than offset the higher expenses for
commodities and tariffs, Research and Development (R&D)
and Selling, general & administrative (SG&A). SG&A reduced in
relation to revenues to 19.2% from last year’s 20.8%.
Operational EBITA in Corporate and other amounted to
$235 million compared with last year’s loss of $6 million. This is
the total of underlying Corporate costs of $95 million which
includes Stranded costs of $26 million, the capital gain of
$377 million linked to the real estate sale and a loss of
$47 million in the E-mobility business.
Finance net
Net finance income contributed $20 million to results, higher
compared with last year’s $11 million.
Income tax
Income tax expense was $467 million and effective tax rate
25.7%.
Net income and earnings per share
Net income attributable to ABB was $1,324 million, up 20%
year-on-year, with the key drivers being contribution from
improved business performance and the higher recorded
capital gain. These benefits more than compensated for
Discontinued operations moving to a loss, compared with
recording a profit in the prior year period. Basic earnings per
share increased by 21% to $0.73, up from $0.60 last year.
Earnings
Corporate and Other
Operational EBITA
($ in millions) Q1 2026 Q1 2025
Corporate and Other
E-mobility (47) (47)
Stranded corporate costs (26) (29)
Corporate costs, intersegment
eliminations and other1 308 70
Total 235 (6)
1 Majority of which relates to underlying corporate
===== SIDA 5 =====
AB B IN TE RIM RE P ORT I Q1 2 026 5
Trade net working capital1
Trade net working capital amounted to $4,017 million,
down year-on-year from $4,222 million. The decrease from
last year was led by operational improvements across the
Trade net working capital components, driven by
accounts payables and customer advances. The average
trade net working capital as a percentage of revenues1
was 12.5%, a reduction from 14.1% one year ago.
Capital expenditures
Purchases of property, plant and equipment and
intangible assets for continuing operations during the
first quarter amounted to $181 million, in line with last
year’s $183 million. For ABB Group, the total cash outflow
on a combined basis amounted to $216 million, higher
than last year’s $195 million.
Net debt
Net debt1 amounted to $2,268 million at the end of the
quarter. This represents an increase from last year’s level
of $1,453 million and sequentially from $1,683 million in
the fourth quarter, mainly due to the timing of the
dividend payment.
Cash flows
Cash flow from operating activities during the first quarter
was $1,029 million, an increase of 50% from last year’s $684
million. Contribution to the strong cash flow derived from
an improvement in Continuing operations, supported by
stronger earnings as well as a larger reduction in Trade net
working capital, year-on-year. Free cash flow amounted to
$1,250 million, reflecting a strong improvement from last
year’s $652 million, additionally supported by cash
contribution from higher proceeds received from the real
estate sale.
Share buyback program
A share buyback program of up to $2 billion was launched
on February 9, 2026, after the previous program of up to
$1.5 billion was completed on January 28, 2026. During the
first quarter, under the new program, ABB repurchased a
total of 2,610,604 shares for a total amount of
approximately $225 million. At the end of the first quarter,
ABB’s total number of issued shares, including shares held
in treasury, amounts to 1,843,899,204.
Balance sheet & Cash flow
($ in millions,
unless otherwise indicated)
Mar. 31
2026
Mar. 31
2025
Dec. 31
2025
Short-term debt and current
maturities of long-term debt 1,621 804 475
Long-term debt 6,573 7,009 7,829
Total debt 8,194 7,813 8,304
Cash & equivalents 3,325 4,494 4,640
Marketable securities and
short-term investments 2,601 1,866 1,981
Cash and marketable securities 5,926 6,360 6,621
Net debt (cash) 2,268 1,453 1,683
Net debt (cash) to EBITDA ratio 0.3 0.3 0.3
Net debt (cash) to Equity ratio 0.15 0.10 0.10
===== SIDA 6 =====
AB B IN TE RIM RE P ORT I Q1 2 026 6
Orders and revenues
Strong performance in buoyant market dynamics resulted
in record-high orders of $6,647 million. Total growth of
51% was driven by comparable orders up 44%, with
further support of 7% from changes in exchange rates.
• Double-digit order growth in virtually all divisions is
testimony to the ongoing energy expansion with
electricity as the key power source. Strong growth was
recorded in both short-cycle and project-businesses.
Book-to-bill was 1.44, increasing the order backlog by
40% (38% comparable) to $11.5 billion.
• All main customer segments recorded double-digit
order growth, and data centers by as much as triple-
digits on broad strong demand and a low comparable.
Utilities customers continue to invest in power
reliability and accessibility, while upgrades for a more
efficient electrical infrastructure supported order
growth in land-based infrastructure. Buildings was
strong driven by the commercial segment, but
residential also improved on good execution in a
generally still muted market.
• The Americas increased by 82% (80% comparable).
Europe was up by 35% (20% comparable). Asia, Middle
East and Africa improved by 26% (22% comparable)
including 20% (12% comparable) in China.
• Revenues exceeded expectations due to higher demand in
the short-cycle businesses. All divisions improved with
volumes as the main driver, with added support from
positive price management. In total, revenues amounted to
$4,613 million, up 21%; the total of 15% comparable growth
and 6% from changes in exchange rates.
Profit
Strong increase of 25% (17% in local currencies) in Operational
EBITA to $1,105 million, representing a margin improvement of
80 basis points to 24.0%.
• Gross margin decline of 270 basis points was for the
vast majority linked to the impact of unrealized FX
and commodities derivatives.
• Increase in Operational EBITA margin was supported by:
▪ Operational leverage on higher volumes and operational
efficiency improvements.
▪ As expected, pricing did not yet fully offset higher
expenses for raw materials and tariffs.
—
Electrification
CHANGE
($ millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Comparable
Orders 6,647 4,394 51% 44%
Order backlog 11,460 8,173 40% 38%
Revenues 4,613 3,825 21% 15%
Gross Profit 1,851 1,638 13%
as % of revenues 40.1% 42.8% -2.7 pts
Operational EBITA 1,105 886 25%
as % of operational revenues 24.0% 23.2% +0.8 pts
Cash flow from operating activities 1,011 521 94%
No. of employees (FTE equiv.) 54,200 53,100
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 44% 15%
FX 7% 6%
Portfolio changes 0% 0%
Total 51% 21%
Buoyant market;
record-high orders
===== SIDA 7 =====
AB B IN TE RIM RE P ORT I Q1 2 026 7
Orders and revenues
Record-high order intake of $2,548 million was up 18%.
Notably, 9% comparable growth was the main driver
supported by positive development in virtually all divisions.
Additionally, portfolio changes added 3% linked to the
Gamesa power electronics deal. And lastly, favorable
exchange rates provided material support of 6%.
• From a segment perspective, HVAC for commercial
buildings continues to be strong. Power investments in
grid stabilization increased. Food & beverage was
positive, as was metals with positive demand for the High
Power division offering. Rail orders declined in the
quarter, although the general market remains robust.
Chemicals remained weak.
• The Americas was up 22% (11% comparable), with
strong improvement of 25% (14% comparable) in the
United States. Europe increased 17% (5% comparable)
and Asia, Middle East and Africa was up by 16% (13%
comparable), with China at 9% (4% comparable).
• Revenues amounted to $2,142 million, up 16% in total.
Looking at the different components, strong
comparable growth of 7% was driven mainly by higher
volumes as well as positive price management. Portfolio
changes added 3% as well as a material impact of 6%
from changes in exchange rates.
Profit
Operational EBITA increased by 11% to $398 million, with
the margin decline of 110 basis points to 18.5% due mainly
to portfolio changes.
• Gross margin declined by 380 basis points with about
half the impact linked to unrealized FX and commodities
derivatives.
• Operational EBITA margin was supported by the strong
comparable revenue increase, more than offset by
▪ Dilution of 70 basis points from the Gamesa power
electronics acquisition included now for the full
quarter.
▪ About 15 basis points dilution from operational
inefficiencies in the High Power division, which are
expected to be resolved in the second half of 2026.
▪ Adverse mix from higher share of revenues from the
backlog-driven project business.
—
Motion
CHANGE
($ millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Comparable
Orders 2,548 2,156 18% 9%
Order backlog 6,597 5,716 15% 8%
Revenues 2,142 1,840 16% 7%
Gross Profit 771 733 5%
as % of revenues 36.0% 39.8% -3.8 pts
Operational EBITA 398 360 11%
as % of operational revenues 18.5% 19.6% -1.1 pts
Cash flow from operating activities 306 310 -1%
No. of employees (FTE equiv.) 23,200 22,300
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 9% 7%
FX 6% 6%
Portfolio changes 3% 3%
Total 18% 16%
Record orders; margin
pressure mainly from
acquisition
===== SIDA 8 =====
AB B IN TE RIM RE P ORT I Q1 2 026 8
Orders and revenues
Demand was overall robust and as of yet without material
impact from the Middle East conflict visible in numbers.
However, in this specific region the conflict caused
market uncertainty and some disruption towards the end
of the quarter. In total, book-to-bill was 1.15 making this
the fifth consecutive positive quarter, restoring its
previously strong track record disrupted by a challenging
2024 in the Machine Automation division. Orders reached
$2,464 million, up 12%, which is the combined effect of a
strong comparable growth of 5% and a significant
support of 7% from FX changes.
• Overall robust order growth was supported by
persistantly high customer activity in marine, as well as
port automation and electrification. Orders from
machine builders also increased sharply. Sentiment in
oil & gas was overall solid, although quarterly orders
declined on a high comparable. For demand linked to
process industries, mining orders increased slightly,
while areas like pulp & paper, chemical and metals
declined. Activity among nuclear customers increased.
• Revenues reached $2,147 million, up 18% year-on-year,
supported by positive performance across all divisions.
Comparable growth of 10% was overall supported across
its core components, led by volumes. Deliveries exceeded
our original expectations particularly in our marine
systems business and parts of the service business.
Currency fluctuations contributed an additional 8% to
reported growth. Despite strong revenue momentum,
order backlog reached $10.4 billion, up 25% (21%
comparable).
Profit
Operational EBITA improved by 22% (11% in local currencies)
to $311 million, reflecting a margin improvement of 50 basis
points to 14.7%. The impact from a lower gross margin was
more than offset by stringent SG&A cost control.
• Gross margin pressure of 240 basis points. This was the
net of positive impacts from higher volumes and pricing
being more than offset by counter effects from business
mix as the backlog-driven systems business represented a
higher share of revenues. There was also year-on-year
margin dilution from unrealized FX and commodity
derivatives.
• While R&D and SG&A spend increased, it reduced in relation
to revenues to a combined 23.8% from 25.8% last year,
supporting the Operational EBITA margin.
—
Automation
CHANGE
($ millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Comparable
Orders 2,464 2,197 12% 5%
Order backlog 10,350 8,261 25% 21%
Revenues 2,147 1,818 18% 10%
Gross Profit 794 717 11%
as % of revenues 37.0% 39.4% -2.4 pts
Operational EBITA 311 255 22%
as % of operational revenues 14.7% 14.2% +0.5 pts
Cash flow from operating activities 293 271 8%
No. of employees (FTE equiv.) 26,000 25,900
Growth
Q1 Q1
Change year-on-year Orders Revenues
Comparable 5% 10%
FX 7% 8%
Portfolio changes 0% 0%
Total 12% 18%
Robust demand; order
backlog up 25%
===== SIDA 9 =====
AB B IN TE RIM RE P ORT I Q1 2 026 9
Events from the quarter
• ABB is advancing Europe's energy transition while
strengthening grid reliability. In the Netherlands,
Enexis deployed 150 UniGear ZS1 medium-voltage
switchgear panels to modernize its electricity grid,
enhancing safety and resilience for renewable energy
integration. In Germany, utility EnBW commissioned
ABB’s Secondary Skid Units at its Gundelsheim solar
park supporting the generation of 58 million kWh
annually and eliminating ~54,700 tons of CO₂e yearly.
ABB’s SSUs are a complete solution designed for solar
applications and allowed EnBW to optimize costs and
resources while meeting all regulatory requirements.
• Heating and cooling account for nearly half of
Europe’s final energy consumption. A partnership that
combines ABB’s HVAC application-specific drive
technology with Skadec LT’s system expertise in heat
pump design, ABB and Skadec contribute to
advancing efficient, reliable heating solutions for
European markets. As demand for electrified heating
continues to grow, partnerships that bridge
component innovation and system-level integration
will play a key role in supporting Europe’s transition
toward a more energy-efficient and resilient energy
landscape.
• ABB has been selected by Bruce Power to supply
advanced excitation technology that will help extend
the life, reliability and efficiency of eight units at the
Bruce Nuclear Generating Station in Ontario – one of
Canada’s largest sources of low-carbon electricity.
Nuclear provides 15% of Canada's electricity and 53%
of Ontario's power mix. This underscores ABB's
nuclear expertise and commitment to extending
critical infrastructure supporting Canada's energy
independence and decarbonization targets.
• ABB launched its first fully integrated gas analyzer
package for Carbon Capture, Utilization and Storage
(CCUS) applications. The solution facilitates complete
CO₂ stream quality assurance across capture, transport,
and storage. Designed for hard-to-abate industries
including cement, chemicals, and power generation, the
turnkey system simplifies procurement and ensures
compliance with strict purity standards. Backed by global
service networks and AI-powered asset monitoring, the
solution supports industrial decarbonization while
protecting pipeline integrity.
• ABB has made further progress with its Mission to Zero™
initiative, the company’s journey to achieve net-zero
emissions in its own operations. For example, the
Sasbach facility in Germany, is implementing a data-led
decarbonization roadmap focused on energy efficiency,
renewable electricity and smart energy management.
Separately, the production facility in Zibo, China, is
delivering measurable energy and emissions reductions
through advanced digital energy management and
electrification solutions. The site has cut energy
consumption by 71 MWh which allowed to avoid over 63
tons of CO₂e emissions already in 2025 – equivalent to the
electricity needed to power several hundred average
homes for a month. Other sites in Spain and Argentina
also progressed their efforts. Currently, 37 ABB sites are
recognized to meet Mission to Zero™ requirements.
—
Sustainability
Q1 2026 Q1 2025 CHANGE 12M ROLLING
CO₂e own operations emissions,
Ktons scope 1 and 21 33 35 -5% 125
Total recordable incident frequency rate (TRIFR),
frequency / 1,000,000 working hours 2 1.74 1.39 25% 1.36
Proportion of women in senior management roles
in %3 23.4 21.8 +1.6 pts 22.7
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 until April 9, 2026
3 The above disclosure relates to countries where policies legally permit and to the extent that it does not conflict with any applicable local laws, where ABB operates
===== SIDA 10 =====
AB B IN TE RIM RE P ORT I Q1 2 026 10
During Q1 2026
• On February 9, 2026, ABB announced it had launched
its share buyback program of up to $2.0 billion. Based
on the share price at the time this represents a
maximum of approximately 23.2 million shares. 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
until January 27, 2027.
• On March 19, 2026, ABB shareholders approved all
proposals at the Annual General Meeting held in
Zurich, Switzerland.
Significant events
===== SIDA 11 =====
AB B IN TE RIM RE P ORT I Q1 2 026 11
ABB Group Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026
EBITDA, $ in million 1,660 1,668 1,806 1,726 6,860 1,990
Return on Capital Employed, % 24.4 24.5 24.8 25.3 25.3 27.2
Net debt/Equity 0.10 0.25 0.17 0.10 0.10 0.15
Net debt/ EBITDA 12M rolling 0.3 0.6 0.4 0.3 0.3 0.3
Net working capital 3,037 3,423 2,993 2,372 2,372 2,705
Trade net working capital 4,222 4,646 4,433 4,059 4,059 4,017
Average trade net working capital as a % of revenues 14.1% 13.8% 13.5% 13.0% 13.0% 12.5%
Earnings per share, basic, $ 0.60 0.63 0.66 0.70 2.59 0.73
Earnings per share, diluted, $ 0.60 0.63 0.66 0.70 2.59 0.73
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.94 n.a.
Share price at the end of period, CHF 45.22 47.31 57.32 59.22 59.22 63.24
Number of employees (FTE equivalents) 110,100 110,900 110,700 111,900 111,900 112,700
No. of shares outstanding at end of period (in millions) 1,833 1,826 1,822 1,818 1,818 1,814
Additional figures
Additional 2026 guidance
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; and includes the real estate gain of $377 million in Q1 2026
3 Excludes the impact of acquisitions or divestments or any significant non-operational items
4 Framework assumes stranded cost for the full year. Closing of Robotics divestment expected in the second half of the year, as earlier announced
ABB based on discontinued operations structure
($ in millions, unless otherwise stated) FY 20261 Q2 2026
Corporate and Other
Operational EBITA2
~(100) ~(125)
from ~(125)
of which stranded costs4 ~(100) ~(25)
from ~(125)
Non-operating items
Acquisition-related amortization ~(195) ~(50)
Separation and integration ~(60) ~(20)
Restructuring and related and
Business transformation
~(200) ~(50)
from ~(180)
($ in millions, unless otherwise stated) FY 2026
Finance net ~150
Effective tax rate ~25% 3
Capital Expenditure
~(1,000)
From
~(900)
Key acquisitions and divestments, last twelve months
Acquisitions Company/unit Closing date Revenues, $ in
millions1 No. of employees
2026
Electrification Premium Power 2-Mar ~9 40
2025
Motion Gamesa Electric power electronics (Spain) 1-Dec ∼170 400
Motion Brightloop S.A.S. 1-Oct ∼18 80
Electrification Produits BEL Inc. 2-Jun ∼11 65
Divestments Company/unit Closing date Revenues, $ in
millions1 No. of employees
2025
E-mobility ChargeDot, 60% sale 1-Dec ∼60 total Co. 320 total Co.
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
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.
===== SIDA 12 =====
AB B IN TE RIM RE P ORT I Q1 2 026 12
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” “Significant events” and
“Additional 2026 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 2026 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.
A conference call and webcast for analysts and investors
is scheduled to begin at 10:00 a.m. CET. 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 22, 2026
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
2026
July 16 Q2 2026 results
October 20 Q3 2026 results
===== SIDA 13 =====
1 Q1 2026 FINANCIAL INFORMATION
April 22, 2026
Q1 2026
Financial Information
===== SIDA 14 =====
2 Q1 2026 FINANCIAL INFORMATION
FINANCIAL
INFORMATION
Contents
03 ─ 05 Key Figures
06 ─ 28 Consolidated Financial Information (unaudited)
29 ─ 41 Supplemental Reconciliations and Definitions
===== SIDA 15 =====
3 Q1 2026 FINANCIAL INFORMATION
—
Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Comparable(1)
Orders 11,298 8,589 32% 24%
Order backlog (end March) 27,515 21,708 27% 22%
Revenues 8,734 7,382 18% 11%
Gross Profit 3,440 3,122 10%
as % of revenues 39.4% 42.3% -2.9 pts
Income from operations 1,780 1,474 21%
Operational EBITA(1) 2,049 1,495 37% 28%(2)
as % of operational revenues(1) 23.5% 20.3% +3.2 pts
Income from continuing operations, net of tax 1,351 1,055 28%
Net income attributable to ABB 1,324 1,102 20%
Basic earnings per share ($) 0.73 0.60 21%(3)
Cash flow from operating activities 1,029 684 50%
Free cash flow(1) 1,250 652 92%
(1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 29.
(2) Constant currency (not adjusted for portfolio changes).
(3) EPS growth rates are computed using unrounded amounts.
===== SIDA 16 =====
4 Q1 2026 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) Q1 2026 Q1 2025 US$ Local Comparable
Orders ABB Group 11,298 8,589 32% 25% 24%
Electrification 6,647 4,394 51% 44% 44%
Motion 2,548 2,156 18% 12% 9%
Automation 2,464 2,197 12% 5% 5%
Corporate and Other 72 128
Intersegment eliminations (433) (286)
Order backlog (end March) ABB Group 27,515 21,708 27% 23% 22%
Electrification 11,460 8,173 40% 37% 38%
Motion 6,597 5,716 15% 11% 8%
Automation 10,350 8,261 25% 21% 21%
Corporate and Other
(incl. intersegment eliminations) (892) (442)
Revenues ABB Group 8,734 7,382 18% 12% 11%
Electrification 4,613 3,825 21% 15% 15%
Motion 2,142 1,840 16% 10% 7%
Automation 2,147 1,818 18% 10% 10%
Corporate and Other 88 96
Intersegment eliminations (256) (197)
Income from operations ABB Group 1,780 1,474
Electrification 969 922
Motion 311 361
Automation 287 255
Corporate and Other
(incl. intersegment eliminations) 213 (64)
Income from operations % ABB Group 20.4% 20.0%
Electrification 21.0% 24.1%
Motion 14.5% 19.6%
Automation 13.4% 14.0%
Operational EBITA ABB Group 2,049 1,495 37% 28%
Electrification 1,105 886 25% 17%
Motion 398 360 11% 3%
Automation 311 255 22% 11%
Corporate and Other(1)
(incl. intersegment eliminations) 235 (6)
Operational EBITA % ABB Group 23.5% 20.3%
Electrification 24.0% 23.2%
Motion 18.5% 19.6%
Automation 14.7% 14.2%
Cash flow from operating activities ABB Group 1,029 684
Electrification 1,011 521
Motion 306 310
Automation 293 271
Corporate and Other
(incl. intersegment eliminations) (599) (494)
Discontinued operations 18 76
(1) Corporate and Other at Q1 2026 and Q1 2025 includes Stranded corporate costs of $26 million and $29 million, respectively.
===== SIDA 17 =====
5 Q1 2026 FINANCIAL INFORMATION
Operational EBITA
ABB Electrification Motion Automation
($ in millions, unless otherwise indicated) Q1 26 Q1 25 Q1 26 Q1 25 Q1 26 Q1 25 Q1 26 Q1 25
Revenues 8,734 7,382 4,613 3,825 2,142 1,840 2,147 1,818
Foreign exchange/commodity timing
differences in total revenues (21) (25) – (5) 4 (3) (25) (17)
Operational revenues 8,713 7,357 4,613 3,820 2,146 1,837 2,122 1,801
Income from operations 1,780 1,474 969 922 311 361 287 255
Acquisition-related amortization 47 43 27 26 11 9 9 8
Restructuring, related and
implementation costs(1) 48 13 26 6 7 2 13 4
Changes in obligations related to
divested businesses (5) (1) – – – – – –
Gains and losses from sale of businesses (2) (11) – (11) – – – –
Acquisition- and divestment-related
expenses and integration costs 12 8 7 10 2 1 2 1
Certain other non-operational items 81 20 6 (31) 46 6 5 (2)
Foreign exchange/commodity timing
differences in income from operations 88 (51) 70 (36) 21 (19) (5) (11)
Operational EBITA 2,049 1,495 1,105 886 398 360 311 255
Operational EBITA margin (%) 23.5% 20.3% 24.0% 23.2% 18.5% 19.6% 14.7% 14.2%
(1) Includes impairment of certain assets.
Depreciation and Amortization
ABB Electrification Motion Automation
($ in millions) Q1 26 Q1 25 Q1 26 Q1 25 Q1 26 Q1 25 Q1 26 Q1 25
Depreciation 150 131 86 71 33 31 19 18
Amortization 60 55 33 32 14 11 11 10
including total acquisition-related amortization of: 47 43 27 26 11 9 9 8
Orders received and Revenues by region
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
Q1 26 Q1 25 US$ Local parable Q1 26 Q1 25 US$ Local parable
Europe 3,755 2,977 26% 13% 13% 2,992 2,548 17% 5% 3%
The Americas 4,584 3,011 52% 49% 48% 3,391 2,810 21% 19% 18%
of which United States 3,852 2,266 70% 69% 67% 2,696 2,197 23% 22% 22%
Asia, Middle East and Africa 2,959 2,601 14% 11% 10% 2,351 2,024 16% 13% 12%
of which China 1,152 1,056 9% 4% 3% 949 809 17% 12% 11%
ABB Group 11,298 8,589 32% 25% 24% 8,734 7,382 18% 12% 11%
===== SIDA 18 =====
6 Q1 2026 FINANCIAL INFORMATION
—
Consolidated Financial Information
ABB Ltd Consolidated Income Statements (unaudited)
Three months ended
($ in millions, except per share data in $) Mar. 31, 2026 Mar. 31, 2025
Sales of products 7,339 6,156
Sales of services and other 1,395 1,226
Total revenues 8,734 7,382
Cost of sales of products (4,506) (3,588)
Cost of services and other (788) (672)
Total cost of sales (5,294) (4,260)
Gross profit 3,440 3,122
Selling, general and administrative expenses (1,675) (1,534)
Non-order related research and development expenses (333) (303)
Other income (expense), net 348 189
Income from operations 1,780 1,474
Interest and dividend income 49 54
Interest and other finance expense (29) (43)
Non-operational pension (cost) credit 18 14
Income from continuing operations before taxes 1,818 1,499
Income tax expense (467) (444)
Income from continuing operations, net of tax 1,351 1,055
Income (loss) from discontinued operations, net of tax (18) 63
Net income 1,333 1,118
Net income attributable to noncontrolling interests (9) (16)
Net income attributable to ABB 1,324 1,102
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 1,337 1,039
Income (loss) from discontinued operations, net of tax (13) 63
Net income 1,324 1,102
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.74 0.57
Income (loss) from discontinued operations, net of tax (0.01) 0.03
Net income 0.73 0.60
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 0.73 0.56
Income (loss) from discontinued operations, net of tax (0.01) 0.03
Net income 0.73 0.60
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders 1,817 1,836
Diluted earnings per share attributable to ABB shareholders 1,821 1,841
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 19 =====
7 Q1 2026 FINANCIAL INFORMATION
—
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Three months ended
($ in millions) Mar. 31, 2026 Mar. 31, 2025
Total comprehensive income, net of tax 1,157 1,293
Total comprehensive (income) loss attributable to noncontrolling interests, net of tax 2 (22)
Total comprehensive income attributable to ABB shareholders, net of tax 1,159 1,271
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 20 =====
8 Q1 2026 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Mar. 31, 2026 Dec. 31, 2025
Cash and equivalents 3,325 4,640
Marketable securities and short-term investments 2,601 1,981
Receivables, net 7,606 7,535
Contract assets 1,152 1,090
Inventories, net 6,056 5,862
Prepaid expenses 363 281
Other current assets 580 627
Current assets held for sale and in discontinued operations 3,779 3,562
Total current assets 25,462 25,578
Property, plant and equipment, net 4,605 4,692
Operating lease right-of-use assets 785 765
Investments in equity-accounted companies 321 349
Prepaid pension and other employee benefits 958 937
Intangible assets, net 1,088 1,119
Goodwill 9,585 9,637
Deferred taxes 1,289 1,248
Other non-current assets 536 560
Total assets 44,629 44,885
Accounts payable, trade 5,423 5,210
Contract liabilities 3,475 3,221
Short-term debt and current maturities of long -term debt 1,621 475
Current operating leases 227 253
Provisions 1,493 1,477
Other current liabilities 5,088 4,677
Current liabilities held for sale and in discontinued operations 1,184 1,108
Total current liabilities 18,511 16,421
Long-term debt 6,573 7,829
Non-current operating leases 579 533
Pension and other employee benefits 541 550
Deferred taxes 855 792
Other non-current liabilities 2,160 2,101
Non-current liabilities held for sale and in discontinued operations 43 13
Total liabilities 29,262 28,239
Commitments and contingencies
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,844 million and 1,844 million shares issued at March 31, 2026, and December 31, 2025, respectively) 160 160
Additional paid-in capital 42 64
Retained earnings 21,784 22,606
Accumulated other comprehensive loss (5,418) (5,253)
Treasury stock, at cost
(29 million and 26 million shares at March 31, 2026, and December 31, 2025, respectively) (1,801) (1,490)
Total ABB stockholders’ equity 14,767 16,087
Noncontrolling interests 600 559
Total stockholders’ equity 15,367 16,646
Total liabilities and stockholders’ equity 44,629 44,885
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 21 =====
9 Q1 2026 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Three months ended
($ in millions) Mar. 31, 2026 Mar. 31, 2025
Operating activities:
Net income 1,333 1,118
Loss (income) from discontinued operations, net of tax 18 (63)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 210 186
Changes in fair values of investments 30 (12)
Pension and other employee benefits (16) (21)
Deferred taxes 13 29
Net loss (gain) from derivatives and foreign exchange 42 (57)
Net gain from sale of property, plant and equipment (392) (133)
Net gain from sale of businesses (2) (11)
Other 44 (9)
Changes in operating assets and liabilities:
Trade receivables, net (105) (56)
Contract assets and liabilities 217 132
Inventories, net (268) (85)
Accounts payable, trade 247 (103)
Accrued liabilities (531) (485)
Provisions, net 36 (46)
Income taxes payable and receivable 92 212
Other assets and liabilities, net 43 12
Net cash provided by operating activities – continuing operations 1,011 608
Net cash provided by operating activities – discontinued operations 18 76
Net cash provided by operating activities 1,029 684
Investing activities:
Purchases of investments (833) (846)
Purchases of property, plant and equipment and intangible assets (181) (183)
Acquisition of businesses (net of cash acquired) and increases in cost - and equity-accounted companies (27) (552)
Proceeds from sales of investments 192 329
Proceeds from sales of property, plant and equipment 437 163
Proceeds from sales of businesses (net of transaction costs and cash disposed) and cost - and
equity-accounted companies 1 50
Net cash from settlement of foreign currency derivatives 6 110
Other investing activities (1) 2
Net cash used in investing activities – continuing operations (406) (927)
Net cash used in investing activities – discontinued operations (34) (19)
Net cash used in investing activities (440) (946)
Financing activities:
Net changes in debt with original maturities of 90 days or less 27 400
Increase in debt 23 295
Repayment of debt (30) (7)
Purchase of treasury stock (248) (289)
Dividends paid (1,614) –
Other financing activities (15) 1
Net cash provided by (used in) financing activities – continuing operations (1,857) 400
Net cash provided by financing activities – discontinued operations 3 –
Net cash provided by (used in) financing activities (1,854) 400
Effects of exchange rate changes on cash and equivalents (50) 30
Net change in cash and equivalents (1,315) 168
Cash and equivalents, beginning of period 4,640 4,326
Cash and equivalents, end of period 3,325 4,494
Supplementary disclosure of cash flow information:
Interest paid 110 118
Income taxes paid 400 258
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 22 =====
10 Q1 2026 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, 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
Balance at January 1, 2026 160 64 22,606 (5,253) (1,490) 16,087 559 16,646
Net income 1,324 1,324 9 1,333
Foreign currency translation
adjustments, net of tax of $(1) (190) (190) (11) (201)
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 – – –
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $10 24 24 24
Change in derivative instruments
and hedges, net of tax of $0 1 1 1
Changes in noncontrolling interests (44) (44) 44 –
Dividends to
noncontrolling shareholders – (3) (3)
Dividends to shareholders (2,146) (2,146) (2,146)
Share-based payment arrangements 26 26 1 27
Purchase of treasury stock (315) (315) (315)
Delivery of shares (5) 5 – –
Balance at March 31, 2026 160 42 21,784 (5,418) (1,801) 14,767 600 15,367
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 23 =====
11 Q1 2026 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 information 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 Financial Report for the year ended December 31, 2025.
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 incl ude:
• 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, and
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations .
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 contr acts as its operating cycle.
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provision s related to these contracts 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 adjustm ents 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 provid ed.
Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the current year’s
presentation.
─
Note 2
Recent accounting pronouncements
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 ea ch 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.
Targeted Improvements to the Accounting for Internal -Use Software
In September 2025, an accounting standard update was issued related to accounting for internal -use software costs. This update modernizes the
guidance for accounting for software costs , aligning the accounting model with how software is developed today , by removing all references to project
stages and clarifying the threshold entities apply to begin capitalizing costs. This update is effective for the Company for annual and interim periods
beginning January 1, 2028, and may be applied (i) prospectively, (ii) retrospectively, or (iii) utilizing a modified transition approach . Early adoption is
permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of adopting this update on its consolidated
financial statements.
===== SIDA 24 =====
12 Q1 2026 FINANCIAL INFORMATION
─
Note 3
Discontinued operations
In October 2025, the Company entered into an agreement to divest its Robotics division to SoftBank Group Corp., valuing the b usiness at approximately
$5.4 billion. The business also includes certain investments and real estate properties which were previously reported within Corp orate and Other. The
divestment is expected to be completed in the second half of 2026, subject to regulatory approvals and customary closing conditions , as well as the
completion of certain legal entity reorganizations expected to be finalized before the sale.
As this planned divestment represents a strategic shift that will have a major effect on the Company’s operations and financi al results, the results of
operations for this business have been presented as discontinued operations and the assets and liabiliti es, along with the related investments and real
estate assets previously included in Corporate and Other, are reflected as held-for-sale for all periods presented.
In addition, amounts relating to stranded corporate costs have been separately disclosed as a component of Corporate and Othe r (see Note 16).
Stranded costs represent allocated overhead and other management costs which were previously included in the measure of segment profit
(Operational EBITA) for the Robotics division within the former Robotics & Discrete Automation operating segment but are not directly attributable to
the discontinued operation and thus do not qualify to be recorded as part of income from discontinued operations.
Operating results of the discontinued operations are summarized as follows:
Three months ended
($ in millions) Mar. 31, 2026 Mar. 31, 2025
Total revenues 537 553
Total cost of sales (341) (367)
Gross profit 196 186
Expenses (160) (96)
Income from operations 36 90
Net interest and other finance expense (9) (4)
Non-operational pension (cost) credit 1 –
Income from discontinued operations before taxes 28 86
Income tax expense (46) (23)
Income (loss) from discontinued operations, net of tax (18) 63
Of the total Income from discontinued operations before taxes in the table above, $27 million and $86 million in the three months ended March 31, 2026
and 2025, are attributable to the Company, while the remainder is attributable to noncontrolling interests.
Income from discontinued operations before taxes excluded stranded costs which were previously allocated to the Robotics divi sion. As a result, in the
three months ended March 31, 2026 and 2025, $26 million and $29 million, respectively, of allocated overhead and other management costs which were
previously included in the measure of segment profit for the Robotics division are now reported as part of Corporate and Othe r. In addition, as required
by U.S. GAAP, the Company has not recorded depreciation or amortization on the property, plant and equipment and intangible assets reported as
discontinued operations in the three months ended March 31, 2026.
The Company also has retained obligations (primarily for environmental and taxes) related to other businesses disposed or otherwise exited tha t
qualified as discontinued operations. Changes to these retained obligations are also included in Income from discontinued ope rations, net of tax.
The major components of assets and liabilities held for sale and in discontinued operations in the Company’s Consolidated Balance Sheets are
summarized as follows:
($ in millions) Mar. 31, 2026(1) Dec. 31, 2025(1)
Receivables, net 502 489
Contract assets 210 217
Inventories, net 400 372
Property, plant and equipment, net 317 290
Operating lease right-of-use assets 110 84
Goodwill 1,828 1,847
Deferred taxes 276 123
Other assets 136 140
Current assets held for sale and in discontinued operations 3,779 3,562
Accounts payable, trade 352 317
Contract liabilities 250 250
Operating leases 108 87
Other liabilities 474 454
Current liabilities held for sale and in discontinued operations 1,184 1,108
Other non-current liabilities 43 13
Non-current liabilities held for sale and in discontinued operations 43 13
(1) At March 31, 2026, and December 31, 2025, the balances reported as held for sale and in discontinued operations also include amounts pertaining to previously divested
businesses and other obligations which will remain with the Company until such time as the obligations are settled or the activities are fully wound down.
===== SIDA 25 =====
13 Q1 2026 FINANCIAL INFORMATION
─
Note 4
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) (1) 2026 2025
Purchase price for acquisitions (net of cash acquired) (2) 16 546
Aggregate excess of purchase price over fair value of net assets acquired (3) 6 426
Number of acquired businesses 2 3
(1) Amounts include adjustments arising during the measurement period of acquisitions .
(2) Excluding changes in cost - and equity -accounted companies.
(3) 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, 2026, were not significant, while 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 expands 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 $386 million (net of cash acquired). This acquisition broadens the market reach of the Company’s Electrification segment and
complements the segment’s regional customer offering within smart buildings .
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.
===== SIDA 26 =====
14 Q1 2026 FINANCIAL INFORMATION
─
Note 5
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short -term investments consisted of the following:
March 31, 2026
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,656 1,656 1,656
Time deposits 2,339 2,339 1,669 670
Equity securities 1,856 68 1,924 1,924
5,851 68 – 5,919 3,325 2,594
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
Other government obligations 7 7 7
7 – – 7 – 7
Total 5,858 68 – 5,926 3,325 2,601
December 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 1,398 1,398 1,398
Time deposits 3,804 3,804 3,242 562
Equity securities 1,348 57 1,405 1,405
6,550 57 – 6,607 4,640 1,967
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
Other government obligations 14 14 14
14 – – 14 – 14
Total 6,564 57 – 6,621 4,640 1,981
===== SIDA 27 =====
15 Q1 2026 FINANCIAL INFORMATION
─
Note 6
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 operates programs to hedge the
foreign currency exposures from forecasted cash flows, committed orders and project -related exposures. Forward foreign exchange contracts are the
main instrument used to protect the Company against the volatility of future cash flows (caused by changes in exchange rates) of contracted and
forecasted sales and purchases denominated in foreign currencies. In addition, within its treasury operations, the Company pr imarily uses foreign
exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management activities.
The Company also has numerous investments in its foreign subsidiaries, the net assets of which are exposed to volatility in f oreign currency exchange
rates. Forward foreign exchange contracts are used to reduce the foreign currency exchange risk related to the Company’s investment in certain foreign
subsidiaries. These derivatives are designated as net investment hedges.
Commodity risk
Various commodity products are used in the Company’s manufacturing activities. Consequently, it is exposed to volatility in f uture cash flows arising
from changes in commodity prices. To manage the price risk of commodities, the Company operates programs t o hedge the forecasted commodity
exposure and project-related exposures. Swap contracts are primarily 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 mana ge 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 q ualify for hedge accounting.
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, 2026 December 31, 2025 March 31, 2025
Foreign exchange contracts 17,123 14,743 14,776
Embedded foreign exchange derivatives 1,725 1,640 1,373
Cross-currency interest rate swaps 917 940 865
Interest rate contracts 573 1,644 1,625
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:
Total notional amounts at
Type of derivative Unit March 31, 2026 December 31, 2025 March 31, 2025
Copper swaps metric tonnes 46,557 33,912 37,364
Silver swaps ounces 3,016,021 2,059,055 2,138,318
Steel swaps metric tonnes 12,791 14,198 18,144
Aluminum swaps metric tonnes 4,800 3,850 4,300
Cash flow hedges
As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operati ons 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 subsequen tly reclassified into earnings in the same line item
and in the same period as the underlying hedged transaction affects earnings. For the three months ended March 31, 2026 and 2025, there were no
significant amounts recorded for cash flow hedge accounting activities.
Net investment hedges
The Company designates forward foreign exchange contracts used to reduce the foreign currency exchange risk related to its ne t investment in certain
foreign subsidiaries as net investment hedges. Accordingly, the gains and losses on the derivatives are rec orded in Accumulated other comprehensive
loss as part of Foreign currency translation adjustments. The accumulated gains and losses associated with these instruments will remain in
Accumulated other comprehensive loss until the foreign subsidiaries are sol d or substantially liquidated, at which point they will be reclassified into
earnings. The cash flows associated with derivatives designated as net investment hedges are recorded within investing activi ties in the Consolidated
Statements of Cash Flows. For the three months ended March 31, 2026 and 2025, there were no significant amounts recognized in or reclassified out of
Accumulated other comprehensive loss related to net investment hedges. In addition, in the three months ended March 31, 2026 and 2025, the Company
did not have any ineffectiveness related to net investment hedges .
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 losse s in Interest and other finance expense.
===== SIDA 28 =====
16 Q1 2026 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) 2026 2025
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges (8) (5)
Hedged item 8 5
Cross-currency interest rate swaps Designated as fair value hedges (4) (1)
Hedged item 4 2
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 econo mic hedges used for risk
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized i n 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 curr ency of the subsidiary 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 2026 2025
Foreign exchange contracts Total revenues (8) 74
Total cost of sales (4) (14)
SG&A expenses(1) 4 (18)
Interest and other finance expense 23 50
Embedded foreign exchange contracts Total revenues 3 (3)
Total cost of sales (2) 3
Commodity contracts Total cost of sales (13) 41
Other Interest and other finance expense 1 –
Total 4 133
(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, 2026
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 3 – 3 –
Interest rate contracts – – – 10
Cross-currency interest rate swaps – – – 167
Total 3 – 3 177
Derivatives not designated as hedging instruments:
Foreign exchange contracts 130 28 64 10
Commodity contracts 73 – 37 –
Embedded foreign exchange derivatives 24 9 21 10
Total 227 37 122 20
Total fair value 230 37 125 197
===== SIDA 29 =====
17 Q1 2026 FINANCIAL INFORMATION
December 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 – – 6 –
Interest rate contracts – 2 – 4
Cross-currency interest rate swaps – – – 142
Total – 2 6 146
Derivatives not designated as hedging instruments:
Foreign exchange contracts 101 23 50 5
Commodity contracts 129 – 5 –
Embedded foreign exchange derivatives 20 14 29 4
Total 250 37 84 9
Total fair value 250 39 90 155
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, 2026, and December 31, 2025, 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, 2026, and December 31,
2025, information related to these offsetting arrangements was as follows:
($ in millions) March 31, 2026
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 234 (85) – – 149
Total 234 (85) – – 149
($ in millions) March 31, 2026
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 291 (85) – – 206
Total 291 (85) – – 206
($ in millions) December 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 255 (56) – – 199
Total 255 (56) – – 199
($ in millions) December 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 212 (56) – – 156
Total 212 (56) – – 156
===== SIDA 30 =====
18 Q1 2026 FINANCIAL INFORMATION
─
Note 7
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis an d, 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 inc luding 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 liabilities 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 about 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 from 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 measuremen t is classified as Level 2 unless the unobservable 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 disclose d using Level 2 inputs include investments in certain funds, certain debt securities 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 which require significant judgement or estimation (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 ch anges 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, 2026
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 1,924 1,924
Debt securities—Other government obligations 7 7
Derivative assets—current in “Other current assets” 230 230
Derivative assets—non-current in “Other non-current assets” 37 37
Total 7 2,191 – 2,198
Liabilities
Derivative liabilities—current in “Other current liabilities” 125 125
Derivative liabilities—non-current in “Other non-current liabilities” 197 197
Total – 322 – 322
December 31, 2025
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 1,405 1,405
Debt securities—Other government obligations 14 14
Derivative assets—current in “Other current assets” 250 250
Derivative assets—non-current in “Other non-current assets” 39 39
Total 14 1,694 – 1,708
Liabilities
Derivative liabilities—current in “Other current liabilities” 90 90
Derivative liabilities—non-current in “Other non-current liabilities” 155 155
Total – 245 – 245
===== SIDA 31 =====
19 Q1 2026 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, 2026 and 2025.
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, 2026
($ 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 1,656 1,656 1,656
Time deposits 1,669 1,669 1,669
Marketable securities and short-term investments
(excluding securities):
Time deposits 670 670 670
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 1,594 1,555 39 1,594
Long-term debt (excluding finance lease obligations) 6,432 6,295 712 7,007
December 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 1,398 1,398 1,398
Time deposits 3,242 3,242 3,242
Marketable securities and short-term investments
(excluding securities):
Time deposits 562 562 562
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 448 416 32 448
Long-term debt (excluding finance lease obligations) 7,681 7,013 733 7,746
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 ad justments for non-performance risk
(Level 2 inputs).
===== SIDA 32 =====
20 Q1 2026 FINANCIAL INFORMATION
─
Note 8
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) March 31, 2026 December 31, 2025 March 31, 2025
Contract assets 1,152 1,090 992
Contract liabilities 3,475 3,221 2,986
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,
2026 2025
Contract Contract Contract Contract
($ in millions) assets liabilities assets liabilities
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2026/2025 (834) (583)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 1,124 794
Receivables recognized that were included in the Contract assets balance at Jan 1, 2026/2025 (392) (300)
The Company considers its order backlog to represent its unsatisfied performance obligations. At March 31, 2026, the Company had unsatisfied
performance obligations totaling $27,515 million and, of this amount, the Company expects to fulfill approximately 58 percent of the obligations in 2026,
approximately 22 percent of the obligations in 2027 and the balance thereafter.
─
Note 9
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 Consolidated Balance Sheets and are
reported as operating or investing (if capitalized) activities in the Consolidated Statement s of Cash Flows when paid. At March 31, 2026, and
December 31, 2025, the total obligation outstanding under supplier finance programs amounted to $510 million and $482 million, respectively.
===== SIDA 33 =====
21 Q1 2026 FINANCIAL INFORMATION
─
Note 10
Debt
The Company’s total debt at March 31, 2026, and December 31, 2025, amounted to $8,194 million and $8,304 million, respectively.
Short-term debt and current maturities of long-term debt
The Company’s Short-term debt and current maturities of long -term debt consisted of the following:
($ in millions) March 31, 2026 December 31, 2025
Short-term debt 76 26
Current maturities of long-term debt 1,545 449
Total 1,621 475
Short-term debt primarily represented short-term bank borrowings from various banks.
Long-term debt
The Company’s Long-term debt at March 31, 2026, and December 31, 2025, amounted to $6,573 million and $7,829 million, respectively.
Significant long-term borrowings (including maturities within the next 12 months) were as follows:
March 31, 2026 December 31, 2025
(in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1)
1.965% CHF Bonds, due 2026 CHF 325 $ 406 CHF 325 $ 410
3.25% EUR Instruments, due 2027 EUR 500 $ 572 EUR 500 $ 586
0.75% CHF Bonds, due 2027 CHF 425 $ 530 CHF 425 $ 535
3.8% USD Notes, due 2028 USD 383 $ 382 USD 383 $ 382
1.9775% CHF Bonds, due 2028 CHF 150 $ 187 CHF 150 $ 189
3.125% EUR Instruments, due 2029 EUR 500 $ 570 EUR 500 $ 588
1.0% CHF Bonds, due 2029 CHF 170 $ 212 CHF 170 $ 214
0% EUR Instruments, due 2030 EUR 800 $ 812 EUR 800 $ 838
2.375% CHF Bonds, due 2030 CHF 150 $ 187 CHF 150 $ 189
3.375% EUR Instruments, due 2031 EUR 750 $ 851 EUR 750 $ 871
Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539
0.8725% CHF Bonds, due 2032 CHF 350 $ 435 CHF 350 $ 440
2.1125% CHF Bonds, due 2033 CHF 275 $ 342 CHF 275 $ 346
3.375% EUR Instruments, due 2034 EUR 750 $ 847 EUR 750 $ 872
1.2762% CHF Bonds, due 2036 CHF 250 $ 311 CHF 250 $ 314
4.375% USD Notes, due 2042 USD 609 $ 592 USD 609 $ 592
Total $ 7,775 $ 7,905
(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.
─
Note 11
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 potential 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 tech nical experts.
As it is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and as it is not possible, based on
information currently available to management, to estimate the maximum potential liability on other matters, th ere could be adverse outcomes beyond
the amounts accrued; however, the Company does not expect the resolution of current matters to have a material adverse effect on its financial
statements.
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, 2026 December 31, 2025
Performance guarantees 1,599 1,926
Financial guarantees 17 18
Total(1) 1,616 1,944
(1) Maximum potential payments include amounts in both continuing and discontinued operations.
===== SIDA 34 =====
22 Q1 2026 FINANCIAL INFORMATION
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 amo unts of liabilities at March 31, 2026, and
December 31, 2025, 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 2032, 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 project 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, 2026, and December 31, 2025, the
maximum potential payable under these guarantees amounts to $662 million and $681 million, respectively, and these guarantees have various original
maturities up to ten years.
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, 2026, and December 31, 2025, have been fully indemnified by Hitachi Ltd.
These guarantees, having various maturities up to 20 32, 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 both March 31, 2026, and December 31, 2025, amounts to approximately $0.9 billion.
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. Customer s can draw on such performance 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 both March 31, 2026, and December 31, 2025, the total outstanding performance bonds aggregated to
$3.6 billion, of which $0.1 billion relate to discontinued operations. There have been no significant amounts reimbursed to financial institutions under
these types of arrangements in the three months ended March 31, 2026 and 2025.
Product and order-related contingencies
The Company calculates its provision for product warranties based on historical claims experience and specific review of cert ain contracts. The
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:
($ in millions) 2026 2025
Balance at January 1, 1,386 1,202
Claims paid in cash or in kind (34) (39)
Net increase in provision for changes in estimates, warranties issued and warranties expired 52 55
Exchange rate differences (14) 28
Balance at March 31, 1,390 1,246
Included in:
”Provisions” 676 658
”Other non-current liabilities” 714 588
Provisions for warranties - Total 1,390 1,246
─
Note 12
Income taxes
In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances known at each
interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as
compared to those forecasted at the beginning of the year and each interim period thereafter.
The effective tax rate of 25.7 percent in the three months ended March 31, 2026, was lower than the effective tax rate of 29.6 percent in the three months
ended March 31, 2025, primarily due to the tax impact of the gain on sale of real estate in the three months ended March 31, 2026, which is taxed at a rate
lower than the Company’s weighted‑average tax rate.
===== SIDA 35 =====
23 Q1 2026 FINANCIAL INFORMATION
─
Note 13
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, 2026, 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 requi rements.
The following tables include amounts relating to defined benefit pension plans for both continuing and discontinued operations.
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, 2026 2025 2026 2025
Operational pension cost:
Service cost 14 13 7 6
Operational pension cost 14 13 7 6
Non-operational pension cost (credit):
Interest cost 7 5 36 38
Expected return on plan assets (32) (27) (42) (41)
Amortization of prior service cost (credit) 1 – (1) (1)
Amortization of net actuarial loss – – 12 12
Non-operational pension cost (credit) (24) (22) 5 8
Net periodic benefit cost (credit) (10) (9) 12 14
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. Net periodic benefit cost (credit) related to discontinued operations for the three months ended March 31, 2026 and
2025, is not significant.
─
Note 14
Stockholders' equity
At the Annual General Meeting of Shareholders on March 19, 2026, shareholders approved the proposal of the Board of Directors to distribute 0. 94 Swiss
francs per share to shareholders. The declared dividend amounted to $2,146 million.
In January 2026, the Company announced the completion of its share buyback program of up to $1.5 billion that was launched in February 2025. This
program was executed on a second trading line on the SIX Swiss Exchange. In February 2026, the Company launched a new share buyback program of up
to $2.0 billion, as announced in January 2026. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to
run until January 2027. Under these buyback programs, the Company purchased approximately 3 million shares in the three months ended March 31,
2026, resulting in an increase in Treasury stock of $268 million.
===== SIDA 36 =====
24 Q1 2026 FINANCIAL INFORMATION
─
Note 15
Reclassifications out of accumulated other comprehensive loss
The following table shows changes in Accumulated other comprehensive loss (OCI) attributable to ABB, by component, net of tax :
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ 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 6 – – – 6
Balance at March 31, 2025 (4,066) – (1,109) (6) (5,181)
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, 2026 (4,176) – (1,073) (4) (5,253)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications (201) – 15 1 (185)
Amounts reclassified from OCI – – 9 – 9
Total other comprehensive (loss) income (201) – 24 1 (176)
Less:
Amounts attributable to
noncontrolling interests (11) – – – (11)
Balance at March 31, 2026 (4,366) – (1,049) (3) (5,418)
The amounts reclassified out of OCI for the three months ended March 31, 2026 and 2025, were not significant.
===== SIDA 37 =====
25 Q1 2026 FINANCIAL INFORMATION
─
Note 16
Operating segment data
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the pe rformance of each
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services:
Electrification, Motion and Automation. The remaining operations of the Company are included in Corporate and Other.
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.
• 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 six operating divisions: Motion High Power, Drive Products, Motion Services, Traction, IEC LV
Motors and NEMA Motors.
• 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; process, machine and factory automation;
industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems. In addition, 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 and services are currently delivered through five
operating divisions: Energy Industries, Process Industries, Marine & Ports, Measurement & Analytics and Machine Automation.
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 and stranded
corporate costs related to the planned divestment of the Robotics division.
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 t his 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 pro fits to arrive at the 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 profitabilit y. Significant segment 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, gener al 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 =====
26 Q1 2026 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, 2026 and 2025.
Three months ended March 31, 2026
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 1,323 663 967 39 2,992
The Americas 2,127 719 514 31 3,391
of which: United States 1,746 592 335 23 2,696
Asia, Middle East and Africa 1,099 592 654 6 2,351
of which: China 470 284 195 – 949
4,549 1,974 2,135 76 8,734
Product type
Products 4,260 1,685 1,339 55 7,339
Services and other 289 289 796 21 1,395
4,549 1,974 2,135 76 8,734
Third-party revenues 4,549 1,974 2,135 76 8,734
Intersegment revenues 64 168 12 (244) –
Total revenues 4,613 2,142 2,147 (168) 8,734
Operational cost of sales (2,662) (1,338) (1,322)
Operational selling, general and
administrative expenses (741) (334) (380)
Operational non-order related research
and development expenses (122) (84) (103)
Other segment items 17 12 (31)
Operational EBITA 1,105 398 311
Three months ended March 31, 2025
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 1,154 540 815 39 2,548
The Americas 1,692 635 453 30 2,810
of which: United States 1,357 524 296 20 2,197
Asia, Middle East and Africa 935 536 541 12 2,024
of which: China 408 243 154 4 809
3,781 1,711 1,809 81 7,382
Product type
Products 3,522 1,456 1,108 70 6,156
Services and other 259 255 701 11 1,226
3,781 1,711 1,809 81 7,382
Third-party revenues 3,781 1,711 1,809 81 7,382
Intersegment revenues 44 129 9 (182) –
Total revenues 3,825 1,840 1,818 (101) 7,382
Operational cost of sales (2,189) (1,113) (1,088)
Operational selling, general and
administrative expenses (650) (289) (361)
Operational non-order related research
and development expenses (105) (73) (97)
Other segment items 5 (5) (17)
Operational EBITA 886 360 255
===== SIDA 39 =====
27 Q1 2026 FINANCIAL INFORMATION
The following tables present Operational EBITA, the reconciliations of consolidated Operational EBITA to Income from continui ng operations before
taxes, as well as Depreciation and amortization, and Capital expenditures for the three months ended March 31, 2026 and 2025, and Total assets at
March 31, 2026, and December 31, 2025:
Three months ended
March 31,
($ in millions) 2026 2025
Operational EBITA:
Electrification 1,105 886
Motion 398 360
Automation 311 255
Corporate and Other
‒ E-mobility (47) (47)
‒ Stranded corporate costs (26) (29)
‒ Corporate costs, intersegment eliminations and other 308 70
Total 2,049 1,495
Acquisition-related amortization (47) (43)
Restructuring, related and implementation costs (1) (48) (13)
Changes in obligations related to divested businesses 5 1
Gains and losses from sale of businesses 2 11
Acquisition- and divestment-related expenses and integration costs (12) (8)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives) (114) 76
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) 25 (25)
Certain other non-operational items:
Business transformation costs(2) (26) (44)
Certain other fair value changes, including asset impairments (53) 16
Other non-operational items (2) 8
Income from operations 1,780 1,474
Interest and dividend income 49 54
Interest and other finance expense (29) (43)
Non-operational pension (cost) credit 18 14
Income from continuing operations before taxes 1,818 1,499
(1) Includes impairment of certain assets.
(2) Amount includes ABB Way process transformation costs of $43 million for the three months ended March 31, 2025.
($ in millions) Depreciation and
amortization Capital expenditures(1)
Three months ended March 31, 2026 2025 2026 2025
Electrification 119 103 119 79
Motion 47 42 29 46
Automation 30 28 20 22
Corporate and Other 14 13 13 36
Consolidated 210 186 181 183
(1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only.
Total assets(1)
($ in millions) March 31, 2026 December 31, 2025
Electrification 15,510 15,088
Motion 7,781 7,648
Automation 6,959 7,070
Corporate and Other(2) 14,379 15,079
Consolidated 44,629 44,885
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.
(2) At March 31, 2026, and December 31, 2025, Corporate and Other includes $3,779 million and $3,562 million, respectively, of assets reported in discontinued operations (see
Note 3).
===== SIDA 40 =====
28 Q1 2026 FINANCIAL INFORMATION
===== SIDA 41 =====
29 Q1 2026 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 with 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, 2026.
Comparable growth rates
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measu res growth on a
constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars is 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 t he 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 chan ges 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 exclu de the relevant key figures of any corresponding quarters 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 customer 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 $50 million.
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate.
Comparable growth rate reconciliation by Business Area
Q1 2026 compared to Q1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 51% -7% 0% 44% 21% -6% 0% 15%
Motion 18% -6% -3% 9% 16% -6% -3% 7%
Automation 12% -7% 0% 5% 18% -8% 0% 10%
ABB Group 32% -7% -1% 24% 18% -6% -1% 11%
===== SIDA 42 =====
30 Q1 2026 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter
Q1 2026 compared to Q1 2025
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 26% -13% 0% 13% 17% -12% -2% 3%
The Americas 52% -3% -1% 48% 21% -2% -1% 18%
of which: United States 70% -1% -2% 67% 23% -1% 0% 22%
Asia, Middle East and Africa 14% -3% -1% 10% 16% -3% -1% 12%
of which: China 9% -5% -1% 3% 17% -5% -1% 11%
ABB Group 32% -7% -1% 24% 18% -6% -1% 11%
Regional comparable growth rate reconciliation by business area - Quarter
Q1 2026 compared to Q1 2025
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 35% -15% 0% 20% 15% -12% 0% 3%
The Americas 82% -2% 0% 80% 26% -2% 0% 24%
of which: United States 99% -1% 0% 98% 29% 0% 0% 29%
Asia, Middle East and Africa 26% -3% -1% 22% 18% -3% -1% 14%
of which: China 20% -6% -2% 12% 15% -5% -2% 8%
Electrification 51% -7% 0% 44% 21% -6% 0% 15%
Q1 2026 compared to Q1 2025
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 17% -11% -1% 5% 21% -12% -8% 1%
The Americas 22% -4% -7% 11% 15% -3% -1% 11%
of which: United States 25% -2% -9% 14% 14% -1% -1% 12%
Asia, Middle East and Africa 16% -3% 0% 13% 13% -3% -1% 9%
of which: China 9% -5% 0% 4% 21% -6% 0% 15%
Motion 18% -6% -3% 9% 16% -6% -3% 7%
Q1 2026 compared to Q1 2025
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 33% -14% 0% 19% 18% -12% 0% 6%
The Americas 2% -3% 0% -1% 14% -4% 0% 10%
of which: United States 29% -1% 0% 28% 14% -2% 0% 12%
Asia, Middle East and Africa -7% -3% 0% -10% 21% -4% 0% 17%
of which: China -8% -3% 0% -11% 26% -6% 0% 20%
Automation 12% -7% 0% 5% 18% -8% 0% 10%
===== SIDA 43 =====
31 Q1 2026 FINANCIAL INFORMATION
Order backlog growth rate reconciliation
March 31, 2026 compared to March 31, 2025
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 40% -3% 1% 38%
Motion 15% -4% -3% 8%
Automation 25% -4% 0% 21%
ABB Group 27% -4% -1% 22%
Other growth rate reconciliations
Q1 2026 compared to Q1 2025
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 16% -6% 0% 10% 12% -6% 0% 6%
Motion 9% -7% 0% 2% 14% -8% -1% 5%
Automation 8% -7% 0% 1% 14% -8% 0% 6%
ABB Group 9% -7% 0% 2% 14% -7% 0% 7%
===== SIDA 44 =====
32 Q1 2026 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 h edged 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) 2026 2025
Operational EBITA 2,049 1,495
Acquisition-related amortization (47) (43)
Restructuring, related and implementation costs (1) (48) (13)
Changes in obligations related to divested businesses 5 1
Gains and losses from sale of businesses 2 11
Acquisition- and divestment-related expenses and integration costs (12) (8)
Certain other non-operational items (81) (20)
Foreign exchange/commodity timing differences in income from operations (88) 51
Income from operations 1,780 1,474
Interest and dividend income 49 54
Interest and other finance expense (29) (43)
Non-operational pension (cost) credit 18 14
Income from continuing operations before taxes 1,818 1,499
Income tax expense (467) (444)
Income from continuing operations, net of tax 1,351 1,055
Income (loss) from discontinued operations, net of tax (18) 63
Net income 1,333 1,118
(1) Includes impairment of certain assets.
===== SIDA 45 =====
33 Q1 2026 FINANCIAL INFORMATION
Reconciliation of Operational EBITA margin by business
Three months ended March 31, 2026
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 4,613 2,142 2,147 (168) 8,734
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 29 12 (11) 4 34
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – – (4) 1 (3)
Unrealized foreign exchange movements
on receivables (and related assets) (29) (8) (10) (5) (52)
Operational revenues 4,613 2,146 2,122 (168) 8,713
Income from operations 969 311 287 213 1,780
Acquisition-related amortization 27 11 9 – 47
Restructuring, related and
implementation costs(1) 26 7 13 2 48
Changes in obligations related to
divested businesses – – – (5) (5)
Gains and losses from sale of businesses – – – (2) (2)
Acquisition- and divestment-related expenses
and integration costs 7 2 2 1 12
Certain other non-operational items 6 46 5 24 81
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 85 25 5 (1) 114
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – – (4) 3 (1)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (15) (4) (6) – (25)
Operational EBITA 1,105 398 311 235 2,049
Operational EBITA margin (%) 24.0% 18.5% 14.7% n.a. 23.5%
(1) Includes impairment of certain assets.
In the three months ended March 31, 2026, Certain other non-operational items in the table above includes the following:
Three months ended March 31, 2026
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs 5 3 4 14 26
Certain other fair values changes,
including asset impairments (2) 41 – 14 53
Other non-operational items 3 2 1 (4) 2
Total 6 46 5 24 81
===== SIDA 46 =====
34 Q1 2026 FINANCIAL INFORMATION
Three months ended March 31, 2025
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 3,825 1,840 1,818 (101) 7,382
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (34) (9) (23) (3) (69)
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 11 3 49
Operational revenues 3,820 1,837 1,801 (101) 7,357
Income (loss) from operations 922 361 255 (64) 1,474
Acquisition-related amortization 26 9 8 – 43
Restructuring, related and
implementation costs(1) 6 2 4 1 13
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 (4) 8
Certain other non-operational items (31) 6 (2) 47 20
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (57) (23) (18) 22 (76)
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 9 (7) 25
Operational EBITA 886 360 255 (6) 1,495
Operational EBITA margin (%) 23.2% 19.6% 14.2% n.a. 20.3%
(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
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
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) (8)
Total (31) 6 (2) 47 20
(1) Amounts include ABB Way process transformation costs of $43 million for the three months ended March 31, 2025.
===== SIDA 47 =====
35 Q1 2026 FINANCIAL INFORMATION
Net debt
Definition
Net debt
Net debt is defined as Total debt less Cash and marketable securities.
Total debt
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.
Cash and marketable securities
Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments.
Reconciliation
($ in millions) March 31, 2026 December 31, 2025
Short-term debt and current maturities of long -term debt 1,621 475
Long-term debt 6,573 7,829
Total debt 8,194 8,304
Cash and equivalents 3,325 4,640
Marketable securities and short-term investments 2,601 1,981
Cash and marketable securities 5,926 6,621
Net debt 2,268 1,683
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, 2026 December 31, 2025
Total stockholders' equity 15,367 16,646
Net debt (see above) 2,268 1,683
Net debt / Equity ratio 0.15 0.10
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, 2026 March 31, 2025
Income from operations for the three months ended:
June 30, 2025 / 2024 1,466 1,292
September 30, 2025 / 2024 1,602 1,225
December 31, 2025 / 2024 1,505 1,094
March 31, 2026 / 2025 1,780 1,474
Depreciation and Amortization for the three months ended:
June 30, 2025 / 2024 202 192
September 30, 2025 / 2024 204 184
December 31, 2025 / 2024 221 194
March 31, 2026 / 2025 210 186
EBITDA 7,190 5,841
Net debt (as defined above) 2,268 1,453
Net debt / EBITDA ratio 0.32 0.25
===== SIDA 48 =====
36 Q1 2026 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, 2026 March 31, 2025
Net working capital:
Receivables, net 7,606 7,068
Contract assets 1,152 992
Inventories, net 6,056 5,680
Prepaid expenses 363 347
Accounts payable, trade (5,423) (4,676)
Contract liabilities (3,475) (2,986)
Other current liabilities(1) (3,574) (3,388)
Net working capital 2,705 3,037
(1) Amounts exclude $1,514 million and $910 million at March 31, 2026 and 2025, respectively, related primarily to (a) income taxes payable, (b) current derivative
liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program, (e) dividends payable and (f) liabilities related to certain
restructuring -related activitie s.
===== SIDA 49 =====
37 Q1 2026 FINANCIAL INFORMATION
Average trade net working capital as a percentage of revenues
Definition
Average trade net working capital as a percentage of revenues
Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the
trailing twelve months (being total revenues for the twelve months preceding the relevant balance sheet date).
Average trade net working capital
Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during
the trailing twelve-month period (4-quarter average).
Trade net working capital
Trade net working capital is the sum of (i) trade receivables, net (comprised of trade accounts receivable net of related allowance, presented within
Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract
liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating
expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these
accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
March 31, December 31, September 30, June 30, March 31,
($ in millions, unless otherwise indicated) 2026 2025 2025 2025 2025
Trade net working capital:
Trade receivables, net 6,959 6,884 6,838 6,837 6,401
Contract assets 1,152 1,090 1,062 1,083 992
Inventories, net 6,056 5,862 6,051 6,007 5,680
Accounts payable, trade (5,423) (5,210) (4,936) (4,918) (4,676)
Contract liabilities (3,475) (3,221) (3,204) (3,109) (2,986)
Accrued expenses, operating (1,252) (1,346) (1,370) (1,254) (1,189)
Trade net working capital in assets and liabilities held for sale – – (8) – –
Trade net working capital 4,017 4,059 4,433 4,646 4,222
Average of opening and closing Trade net working capital 4,038 4,246 4,540 4,434
Average trade net working capital 4,315
Total revenues for the three months ended:
June 30, 2025 8,295
September 30, 2025 8,491
December 31, 2025 9,052
March 31, 2026 8,734
Total revenues for the trailing twelve months 34,572
Average trade net working capital as a percentage of revenues
(%)
12.5%
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, net 6,401 6,277 6,360 6,415 6,329
Contract assets 992 889 967 868 889
Inventories, net 5,680 5,420 6,100 5,809 5,687
Accounts payable, trade (4,676) (4,681) (4,798) (4,759) (4,673)
Contract liabilities (2,986) (2,704) (2,795) (2,682) (2,577)
Accrued expenses, operating (1,189) (1,234) (1,327) (1,228) (1,265)
Trade net working capital in assets and liabilities held for sale – – 20 – –
Trade net working capital 4,222 3,967 4,527 4,423 4,390
Average of opening and closing Trade net working capital 4,095 4,247 4,475 4,407
Average trade net working capital 4,306
Total revenues for the three months ended:
June 30, 2024 7,663
September 30, 2024 7,591
December 31, 2024 7,996
March 31, 2025 7,382
Total revenues for the trailing twelve months 30,632
Average trade net working capital as a percentage of revenues
(%)
14.1%
===== SIDA 50 =====
38 Q1 2026 FINANCIAL INFORMATION
Return on Capital employed (ROCE)
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 unrounded average of the
opening 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) 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) 2026 2025 2025 2025 2025
Adjusted total fixed assets:
Property, plant and equipment, net 4,605 4,692 4,443 4,396 4,099
Goodwill 9,585 9,637 9,522 9,507 9,305
Intangible assets, net 1,088 1,119 1,096 1,140 1,134
Investments in equity-accounted companies 321 349 381 369 361
Operating lease right-of-use assets 785 765 754 761 765
Fixed assets included in assets held for sale – – 9 – –
Total fixed assets 16,384 16,562 16,205 16,173 15,664
Less: Deferred taxes recognized in certain acquisitions (1) (188) (199) (210) (220) (231)
Adjusted total fixed assets 16,196 16,363 15,995 15,953 15,433
Net working capital - (as defined above) 2,705 2,372 2,993 3,423 3,037
Capital employed 18,901 18,735 18,988 19,376 18,470
Average of opening and closing Capital employed 18,818 18,862 19,182 18,923
Operational EBITA for the three months ended 2,049 1,588 1,633 1,598
Operational EBITA for the trailing twelve months 6,868
Notional tax on Operational EBITA (1,717)
Operational EBITA after tax for the trailing twelve months 5,151
Average Capital employed (4 quarters) 18,946
Return on Capital Employed (ROCE) 27.2%
(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 =====
39 Q1 2026 FINANCIAL INFORMATION
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 4,099 3,986 4,050 3,911 3,864
Goodwill 9,305 8,801 8,774 8,752 8,716
Intangible assets, net 1,134 999 981 1,034 1,073
Investments in equity-accounted companies 361 351 172 173 162
Operating lease right-of-use assets 765 752 779 772 772
Fixed assets included in assets held for sale – – 176 – –
Total fixed assets 15,664 14,889 14,932 14,642 14,587
Less: Deferred taxes recognized in certain acquisitions (1) (231) (242) (253) (265) (281)
Adjusted total fixed assets 15,433 14,647 14,679 14,377 14,306
Net working capital - (as defined above) 3,037 2,403 3,231 3,213 3,159
Capital employed 18,470 17,050 17,910 17,590 17,465
Average of opening and closing Capital employed 17,760 17,480 17,750 17,528
Operational EBITA for the three months ended 1,495 1,330 1,457 1,463
Operational EBITA for the trailing twelve months 5,745
Notional tax on Operational EBITA (1,436)
Operational EBITA after tax for the trailing twelve months 4,309
Average Capital employed (4 quarters) 17,629
Return on Capital Employed (ROCE) 24.4%
(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 =====
40 Q1 2026 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) 2026 2025
Net cash provided by operating activities – continuing operations 1,011 608
Adjusted for the effects of continuing operations:
Purchases of property, plant and equipment and intangible assets (181) (183)
Proceeds from sale of property, plant and equipment 437 163
Free cash flow – continuing operations 1,267 588
Net cash provided by operating activities – discontinued operations 18 76
Adjusted for the effects of discontinued operations:
Purchases of property, plant and equipment and intangible assets (35) (12)
Free cash flow – discontinued operations (17) 64
Free cash flow 1,250 652
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.
Adjusted net income
Adjusted net income is calculated as Net income 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 is defined as Free cash flow for the twelve months preceding the relevant balan ce sheet date.
Adjusted net income for the trailing twelve months
Adjusted net income for the trailing twelve months is defined as Adjusted net income for the twelve months preceding the rele vant balance sheet date.
Reconciliation
Trailing twelve months to
($ in millions, unless otherwise indicated) March 31, 2026 December 31, 2025
Net cash provided by operating activities 5,796 5,469
Adjusted for the effects of continuing operations:
Purchases of property, plant and equipment and intangible assets (999) (1,001)
Proceeds from sale of property, plant and equipment 468 194
Adjusted for the effects of discontinued operations:
Purchases of property, plant and equipment and intangible assets (121) (98)
Proceeds from sale of property, plant and equipment 2 2
Free cash flow 5,146 4,566
Adjusted net income(1) 5,009 4,757
Free cash flow conversion to net income 103% 96%
(1) Adjusted net income for the year ended December 31, 2025, is adjusted to exclude $53 million of gains arising on sale of certain investments and intangible assets, and
adjustments to the gain on sale of Power Grids of $13 million.
Reconciliation of the trailing twelve months to March 31, 2026
Continuing operations Discontinued operations
($ 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
Purchases of
property, plant
and equipment
and intangible
assets
Proceeds
from sale of
property, plant
and equipment
Adjusted net
income(1)
Q2 2025 1,059 (202) 10 (22) – 1,181
Q3 2025 1,777 (207) 3 (22) 1 1,215
Q4 2025 1,949 (409) 18 (42) 1 1,280
Q1 2026 1,011 (181) 437 (35) – 1,333
Total for the trailing twelve
months to March 31, 2026 5,796 (999) 468 (121) 2 5,009
(1) Adjusted net income for Q3 2025 is adjusted to exclude adjustments to the gain on sale of Power Grids of $13 million and $16 million of gains arising on sale of
certain intangible assets .
===== SIDA 53 =====
41 Q1 2026 FINANCIAL INFORMATION
Net finance income (expense)
Definition
Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.
Reconciliation
Three months ended March 31,
($ in millions) 2026 2025
Interest and dividend income 49 54
Interest and other finance expense (29) (43)
Net finance income 20 11
Book-to-bill ratio
Definition
Book-to-bill ratio is calculated as Orders received divided by Total revenues.
Reconciliation
Three months ended March 31,
2026 2025
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 6,647 4,613 1.44 4,394 3,825 1.15
Motion 2,548 2,142 1.19 2,156 1,840 1.17
Automation 2,464 2,147 1.15 2,197 1,818 1.21
Corporate and Other (incl. intersegment eliminations) (361) (168) n.a. (158) (101) n.a.
ABB Group 11,298 8,734 1.29 8,589 7,382 1.16
===== SIDA 54 =====
ABB Ltd
Corporate Communications
P.O. Box 8131
8050 Zurich
Switzerland
Tel: +41 (0)43 317 71 11
www.abb.com