FULLTEXT DEL 1 AV 2
Kvartalsrapport Q2 2025
===== SIDA 1 =====
—
ZURICH, SWITZERLAND, JULY 17, 2025
Q2 2025 results
Record-high order intake and
improved business performance
• Orders $9,785 million, +16%; comparable1 +14%
• Revenues $8,900 million, +8%; comparable1 +6%
• Income from operations $1,573 million; margin 17.7%
• Operational EBITA1 $1,708 million; margin1 19.2%
• Basic EPS $0.63; +6%3
• Cash flow from operating activities $1,059 million; -1%
• Return on Capital Employed 23.1%
—
“ABB delivered an all-time-high order intake and improved operational performance. We are on a
good path towards a new record year, amidst geopolitical uncertainties.”
Morten Wierod, CEO
KEY FIGURES
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable1 H1 2025 H1 2024 US$ Comparable1
Orders 9,785 8,435 16% 14% 18,998 17,409 9% 9%
Revenues 8,900 8,239 8% 6% 16,835 16,109 5% 5%
Gross Profit2 3,574 3,303 8% 6,885 6,367 8%
as % of revenues2 40.2% 40.1% +0.1 pts 40.9% 39.5% +1.4 pts
Income from operations 1,573 1,376 14% 3,140 2,593 21%
Operational EBITA1 1,708 1,564 9% 6% 4 3,305 2,981 11% 11% 4
as % of operational revenues1 19.2% 19.0% +0.2 pts 19.7% 18.4% +1.3 pts
Income from continuing operations, net of tax 1,188 1,104 8% 2,307 2,018 14%
Net income attributable to ABB 1,151 1,096 5% 2,253 2,001 13%
Basic earnings per share ($) 0.63 0.59 6%3 1.23 1.09 13%3
Cash flow from operating activities 1,059 1,067 -1% 1,743 1,793 -3%
Free cash flow1 845 918 -8% 1,497 1,469 2%
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q2 2025 Financial Information.
2 Prior period amounts have been restated to reflect a change in accounting policy for IS expenses, see “Note 1 - The Company and Basis of Presentation” in the attached Q2 2025 Financial
Information for details.
3 EPS growth rates are computed using unrounded amounts.
4 Constant currency (not adjusted for portfolio changes).
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q2 2025
FIRST SIX MONTHS
PRESS RELEASE
===== SIDA 2 =====
AB B IN TE RIM RE P ORT I Q2 20 25 2
I am pleased with what we achieved in the second quarter
of 2025, and one of the highlights was the record-high order
intake of $9.8 billion, up 16% (14% comparable). It was
particularly encouraging to see that the positive
development was broad-based across all four business
areas, a majority of customer segments, all three
geographical regions and in both the short-cycle and
project-related businesses. In my view, this signals a robust
general trading environment. Order growth was especially
strong in the Process Automation business area where a
large order of approximately $600 million net was booked.
Our book-to-bill was strong at 1.10 and notably it was
positive also without the specific large order booking which
supported comparable order growth by about 7%.
Sequentially, the trading environment remained largely
unchanged, with similar uncertainty linked to potential
impacts from trade tariffs.
Broadly in line with our expectations, revenues increased by
8% (6% comparable) year-on-year, supported by three out
of four business areas. Revenues in Robotics & Discrete
Automation was hampered by weakness in the Machine
Automation division where last year’s comparable was
supported by a stronger order backlog.
Operational EBITA was up by 9% and the margin
improvement of 20 basis points to 19.2% was even a bit
better than originally expected. Margins increased in both
the Electrification and Process Automation business areas,
and Motion remained virtually stable. This combined
operational improvement offset the year-on-year headwind
from margin pressure in Robotics & Discrete Automation
linked to the Machine Automation division, as well as the
year-on-year headwind of 30 basis points from last year’s
positive non-repeat in Corporate & other.
We continue to achieve high Return on capital employed
and at 23.1% we added to our streak of delivering well
above our long-term target. Free cash flow of $845 million
was slightly softer than last year as increased earnings were
more than offset by the impacts from the growth-related
buildup of net working capital and the planned increase in
capex spend. Our usual pattern suggests a stronger cash
delivery in the second half of the year, and we remain
confident in our ambition to improve from last year’s
annual level.
During the quarter we were recognized by TIME Magazine
as one of the top 15 most sustainable companies in the
world, across all industries. I view it as a testament to the
success of our strategic approach of embedding
sustainability into our operations, based on accountability
and transparency.
Another highlight in the quarter was the launch of three
new robot families, aiming to further strengthen our
Robotics business’ leading position in China. This enables
us to support industries and customers to automate with
new mid-market value propositions, and it is the result of
our full local-for-local value chain. In April, we announced
our plans to spin-off our Robotics division as a separately
listed company. The carve-out for a distribution as a
dividend-in-kind during the second quarter of 2026 is
progressing as planned.
Also, I am excited about the Electrification business area
launching the next generation of their technology-leading
air circuit breaker, the SACE Emax 3. This is the world’s first
cybersecurity SL2-certified air circuit breaker. As evidence
of our strategy of embedded software, the Emax 3 includes
sensing, intelligence and advanced algorithms to improve
energy security resilience of power systems in critical
infrastructure, such as data centers, factories, hospitals
and airports.
Morten Wierod
CEO
In the third quarter of 2025, we anticipate comparable
revenue growth to be at least in the mid-single digit
range, and the Operational EBITA margin to remain
broadly stable year-on-year; however acknowledging the
uncertainty for the global business environment.
In full-year 2025, we expect a positive book-to-bill,
comparable revenue growth in the mid-single digit
range and the Operational EBITA margin to improve
year-on-year, however acknowledging the uncertainty
for the global business environment.
CEO summary
Outlook
===== SIDA 3 =====
AB B IN TE RIM RE P ORT I Q2 20 25 3
In addition to a generally robust market environment,
with a positive development in short-cycle and project-
related businesses as well as service, the record-high
order intake was supported by the booking of a very
large order in the Process Automation business area.
This is a multi-year order and contributed approximately
$600 million net. For the Group, the positive order
development was broad-based, supported by the
majority of customer segments and all three regions. In
total, orders increased by 16% (14% comparable) to
$9,785 million.
In the Americas orders were up by 27% (28%
comparable), with the mid-single digit growth in base
orders further fuelled by large bookings. Orders in
Europe, were up by 12% (6% comparable). Asia, Middle
East and Africa improved by 7% (6% comparable)
including a positive development of 4% (2%
comparable) in China.
In transport & infrastructure, the trading environment
was strong in marine and ports. The market remains
strong in rail, although quarterly orders declined due to
timing of order placements. Land transport
infrastructure benefited from upgrades of electrical
equipment.
In the industrial areas a particularly strong development
was seen in utilities. The general market sentiment in
the data center segment was very strong and orders
increased by double-digits year-on-year.
Orders in the buildings segment improved as weakness
in China was more than offset by favorable
developments in other regions driven by the commercial
sector, while the residential sector declined with
regional variances.
In the robotics-related segments, we saw delays in
investment decisions by customers due to tariff-related
uncertainty. Orders declined in most customer
segments outside of consumer electronics. Orders in
the machine builder segment increased sharply from a
low level, however the absolute order level remained
subdued. We anticipate absolute orders to increase
sequentially in both the robotics and the machine
builder segments.
Orders improved in the mining segment despite a
cautious underlying market. Oil & Gas remained broadly
stable while declines were noted in pulp & paper and
chemicals.
Revenues improved in three out of four business areas
and amounted to $8,900 million, up by 8% (6%
comparable). This was supported by backlog execution
as well as positive developments in the short-cycle and
service businesses. Higher volumes was the main driver
of the revenue growth, with some added support from
slightly positive pricing.
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 14% 6%
FX 2% 2%
Portfolio changes 0% 0%
Total 16% 8%
Orders by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q2 2025 Q2 2024 US$ Comparable
Europe 3,130 2,786 12% 6%
The Americas 3,843 3,031 27% 28%
Asia, Middle East
and Africa 2,812 2,618 7% 6%
ABB Group 9,785 8,435 16% 14%
Revenues by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q2 2025 Q2 2024 US$ Comparable
Europe 3,016 2,831 7% 0%
The Americas 3,272 2,960 11% 12%
Asia, Middle East
and Africa 2,612 2,448 7% 6%
ABB Group 8,900 8,239 8% 6%
Orders and revenues
===== SIDA 4 =====
AB B IN TE RIM RE P ORT I Q2 20 25 4
Gross profit
Gross profit increased by 8% (6% constant currency) year-on-
year to $3,574 million, reflecting a gross margin of 40.2%, up
10 basis points year-on-year. Gross margin improved in three
out of four business areas.
Income from operations
Income from operations amounted to $1,573 million and
improved by 14% year-on-year. This improvement was driven
mainly by a stronger business performance, lower
Restructuring-related expenses and the positive year-on-year
impact from Sales of businesses where this year’s positive
contribution compares to a recorded loss in the previous year.
In total, the Income from operations margin was 17.7% and
improved by 100 basis points.
Operational EBITA
Operational EBITA increased by 9% year-on-year to $1,708
million, resulting in a 20 basis points margin improvement to
19.2%. This represents improved business performance
supported by higher volumes, slightly positive pricing and
improved efficiency. These combined positive impacts offset
the higher expenses related to Sales, General & Administrative
(SG&A) and headwind of 30 basis points year-on-year from
lower positive non-repeats in Corporate & other. Operational
EBITA in Corporate and Other amounted to -$96 million.
Underlying corporate costs were $54 million while the E-
mobility business reported a loss of $42 million as the
operational performance was hampered by low volumes.
Finance net
Net finance income contributed to results with a positive
$25 million, just below last year’s income in the same period of
$33 million.
Income tax
Income tax expense was $426 million, and the effective tax
rate was 26.4%.
Net income and earnings per share
Net income attributable to ABB was $1,151 million,
representing an increase of 5% year-on-year, mainly helped by
the impact of improved business performance, partially offset
by the higher tax rate year-on-year. Basic earnings per share
increased by 6% to $0.63, up from $0.59 in the last year
period.
Earnings
Corporate and Other
Operational EBITA
($ in millions) Q2 2025 Q2 2024
Corporate and Other
E-mobility (42) (87)
Corporate costs, intersegment
eliminations and other1 (54) 20
Total (96) (67)
1 Majority of which relates to underlying corporate
===== SIDA 5 =====
AB B IN TE RIM RE P ORT I Q2 20 25 5
Trade net working capital1
Trade net working capital amounted to $5,104 million,
increasing year-on-year from $4,825 million. The increase
was mainly driven by changes in exchange rates with the
increase in receivables and a decrease in trade payables
being largely offset by reduction of inventory and higher
customer advances. The average trade net working
capital as a percentage of revenues1 was 14.1% which
declined from 15.6% one year ago.
Capital expenditures
Purchases of property, plant and equipment and
intangible assets during the second quarter amounted to
$224 million, higher than last year’s $185 million.
Net debt
Net debt1 amounted to $3,701 million at the end of the
quarter and increased from $2,480 million year-on-year.
The sequential increase from $1,460 million in the first
quarter was mainly due to the dividend distribution and
share buyback activity as well as foreign currency
impacts.
Cash flows
Cash flow from operating activities during the second
quarter was $1,059 million, which is broadly in line with last
year’s $1,067 million as the impact of stronger earnings was
offset mainly by growth-related buildup of Net working
capital. Free cash flow amounted to $845 million and the
decline from last year’s $918 million was mainly due to the
planned higher capex spend.
Share buyback program
A share buyback program of up to $1.5 billion was launched
on February 10, 2025. During the second quarter, ABB
repurchased a total of 7,936,678 shares for a total amount
of approximately $430 million. ABB’s total number of issued
shares, including shares held in treasury, amounts to
1,843,899,204.
Balance sheet & Cash flow
($ in millions,
unless otherwise indicated)
Jun. 30
2025
Jun. 30
2024
Dec. 31
2024
Short-term debt and current
maturities of long-term debt 558 410 293
Long-term debt 8,255 6,338 6,652
Total debt 8,813 6,748 6,945
Cash & equivalents 3,266 2,979 4,326
Marketable securities and
short-term investments 1,846 1,289 1,334
Cash and marketable securities 5,112 4,268 5,660
Net debt (cash)* 3,701 2,480 1,285
Net debt (cash)* to EBITDA ratio 0.6 0.4 0.2
Net debt (cash)* to Equity ratio 0.25 0.18 0.09
* June 30, 2025, June 30, 2024 and Dec. 31, 2024, net debt(cash) excludes net pension
(assets)/liabilities of $(340) million, $(241) million and $(227) million, respectively.
===== SIDA 6 =====
AB B IN TE RIM RE P ORT I Q2 20 25 6
Orders and revenues
In a robust business environment, new quarterly all-
time-highs were achieved for both order intake and
revenues. The strong development was supported by
improvements across the portfolio in services, short-
cycle and systems-related businesses. Book-to-bill was
positive at 1.04.
• Order intake increased by 11% (9% comparable) year-
on-year, with a positive development in most
customer segments. Momentum was particularly
strong for both the medium- and low voltage offering
linked to the utilities segment, and for the service
business as a whole. A positive development was
noted also in commercial buildings, while residential
declined with regional variances. Orders in the data
center segment improved at a double-digit rate.
Investments in the areas of electronics,
semiconductors and pharmaceutical also supported
order growth.
• Orders improved in all three regions. The Americas
increased by 9% (10% comparable) with a strong
development of 13% (13% comparable) in the United
States. Europe was up by 13% (6% comparable)
despite a slight decline in the large German market.
Asia, Middle East and Africa improved by 13% (11%
comparable) with China at 4% (0% comparable) and
improvement in several of the mid-sized markets.
• Revenues of $4,331 million increased by 14% (11%
comparable), improving in all divisions. Higher
volumes was the main driver to comparable growth
with solid execution of the order backlog mainly
linked to the medium voltage and power protection
offering as well as good customer activity in the
short-cycle business. Price was slightly positive.
Profit
A historical first was achieved with Operational EBITA
above the $1 billion mark, increasing by 16% to
$1,033 million, resulting in a margin improvement of
70 basis points to 23.9%.
• The margin improvement was primarily supported by
operational leverage on higher volumes and improved
operational efficiency.
—
Electrification
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable H1 2025 H1 2024 US$ Comparable
Orders 4,518 4,073 11% 9% 8,912 8,465 5% 5%
Order backlog 8,685 7,548 15% 12% 8,685 7,548 15% 12%
Revenues 4,331 3,809 14% 11% 8,156 7,489 9% 9%
Gross Profit 1,807 1,603 13% 3,445 3,101 11%
as % of revenues 41.7% 42.1% -0.4 pts 42.2% 41.4% +0.8 pts
Operational EBITA 1,033 887 16% 1,919 1,713 12%
as % of operational revenues 23.9% 23.2% +0.7 pts 23.6% 22.8% +0.8 pts
Cash flow from operating activities 956 850 12% 1,477 1,397 6%
No. of employees (FTE equiv.) 52,800 51,100 3%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 9% 11%
FX 2% 2%
Portfolio changes 0% 1%
Total 11% 14%
===== SIDA 7 =====
AB B IN TE RIM RE P ORT I Q2 20 25 7
Orders and revenues
On orders of $2,112 million this was yet another quarter
above the $2 billion mark. Growth turned positive year-on-
year at 5% (3% comparable) after four quarters in decline,
with an increase in the short-cycle businesses more than
offsetting the impact from lower large order bookings.
• Orders increased in the segments of HVAC for
commercial buildings, water & wastewater, power
generation and food & beverage. A stable trend was
noted for oil & gas, while weakness was seen in the
process related segments of chemicals, pulp & paper and
metals. Rail declined, but mainly due to timing of orders.
• Orders improved in the Americas by 14% (14%
comparable), with the strong improvement of 27% (26%
comparable) in the United States positively impacted by
timing of orders booked. Europe was up by 1% (-5%
comparable). Timing of large order bookings in the
prior year limited regional growth in Asia, Middle East
and Africa to 0% (0% comparable), although orders in
China increased by 9% (9% comparable).
• Revenues of $2,065 million improved by 6% (4%
comparable). Growth was supported by a positive
development in the short-cycle businesses as well as
order backlog execution. Higher volumes was the main
driver to comparable growth, with slightly positive
pricing year-on-year.
The creation of the new High Power division, which
combines the former Systems Drives and Large Motor &
Generator divisions, is effective July 1, 2025. The
consolidation targets a more efficient and customer
focused organization deploying go-to-market synergies in
the medium voltage space.
Profit
Operational EBITA increased by 5%, with a slight
softening of 10 basis points of the margin to 19.8%.
• Earnings were positively impacted by operational
leverage on higher volumes, with slightly positive
pricing. This was however offset by mainly higher SG&A
expenses.
—
Motion
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable H1 2025 H1 2024 US$ Comparable
Orders 2,112 2,014 5% 3% 4,268 4,317 -1% -1%
Order backlog 6,102 5,669 8% 1% 6,102 5,669 8% 1%
Revenues 2,065 1,951 6% 4% 3,905 3,780 3% 3%
Gross Profit 788 722 9% 1,521 1,368 11%
as % of revenues 38.2% 37.0% +1.2 pts 39.0% 36.2% +2.8 pts
Operational EBITA 407 388 5% 767 731 5%
as % of operational revenues 19.8% 19.9% -0.1 pts 19.7% 19.2% +0.5 pts
Cash flow from operating activities 354 509 -30% 664 861 -23%
No. of employees (FTE equiv.) 22,600 22,700 0%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 3% 4%
FX 2% 2%
Portfolio changes 0% 0%
Total 5% 6%
===== SIDA 8 =====
AB B IN TE RIM RE P ORT I Q2 20 25 8
Orders and revenues
Quarterly order intake of $2,620 million is the highest on
record and firmly extends the streak of positive book-
to-bill to 19 consecutive quarters. Order intake
increased by 45% (40% comparable) and book-to-bill
was 1.45.
• The strong order growth was supported by the
booking of a large order which contributed
approximately $600 million net, with deliveries
stretching over a multi-year period. Notably, in a firm
market environment, orders increased also when
excluding the specific large order booking, which
supported comparable order intake by about 32%.
• The market profile was similar to recent quarters, with
the strongest customer activity linked to the
segments of marine and port automation &
electrification, with added support from a positive
development in the short-cycle product business –
albeit from a low comparable. Orders increased in the
mining segment, where the general business
environment otherwise remained relatively cautious.
Orders in the oil & gas segment increased, while the
more muted process industry related areas were pulp
& paper and chemicals.
• Revenues were mainly supported by execution of the
project order backlog. The volume increase was the
key driver to the year-on-year growth of 5% (2%
comparable), for total revenues of $1,804 million.
Profit
Operational EBITA of $290 million was up by 10%,
representing a 40 basis points improvement in
Operational EBITA margin to 15.9%. All divisions
delivered at least at the mid-teens margin level.
• Operational EBITA margin improved or remained
stable in the project- and systems-related businesses
which executed the order backlog with high gross
margin. This was partially offset by the product
business where profitability softened year-on-year
due to revenues being hampered by customers’
inventory adjustments.
—
Process Automation
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable H1 2025 H1 2024 US$ Comparable
Orders 2,620 1,802 45% 40% 4,644 3,499 33% 32%
Order backlog 9,269 7,409 25% 19% 9,269 7,409 25% 19%
Revenues 1,804 1,717 5% 2% 3,437 3,318 4% 4%
Gross Profit 697 642 9% 1,344 1,236 9%
as % of revenues 38.6% 37.4% +1.2 pts 39.1% 37.3% +1.8 pts
Operational EBITA 290 263 10% 545 516 6%
as % of operational revenues 15.9% 15.5% +0.4 pts 15.9% 15.5% +0.4 pts
Cash flow from operating activities 252 257 -2% 516 486 6%
No. of employees (FTE equiv.) 22,700 21,700 5%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 40% 2%
FX 5% 3%
Portfolio changes 0% 0%
Total 45% 5%
===== SIDA 9 =====
AB B IN TE RIM RE P ORT I Q2 20 25 9
Orders and revenues
Business area orders improved by 6% (4% comparable)
from last year’s low level, to $729 million. The slight
sequential decline in the second quarter is a recurring
order pattern.
• Weaker orders in the Robotics division were due to
customers applying a wait-and-see stance on the back
of continued uncertainties linked to potential tariffs.
This hampered order intake in most customer
segments, except for a positive development in
consumer electronics. We anticipate orders to
increase sequentially.
• Orders in the Machine Automation division increased
sharply from last year’s low level. However, the order
level remains subdued as customers cautiously
balance new ordering with inventory levels. We
anticipate absolute orders to increase sequentially.
• As expected, there was a sequential increase in
revenues for the business area, but on a year-on-year
basis revenues declined by 2% (5% comparable) to
$813 million. The two divisions show diverging
patterns, with increased volumes in Robotics, while
volumes declined sharply in Machine Automation due
to less support from the order backlog.
Profit
Impact from operational leverage on significantly lower
volumes in the Machine Automation division put
pressure on Operational EBITA which declined by 20% to
$74 million. The Operational EBITA margin dropped by
200 basis points year-on-year to 9.1%.
• In Robotics, both earnings and margin improved
slightly year-on-year as the division continued to
deliver a double-digit profitability level.
• Machine Automation delivered a slight loss as savings
from cost measures did not offset the adverse
impacts from low utilization rates in production as
revenues declined.
—
Robotics & Discrete Automation
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable H1 2025 H1 2024 US$ Comparable
Orders 729 688 6% 4% 1,528 1,389 10% 11%
Order backlog 1,489 1,758 -15% -19% 1,489 1,758 -15% -19%
Revenues 813 833 -2% -5% 1,557 1,697 -8% -8%
Gross Profit 277 277 0% 533 597 -11%
as % of revenues 34.1% 33.3% +0.8 pts 34.2% 35.2% -1 pts
Operational EBITA 74 93 -20% 148 206 -28%
as % of operational revenues 9.1% 11.1% -2 pts 9.5% 12.2% -2.7 pts
Cash flow from operating activities 123 98 26% 188 193 -3%
No. of employees (FTE equiv.) 10,300 11,300 -9%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 4% -5%
FX 2% 3%
Portfolio changes 0% 0%
Total 6% -2%
===== SIDA 10 =====
AB B IN TE RIM RE P ORT I Q2 20 25 10
Events from the Quarter
• ABB’s new Battery Energy Storage Systems-as-a-
Service launched in Q2 offers a zero-Capex model that
removes financial and operational barriers to clean
energy adoption. By shifting costs to a predictable
service fee, businesses can access advanced energy
storage without upfront investment. The solution
enhances energy efficiency, resilience, and long-term
sustainability. ABB manages deployment,
maintenance, and optimization, allowing industries to
focus on core operations and accelerate their
transition to net zero.
• Five startups won ABB’s 2025 Startup Challenge by
showcasing how their innovative approach could help
make energy use smarter in industry, buildings, power
grids and utilities. Solutions include real-time
emissions tracking, battery optimization, and tools
for decarbonizing real estate. ABB experts will work
with each winner to develop a Minimum Viable
Product (MVP) with the opportunity to launch a global
solution for ABB’s customers and partners.
• ABB has broken its own world record for energy
efficiency in large synchronous electric motors,
reaching 99.13% with a new motor for a steel plant in
India designed in line with its Top Industrial Efficiency
(TIE) initiative. The steel plant will have estimated
electricity cost savings of around $6 million through
improved energy efficiency over the motor’s 25-year
lifespan and the investment in energy efficiency will
have a projected payback period of just over three
months.
• ABB’s planned acquisition of France’s BrightLoop will
strengthen its position in sustainable transportation by
expanding electrification capabilities for off-highway
vehicles and marine vessels. BrightLoop’s compact,
high-efficiency power converters reduce fuel
consumption, emissions, and maintenance needs in
demanding environments. Originally developed for
motorsports, the technology is now applied in other
segments, supporting the shift to cleaner energy.
• Eni selected ABB as the main automation contractor
for HyNet, one of the UK’s first industrial carbon
capture and storage (CCS) clusters. ABB will provide
integrated automation, telecoms, and cybersecurity
systems to manage the transport and storage of CO₂e
from heavy industry to depleted gas fields. The
project aims to remove up to 10 million tons of CO₂e
emissions a year by 2030, the equivalent of taking
four million cars off the road.
• In June, ABB celebrated Pride month, with over 7,700
employees participating in local events, team huddles,
and global conversations, reinforcing the company’s
commitment to inclusion across offices and shop
floors. In addition, awareness webinars on LGBTQ+
inclusion and human rights were held in Q2,
strengthening awareness and leadership
accountability on inclusion-related risks. Separately,
the company was ranked among the top 5 Swiss
companies for LGBTQ+ transparency in the “Open for
Business” Swiss Market Leaders Index.
• With the 2025 ABB RoboCup, ABB drives to close the
education gap in robotics and automation. Students
competed in the live finale in Bergamo, Italy, taking on
real-world robotics challenges using ABB’s advanced
technology and tools. Since its launch in 2018, the
competition has become a powerful platform for
bridging the gap between education and the
workplace involving more than 2,800 students in total.
—
Sustainability
Q2 2025 Q2 2024 CHANGE 12M ROLLING
CO₂e own operations emissions,
Ktons scope 1 and 21 44 43 1% 129
Total recordable incident frequency rate (TRIFR),
frequency / 1,000,000 working hours 2 1.49 1.61 -7% 1.42
Proportion of women in senior management roles
in %3 23.0 21.6 +1.4 pts 21.9
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter
2 To align with CSRD reporting requirements, we have replaced our primary safety KPI, Lost Time Injury Frequency Rate (LTIFR), with Total Recordable Incident Frequency Rate (TRIFR). This new
measure includes all incidents and injuries except first aid cases and near misses, promoting improved system learning, enhanced transparency, and greater openness in reporting. Current quarter
Includes all incidents reported by July 8, 2025
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 11 =====
AB B IN TE RIM RE P ORT I Q2 20 25 11
During Q2 2025
• On April 17, ABB announced that it has launched a
process to spin-off of its Robotics division. The
intention is for the business to start trading as a
separately listed company during the second quarter
of 2026.
• On May 30, ABB announced that ABB’s Board of
Directors approved to cancel 16,715,684 shares of
ABB Ltd repurchased under ABB’s 2024 share buyback
program. The cancellation of shares was published in
the commercial register in May.
The new total number of issued shares and votes of
ABB Ltd is 1,843,899,204, compared with
1,860,614,888 before cancellation.
At the end of May, the company’s holding of own
shares amounted to 15,199,042, which corresponds to
0.82 percent of the total number of issued shares in
the company. This includes 9,304,359 shares
purchased for capital reduction.
After Q2 2025
• On July 2, ABB Robotics division announced it has
launched three new robot families to strengthen its
robotics leadership position in China. The extended
customer offering helps new industries and
customers automate with new mid-market value
propositions as we build on our full local value chain
in China of manufacturing, research and development
to deliver groundbreaking solutions for our
customers in businesses of all sizes.
In the first six months of 2025, the overall order intake
increased significantly, supported by a large order of
approximately $600 million net in the Process
Automation business area. A positive development was
noted in service and short-cycle as well as project-
related businesses. Orders increased in three business
areas and remained virtually stable in Motion. Overall,
orders in the first six months amounted to $18,998
million and were up 9% (9% comparable), year-on-year.
Revenues were supported by execution of the large
order backlog with some additional support from the
short-cycle businesses and amounted to $16,835 million,
up by 5% (5% comparable), overall implying a book-to-
bill of 1.13.
Income from operations in the first half of 2025
amounted to $3,140 million, significantly up 21% year-
on-year. This increase was mainly driven by an improved
operational business performance with additional
support from lower expenses related to restructurings
and gains from sale of businesses after a loss was
recorded in the prior year.
Operational EBITA increased by 11% year-on-year to
$3,305 million, and the Operational EBITA margin
improved by 130 basis points to 19.7%. The increase was
driven by improvements in the Electrification, Motion
and Process Automation business areas, as well as
lower losses in the E-mobility business. Moreover, an
operational net gain of approximately $140 million
relating to a real estate sale in Corporate and Other had
a positive impact. This was partially offset by an
earnings decline in the Robotics & Discrete Automation
business area which continued to be hampered by
adverse impacts from still low utilization rates in
production in the Machine Automation division. The
main drivers of the margin expansion were operating
leverage on higher volumes, slightly positive pricing and
improved operational efficiency. Expenses in SG&A
increased compared to the prior year period. Corporate
and Other Operational EBITA amounted to -$74 million.
This includes a loss of $89 million that can be attributed
to the E-mobility business, which was negatively
affected by low volumes and the ongoing reorganization
to ensure a more focused portfolio.
Net finance contributed to results with $32 million,
below last year’s income of $53 million. The lower
income year-on-year is due to higher interest charges on
income tax contingencies, offset partially by lower
interest charges on debt. Income tax expense was $895
million reflecting a tax rate of 28.0%. The increase in tax
rate can be attributed to a reduction in certain tax risks
which positively impacted the prior year period by 270
basis points.
Net income attributable to ABB was $2,253 million, up
from $2,001 million year-on-year. Basic earnings per
share was $1.23, representing an increase of 13%
compared with the prior year period.
Significant events
First six months of 2025
===== SIDA 12 =====
AB B IN TE RIM RE P ORT I Q2 20 25 12
Acquisitions Company/unit Closing date Revenues, $ in
millions1 No. of employees
2025
Electrification Produits BEL Inc. 2-Jun ∼11 65
Electrification Siemens Wiring Accessories 3-Mar ∼150 360
Electrification Sensorfact 3-Feb ∼15 260
Electrification Coulomb Inc. 13-Jan <5 30
2024
Electrification Solutions Industry & Building (SIB) 2-Dec ∼27 100
Process Automation Dr. Födisch Umweltmesstechnik AG 1-Oct ∼53 250
Electrification SEAM Group 31-Jul ∼90 250
Acquisitions and divestments, last twelve months
ABB Group Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025
EBITDA, $ in million 1,418 1,578 1,503 1,374 5,873 1,763 1,786
Return on Capital Employed, % 20.5 21.3 22.0 22.4 22.4 23.0 23.1
Net debt/Equity 0.16 0.18 0.15 0.09 0.09 0.10 0.25
Net debt/ EBITDA 12M rolling 0.4 0.4 0.4 0.2 0.2 0.2 0.6
Net working capital 3,497 3,516 3,512 2,739 2,739 3,371 3,767
Trade net working capital 4,818 4,825 4,931 4,428 4,428 4,664 5,104
Average trade net working capital as a % of revenues 16.1% 15.6% 15.1% 14.6% 14.6% 14.4% 14.1%
Earnings per share, basic, $ 0.49 0.59 0.51 0.54 2.13 0.60 0.63
Earnings per share, diluted, $ 0.49 0.59 0.51 0.53 2.13 0.60 0.63
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.90 n.a. n.a.
Share price at the end of period, CHF 41.89 49.92 48.99 49.07 49.07 45.22 47.31
Number of employees (FTE equivalents) 108,700 109,390 109,970 109,930 109,930 110,970 110,860
No. of shares outstanding at end of period (in millions) 1,851 1,849 1,843 1,838 1,838 1,833 1,826
Additional figures
Divestments Company/unit Closing date Revenues, $ in
millions1 No. of employees
2024
E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a.
Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110
Electrification Service repair shops in US/CA 30-Aug ∼35 115
E-mobility Numocity 30-Jun <5 56
Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million.
1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated.
Additional 2025 guidance
($ in millions, unless otherwise
stated) FY 20251 Q3 2025
Corporate and Other
Operational EBITA2
~(175) ~(90)
from ~(200)
Non-operating items
Acquisition-related amortization ~(180) ~(50)
Restructuring and related3 ~(250) ~(100)
ABB Way transformation ~(150) ~(40)
($ in millions, unless otherwise stated) FY 2025
Finance net ~50
from ~40
Effective tax rate ~25% 4
Capital Expenditures ~(900)
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc.
2 Excludes Operational EBITA from E-mobility business.
3 Includes restructuring and restructuring-related as well as separation and integration costs.
4 Excludes the impact of acquisitions or divestments or any significant non-operational items.
===== SIDA 13 =====
AB B IN TE RIM RE P ORT I Q2 20 25 13
This press release includes forward-looking information
and statements as well as other statements concerning
the outlook for our business, including those in the
sections of this release titled “CEO summary,”
“Outlook,” “Sustainability” and “Additional 2025
guidance”. These statements are based on current
expectations, estimates and projections about the
factors that may affect our future performance,
including global economic conditions and the economic
conditions of the regions and industries that are major
markets for ABB. These expectations, estimates and
projections are generally identifiable by statements
containing words such as “anticipates,” “expects,”
“estimates,” “intends,” “plans,” “targets,” “guidance,” or
similar expressions. However, there are many risks and
uncertainties, many of which are beyond
our control, that could cause our actual results to differ
materially from the forward-looking information and
statements made in this press release and which could
affect our ability to achieve any or all of our stated
targets. These include, among others, business risks
associated with the volatile global economic
environment and political conditions, market
acceptance of new products and services, changes in
governmental regulations and currency exchange rates.
Although ABB Ltd believes that its expectations
reflected in any such forward looking statement are
based upon reasonable assumptions, it can give no
assurance that those expectations will be achieved.
The Q2 2025 results press release and presentation
slides are available on the ABB News Center at
www.abb.com/news and on the Investor Relations
homepage at www.abb.com/investorrelations.
A conference call and webcast for analysts and investors
is scheduled to begin at 10:00 a.m. CET. To pre-register
for the conference call or to join the webcast, please
refer to the ABB website:
www.abb.com/investorrelations.
The recorded session will be available after the event on
ABB’s website.
Important notice about forward-looking information
For additional information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Q2 results presentation on July 17, 2025
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The
company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss
Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
Financial calendar
2025
October 16 Q3 2025 results
November 18 Capital Markets Day in New Berlin, United States
===== SIDA 14 =====
1 Q2 2025 FINANCIAL INFORMATION
July 17, 2025
Q2 2025
Financial Information
===== SIDA 15 =====
2 Q2 2025 FINANCIAL INFORMATION
FINANCIAL
INFORMATION
Contents
03 ─ 07 Key Figures
08 ─ 32 Consolidated Financial Information (unaudited)
33 ─ 48 Supplemental Reconciliations and Definitions
===== SIDA 16 =====
3 Q2 2025 FINANCIAL INFORMATION
—
Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Comparable(1)
Orders 9,785 8,435 16% 14%
Order backlog (end June) 24,975 22,047 13% 9%
Revenues 8,900 8,239 8% 6%
Gross Profit(2) 3,574 3,303 8%
as % of revenues(2) 40.2% 40.1% +0.1 pts
Income from operations 1,573 1,376 14%
Operational EBITA(1) 1,708 1,564 9% 6%(3)
as % of operational revenues(1) 19.2% 19.0% +0.2 pts
Income from continuing operations, net of tax 1,188 1,104 8%
Net income attributable to ABB 1,151 1,096 5%
Basic earnings per share ($) 0.63 0.59 6%(4)
Cash flow from operating activities 1,059 1,067 -1%
Free cash flow(1) 845 918 -8%
CHANGE
($ in millions, unless otherwise indicated) H1 2025 H1 2024 US$ Comparable(1)
Orders 18,998 17,409 9% 9%
Revenues 16,835 16,109 5% 5%
Gross Profit(2) 6,885 6,367 8%
as % of revenues(2) 40.9% 39.5% +1.4 pts
Income from operations 3,140 2,593 21%
Operational EBITA(1) 3,305 2,981 11% 11%(3)
as % of operational revenues(1) 19.7% 18.4% +1.3 pts
Income from continuing operations, net of tax 2,307 2,018 14%
Net income attributable to ABB 2,253 2,001 13%
Basic earnings per share ($) 1.23 1.09 13%(4)
Cash flow from operating activities 1,743 1,793 -3%
Free cash flow(1) 1,497 1,469 2%
(1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 33.
(2) Prior period amounts have been restated to reflect a change in accounting policy for IS expenses , see “Note 1 - The Company and basis of presentation” for details.
(3) Constant currency (not adjusted for portfolio changes).
(4) EPS growth rates are computed using unrounded amounts.
===== SIDA 17 =====
4 Q2 2025 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) Q2 2025 Q2 2024 US$ Local Comparable
Orders ABB Group 9,785 8,435 16% 14% 14%
Electrification 4,518 4,073 11% 9% 9%
Motion 2,112 2,014 5% 3% 3%
Process Automation 2,620 1,802 45% 40% 40%
Robotics & Discrete Automation 729 688 6% 4% 4%
Corporate and Other 110 112
Intersegment eliminations (304) (254)
Order backlog (end June) ABB Group 24,975 22,047 13% 8% 9%
Electrification 8,685 7,548 15% 12% 12%
Motion 6,102 5,669 8% 1% 1%
Process Automation 9,269 7,409 25% 19% 19%
Robotics & Discrete Automation 1,489 1,758 -15% -19% -19%
Corporate and Other
(incl. intersegment eliminations) (570) (337)
Revenues ABB Group 8,900 8,239 8% 6% 6%
Electrification 4,331 3,809 14% 12% 11%
Motion 2,065 1,951 6% 4% 4%
Process Automation 1,804 1,717 5% 2% 2%
Robotics & Discrete Automation 813 833 -2% -5% -5%
Corporate and Other 107 145
Intersegment eliminations (220) (216)
Income from operations ABB Group 1,573 1,376
Electrification 990 837
Motion 393 369
Process Automation 273 274
Robotics & Discrete Automation 67 46
Corporate and Other
(incl. intersegment eliminations) (150) (150)
Income from operations % ABB Group 17.7% 16.7%
Electrification 22.9% 22.0%
Motion 19.0% 18.9%
Process Automation 15.1% 16.0%
Robotics & Discrete Automation 8.2% 5.5%
Operational EBITA ABB Group 1,708 1,564 9% 6%
Electrification 1,033 887 16% 14%
Motion 407 388 5% 2%
Process Automation 290 263 10% 8%
Robotics & Discrete Automation 74 93 -20% -23%
Corporate and Other
(incl. intersegment eliminations) (96) (67)
Operational EBITA % ABB Group 19.2% 19.0%
Electrification 23.9% 23.2%
Motion 19.8% 19.9%
Process Automation 15.9% 15.5%
Robotics & Discrete Automation 9.1% 11.1%
Cash flow from operating activities ABB Group 1,059 1,067
Electrification 956 850
Motion 354 509
Process Automation 252 257
Robotics & Discrete Automation 123 98
Corporate and Other
(incl. intersegment eliminations) (626) (647)
===== SIDA 18 =====
5 Q2 2025 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) H1 2025 H1 2024 US$ Local Comparable
Orders ABB Group 18,998 17,409 9% 9% 9%
Electrification 8,912 8,465 5% 6% 5%
Motion 4,268 4,317 -1% -1% -1%
Process Automation 4,644 3,499 33% 32% 32%
Robotics & Discrete Automation 1,528 1,389 10% 11% 11%
Corporate and Other 238 254
Intersegment eliminations (592) (515)
Order backlog (end June) ABB Group 24,975 22,047 13% 8% 9%
Electrification 8,685 7,548 15% 12% 12%
Motion 6,102 5,669 8% 1% 1%
Process Automation 9,269 7,409 25% 19% 19%
Robotics & Discrete Automation 1,489 1,758 -15% -19% -19%
Corporate and Other
(incl. intersegment eliminations) (570) (337)
Revenues ABB Group 16,835 16,109 5% 5% 5%
Electrification 8,156 7,489 9% 9% 9%
Motion 3,905 3,780 3% 3% 3%
Process Automation 3,437 3,318 4% 4% 4%
Robotics & Discrete Automation 1,557 1,697 -8% -8% -8%
Corporate and Other 203 270
Intersegment eliminations (423) (445)
Income from operations ABB Group 3,140 2,593
Electrification 1,912 1,606
Motion 754 670
Process Automation 536 508
Robotics & Discrete Automation 123 137
Corporate and Other
(incl. intersegment eliminations) (185) (328)
Income from operations % ABB Group 18.7% 16.1%
Electrification 23.4% 21.4%
Motion 19.3% 17.7%
Process Automation 15.6% 15.3%
Robotics & Discrete Automation 7.9% 8.1%
Operational EBITA ABB Group 3,305 2,981 11% 11%
Electrification 1,919 1,713 12% 13%
Motion 767 731 5% 5%
Process Automation 545 516 6% 6%
Robotics & Discrete Automation 148 206 -28% -28%
Corporate and Other
(incl. intersegment eliminations) (74) (185)
Operational EBITA % ABB Group 19.7% 18.4%
Electrification 23.6% 22.8%
Motion 19.7% 19.2%
Process Automation 15.9% 15.5%
Robotics & Discrete Automation 9.5% 12.2%
Cash flow from operating activities ABB Group 1,743 1,793
Electrification 1,477 1,397
Motion 664 861
Process Automation 516 486
Robotics & Discrete Automation 188 193
Corporate and Other
(incl. intersegment eliminations) (1,102) (1,144)
===== SIDA 19 =====
6 Q2 2025 FINANCIAL INFORMATION
Operational EBITA
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24
Revenues 8,900 8,239 4,331 3,809 2,065 1,951 1,804 1,717 813 833
Foreign exchange/commodity timing
differences in total revenues 1 (4) (8) 10 (8) – 17 (19) – 3
Operational revenues 8,901 8,235 4,323 3,819 2,057 1,951 1,821 1,698 813 836
Income from operations 1,573 1,376 990 837 393 369 273 274 67 46
Acquisition-related amortization 50 57 29 23 9 8 4 2 7 20
Restructuring, related and
implementation costs(1) 8 50 4 8 5 14 1 – 2 20
Changes in obligations related to
divested businesses (2) (11) – – – – – – – –
Gains and losses from sale of businesses (1) 55 (2) 24 – – – – – –
Acquisition- and divestment-related
expenses and integration costs 22 18 9 19 1 2 4 1 2 5
Certain other non-operational items 35 50 2 (1) 4 – – (5) (1) (2)
Foreign exchange/commodity timing
differences in income from operations 23 (31) 1 (23) (5) (5) 8 (9) (3) 4
Operational EBITA 1,708 1,564 1,033 887 407 388 290 263 74 93
Operational EBITA margin (%) 19.2% 19.0% 23.9% 23.2% 19.8% 19.9% 15.9% 15.5% 9.1% 11.1%
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) H1 25 H1 24 H1 25 H1 24 H1 25 H1 24 H1 25 H1 24 H1 25 H1 24
Revenues 16,835 16,109 8,156 7,489 3,905 3,780 3,437 3,318 1,557 1,697
Foreign exchange/commodity timing
differences in total revenues (20) 61 (13) 23 (11) 29 (2) 6 6 (2)
Operational revenues 16,815 16,170 8,143 7,512 3,894 3,809 3,435 3,324 1,563 1,695
Income from operations 3,140 2,593 1,912 1,606 754 670 536 508 123 137
Acquisition-related amortization 95 113 55 46 18 17 8 3 14 41
Restructuring, related and
implementation costs(1) 24 76 10 18 7 22 3 7 7 20
Changes in obligations related to
divested businesses (3) (11) – – – – – – – –
Gains and losses from sale of businesses (12) 57 (13) 24 – – – – – –
Acquisition- and divestment-related
expenses and integration costs 31 37 19 29 2 2 5 1 4 7
Certain other non-operational items 56 113 (29) 2 10 3 (2) (5) (1) (1)
Foreign exchange/commodity timing
differences in income from operations (26) 3 (35) (12) (24) 17 (5) 2 1 2
Operational EBITA 3,305 2,981 1,919 1,713 767 731 545 516 148 206
Operational EBITA margin (%) 19.7% 18.4% 23.6% 22.8% 19.7% 19.2% 15.9% 15.5% 9.5% 12.2%
(1) Includes impairment of certain assets.
===== SIDA 20 =====
7 Q2 2025 FINANCIAL INFORMATION
Depreciation and Amortization
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions) Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24
Depreciation 149 135 76 66 32 30 13 11 14 14
Amortization 64 67 36 28 11 10 6 3 8 21
including total acquisition-related amortization of: 50 57 29 23 9 8 4 2 7 20
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions) H1 25 H1 24 H1 25 H1 24 H1 25 H1 24 H1 25 H1 24 H1 25 H1 24
Depreciation 288 268 147 132 63 58 25 23 28 29
Amortization 121 135 68 56 22 20 11 5 16 43
including total acquisition-related amortization of: 95 113 55 46 18 17 8 3 14 41
Orders received and revenues by region
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
Q2 25 Q2 24 US$ Local parable Q2 25 Q2 24 US$ Local parable
Europe 3,130 2,786 12% 6% 6% 3,016 2,831 7% 1% 0%
The Americas 3,843 3,031 27% 27% 28% 3,272 2,960 11% 11% 12%
of which United States 3,086 2,241 38% 36% 37% 2,523 2,221 14% 13% 14%
Asia, Middle East and Africa 2,812 2,618 7% 7% 6% 2,612 2,448 7% 6% 6%
of which China 1,104 1,066 4% 3% 2% 1,108 1,134 -2% -3% -5%
ABB Group 9,785 8,435 16% 14% 14% 8,900 8,239 8% 6% 6%
($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE
Com- Com-
H1 25 H1 24 US$ Local parable H1 25 H1 24 US$ Local parable
Europe 6,364 6,084 5% 3% 3% 5,789 5,579 4% 2% 2%
The Americas 6,982 5,935 18% 19% 19% 6,190 5,749 8% 9% 10%
of which United States 5,406 4,380 23% 23% 23% 4,780 4,331 10% 10% 11%
Asia, Middle East and Africa 5,652 5,390 5% 6% 5% 4,856 4,781 2% 2% 2%
of which China 2,295 2,116 8% 9% 8% 2,066 2,132 -3% -3% -5%
ABB Group 18,998 17,409 9% 9% 9% 16,835 16,109 5% 5% 5%
===== SIDA 21 =====
8 Q2 2025 FINANCIAL INFORMATION
—
Consolidated Financial Information
ABB Ltd Consolidated Income Statements (unaudited)
Six months ended Three months ended
($ in millions, except per share data in $) Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024
Sales of products 13,943 13,355 7,376 6,852
Sales of services and other 2,892 2,754 1,524 1,387
Total revenues 16,835 16,109 8,900 8,239
Cost of sales of products (8,396) (8,204) (4,513) (4,163)
Cost of services and other (1,554) (1,538) (813) (773)
Total cost of sales (9,950) (9,742) (5,326) (4,936)
Gross profit 6,885 6,367 3,574 3,303
Selling, general and administrative expenses (3,352) (3,101) (1,748) (1,573)
Non-order related research and development expenses (679) (690) (350) (345)
Other income (expense), net 286 17 97 (9)
Income from operations 3,140 2,593 1,573 1,376
Interest and dividend income 95 103 41 46
Interest and other finance expense (63) (50) (16) (13)
Non-operational pension (cost) credit 30 26 16 10
Income from continuing operations before taxes 3,202 2,672 1,614 1,419
Income tax expense (895) (654) (426) (315)
Income from continuing operations, net of tax 2,307 2,018 1,188 1,104
Loss from discontinued operations, net of tax (8) (3) (7) (2)
Net income 2,299 2,015 1,181 1,102
Net income attributable to noncontrolling
interests and redeemable noncontrolling interests (46) (14) (30) (6)
Net income attributable to ABB 2,253 2,001 1,151 1,096
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 2,261 2,004 1,158 1,098
Loss from discontinued operations, net of tax (8) (3) (7) (2)
Net income 2,253 2,001 1,151 1,096
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.23 1.09 0.63 0.59
Loss from discontinued operations, net of tax – – – –
Net income 1.23 1.09 0.63 0.59
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.23 1.08 0.63 0.59
Loss from discontinued operations, net of tax – – – –
Net income 1.23 1.08 0.63 0.59
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders 1,833 1,844 1,830 1,849
Diluted earnings per share attributable to ABB shareholders 1,836 1,853 1,832 1,855
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 22 =====
9 Q2 2025 FINANCIAL INFORMATION
—
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Six months ended Three months ended
($ in millions) Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024
Total comprehensive income, net of tax 2,333 2,053 1,040 990
Total comprehensive (income) loss attributable to noncontrolling interests and
redeemable noncontrolling interests, net of tax (65) 2 (43) (6)
Total comprehensive income attributable to ABB shareholders, net of tax 2,268 2,055 997 984
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 23 =====
10 Q2 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Jun. 30, 2025 Dec. 31, 2024
Cash and equivalents 3,266 4,326
Marketable securities and short-term investments 1,846 1,334
Receivables, net 7,949 7,388
Contract assets 1,301 1,115
Inventories, net 6,396 5,768
Prepaid expenses 361 287
Other current assets 517 541
Total current assets 21,636 20,759
Property, plant and equipment, net 4,618 4,177
Operating lease right-of-use assets 849 840
Investments in equity-accounted companies 388 368
Prepaid pension and other employee benefits 834 689
Intangible assets, net 1,192 1,048
Goodwill 11,352 10,555
Deferred taxes 1,392 1,363
Other non-current assets 538 489
Total assets 42,799 40,288
Accounts payable, trade 5,273 5,036
Contract liabilities 3,354 2,969
Short-term debt and current maturities of long -term debt 558 293
Current operating leases 266 235
Provisions 1,604 1,539
Other current liabilities 4,682 4,582
Total current liabilities 15,737 14,654
Long-term debt 8,255 6,652
Non-current operating leases 611 631
Pension and other employee benefits 605 569
Deferred taxes 816 675
Other non-current liabilities 2,175 2,116
Total liabilities 28,199 25,297
Commitments and contingencies
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,844 million and 1,861 million shares issued at June 30, 2025, and December 31, 2024, respectively) 160 162
Additional paid-in capital 15 50
Retained earnings 20,125 20,648
Accumulated other comprehensive loss (5,335) (5,350)
Treasury stock, at cost
(18 million and 22 million shares at June 30, 2025, and December 31, 2024, respectively) (890) (1,091)
Total ABB stockholders’ equity 14,075 14,419
Noncontrolling interests 525 572
Total stockholders’ equity 14,600 14,991
Total liabilities and stockholders’ equity 42,799 40,288
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 24 =====
11 Q2 2025 FINANCIAL INFORMATION
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ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Six months ended Three months ended
($ in millions) Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024
Operating activities:
Net income 2,299 2,015 1,181 1,102
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 409 403 213 202
Changes in fair values of investments (41) (20) (29) (7)
Pension and other employee benefits (40) (35) (19) (22)
Deferred taxes 108 22 81 28
Net gain from derivatives and foreign exchange (89) (39) (30) (31)
Net gain from sale of property, plant and equipment (184) (26) (51) (21)
Net loss (gain) from sale of businesses (13) 57 (2) 55
Other 15 73 22 41
Changes in operating assets and liabilities:
Trade receivables, net (157) (179) (161) (146)
Contract assets and liabilities 65 162 (76) 124
Inventories, net (60) (311) 43 (106)
Accounts payable, trade (110) 198 2 116
Accrued liabilities (365) (424) 146 49
Provisions, net (64) (14) (9) (51)
Income taxes payable and receivable 183 (6) (29) (128)
Other assets and liabilities, net (213) (83) (223) (138)
Net cash provided by operating activities 1,743 1,793 1,059 1,067
Investing activities:
Purchases of investments (996) (916) (150) (39)
Purchases of property, plant and equipment and intangible assets (419) (366) (224) (185)
Acquisition of businesses (net of cash acquired)
and increases in cost- and equity-accounted companies (571) (134) (19) (104)
Proceeds from sales of investments 517 1,584 188 857
Proceeds from sales of property, plant and equipment 173 42 10 36
Proceeds from sales of businesses (net of transaction costs
and cash disposed) and cost- and equity-accounted companies 66 (8) 23 –
Net cash from settlement of foreign currency derivatives (3) 124 (113) 93
Other investing activities 1 (6) (1) (7)
Net cash provided by (used in) investing activities (1,232) 320 (286) 651
Financing activities:
Net changes in debt with original maturities of 90 days or less 139 (7) (261) 13
Increase in debt 1,090 1,364 795 6
Repayment of debt (131) (2,151) (124) (1,586)
Delivery of shares 19 390 19 –
Purchase of treasury stock (783) (563) (494) (272)
Dividends paid (1,907) (1,769) (1,907) (850)
Dividends paid to noncontrolling shareholders (105) (94) (105) (94)
Other financing activities 8 (55) 7 (52)
Net cash used in financing activities (1,670) (2,885) (2,070) (2,835)
Effects of exchange rate changes on cash and equivalents 99 (158) 69 (24)
Net change in cash and equivalents (1,060) (930) (1,228) (1,141)
Cash and equivalents, beginning of period 4,326 3,909 4,494 4,120
Cash and equivalents, end of period 3,266 2,979 3,266 2,979
Supplementary disclosure of cash flow information:
Interest paid 184 148 66 54
Income taxes paid 637 643 379 415
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 25 =====
12 Q2 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
($ in millions)
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total ABB
stockholders’
equity
Non-
controlling
interests
Total
stockholders’
equity
Balance at January 1, 2024 163 7 19,655 (5,070) (1,414) 13,341 647 13,988
Net income(1) 2,001 2,001 15 2,016
Foreign currency translation
adjustments, net of tax of $2 1 1 (16) (15)
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 (1) (1) (1)
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $20 50 50 50
Change in derivative instruments
and hedges, net of tax of $0 4 4 4
Changes in noncontrolling interests (10) (62) (72) 44 (28)
Dividends to
noncontrolling shareholders – (95) (95)
Dividends to shareholders (1,804) (1,804) (1,804)
Cancellation of treasury shares (2) (2) (828) 832 – –
Share-based payment arrangements 44 44 2 46
Purchase of treasury stock (552) (552) (552)
Delivery of shares (25) (249) 664 390 390
Other (5) (5) 2 (3)
Balance at June 30, 2024 162 9 18,714 (5,016) (469) 13,400 597 13,997
Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991
Net income 2,253 2,253 46 2,299
Foreign currency translation
adjustments, net of tax of $(3) 91 91 19 110
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 $(27) (82) (82) (82)
Change in derivative instruments
and hedges, net of tax of $0 3 3 3
Changes in noncontrolling interests – – (8) (8)
Dividends to
noncontrolling shareholders – (105) (105)
Dividends to shareholders (1,867) (1,867) (1,867)
Cancellation of treasury shares (2) (61) (831) 894 – –
Share-based payment arrangements 37 37 2 39
Purchase of treasury stock (802) (802) (802)
Delivery of shares (13) (77) 109 19 19
Balance at June 30, 2025 160 15 20,125 (5,335) (890) 14,075 525 14,600
(1) Amount attributable to noncontrolling interests for the six months ended June 30, 2024, excludes the net loss of $1 million, related to redeemable noncontrolling interests.
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 26 =====
13 Q2 2025 FINANCIAL INFORMATION
—
Notes to the Consolidated Financial Information (unaudited)
─
Note 1
The Company and basis of presentation
ABB Ltd and its subsidiaries (collectively, the Company) together form a global technology leader in electrification and automation, enabling a more
sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform .
The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted a ccounting principles
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the informa tion and notes required under
U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction w ith the audited
consolidated financial statements in the Company’s Financial Report for the year ended December 31, 2024.
The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates t hat directly affect the
amounts reported in the Consolidated Financial Information. These accounting assumptions and estimates include:
• estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,
• estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other rece ivables, loans and
other instruments,
• estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environme ntal damages,
product warranties, self-insurance reserves, regulatory and other proceedings,
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the
percentage-of-completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company
expects to be entitled to,
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,
• estimates used to record expected costs for employee severance in connection with restructuring programs,
• assumptions used in determining inventory obsolescence and net realizable value,
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for
impairment,
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations, and
• estimates and assumptions used in determining the initial fair value of retained noncontrolling interest s and certain obligations in connection
with divestments.
The actual results and outcomes may differ from the Company’s estimates and assumptions.
For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contr acts as its operating cycle.
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provisions 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 adjustments to be of a normal recurring nature.
The Consolidated Financial Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, nu mbers presented in the
Consolidated Financial Information may not add to the totals provided.
Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the current year’s
presentation, as mentioned below in this Note.
Change in accounting policy
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Previously, the Company allocated information system expenses in the income statement to the functional area based on a
headcount approach while, in connection with this change, information systems expenses are allocated to the relevant income statement caption based
on the nature of the underlying system.
The Company’s consolidated financial statements have been retroactively restated to reflect this accounting policy change. In connection with this
change, the Company recorded a cumulative-effect reduction of $69 million to the balance of Retained earnings on January 1, 2023, representing the
impact of the policy change on Inventories and the related deferred tax balance. The effect on Net income for the years 2023 and 2024 was not
considered significant and therefore no changes have been recorded.
As a result, the Company’s Consolidated Balance Sheet amounts at December 31, 2024, for Inventories, Deferred taxes (asset), and Retained earnings
have changed from $5,859 million, $1,341 million and $20,717 million, respectively, to $5,768 million, $1,363 million and $20,648 million, respectively.
===== SIDA 27 =====
14 Q2 2025 FINANCIAL INFORMATION
The following table details the reclassification of information systems expenses within the Consolidated Income Statement:
Six months ended June 30, 2024 Three months ended June 30, 2024
($ in millions) Before After Before After
Cost of sales of products 8,415 8,204 4,270 4,163
Cost of services and other 1,585 1,538 795 773
Selling, general and administrative expenses 2,806 3,101 1,425 1,573
Non-order related research and development expenses 727 690 364 345
Warranty provision split
In 2025, the Company split the amount previously reported in Provision for warranties into current and non-current components and retroactively recast
the amounts for all periods presented. The balance at December 31, 2024, which was previously recorded on a combined basis, of $1,248 million has been
reclassified into Provisions ($686 million) and Other non-current liabilities ($562 million). See Note 10 - Commitments and contingencies for additional
information.
Adjustment related to prior periods
In the three months ended June 30, 2024, the Company recorded a cumulative correction to certain reserves for self -insurance. The correction in this
liability resulted in a $58 million reduction in Total cost of sales in the Interim Consolidated Income Statement for the three months ended June 30, 2024,
and is included in Corporate and Other Operational EBITA. The Company evaluated the impact of the correction on both a quanti tative and qualitative
basis under the guidance of ASC 250, Accounting Changes and Error Corrections, and determined that there were no material imp acts on the trend of
net income, cash flows or liquidity for previously issued annual financial statements.
─
Note 2
Recent accounting pronouncements
Applicable for current periods
Improvements to Income tax disclosures
In January 2025, the Company adopted an accounting standard update which requires the Company to disclose additional information related to income
taxes. Under the update, the Company is required to annually disclose by jurisdiction (i) additional disaggregated information within the tax rate
reconciliation and (ii) income taxes paid. The Company is currently evaluating the impact of adopting this update prospectively or retrospectively on its
consolidated financial statements. Apart from the additional disclosure requirements, this update does not have a significant impact on the Company’s
consolidated financial statements.
Applicable for future periods
Disaggregation of Income Statement Expenses
In November 2024, an accounting standard update was issued which requires the Company to disclose additional information for certain types of
expenses, including purchases of inventory, employee compensation, depreciation, and amortization, presented in each relevant income statement
expense caption (such as cost of sales, selling, general and administrative expenses). This update is effective for the Compa ny prospectively, with
retrospective adoption permitted, for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. The Company is currently
evaluating the impact of adopting this update on its consolidated financial statements.
─
Note 3
Acquisitions and divestments
Acquisition of controlling interests
Acquisitions of controlling interests were as follows:
Six months ended June 30, Three months ended June 30,
($ in millions, except number of acquired businesses) 2025 2024 2025 2024
Purchase price for acquisitions (net of cash acquired) (1) 551 104 10 75
Aggregate excess of purchase price over
fair value of net assets acquired(2) 436 89 10 60
Number of acquired businesses 4 3 1 1
(1) Excluding changes in cost - and equity -accounted companies.
(2) Recorded as goodwill.
In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired ” in the six months
ended June 30, 2025, relate primarily to the acquisitions of Sensorfact BV and the Siemens Wiring Accessories Business in China.
Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Comp any’s consolidated
financial statements since the date of acquisition.
On February 3, 2025, the Company acquired all of the shares of Sensorfact BV. Sensorfact BV , headquartered in Utrecht, Netherlands, offers a scalable
software as a service (SaaS) solution that helps small and medium sized enterprises use AI in their operations and energy man agement to lower costs
and increase efficiency. The cash outflows to complete the transaction amounted to $1 48 million (net of cash acquired). This acquisition will expand the
Company’s portfolio of energy management solutions that use big data and AI within its Electrification segment.
===== SIDA 28 =====
15 Q2 2025 FINANCIAL INFORMATION
On March 3, 2025, the Company acquired through numerous share and asset purchases all of the assets, liabilities and business activities of the Siemens
Wiring Accessories Business in China. The Siemens Wiring Accessories Business offering, which distributes throughout China, includes wiring
accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction
amounted to $380 million (net of cash acquired). This acquisition will broaden the market reach of the Company’s Electrification segment and
complement the segments’ regional customer offering within smart buildings .
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.
─
Note 4
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short -term investments consisted of the following:
June 30, 2025
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,516 1,516 1,516
Time deposits 2,222 2,222 1,750 472
Equity securities 1,308 46 1,354 1,354
5,046 46 – 5,092 3,266 1,826
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
Other government obligations 20 20 20
20 – – 20 – 20
Total 5,066 46 – 5,112 3,266 1,846
December 31, 2024
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,328 1,328 1,328
Time deposits 3,518 3,518 2,998 520
Equity securities 794 22 (2) 814 814
Total 5,640 22 (2) 5,660 4,326 1,334
===== SIDA 29 =====
16 Q2 2025 FINANCIAL INFORMATION
─
Note 5
Derivative financial instruments
The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The
Company uses derivative instruments to reduce and manage the economic impact of these exposures.
Currency risk
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering
into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies r equire its subsidiaries to
hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forec asted foreign currency
denominated sales of standard products and the related foreign currency denominated purchases, the Company’s policy is to hed ge up to a maximum
of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Foreca sted exposures
greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the vol atility
of future cash flows (caused by changes in exchange rates) of contracted and forecasted sales and purchases denominated in fo reign currencies. In
addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange cont racts to manage the
currency and timing mismatches arising in its liquidity management activities.
Commodity risk
Various commodity products are used in the Company’s manufacturing activities. Consequently , it is exposed to volatility in future cash flows arising
from changes in commodity prices. To manage the price risk of commodities, the Com pany’s policies require that its subsidiaries hedge the commodity
price risk exposures from binding contracts, as well as at least 50 percent (up to a maximum of 100 percent) of the forecasted commodity exposure over
the next 12 months or longer (up to a maximum of 18 months). Primarily swap contracts are used to manage the associated price risks of commodities.
Interest rate risk
The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and
foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to tim e, the
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to manag e interest rate risk
arising from the Company’s balance sheet structure but does not designate such instruments as hedges.
Volume of derivative activity
In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its busines s, certain derivatives are
designated and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge acco unting.
Foreign exchange and interest rate derivatives
The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not) were as follows:
Type of derivative Total notional amounts at
($ in millions) June 30, 2025 December 31, 2024 June 30, 2024
Foreign exchange contracts 17,003 12,800 13,924
Embedded foreign exchange derivatives 1,547 1,159 1,131
Cross-currency interest rate swaps 938 833 857
Interest rate contracts 1,762 1,510 1,071
Derivative commodity contracts
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver,
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is,
to reflect the Company’s requirements for these commodities:
Type of derivative Unit Total notional amounts at
June 30, 2025 December 31, 2024 June 30, 2024
Copper swaps metric tonnes 35,997 40,699 29,453
Silver swaps ounces 2,430,081 2,648,681 1,754,340
Steel swaps metric tonnes 18,144 20,185 16,738
Aluminum swaps metric tonnes 4,700 4,525 5,125
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 subsequently reclassified into earnin gs in the same line item
and in the same period as the underlying hedged transaction affects earnings. For the six and three months ended June 30, 2025 and 2024, there were no
significant amounts recorded for cash flow hedge accounting activities.
Fair value hedges
To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swap s and cross-currency interest
rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the
fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and losses in Interest and other finance expense.
===== SIDA 30 =====
17 Q2 2025 FINANCIAL INFORMATION
The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows:
Six months ended June 30, Three months ended June 30,
($ in millions) 2025 2024 2025 2024
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges (1) 10 4 (3)
Hedged item 1 (10) (4) 4
Cross-currency interest rate swaps Designated as fair value hedges 2 (5) 3 (2)
Hedged item – 6 (2) 3
Derivatives not designated in hedge relationships
Derivative instruments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are econo mic hedges used for risk
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as
the economically hedged transaction.
Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency deriva tives that are embedded
within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsid iary and the counterparty.
The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships we re as follows:
Type of derivative not Gains (losses) recognized in income
designated as a hedge Six months ended June 30, Three months ended June 30,
($ in millions) Location 2025 2024 2025 2024
Foreign exchange contracts Total revenues 146 (186) 66 (18)
Total cost of sales (23) 52 (6) 5
SG&A expenses(1) (53) 21 (34) 8
Non-order related research
and development – (1) – 1
Interest and other finance expense (238) 194 (288) (53)
Embedded foreign exchange Total revenues (5) 16 (3) (2)
contracts Total cost of sales 9 (4) 6 –
Commodity contracts Total cost of sales 36 45 (5) 36
Other Interest and other finance expense (1) (2) (1) –
Total (129) 135 (265) (23)
(1) SG&A expenses represent “Selling, general and administrative expenses”.
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:
June 30, 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 2 – 1 –
Interest rate contracts – 6 – –
Cross-currency interest rate swaps – – – 148
Other 3 – – –
Total 5 6 1 148
Derivatives not designated as hedging instruments:
Foreign exchange contracts 106 22 242 10
Commodity contracts 19 – 7 –
Embedded foreign exchange derivatives 22 16 24 10
Total 147 38 273 20
Total fair value 152 44 274 168
===== SIDA 31 =====
18 Q2 2025 FINANCIAL INFORMATION
December 31, 2024
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – 1 –
Interest rate contracts – 7 – –
Cross-currency interest rate swaps – – – 256
Other 4 – – –
Total 4 7 1 256
Derivatives not designated as hedging instruments:
Foreign exchange contracts 151 17 111 15
Commodity contracts 4 – 20 –
Embedded foreign exchange derivatives 22 6 11 5
Other – 5 – –
Total 177 28 142 20
Total fair value 181 35 143 276
Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions betw een two
counterparties on the occurrence of one or more pre -defined trigger events.
Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the
Consolidated Balance Sheets at June 30, 2025, and December 31, 2024, have been presented on a gross basis.
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At June 30, 2025, and December 31,
2024, information related to these offsetting arrangements was as follows:
($ in millions) June 30, 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 158 (81) – – 77
Total 158 (81) – – 77
($ in millions) June 30, 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 408 (81) – – 327
Total 408 (81) – – 327
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 188 (90) – – 98
Total 188 (90) – – 98
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 403 (90) – – 313
Total 403 (90) – – 313
===== SIDA 32 =====
19 Q2 2025 FINANCIAL INFORMATION
─
Note 6
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis 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 including the market approach (using observable
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a
market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and liabilit ies are defined by a
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobser vable. An observable input
is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions abo ut market data.
The levels of the fair value hierarchy are as follows:
Level 1: Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (observable quoted prices). Assets and liabilities
valued using Level 1 inputs include exchange‑traded equity securities, listed derivatives which are actively traded such as commodity futures,
interest rate futures and certain actively traded debt securities .
Level 2: Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively quoted prices for similar assets, quoted prices in
inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs derived fr om other observable
data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in valuation models
may be both observable and unobservable. In these cases, the fair value measurement is classified as Level 2 unless the unobs ervable portion of
the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as
Level 3. Assets and liabilities valued or disclosed using Level 2 inputs include investments in certain funds, certain debt s ecurities that are not
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign
exchange swaps and forward rate agreements, time deposits, as well as financing receivables and debt.
Level 3: Valuation inputs are based on the Company’s assumptions of relevant market data (unobservable input).
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid -market quotes. When determining fair
values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financi al instrument has significantly
decreased or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be disclosed . If the market is
considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach.
Recurring fair value measures
The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:
June 30, 2025
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities – 1,354 – 1,354
Debt securities—Other government obligations 20 – – 20
Derivative assets—current in “Other current assets” – 152 – 152
Derivative assets—non-current in “Other non-current assets” – 44 – 44
Total 20 1,550 – 1,570
Liabilities
Derivative liabilities—current in “Other current liabilities” – 274 – 274
Derivative liabilities—non-current in “Other non-current liabilities” – 168 – 168
Total – 442 – 442
December 31, 2024
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities – 814 – 814
Derivative assets—current in “Other current assets” – 181 – 181
Derivative assets—non-current in “Other non-current assets” – 35 – 35
Total – 1,030 – 1,030
Liabilities
Derivative liabilities—current in “Other current liabilities” – 143 – 143
Derivative liabilities—non-current in “Other non-current liabilities” – 276 – 276
Total – 419 – 419
===== SIDA 33 =====
20 Q2 2025 FINANCIAL INFORMATION
The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a
recurring basis:
• Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available,
these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices
are not available, fair value is determined using market prices for similar assets or present value techniques, applying an a ppropriate risk-free
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level 2 category.
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market, if
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value
techniques, based on available market data, or option pricing models are used. The fair values obtained using price quotes fo r similar
instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used.
Non-recurring fair value measures
There were no significant non-recurring fair value measurements during the six and three months ended June 30, 2025 and 2024.
Disclosure about financial instruments carried on a cost basis
The fair values of financial instruments carried on a cost basis were as follows:
June 30, 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 1,516 1,516 – – 1,516
Time deposits 1,750 – 1,750 – 1,750
Marketable securities and short-term investments
(excluding securities):
Time deposits 472 – 472 – 472
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 533 222 311 – 533
Long-term debt (excluding finance lease obligations) 8,079 7,413 739 – 8,152
December 31, 2024
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,328 1,328 – – 1,328
Time deposits 2,998 – 2,998 – 2,998
Marketable securities and short-term investments
(excluding securities):
Time deposits 520 – 520 – 520
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 265 188 77 – 265
Long-term debt (excluding finance lease obligations) 6,486 6,012 551 – 6,563
The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost b asis:
• Cash and equivalents (excluding securities with original maturities up to 3 months) and Marketable securities and short-term investments
(excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in banks, are
equal to the deposit amount.
• Short-term debt and current maturities of long -term debt (excluding finance lease obligations): Short-term debt includes commercial paper,
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease
obligations, approximate their fair values.
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using quoted market prices (Level 1 inputs), if
available. For bonds without available quoted market prices and other long -term debt, the fair values are determined using a discounted cash
flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate adjustments for non -performance risk
(Level 2 inputs).
===== SIDA 34 =====
21 Q2 2025 FINANCIAL INFORMATION
─
Note 7
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) June 30, 2025 December 31, 2024 June 30, 2024
Contract assets 1,301 1,115 1,118
Contract liabilities 3,354 2,969 2,973
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:
Six months ended June 30,
2025 2024
Contract Contract Contract Contract
($ in millions) assets liabilities assets liabilities
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2025/2024 (1,246) (1,084)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 1,415 1,301
Receivables recognized that were included in the Contract assets balance at Jan 1, 2025/2024 (544) (516)
The Company considers its order backlog to represent its unsatisfied performance obligations. At June 30, 2025, the Company had unsatisfied
performance obligations totaling $24,975 million and, of this amount, the Company expects to fulfill approximately 46 percent of the obligations in 2025,
approximately 32 percent of the obligations in 2026 and the balance thereafter.
─
Note 8
Supplier finance programs
The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng as paying agent. These
programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms
related to suppliers’ finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements an d are typically consistent
with local market practices. Outstanding supplier finance obligations are included in Accounts payable, trade in the Consolid ated Balance Sheets and are
reported as operating or investing (if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At June 30, 2025, and December 31,
2024, the total obligation outstanding under supplier finance programs amounted to $468 million and $435 million, respectively.
─
Note 9
Debt
The Company’s total debt at June 30, 2025, and December 31, 2024, amounted to $8,813 million and $6,945 million, respectively.
Short-term debt and current maturities of long-term debt
The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:
($ in millions) June 30, 2025 December 31, 2024
Short-term debt 322 83
Current maturities of long-term debt 236 210
Total 558 293
Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks. At June 30, 2025, $225 million was
outstanding under the $2 billion Euro-commercial paper program, no amount was outstanding under this program at December 31, 2024.
===== SIDA 35 =====
22 Q2 2025 FINANCIAL INFORMATION
Long-term debt
The Company’s long-term debt at June 30, 2025, and December 31, 2024, amounted to $8,255 million and $6,652 million, respectively.
Significant long-term borrowings (including maturities within the next 12 months) were as follows:
June 30, 2025 December 31, 2024
(in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1)
2.1% CHF Bonds, due 2025 CHF 150 $ 188 CHF 150 $ 166
1.965% CHF Bonds, due 2026 CHF 325 $ 407 CHF 325 $ 359
3.25% EUR Instruments, due 2027 EUR 500 $ 584 EUR 500 $ 518
0.75% CHF Bonds, due 2027 CHF 425 $ 533 CHF 425 $ 468
3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382
1.9775% CHF Bonds, due 2028 CHF 150 $ 188 CHF 150 $ 165
3.125% EUR Instruments, due 2029 EUR 500 $ 590 EUR 500 $ 523
1.0% CHF Bonds, due 2029 CHF 170 $ 213 CHF 170 $ 188
0% EUR Instruments, due 2030 EUR 800 $ 832 EUR 800 $ 727
2.375% CHF Bonds, due 2030 CHF 150 $ 188 CHF 150 $ 165
3.375% EUR Instruments, due 2031 EUR 750 $ 868 EUR 750 $ 770
Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539
0.8725% CHF Bonds, due 2032 CHF 350 $ 438
2.1125% CHF Bonds, due 2033 CHF 275 $ 344 CHF 275 $ 303
3.375% EUR Instruments, due 2034 EUR 750 $ 877 EUR 750 $ 780
1.2762% CHF Bonds, due 2036 CHF 250 $ 313
4.375% USD Notes, due 2042(2) USD 609 $ 592 USD 609 $ 591
Total $ 8,076 $ 6,644
(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.
(2) Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD
Notes, due 2042, was USD 750 million.
In June 2025, the Company issued the following CHF bonds: (i) CHF 350 million 0.8725% Bonds, due 2032, and (ii) CHF 250 million 1.2762% Bonds, due
2036, both paying interest annually in arrears. The aggregate net proceeds of these CHF Bonds, after fees, amounted to CHF 598 million (equivalent to
approximately $731 million on date of issuance).
─
Note 10
Commitments and contingencies
Contingencies—Regulatory, Compliance and Legal
General
The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and
other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters, as well as potentia l ranges of probable
losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue, with assistance, when
necessary, from internal and external legal counsel and technical experts.
At June 30, 2025, and December 31, 2024, the Company had aggregate liabilities of $48 million and $83 million, respectively, included in Provisions and
Other non‑current liabilities, for the regulatory, compliance and legal contingencies, and none of the individual liabilities recognize d was significant. As it
is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and as it is not possi ble, based on information
currently available to management, to estimate the maximum potential liability on other matters, there could be adverse outco mes beyond the amounts
accrued.
Guarantees
General
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a
“worst-case scenario”, and do not reflect management’s expected outcomes.
Maximum potential payments ($ in millions) June 30, 2025 December 31, 2024
Performance guarantees 2,114 2,299
Financial guarantees 20 22
Total(1) 2,134 2,321
(1) Maximum potential payments include amounts in both continuing and discontinued operations.
The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may
incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amounts of liabilities at June 30, 2025, and
December 31, 2024, were not significant.
The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guar antees, which have
various maturities up to 2049, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s
product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a pro ject will be completed
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party in cash or in kind. The
original maturity dates for the majority of these performance guarantees range from one to ten years.
===== SIDA 36 =====
23 Q2 2025 FINANCIAL INFORMATION
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 June 30, 2025, and December 31, 2024, the
maximum potential payable under these guarantees amounts to $845 million and $747 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 June 30, 2025, and December 31, 2024, have been fully indemnified by Hitachi Ltd. These
guarantees, having various maturities up to 2049, 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 paya ble under
these guarantees at June 30, 2025, and December 31, 2024, is approximately $0.9 billion and $1.1 billion, respectively.
Commercial commitments
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance
bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customers can draw on such per formance bonds in the
event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse t he financial institution for
amounts paid under the performance bonds. At June 30, 2025, and December 31, 2024, the total outstanding performance bonds aggregated to
$3.5 billion and $3.2 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements
in the six and three months ended June 30, 2025 and 2024.
Product and order-related contingencies
The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts. The
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:
($ in millions) 2025 2024
Balance at January 1, 1,248 1,210
Claims paid in cash or in kind (85) (78)
Net increase in provision for changes in estimates, warranties issued and warranties expired 113 120
Exchange rate differences 96 (40)
Balance at June 30, 1,372 1,212
Included in:
”Provisions” — current liabilities 733 638
”Other non-current liabilities” — non-current liabilities 639 574
Provisions for warranties - Total 1,372 1,212
─
Note 11
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 28.0 percent in the six months ended June 30, 2025, was higher than the effective tax rate of 24.5 percent in the six months
ended June 30, 2024, primarily due to a net benefit of $72 million from a partial reversal of an uncertain tax position related to the reassessment of
certain tax risks in the six months ended June 30, 2024. This resulted in an increase of $0.04 in earnings per share (basic and diluted) for the six and
three months ended June 30, 2024.
===== SIDA 37 =====
24 Q2 2025 FINANCIAL INFORMATION
─
Note 12
Employee benefits
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local
regulations and practices. At June 30, 2025, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the
United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event
of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates other
postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requirements.
Net periodic benefit cost of the Company’s defined benefit pension plans consist s of the following:
($ in millions) Defined pension benefits
Switzerland International
Six months ended June 30, 2025 2024 2025 2024
Operational pension cost:
Service cost 28 23 12 13
Operational pension cost 28 23 12 13
Non-operational pension cost (credit):
Interest cost 11 17 78 78
Expected return on plan assets (59) (62) (83) (85)
Amortization of prior service cost (credit) – (4) (2) (1)
Amortization of net actuarial loss – – 25 26
Curtailments, settlements and special termination benefits – 2 – 4
Non-operational pension cost (credit) (1) (48) (47) 18 22
Net periodic benefit cost (credit) (20) (24) 30 35
($ in millions) Defined pension benefits
Switzerland International
Three months ended June 30, 2025 2024 2025 2024
Operational pension cost:
Service cost 15 12 6 5
Operational pension cost 15 12 6 5
Non-operational pension cost (credit):
Interest cost 6 8 40 39
Expected return on plan assets (32) (31) (42) (42)
Amortization of prior service cost (credit) – (2) (1) –
Amortization of net actuarial loss – – 13 13
Curtailments, settlements and special termination benefits – 2 – 4
Non-operational pension cost (credit) (1) (26) (23) 10 14
Net periodic benefit cost (credit) (11) (11) 16 19
(1) Total Non-operational pension cost (credit) includes additional credits of $0 million and $1 million for the six months ended June 30, 2025 and 2024, respectively, and
additional credits of $0 million and $1 million for the three months ended June 30, 2025 and 2024, respectively, related to other postretirement benefits.
The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the
Consolidated Income Statements.
Employer contributions were as follows:
($ in millions) Defined pension benefits
Switzerland International
Six months ended June 30, 2025 2024 2025 2024
Total contributions to defined benefit pension plans 33 28 20 26
($ in millions) Defined pension benefits
Switzerland International
Three months ended June 30, 2025 2024 2025 2024
Total contributions to defined benefit pension plans 18 15 11 15
The Company expects to make contributions totaling approximately $101 million to its defined benefit pension plans for the full year 2025.
===== SIDA 38 =====
25 Q2 2025 FINANCIAL INFORMATION
─
Note 13
Stockholders' equity
At the Annual General Meeting of Shareholders on March 27, 2025, shareholders approved the proposal of the Board of Directors to distribute 0. 90 Swiss
francs per share to shareholders. The declared dividend amounted to $1,867 million, and was paid in the second quarter of 2025.
In February 2025, the Company announced the completion of its $1 billion share buyback program that was launched in April 2024. This program was
executed on a second trading line on the SIX Swiss Exchange. Also in February 2025, the Company launched a new share buyback program of up to
$1.5 billion, as announced in late January 2025. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to
run until January 2026. Under these buyback programs, the Company purchased approximately 14 million shares in the six months ended June 30, 2025,
resulting in an increase in Treasury stock of $746 million.
In the second quarter of 2025, the Company cancelled 17 million shares which had been purchased under its share buyback program. This resulted in a
decrease in Treasury stock of $894 million and a corresponding total decrease in Capital stock, Additional paid -in capital and Retained earnings.
─
Note 14
Earnings per share
Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per
share is calculated by dividing income by the weighted -average number of shares outstanding during the period, assuming that all potentially dilutive
securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options, and outsta nding options and shares
granted subject to certain conditions under the Company’s share -based payment arrangements.
Basic earnings per share
Six months ended June 30, Three months ended June 30,
($ in millions, except per share data in $) 2025 2024 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 2,261 2,004 1,158 1,098
Loss from discontinued operations, net of tax (8) (3) (7) (2)
Net income 2,253 2,001 1,151 1,096
Weighted-average number of shares outstanding (in millions) 1,833 1,844 1,830 1,849
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.23 1.09 0.63 0.59
Loss from discontinued operations, net of tax – – – –
Net income 1.23 1.09 0.63 0.59
Diluted earnings per share
Six months ended June 30, Three months ended June 30,
($ in millions, except per share data in $) 2025 2024 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 2,261 2,004 1,158 1,098
Loss from discontinued operations, net of tax (8) (3) (7) (2)
Net income 2,253 2,001 1,151 1,096
Weighted-average number of shares outstanding (in millions) 1,833 1,844 1,830 1,849
Effect of dilutive securities:
Call options and shares 3 9 2 6
Adjusted weighted-average number of shares outstanding (in millions) 1,836 1,853 1,832 1,855
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.23 1.08 0.63 0.59
Loss from discontinued operations, net of tax – – – –
Net income 1.23 1.08 0.63 0.59
===== SIDA 39 =====
26 Q2 2025 FINANCIAL INFORMATION
─
Note 15
Reclassifications out of accumulated other comprehensive loss
The following table shows changes in Accumulated other comprehensive loss (OCI) attributable to ABB, by component, net of tax :
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2024 (3,977) (8) (1,075) (10) (5,070)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications (16) (1) 31 1 15
Amounts reclassified from OCI – – 19 3 22
Changes attributable to divestments 1 – – – 1
Total other comprehensive (loss) income (15) (1) 50 4 38
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests (16) – – – (16)
Balance at June 30, 2024 (3,976) (9) (1,025) (6) (5,016)
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 110 3 (98) – 15
Amounts reclassified from OCI – – 16 3 19
Total other comprehensive (loss) income 110 3 (82) 3 34
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests 19 – – – 19
Balance at June 30, 2025 (4,157) – (1,173) (5) (5,335)
The amounts reclassified out of OCI for the six and three months ended June 30, 2025 and 2024, were not significant.
─
Note 16
Operating segment data
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of each
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services:
Electrification, Motion, Process Automation and Robotics & Discrete Automation. The remaining operations of the Company are i ncluded in Corporate
and Other.
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Under the new policy, information systems expenses are now allocated to the relevant income statement caption based on the
nature of the underlying system and the Total segment assets of each individual operating segment have been retroactively restated for the impact of
the policy change on Inventories and the related deferred tax balance (see Note 1). The segment information for the six and three months ended June 30,
2024, and at December 31, 2024, has been recast to reflect this change.
A description of the types of products and services provided by each reportable segment is as follows:
• Electrification: manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution
of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power
solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit
breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and
building solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The
products and services are delivered through five operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation
Products and Service.
===== SIDA 40 =====
27 Q2 2025 FINANCIAL INFORMATION
• Motion: designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low -carbon future for
industries, cities, infrastructure and transportation. These products, digital technology and related services enable industr ial customers to
increase energy efficiency, improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of
cumulative experience in electric powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide
range of applications in all industrial segments. In addition, Motion, along with its partners, has a leading global service presence. Through
June 30, 2025, these products and services are delivered through seven operating Divisions: Large Motors and Generators, IEC LV Motors,
NEMA Motors, Drive Products, System Drives, Service and Traction. Effective July 1, 2025, the Large Motors and Generators and System Drives
divisions will merge to form the High Power division.
• Process Automation: offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle
services for the process, hybrid and marine industries. The product portfolio includes control technologies, industrial software, advanced
analytics, sensing and measurement technology, and marine propulsion systems. In addition, Process Automation offers a comprehensive
range of services, from repair to advanced digital capabilities such as remote monitoring, preventive maintenance, asset performance
management, emission monitoring and cybersecurity. The products, systems and services are delivered through four operating Divisions:
Energy Industries, Process Industries, Marine & Ports and Measurement & Analytics.
• Robotics & Discrete Automation: delivers its products, solutions and services through two operating Divisions. Robotics provides industrial
and collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts and
digital services. Machine Automation specializes in automation solutions based on its programmable logic controllers (PLC), industrial PCs
(IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, including engineering and
simulation software as well as a comprehensive range of digital solutions.
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other includes
the E-mobility operating segment and other non-core operating activities as well as the operating activities of certain divested businesses.
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations
excluding:
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial
resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of this review process, current
year-to-date budget-to-actual variances are provided (inclusive of key deviations) along with forecasted annual expectations and plans to address an y
negative variances. Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the
compensation of the Company’s employees.
The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory sales between segments.
Segment results below are presented before these eliminations, with a total deduction for intersegment profits to arrive at t he Company’s consolidated
Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at current market prices.
For a category of expense to be classified as a significant segment expense, it must be significant to the segment, regularly provided to or easily
computed from information regularly provided to the CODM and included in the primary measure of profitability. Significant se gment expenses include
Operational cost of sales, Operational selling, general and administrative expenses, and Operational non -order related research and development costs,
which respectively are comprised of Cost of sales, Selling, general and administrative expenses (excluding bad debt expense), and Non-order related
research and development costs, with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and
any relevant non-operational items (as defined above).
Other segment items represent Other income (expense) excluding its respective components of non -operational items (as defined above), bad debt
expense, and foreign exchange/commodity timing differences in total revenues.
===== SIDA 41 =====
28 Q2 2025 FINANCIAL INFORMATION
The following tables present disaggregated segment revenues from contracts with customers , significant segment expenses, and Operational EBITA for
the six and three months ended June 30, 2025 and 2024.
Six months ended June 30, 2025
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 2,451 1,159 1,377 719 83 5,789
The Americas 3,585 1,314 948 270 73 6,190
of which: United States 2,874 1,087 612 163 44 4,780
Asia, Middle East and Africa 2,009 1,169 1,092 560 26 4,856
of which: China 866 534 286 373 7 2,066
8,045 3,642 3,417 1,549 182 16,835
Product type
Products 7,481 3,095 1,957 1,269 141 13,943
Services and other 564 547 1,460 280 41 2,892
8,045 3,642 3,417 1,549 182 16,835
Third-party revenues 8,045 3,642 3,417 1,549 182 16,835
Intersegment revenues 111 263 20 8 (402) –
Total revenues(1) 8,156 3,905 3,437 1,557 (220) 16,835
Operational cost of sales (4,670) (2,376) (2,083) (1,012)
Operational selling, general and
administrative expenses (1,358) (603) (644) (310)
Operational non-order related
research and development
expenses (223) (151) (160) (92)
Other segment items 14 (8) (5) 5
Operational EBITA 1,919 767 545 148
Six months ended June 30, 2024
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 2,296 1,062 1,181 924 116 5,579
The Americas 3,172 1,293 920 273 91 5,749
of which: United States 2,457 1,056 579 170 69 4,331
Asia, Middle East and Africa 1,893 1,142 1,200 495 51 4,781
of which: China 871 546 361 343 11 2,132
7,361 3,497 3,301 1,692 258 16,109
Product type
Products 6,862 2,926 1,938 1,398 231 13,355
Services and other 499 571 1,363 294 27 2,754
7,361 3,497 3,301 1,692 258 16,109
Third-party revenues 7,361 3,497 3,301 1,692 258 16,109
Intersegment revenues 128 283 17 5 (433) –
Total revenues(1) 7,489 3,780 3,318 1,697 (175) 16,109
Operational cost of sales (4,372) (2,404) (2,081) (1,059)
Operational selling, general and
administrative expenses (1,216) (529) (575) (328)
Operational non-order related
research and development
expenses (211) (157) (148) (107)
Other segment items 23 41 2 3
Operational EBITA 1,713 731 516 206
===== SIDA 42 =====
29 Q2 2025 FINANCIAL INFORMATION
Three months ended June 30, 2025
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,297 619 693 363 44 3,016
The Americas 1,893 679 511 146 43 3,272
of which: United States 1,517 563 328 91 24 2,523
Asia, Middle East and Africa 1,074 633 590 301 14 2,612
of which: China 458 291 155 201 3 1,108
4,264 1,931 1,794 810 101 8,900
Product type
Products 3,959 1,639 1,035 672 71 7,376
Services and other 305 292 759 138 30 1,524
4,264 1,931 1,794 810 101 8,900
Third-party revenues 4,264 1,931 1,794 810 101 8,900
Intersegment revenues 67 134 10 3 (214) –
Total revenues(1) 4,331 2,065 1,804 813 (113) 8,900
Operational cost of sales (2,481) (1,263) (1,108) (532)
Operational selling, general and
administrative expenses (708) (314) (338) (161)
Operational non-order related
research and development
expenses (118) (78) (82) (46)
Other segment items 9 (3) 14 –
Operational EBITA 1,033 407 290 74
Three months ended June 30, 2024
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,142 574 626 434 55 2,831
The Americas 1,643 663 473 133 48 2,960
of which: United States 1,271 540 294 85 31 2,221
Asia, Middle East and Africa 957 584 607 264 36 2,448
of which: China 456 290 196 186 6 1,134
3,742 1,821 1,706 831 139 8,239
Product type
Products 3,482 1,531 1,027 687 125 6,852
Services and other 260 290 679 144 14 1,387
3,742 1,821 1,706 831 139 8,239
Third-party revenues 3,742 1,821 1,706 831 139 8,239
Intersegment revenues 67 130 11 2 (210) –
Total revenues(1) 3,809 1,951 1,717 833 (71) 8,239
Operational cost of sales (2,209) (1,225) (1,068) (532)
Operational selling, general and
administrative expenses (616) (266) (294) (162)
Operational non-order related
research and development
expenses (105) (78) (73) (51)
Other segment items 8 6 (19) 5
Operational EBITA 887 388 263 93
===== SIDA 43 =====
30 Q2 2025 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 six and three months ended June 30, 2025 and 2024, and Total assets
at June 30, 2025, and December 31, 2024:
Six months ended Three months ended
June 30, June 30,
($ in millions) 2025 2024 2025 2024
Operational EBITA:
Electrification 1,919 1,713 1,033 887
Motion 767 731 407 388
Process Automation 545 516 290 263
Robotics & Discrete Automation 148 206 74 93
Corporate and Other
‒ E-mobility (89) (141) (42) (87)
‒ Corporate costs, Intersegment elimination and other 15 (44) (54) 20
Total 3,305 2,981 1,708 1,564
Acquisition-related amortization (95) (113) (50) (57)
Restructuring, related and implementation costs (1) (24) (76) (8) (50)
Changes in obligations related to divested businesses 3 11 2 11
Gains and losses from sale of businesses 12 (57) 1 (55)
Acquisition- and divestment-related expenses and integration costs (31) (37) (22) (18)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange,
commodities, embedded derivatives) 73 (44) (5) 33
Realized gains and losses on derivatives where the underlying hedged
transaction has not yet been realized (1) (1) (1) (2)
Unrealized foreign exchange movements on receivables/payables (and
related assets/liabilities) (46) 42 (17) –
Certain other non-operational items:
Other income/expense relating to the Power Grids joint venture 6 11 3 3
Business transformation costs(2) (88) (101) (44) (51)
Certain other fair value changes, including asset impairments 27 (19) 11 (5)
Other non-operational items (1) (4) (5) 3
Income from operations 3,140 2,593 1,573 1,376
Interest and dividend income 95 103 41 46
Interest and other finance expense (63) (50) (16) (13)
Non-operational pension (cost) credit 30 26 16 10
Income from continuing operations before taxes 3,202 2,672 1,614 1,419
(1) Includes impairment of certain assets.
(2) Amount includes ABB Way process transformation costs of $86 million and $99 million for the six months ended June 30, 2025 and 2024, respectively, and $43 million and
$53 million for the three months ended June 30, 2025 and 2024, respectively.
Depreciation and amortization
Six months ended Three months ended
June 30, June 30,
($ in millions) 2025 2024 2025 2024
Electrification 215 188 112 94
Motion 85 78 43 40
Process Automation 36 28 19 14
Robotics & Discrete Automation 44 72 22 35
Corporate and Other 29 37 17 19
Consolidated 409 403 213 202
Capital expenditures
Six months ended Three months ended
June 30, June 30,
($ in millions) 2025 2024 2025 2024
Electrification 198 171 119 87
Motion 90 96 44 52
Process Automation 30 31 16 16
Robotics & Discrete Automation 54 38 35 17
Corporate and Other 47 30 10 13
Consolidated 419 366 224 185
(1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only.
===== SIDA 44 =====
31 Q2 2025 FINANCIAL INFORMATION
Total assets(1)
($ in millions) June 30, 2025 December 31, 2024
Electrification 14,974 13,089
Motion 7,254 6,870
Process Automation 5,582 5,308
Robotics & Discrete Automation 4,955 4,753
Corporate and Other 10,034 10,268
Consolidated 42,799 40,288
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.
===== SIDA 45 =====
32 Q2 2025 FINANCIAL INFORMATION
===== SIDA 46 =====
33 Q2 2025 FINANCIAL INFORMATION
—
Supplemental Reconciliations and Definitions
The following reconciliations and definitions include alternative performance measures which ABB uses to supplement its Consolidated Financial
Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of
these financial measures are not defined under U.S. GAAP.
While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance wit h U.S. GAAP.
Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited)
prepared in accordance with U.S. GAAP as of and for the six and three months ended June 30, 2025.
Effective January 1, 2025, ABB changed its accounting policy related to the functional classification of its information system expenses in the
income statement . As a result, the consolidated financial statements for 2024 and 2023 have been retroactively restated to reflect this
accounting policy change. See Note 1 - The Company and basis of presentation for details .
Comparable growth rates
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate 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 the comparable periods in the previous year.
Comparable growth rates are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions,
divestments, or by exiting specific business activities or customer markets. The adjustment for portfolio changes is calculat ed as follows: where the
results of any business acquired or divested have not been consolidated and reported for the entire duration of both the curr ent and comparable
periods, the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quar ters which are not
comparable when computing the comparable growth rate. Certain portfolio changes which do not qualify as divestments under U.S . GAAP have been
treated in a similar manner to divestments. Changes in our portfolio where we have exited certain business activities or cust omer markets are adjusted
as if the relevant business was divested in the period when the decision to cease business activities was taken. We do not ad just for portfolio changes
where the relevant business has annualized revenues of less than $50 million.
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate.
Comparable growth rate reconciliation by Business Area
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 11% -2% 0% 9% 14% -2% -1% 11%
Motion 5% -2% 0% 3% 6% -2% 0% 4%
Process Automation 45% -5% 0% 40% 5% -3% 0% 2%
Robotics & Discrete Automation 6% -2% 0% 4% -2% -3% 0% -5%
ABB Group 16% -2% 0% 14% 8% -2% 0% 6%
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 5% 1% -1% 5% 9% 0% 0% 9%
Motion -1% 0% 0% -1% 3% 0% 0% 3%
Process Automation 33% -1% 0% 32% 4% 0% 0% 4%
Robotics & Discrete Automation 10% 1% 0% 11% -8% 0% 0% -8%
ABB Group 9% 0% 0% 9% 5% 0% 0% 5%
===== SIDA 47 =====
34 Q2 2025 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 12% -6% 0% 6% 7% -6% -1% 0%
The Americas 27% 0% 1% 28% 11% 0% 1% 12%
of which: United States 38% -2% 1% 37% 14% -1% 1% 14%
Asia, Middle East and Africa 7% 0% -1% 6% 7% -1% 0% 6%
of which: China 4% -1% -1% 2% -2% -1% -2% -5%
ABB Group 16% -2% 0% 14% 8% -2% 0% 6%
Regional comparable growth rate reconciliation by Business Area - Quarter
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 13% -7% 0% 6% 14% -6% 0% 8%
The Americas 9% 0% 1% 10% 15% 1% 0% 16%
of which: United States 13% 0% 0% 13% 19% 0% -1% 18%
Asia, Middle East and Africa 13% -1% -1% 11% 11% -1% -3% 7%
of which: China 4% -1% -3% 0% 0% 0% -7% -7%
Electrification 11% -2% 0% 9% 14% -2% -1% 11%
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 1% -6% 0% -5% 7% -6% 0% 1%
The Americas 14% 0% 0% 14% 3% 0% 0% 3%
of which: United States 27% -1% 0% 26% 5% -1% 0% 4%
Asia, Middle East and Africa 0% 0% 0% 0% 7% 0% 0% 7%
of which: China 9% 0% 0% 9% 1% -1% 0% 0%
Motion 5% -2% 0% 3% 6% -2% 0% 4%
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 20% -7% 0% 13% 11% -6% 0% 5%
The Americas 135% -4% 0% 131% 8% 0% 0% 8%
of which: United States 222% -12% 0% 210% 12% -1% 0% 11%
Asia, Middle East and Africa 10% -2% 0% 8% -3% -2% 0% -5%
of which: China -1% 0% 0% -1% -21% -1% 0% -22%
Process Automation 45% -5% 0% 40% 5% -3% 0% 2%
Q2 2025 compared to Q2 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 26% -7% 0% 19% -16% -5% 0% -21%
The Americas -31% 1% 0% -30% 10% 1% 0% 11%
of which: United States -37% 0% 0% -37% 10% 0% 0% 10%
Asia, Middle East and Africa 9% -1% 0% 8% 14% -1% 0% 13%
of which: China 3% 0% 0% 3% 7% 0% 0% 7%
Robotics & Discrete Automation 6% -2% 0% 4% -2% -3% 0% -5%
===== SIDA 48 =====
35 Q2 2025 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation for ABB Group – Year to date
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 5% -2% 0% 3% 4% -2% 0% 2%
The Americas 18% 1% 0% 19% 8% 1% 1% 10%
of which: United States 23% 0% 0% 23% 10% 0% 1% 11%
Asia, Middle East and Africa 5% 1% -1% 5% 2% 0% 0% 2%
of which: China 8% 1% -1% 8% -3% 0% -2% -5%
ABB Group 9% 0% 0% 9% 5% 0% 0% 5%
Regional comparable growth rate reconciliation by Business Area – Year to date
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 2% -1% 0% 1% 7% -2% 0% 5%
The Americas 6% 2% 0% 8% 13% 1% 1% 15%
of which: United States 10% 0% 0% 10% 17% 0% -1% 16%
Asia, Middle East and Africa 7% 2% -1% 8% 4% 2% -2% 4%
of which: China 6% 0% -3% 3% -1% 1% -5% -5%
Electrification 5% 1% -1% 5% 9% 0% 0% 9%
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe -1% -1% 0% -2% 8% -2% 0% 6%
The Americas 10% 1% 0% 11% 2% 1% 0% 3%
of which: United States 18% -1% 0% 17% 3% 0% 0% 3%
Asia, Middle East and Africa -10% 0% 0% -10% 0% 1% 0% 1%
of which: China 8% 1% 0% 9% -2% 0% 0% -2%
Motion -1% 0% 0% -1% 3% 0% 0% 3%
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 13% -1% 0% 12% 17% -1% 0% 16%
The Americas 81% 0% 0% 81% 3% 1% 0% 4%
of which: United States 127% -6% 0% 121% 6% 0% 0% 6%
Asia, Middle East and Africa 22% -1% 0% 21% -9% 0% 0% -9%
of which: China 28% 0% 0% 28% -21% 0% 0% -21%
Process Automation 33% -1% 0% 32% 4% 0% 0% 4%
H1 2025 compared to H1 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 17% -1% 0% 16% -22% -1% 0% -23%
The Americas -9% 3% 0% -6% -1% 3% 0% 2%
of which: United States -22% 0% 0% -22% -4% 0% 0% -4%
Asia, Middle East and Africa 12% 2% 0% 14% 13% 1% 0% 14%
of which: China 4% 0% 0% 4% 8% 1% 0% 9%
Robotics & Discrete Automation 10% 1% 0% 11% -8% 0% 0% -8%
===== SIDA 49 =====
36 Q2 2025 FINANCIAL INFORMATION
Order backlog growth rate reconciliation
June 30, 2025 compared to June 30, 2024
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 15% -3% 0% 12%
Motion 8% -7% 0% 1%
Process Automation 25% -6% 0% 19%
Robotics & Discrete Automation -15% -4% 0% -19%
ABB Group 13% -5% 1% 9%
Other growth rate reconciliations
Q2 2025 compared to Q2 2024
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 24% -2% -4% 18% 17% -2% -7% 8%
Motion 6% -2% 0% 4% 1% -2% 0% -1%
Process Automation 83% -7% 0% 76% 12% -3% 0% 9%
Robotics & Discrete Automation 1% -3% 0% -2% -4% -3% 0% -7%
ABB Group 49% -4% -1% 44% 10% -3% -1% 6%
H1 2025 compared to H1 2024
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 21% 1% -6% 16% 13% 0% -6% 7%
Motion 10% 1% 0% 11% -4% 0% 0% -4%
Process Automation 44% -2% 0% 42% 7% 0% 0% 7%
Robotics & Discrete Automation -2% 0% 0% -2% -5% 0% 0% -5%
ABB Group 29% -1% -1% 27% 5% 0% -1% 4%
===== SIDA 50 =====
37 Q2 2025 FINANCIAL INFORMATION
Operational EBITA as % of operational revenues (Operational EBITA margin)
Definition
Operational EBITA margin
Operational EBITA margin is Operational EBITA as a percentage of operational revenues.
Operational EBITA
Operational earnings before interest, taxes and acquisition -related amortization (Operational EBITA) represents Income from operations excluding:
• acquisition-related amortization (as defined below),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
Operational EBITA is our measure of segment profit but is also used by management to evaluate the profitability of the Compan y as a whole.
Acquisition-related amortization
Amortization expense on intangibles arising upon acquisitions.
Restructuring, related and implementation costs
Restructuring, related and implementation costs consists of restructuring and other related expenses, as well as internal and external costs relating to
the implementation of group-wide restructuring programs.
Operational revenues
The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are
Total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives,
(ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange
movements on receivables (and related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent
our revenues measured in accordance with U.S. GAAP.
Reconciliation
The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA margin by business.
Reconciliation of consolidated Operational EBITA to Net Income
Six months ended June 30, Three months ended June 30,
($ in millions) 2025 2024 2025 2024
Operational EBITA 3,305 2,981 1,708 1,564
Acquisition-related amortization (95) (113) (50) (57)
Restructuring, related and implementation costs (1) (24) (76) (8) (50)
Changes in obligations related to divested businesses 3 11 2 11
Gains and losses from sale of businesses 12 (57) 1 (55)
Acquisition- and divestment-related expenses and integration costs (31) (37) (22) (18)
Certain other non-operational items (56) (113) (35) (50)
Foreign exchange/commodity timing differences in income from operations 26 (3) (23) 31
Income from operations 3,140 2,593 1,573 1,376
Interest and dividend income 95 103 41 46
Interest and other finance expense (63) (50) (16) (13)
Non-operational pension (cost) credit 30 26 16 10
Income from continuing operations before taxes 3,202 2,672 1,614 1,419
Income tax expense (895) (654) (426) (315)
Income from continuing operations, net of tax 2,307 2,018 1,188 1,104
Loss from discontinued operations, net of tax (8) (3) (7) (2)
Net income 2,299 2,015 1,181 1,102
(1) Includes impairment of certain assets.
===== SIDA 51 =====
38 Q2 2025 FINANCIAL INFORMATION
Reconciliation of Operational EBITA margin by business
Three months ended June 30, 2025
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 4,331 2,065 1,804 813 (113) 8,900
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (19) (7) 20 1 – (5)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – (1) (1) 2 (1) (1)
Unrealized foreign exchange movements
on receivables (and related assets) 11 – (2) (3) 1 7
Operational revenues 4,323 2,057 1,821 813 (113) 8,901
Income (loss) from operations 990 393 273 67 (150) 1,573
Acquisition-related amortization 29 9 4 7 1 50
Restructuring, related and
implementation costs(1) 4 5 1 2 (4) 8
Changes in obligations related to
divested businesses – – – – (2) (2)
Gains and losses from sale of businesses (2) – – – 1 (1)
Acquisition- and divestment-related expenses
and integration costs 9 1 4 2 6 22
Certain other non-operational items 2 4 – (1) 30 35
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (7) (8) 10 (4) 14 5
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – – – 2 (1) 1
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 8 3 (2) (1) 9 17
Operational EBITA 1,033 407 290 74 (96) 1,708
Operational EBITA margin (%) 23.9% 19.8% 15.9% 9.1% n.a. 19.2%
(1) Includes impairment of certain assets.
In the three months ended June 30, 2025, Certain other non-operational items in the table above includes the following:
Three months ended June 30, 2025
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (3) (3)
Business transformation costs(1) – 3 – – 41 44
Certain other fair values changes,
including asset impairments – 1 – (1) (11) (11)
Other non-operational items 2 – – – 3 5
Total 2 4 – (1) 30 35
(1) Amounts include ABB Way process transformation costs of $43 million for the three months ended June 30, 2025.
===== SIDA 52 =====
39 Q2 2025 FINANCIAL INFORMATION
Three months ended June 30, 2024
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 3,809 1,951 1,717 833 (71) 8,239
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 4 (3) (21) – 3 (17)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 1 2 (1) – 2 4
Unrealized foreign exchange movements
on receivables (and related assets) 5 1 3 3 (3) 9
Operational revenues 3,819 1,951 1,698 836 (69) 8,235
Income (loss) from operations 837 369 274 46 (150) 1,376
Acquisition-related amortization 23 8 2 20 4 57
Restructuring, related and
implementation costs(1) 8 14 – 20 8 50
Changes in obligations related to
divested businesses – – – – (11) (11)
Gains and losses from sale of businesses 24 – – – 31 55
Acquisition- and divestment-related expenses
and integration costs 19 2 1 5 (9) 18
Certain other non-operational items (1) – (5) (2) 58 50
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (23) (6) (12) 2 6 (33)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (2) 1 – – 3 2
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 2 – 3 2 (7) –
Operational EBITA 887 388 263 93 (67) 1,564
Operational EBITA margin (%) 23.2% 19.9% 15.5% 11.1% n.a. 19.0%
(1) Includes impairment of certain assets.
In the three months ended June 30, 2024, Certain other non-operational items in the table above includes the following:
Three months ended June 30, 2024
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (3) (3)
Business transformation costs(1) (1) – – (1) 53 51
Certain other fair values changes,
including asset impairments (1) – (4) – 10 5
Other non-operational items 1 – (1) (1) (2) (3)
Total (1) – (5) (2) 58 50
(1) Amounts include ABB Way process transformation costs of $53 million for the three months ended June 30, 2024.
===== SIDA 53 =====
40 Q2 2025 FINANCIAL INFORMATION
Six months ended June 30, 2025
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 8,156 3,905 3,437 1,557 (220) 16,835
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (53) (16) (3) (1) (3) (76)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) – (6) 2 (1) (6)
Unrealized foreign exchange movements
on receivables (and related assets) 41 5 7 5 4 62
Operational revenues 8,143 3,894 3,435 1,563 (220) 16,815
Income (loss) from operations 1,912 754 536 123 (185) 3,140
Acquisition-related amortization 55 18 8 14 – 95
Restructuring, related and
implementation costs(1) 10 7 3 7 (3) 24
Changes in obligations related to
divested businesses – – – – (3) (3)
Gains and losses from sale of businesses (13) – – – 1 (12)
Acquisition- and divestment-related expenses
and integration costs 19 2 5 4 1 31
Certain other non-operational items (29) 10 (2) (1) 78 56
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (64) (31) (9) (4) 35 (73)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 1 1 (2) 2 (1) 1
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 28 6 6 3 3 46
Operational EBITA 1,919 767 545 148 (74) 3,305
Operational EBITA margin (%) 23.6% 19.7% 15.9% 9.5% n.a. 19.7%
(1) Includes impairment of certain assets.
In the six months ended June 30, 2025, Certain other non-operational items in the table above includes the following:
Six months ended June 30, 2025
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (6) (6)
Business transformation costs(1) 1 5 – – 82 88
Certain other fair values changes,
including asset impairments (25) 4 (2) (1) (3) (27)
Other non-operational items (5) 1 – – 5 1
Total (29) 10 (2) (1) 78 56
(1) Amounts include ABB Way process transformation costs of $86 million for the six months ended June 30, 2025.
===== SIDA 54 =====
41 Q2 2025 FINANCIAL INFORMATION
Six months ended June 30, 2024
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 7,489 3,780 3,318 1,697 (175) 16,109
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 51 43 23 6 8 131
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (2) 2 1 – 2 3
Unrealized foreign exchange movements
on receivables (and related assets) (26) (16) (18) (8) (5) (73)
Operational revenues 7,512 3,809 3,324 1,695 (170) 16,170
Income (loss) from operations 1,606 670 508 137 (328) 2,593
Acquisition-related amortization 46 17 3 41 6 113
Restructuring, related and
implementation costs(1) 18 22 7 20 9 76
Changes in obligations related to
divested businesses – – – – (11) (11)
Gains and losses from sale of businesses 24 – – – 33 57
Acquisition- and divestment-related expenses
and integration costs 29 2 1 7 (2) 37
Certain other non-operational items 2 3 (5) (1) 114 113
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (1) 27 10 6 2 44
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (3) 1 1 – 2 1
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (8) (11) (9) (4) (10) (42)
Operational EBITA 1,713 731 516 206 (185) 2,981
Operational EBITA margin (%) 22.8% 19.2% 15.5% 12.2% n.a. 18.4%
(1) Includes impairment of certain assets.
In the six months ended June 30, 2024, certain other non-operational items in the table above includes the following:
Six months ended June 30, 2024
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense related to the
Power Grids joint venture – – – – (11) (11)
Business transformation costs 1 1 – – 99 101
Certain other fair values changes,
including asset impairments – 2 (4) – 21 19
Other non-operational items 1 – (1) (1) 5 4
Total 2 3 (5) (1) 114 113
(1) Amounts include ABB Way process transformation costs of $99 million for the six months ended June 30, 2024.
===== SIDA 55 =====
42 Q2 2025 FINANCIAL INFORMATION
Net debt
Definition
Net debt
Net debt is defined as Total debt less Cash and marketable securities.
Total debt
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.
Cash and marketable securities
Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments.
Reconciliation
($ in millions) June 30, 2025 December 31, 2024
Short-term debt and current maturities of long -term debt 558 293
Long-term debt 8,255 6,652
Total debt 8,813 6,945
Cash and equivalents 3,266 4,326
Marketable securities and short-term investments 1,846 1,334
Cash and marketable securities 5,112 5,660
Net debt 3,701 1,285
Net debt/Equity ratio
Definition
Net debt/Equity ratio
Net debt/Equity ratio is defined as Net debt divided by Equity.
Equity
Equity is defined as Total stockholders’ equity.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2025 December 31, 2024
Total stockholders' equity 14,600 14,991
Net debt (as defined above) 3,701 1,285
Net debt / Equity ratio 0.25 0.09
Net debt/EBITDA ratio
Definition
Net debt/EBITDA ratio
Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.
EBITDA
EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for
the same trailing twelve-month period.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2025 June 30, 2024
Income from operations for the three months ended:
September 30, 2024 / 2023 1,309 1,259
December 31, 2024 / 2023 1,169 1,116
March 31, 2025 / 2024 1,567 1,217
June 30, 2025 / 2024 1,573 1,376
Depreciation and Amortization for the three months ended:
September 30, 2024 / 2023 194 194
December 31, 2024 / 2023 205 199
March 31, 2025 / 2024 196 201
June 30, 2025 / 2024 213 202
EBITDA 6,426 5,764
Net debt (as defined above) 3,701 2,480
Net debt / EBITDA 0.6 0.4
===== SIDA 56 =====
43 Q2 2025 FINANCIAL INFORMATION
Net working capital
Definition
Net working capital
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade,
(vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and
other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring -related activities); and
including the amounts related to these accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2025 June 30, 2024
Net working capital:
Receivables, net 7,949 7,492
Contract assets 1,301 1,118
Inventories, net 6,396 6,166
Prepaid expenses 361 294
Accounts payable, trade (5,273) (5,118)
Contract liabilities (3,354) (2,973)
Other current liabilities(1) (3,613) (3,463)
Net working capital 3,767 3,516
(1) Amounts exclude $1,069 million and $660 million at June 30, 2025 and 2024, respectively, related primarily to (a) income taxes payable, (b) current derivative
liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring -related
activitie s.
===== SIDA 57 =====
44 Q2 2025 FINANCIAL INFORMATION
Average trade net working capital as a percentage of revenues
Definition
Average trade net working capital as a percentage of revenues
Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the
trailing twelve months (being the total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date).
Average trade net working capital
Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during
the trailing twelve-month period (4-quarter average)
Trade net working capital
Trade net working capital is the sum of (i) trade receivables (comprised of trade accounts receivable net of related allowance, presented within
Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract
liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating
expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these
accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2025 2025 2024 2024 2024
Trade net working capital:
Trade receivables 7,320 6,887 6,816 6,821 6,898
Contract assets 1,301 1,210 1,115 1,236 1,118
Inventories, net 6,396 6,070 5,768 6,465 6,166
Accounts payable, trade (5,273) (5,032) (5,036) (5,167) (5,118)
Contract liabilities (3,354) (3,248) (2,969) (3,081) (2,973)
Accrued expenses, operating (1,286) (1,223) (1,266) (1,363) (1,266)
Trade net working capital in assets and liabilities held for sale – – – 20 –
Trade net working capital 5,104 4,664 4,428 4,931 4,825
Average of opening and closing Trade net working capital 4,884 4,546 4,680 4,878
Average trade net working capital 4,747
Total revenues for the three months ended:
September 30, 2024 8,151
December 31, 2024 8,590
March 31, 2025 7,935
June 30, 2025 8,900
Total revenues for the trailing twelve months 33,576
Average trade net working capital as a percentage of revenues
(%)
14.1%
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2024 2024 2023 2023 2023
Trade net working capital:
Trade receivables 6,898 6,790 6,822 6,863 6,786
Contract assets 1,118 1,135 1,090 1,073 1,010
Inventories, net 6,166 6,079 6,058 6,241 6,357
Accounts payable, trade (5,118) (5,018) (4,847) (4,777) (4,881)
Contract liabilities (2,973) (2,866) (2,844) (2,610) (2,394)
Accrued expenses, operating (1,266) (1,302) (1,445) (1,524) (1,341)
Trade net working capital in assets and liabilities held for sale – – – – 143
Trade net working capital 4,825 4,818 4,834 5,266 5,680
Average of opening and closing Trade net working capital 4,822 4,826 5,050 5,473
Average trade net working capital 5,043
Total revenues for the three months ended:
September 30, 2023 7,968
December 31, 2023 8,245
March 31, 2024 7,870
June 30, 2024 8,239
Total revenues for the trailing twelve months 32,322
Average trade net working capital as a percentage of revenues
(%)
15.6%
===== SIDA 58 =====
45 Q2 2025 FINANCIAL INFORMATION
Return on Capital employed (ROCE)
In the first quarter of 2025, the Company modified its definition of Return on Capital employed (ROCE) to utilize a four -quarter average of Capital
employed in place of a simple average of the annual period’s opening and closing Capital employed . The change to an averaging method allows for a
comparable ratio that can be presented quarterly compared to our previous annual disclosure. In addition, a fixed notional tax rate (subject to review for
significant changes) is used. The new definition is provided below.
Definition
Return on Capital employed (ROCE)
Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the average of the 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) other intangible assets, net, (iv) investments in
equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities
recognized in certain acquisitions.
Notional tax on Operational EBITA
The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the Company’s weighted -
average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant changes in the Company’s
weighted-average global tax rate.
Reconciliation
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2025 2025 2024 2024 2024
Adjusted total fixed assets:
Property, plant and equipment, net 4,618 4,301 4,177 4,248 4,095
Goodwill 11,352 11,088 10,555 10,582 10,525
Other intangible assets, net 1,192 1,183 1,048 1,036 1,089
Investments in equity-accounted companies 388 377 368 185 189
Operating lease right-of-use assets 849 861 840 873 861
Fixed assets included in assets held for sale – – – 176 –
Total fixed assets 18,399 17,810 16,988 17,100 16,759
Less: Deferred taxes recognized in certain acquisitions (1) (220) (231) (242) (253) (265)
Adjusted total fixed assets 18,179 17,579 16,746 16,847 16,494
Net working capital - (as defined above) 3,767 3,371 2,739 3,512 3,516
Capital employed 21,946 20,950 19,485 20,359 20,010
Average of opening and closing Capital employed 21,448 20,218 19,922 20,185
Operational EBITA for the three months ended 1,708 1,597 1,434 1,553
Operational EBITA for the trailing twelve months 6,292
Notional tax on Operational EBITA (1,573)
Operational EBITA after tax for the trailing twelve months 4,719
Average Capital employed (4 quarters) 20,443
Return on Capital Employed (ROCE) 23.1%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 59 =====
46 Q2 2025 FINANCIAL INFORMATION
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2024 2024 2023 2023 2023
Adjusted total fixed assets:
Property, plant and equipment, net 4,095 4,047 4,142 3,891 3,923
Goodwill 10,525 10,494 10,561 10,356 10,420
Other intangible assets, net 1,089 1,128 1,223 1,181 1,257
Investments in equity-accounted companies 189 178 187 186 154
Operating lease right-of-use assets 861 863 893 850 852
Fixed assets included in assets held for sale – – – – 293
Total fixed assets 16,759 16,710 17,006 16,464 16,899
Less: Deferred taxes recognized in certain acquisitions (1) (265) (281) (297) (312) (328)
Adjusted total fixed assets 16,494 16,429 16,709 16,152 16,571
Net working capital - (as defined above) 3,516 3,497 3,166 3,950 4,494
Capital employed 20,010 19,926 19,875 20,102 21,065
Average of opening and closing Capital employed 19,968 19,901 19,989 20,584
Operational EBITA for the three months ended 1,564 1,417 1,333 1,392
Operational EBITA for the trailing twelve months 5,706
Notional tax on Operational EBITA (1,427)
Operational EBITA after tax for the trailing twelve months 4,279
Average Capital employed (4 quarters) 20,110
Return on Capital Employed (ROCE) 21.3%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 60 =====
47 Q2 2025 FINANCIAL INFORMATION
Free cash flow
Definition
Free cash flow
Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible
assets, and (ii) proceeds from sales of property, plant and equipment .
Reconciliation
Six months ended June 30, Three months ended June 30,
($ in millions, unless otherwise indicated) 2025 2024 2025 2024
Net cash provided by operating activities 1,743 1,793 1,059 1,067
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (419) (366) (224) (185)
Proceeds from sale of property, plant and equipment 173 42 10 36
Free cash flow 1,497 1,469 845 918
Free cash flow conversion to net income
Definition
Free cash flow conversion to net income
Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income attributable to ABB.
Adjusted net income attributable to ABB
Adjusted net income attributable to ABB is calculated as net income attributable to ABB adjusted for gains or losses arising on sale of certain businesses
and certain other significant items within net income which are also excluded / adjusted for when calculating operating cashflows.
Free cash flow for the trailing twelve months
Free cash flow for the trailing twelve months includes free cash flow recorded by ABB in the twelve months preceding the rele vant balance sheet date.
Net income for the trailing twelve months
Net income for the trailing twelve months includes net income recorded by ABB (as adjusted) in the twelve months preceding th e relevant balance sheet
date.
Reconciliation
Trailing twelve months to
($ in millions, unless otherwise indicated) June 30, 2025 December 31, 2024
Net cash provided by operating activities 4,625 4,675
Adjusted for the effects of operations:
Purchases of property, plant and equipment and intangible assets (898) (845)
Proceeds from sale of property, plant and equipment 238 107
Free cash flow 3,965 3,937
Adjusted net income attributable to ABB (1) 4,164 3,949
Free cash flow conversion to net income 95% 100%
(1) Adjusted net income attributable to ABB for the year ended December 31, 2024, is adjusted to exclude the fair value adjustment of $88 million on assets and liabilities held
for sale related to In-Charge, the net gain on the sale of a business within the Electrification Business Area of $64 million and adjustments to the gain on sale of Power
Grids of $10 million.
Reconciliation of the trailing twelve months to June 30, 2025
($ in millions)
Net cash provided by
operating activities
Purchases of
property, plant and
equipment and
intangible assets
Proceeds
from sale of
property, plant and
equipment
Adjusted net income
attributable to ABB(1)
Q3 2024 1,345 (196) 24 1,026
Q4 2024 1,537 (283) 41 922
Q1 2025 684 (195) 163 1,065
Q2 2025 1,059 (224) 10 1,151
Total for the trailing twelve
months to June 30, 2025 4,625 (898) 238 4,164
(1) Adjusted net income attributable to ABB for Q3 2024 is adjusted to exclude the fair value adjustment of $89 million on assets and liabilities held for sale related
to In-Charge and adjustments to the gain on sale of Power Grids of $10 million; Q4 2024 is adjusted to exclude the net gain on the sale of a business within the
Electrification Business Area of $64 million and a decrease in the fair value adjustment relating to In -Charge of $1 million and Q1 2025 is adjusted to exclude
$37 million of gains arising on sale of certain investments and intangibles assets.
===== SIDA 61 =====
48 Q2 2025 FINANCIAL INFORMATION
Net finance income (expense)
Definition
Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.
Reconciliation
Six months ended June 30, Three months ended June 30,
($ in millions) 2025 2024 2025 2024
Interest and dividend income 95 103 41 46
Interest and other finance expense (63) (50) (16) (13)
Net finance income (expense) 32 53 25 33
Book-to-bill ratio
Definition
Book-to-bill ratio is calculated as Orders received divided by Total revenues.
Reconciliation
Six months ended June 30,
2025 2024
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 8,912 8,156 1.09 8,465 7,489 1.13
Motion 4,268 3,905 1.09 4,317 3,780 1.14
Process Automation 4,644 3,437 1.35 3,499 3,318 1.05
Robotics & Discrete Automation 1,528 1,557 0.98 1,389 1,697 0.82
Corporate and Other (incl. intersegment eliminations) (354) (220) n.a. (261) (175) n.a.
ABB Group 18,998 16,835 1.13 17,409 16,109 1.08
Three months ended June 30,
2025 2024
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 4,518 4,331 1.04 4,073 3,809 1.07
Motion 2,112 2,065 1.02 2,014 1,951 1.03
Process Automation 2,620 1,804 1.45 1,802 1,717 1.05
Robotics & Discrete Automation 729 813 0.90 688 833 0.83
Corporate and Other (incl. intersegment eliminations) (194) (113) n.a. (142) (71) n.a.
ABB Group 9,785 8,900 1.10 8,435 8,239 1.02