FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2026
===== SIDA 1 =====
—
ZURICH, SWITZERLAND, JULY 16, 2026
Q2 2026 results
Record-high orders, strong operational execution
and value creation through M&A
• Orders $12,042 million, +30%; comparable1 +28%
• Revenues $9,475 million, +14%; comparable1 +12%
• Income from operations $1,585 million; margin 16.7%
• Operational EBITA1 $1,925 million; margin1 20.2%
• Basic EPS $0.68; +8%2
• Cash flow from operating activities $1,150 million; +9%
• Return on Capital Employed1 28.4%
—
“Q2 reflects the strength of ABB’s performance and position at the core of electrification
and automation megatrends. With the acquisition of Rotork, we expect to create further
value by expanding our automation portfolio.”
Morten Wierod, CEO
KEY FIGURES
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Comparable1 H1 2026 H1 2025 US$ Comparable1
Orders 12,042 9,254 30% 28% 23,340 17,843 31% 26%
Revenues 9,475 8,295 14% 12% 18,209 15,677 16% 12%
Gross Profit 3,793 3,362 13% 7,233 6,484 12%
as % of revenues 40.0% 40.5% -0.5 pts 39.7% 41.4% -1.7 pts
Income from operations 1,585 1,466 8% 3,365 2,940 14%
Operational EBITA1 1,925 1,598 20% 18% 3 3,974 3,093 28% 23% 3
as % of operational revenues1 20.2% 19.3% +0.9 pts 21.8% 19.8% +2 pts
Income from continuing operations, net of tax 1,218 1,113 9% 2,569 2,168 18%
Net income attributable to ABB 1,231 1,151 7% 2,555 2,253 13%
Basic earnings per share ($) 0.68 0.63 8%2 1.41 1.23 14%2
Cash flow from operating activities 1,150 1,059 9% 2,179 1,743 25%
Cash flow from operating activities in
continuing operations 1,303 971 34% 2,315 1,579 47%
Free cash flow1 881 845 4% 2,131 1,497 42%
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q2 2026 Financial Information.
2 EPS growth rates are computed using unrounded amounts.
3 Constant currency (not adjusted for portfolio changes).
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q2 2026
FIRST SIX MONTHS
PRESS RELEASE
===== SIDA 2 =====
AB B IN TE RIM RE P ORT I Q2 20 26 2
Our second quarter results reflect high demand in the
majority of our customer segments, strong execution and
solid cash flow. In my view, we show great overall progress
and I want to acknowledge the commitment from the ABB
team.
We achieved a new record-high order intake of $12 billion. It
was good to see the quarter developing according to plan
with strong comparable revenue growth of 12% and an
Operational EBITA margin increase of 90 basis points to
20.2%. In total, we improved Operational EBITA by 20% and
Earnings per share by 8%.
The strong earnings increase combined with disciplined
Trade net working capital management contributed to Free
cash flow of $881 million. We are tracking well towards
improved annual Free cash flow in 2026.
The combined technology strengths of our business areas
– the Power of ABB – were exemplified by Motion and
Automation. They extended the partnership with VoltaGrid,
a US-based microgrid power generation company. Under
this agreement, Motion will supply their industry-leading
synchronous condensers with flywheel technology that act
like shock absorbers for the grid to keep electricity stable.
These go alongside associated prefabricated eHouse units
delivered by Automation, including their leading electrical
distribution panels for low voltage and medium voltage
distribution, variable frequency converters and PLCs for
power control. These systems act as critical stabilization
assets within VoltaGrid’s behind-the-meter power
solutions, enabling the voltage stability required by next-
generation AI chips.
We are at the forefront of medium voltage technology. It is
good to see Electrification strengthening our position
further by introducing HiPerGuard 34.5kV, a new version of
its market breakthrough medium voltage UPS
(Uninterrupted Power Supply). This enables data centers to
connect directly to the grid without voltage conversion,
cutting conversion energy losses and reducing
infrastructure complexity. With this latest innovation,
HiPerGuard's microgrid-ready architecture enables flexible
integration of battery storage, gas turbines, and
renewables with grid support and peak shaving capabilities.
ABB is positioned at the core of secular electrification and
automation trends. To remain a reliable supplier and
support long-term organic growth we will invest
approximately $200 million in our medium-voltage
manufacturing capabilities across Europe over the next
three years. This will expand our production capacity,
accelerate the transition to next-generation technologies
for power distribution and strengthen supply for customers
that are modernizing their power infrastructure.
Additional capital allocation decisions include the three
recently announced acquisitions which combined would
add approximately 3.5% to 2025 revenues. The largest
being the offer to acquire Rotork plc (“Rotork”),
representing an important step to expand the ABB
Automation portfolio. Adding actuators and building on
ABB’s broad market reach will further strengthen our
competitive position and enhance ability to support our
customers through increasingly digital, connected and
autonomous solutions across energy and process
industries. Some of the customer benefits with electric
actuators are the higher precision and accuracy in control
of position, speed and force, they are energy efficient as
they consume power only in the actual movement and they
facilitate a higher level of digital diagnostics. In our view,
there is a strong strategic fit between Rotork and the ABB
purpose and our leading position in electrification and
automation. This deal will bring together two businesses
with highly complementary technology portfolios and
similar customer relationships, geographic footprints and
strong installed bases.
The offer of 503 pence per share – representing a total cash
deal of ∼$5.5 billion – is recommended by the Rotork Board
of Directors. There would be an immediate positive impact
on the ABB Operational EBITA margin and it should be EPS
accretive in the second year after integration. From a
funding perspective, we would redeploy the expected
∼$4.8 billion in net cash proceeds from the divestment of
ABB Robotics, anticipated to be completed in the second
half of 2026. Consequently, our balance sheet remains
strong – Net debt/EBITDA of 0.3 at end of the second
quarter – leaving headroom for additional acquisitions and
utilization of the share buyback program of up to $2 billion.
Morten Wierod
CEO
In the third quarter of 2026, we expect a
low- to mid-teens growth in comparable revenues, year-
on-year. The Operational EBITA margin should show
sequential improvement from the second quarter.
In full-year 2026, we expect a positive book-to-bill, and a
low double-digit to low-teens growth in comparable
revenues, year-on-year. The Operational EBITA margin
should improve year-on-year, even when excluding the
real estate gain in the first quarter of 2026.
CEO summary
Outlook
===== SIDA 3 =====
AB B IN TE RIM RE P ORT I Q2 20 26 3
A strong performance in a favorable market environment
drove order intake to a new quarterly all-time-high level of
$12,042 million. Strong order growth of 30% (28%
comparable) was underpinned by sustained customer
investments across the secular megatrends of energy
expansion, energy efficiency, and energy resilience —
areas where ABB's portfolio is well positioned to deliver.
Both the Electrification and Motion business areas
recorded surging order improvements of 60% (58%
comparable) and 23% (20% comparable), respectively. In
contrast, orders in the Automation business area declined
by 13% (14% comparable) as the current quarter’s general
robust order activity still did not meet last year’s very high
level, which was supported by a large order booking of
approximately $600 million.
Revenues were record-high but orders even stronger,
leaving the book-to-bill at 1.27, supported by a positive
development in all three business areas. The order
backlog amounted to $30,007 million, up 27% (28%
comparable) year-on-year.
All regions improved orders at a double-digit rate.
Americas was up by 53% (52% comparable), led by growth
in the United States of 62% (62% comparable). Europe
increased by 16% (12% comparable) with strong growth in
several large countries. Asia, Middle East and Africa was
up 13% (12% comparable) including an increase of 17%
(10% comparable) in China.
Transport-linked demand continued to be strong,
although quarterly marine orders declined against last
year’s very high comparable. Rail continued its strong
trend. Demand for land-based infrastructure benefited
from upgrades of electrical equipment in airports, tunnels
etc.
In the industrial space, data center order growth was
exceptional. Quarterly orders in the utilities segment
remained stable on last year’s high comparable, with grid
investment need remaining tangible as aging assets
require upgrades to not only mitigate outage risks, but to
also meet the accelerating power demands.
The buildings segment improved, driven by commercial
investments in the United States and Europe, offsetting
broad weakness in the residential area.
Orders in the machine builder segment increased sharply
although volumes remain low at pre-covid levels.
Sentiment in the oil & gas segment remained solid,
although orders declined due to timing impacts. Activity
increased among nuclear customers. Mining orders
remained broadly stable in a generally capex-muted
market environment.
New all-time-high revenues amounted to $9,475 million,
up 14% (12% comparable) year-on-year. A well-functioning
supply chain supports deliveries from the order backlog
as well as a strong short-cycle demand. Higher volumes
was the key growth driver, with added support from a
positive pricing of close to 2%. Favorable changes in
exchange rates contributed 2%.
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 28% 12%
FX 2% 2%
Portfolio changes 0% 0%
Total 30% 14%
Orders by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q2 2026 Q2 2025 US$ Comparable
Europe 3,360 2,903 16% 12%
The Americas 5,728 3,746 53% 52%
Asia, Middle East
and Africa 2,954 2,605 13% 12%
ABB Group 12,042 9,254 30% 28%
Revenues by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q2 2026 Q2 2025 US$ Comparable
Europe 2,994 2,793 7% 3%
The Americas 3,788 3,146 20% 19%
Asia, Middle East
and Africa 2,693 2,356 14% 13%
ABB Group 9,475 8,295 14% 12%
Orders and revenues
===== SIDA 4 =====
AB B IN TE RIM RE P ORT I Q2 20 26 4
Gross profit
Gross profit increased by 13% (10% local currencies) year-on-
year to $3,793 million, reflecting a gross margin of 40.0%,
down 50 basis points. The gross margin decline was primarily
due to the impact from unrealized FX and commodity
derivatives. This hampered the gross margin in two out of
three business areas.
Income from operations
Income from operations amounted to $1,585 million,
increasing 8% from last year and reflecting a margin of 16.7%,
down 100 basis points. The increase in Income from
operations was driven primarily by strong operational
performance, partially offset by approximately $60 million
increased expenses linked to mark-to-market of unrealized FX
and commodity derivatives. Additional adverse impacts
include certain non-operational items of approximately $100
million in provisions for unasserted legacy claims and
remediations, as well as an expense of approximately $30
million related to fair value adjustment of an equity
investment.
Operational EBITA
Operational EBITA increased by 20% (18% in local currencies)
to $1,925 million, representing a margin of 20.2%. The margin
improved by 90 basis points year-on-year, driven by
improvements in two out of three business areas as well as
by lower losses in the E-mobility business.
The higher business result was primarily due to operational
leverage on higher volumes, which combined with positive
pricing more than offset the higher expenses related to
commodities and tariffs, Research and Development (R&D)
and Selling, general & administrative (SG&A). SG&A declined in
relation to revenues to 18.2% from last year’s 20.1%.
Operational EBITA in Corporate and other amounted to
-$127 million, consistent with last year’s loss of $130 million.
This is the total of underlying Corporate costs of $109 million
which includes Stranded costs of $25 million, and a loss of
$18 million in the E-mobility business.
Finance net
Net finance income contributed $32 million to results, slightly
less compared with last year’s $35 million.
Income tax
Income tax expense was $416 million and effective tax rate
25.5%.
Net income and earnings per share
Net income attributable to ABB was $1,231 million, up 7% year-
on-year, with the key driver being contribution from improved
business performance which more than compensated for
certain higher non-operational items. Basic earnings per share
increased by 8% to $0.68, up from $0.63 last year.
Earnings
Corporate and Other
Operational EBITA
($ in millions) Q2 2026 Q2 2025
Corporate and Other
E-mobility (18) (42)
Stranded corporate costs (25) (33)
Corporate costs, intersegment
eliminations and other1 (84) (55)
Total (127) (130)
1 Majority of which relates to underlying corporate
===== SIDA 5 =====
AB B IN TE RIM RE P ORT I Q2 20 26 5
Trade net working capital1
Trade net working capital amounted to $4,327 million and
declined year-on-year from $4,646 million. The increase in
inventories and receivables was more than compensated
for by higher increases in payables and customer
advances. The average trade net working capital as a
percentage of revenues1 was 11.9%, a reduction from
13.8% one year ago.
Capital expenditures
Purchases of property, plant and equipment and
intangible assets for continuing operations during the
second quarter amounted to $236 million, representing a
somewhat higher spend in buildout to meet demand,
compared with last year’s $202 million. For ABB Group,
the total cash outflow on a combined basis amounted to
$294 million, higher than last year’s $224 million.
Net debt
Net debt1 amounted to $2,320 million at the end of the
quarter. This represents a decline from last year’s level of
$3,694 million and a slight sequential increase from
$2,268 million in the first quarter.
Cash flows
Cash flow from operating activities during the second
quarter was $1,150 million, an increase of 9% from last
year’s $1,059 million. Contribution to the strong cash flow
derived from an improvement in Continuing operations,
supported by stronger earnings, year-on-year. Free cash
flow amounted to $881 million, just above last year’s
$845 million.
Share buyback program
A share buyback program of up to $2 billion was launched
on February 9, 2026. During the second quarter, ABB
repurchased a total of 1,528,217 shares for a total amount
of approximately $147 million. At the end of the second
quarter, ABB’s total number of issued shares including
shares held in treasury, amounted to 1,823,154,373.
Balance sheet & Cash flow
($ in millions,
unless otherwise indicated)
Jun. 30
2026
Jun. 30
2025
Dec. 31
2025
Short-term debt and current
maturities of long-term debt 1,610 557 475
Long-term debt 6,567 8,249 7,829
Total debt 8,177 8,806 8,304
Cash & equivalents 3,867 3,266 4,640
Marketable securities and
short-term investments 1,990 1,846 1,981
Cash and marketable securities 5,857 5,112 6,621
Net debt (cash) 2,320 3,694 1,683
Net debt (cash) to EBITDA ratio 0.3 0.6 0.3
Net debt (cash) to Equity ratio 0.14 0.25 0.10
===== SIDA 6 =====
AB B IN TE RIM RE P ORT I Q2 20 26 6
Orders and revenues
Demand advanced from an already strong trajectory, and
for the first time order intake surpassed the $7 billion
mark. At $7,231 million, orders improved by 60% (58%
comparable), reflecting a strong underlying market with
no indications of pre-ordering.
• Orders improved at a strong double-digit rate in both
short-cycle and project businesses. Our resilient supply
chain supports consistent delivery performance.
• Market sentiment is strong in all major segments.
Rapidly expanding investments in data center build-out
remained a primary catalyst, driving exceptional triple-
digit growth in the segment. In the utility market, the
underlying demand and long-term investment need
remained strong, although order growth was limited
against the high prior-year comparable. The buildings
segment improved driven by the commercial area in the
United States and Europe. Orders aimed at modernizing
electrical infrastructure for land-based transport
maintained a strong trend.
• The Americas increased by 114% (114% comparable).
Europe was up by 19% (16% comparable). Asia, Middle
East and Africa improved by 21% (20% comparable)
including 20% (14% comparable) in China.
• Revenues increased by 20% (19% comparable) to
$5,200 million, equally supported by strong
improvement in both the short-cycle and project
businesses. Majority of the growth was due to higher
volumes, but also from a solid price contribution.
Changes in exchange rates added 2%.
Profit
Strong increase of 26% (23% in local currencies) in
Operational EBITA to $1,301 million, representing a
margin improvement of 100 basis points to 24.9%.
• Gross margin declined by 140 basis points. Almost
half the decline was due to the impact from unrealized
FX and commodities derivatives. As expected, there
was also some pressure from the price/cost gap as
pricing did not yet fully offset higher input expenses
for raw materials.
• Increase in Operational EBITA margin was supported
by operational leverage on higher volumes,
operational efficiency improvements and stringent
management of SG&A expenses which declined in
relation to revenues.
—
Electrification
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Comparable H1 2026 H1 2025 US$ Comparable
Orders 7,231 4,518 60% 58% 13,878 8,912 56% 51%
Order backlog 13,676 8,685 57% 59% 13,676 8,685 57% 59%
Revenues 5,200 4,331 20% 19% 9,813 8,156 20% 17%
Gross Profit 2,097 1,807 16% 3,948 3,445 15%
as % of revenues 40.3% 41.7% -1.4 pts 40.2% 42.2% -2 pts
Operational EBITA 1,301 1,033 26% 2,406 1,919 25%
as % of operational revenues 24.9% 23.9% +1 pts 24.5% 23.6% +0.9 pts
Cash flow from operating activities 1,253 956 31% 2,264 1,477 53%
No. of employees (FTE equiv.) 55,800 52,800 6%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 58% 19%
FX 2% 2%
Portfolio changes 0% -1%
Total 60% 20%
Record orders
surpassing $7 bn
===== SIDA 7 =====
AB B IN TE RIM RE P ORT I Q2 20 26 7
Orders and revenues
A strong development in both the short-cycle and the
project businesses offset the usual pattern of lower
sequential orders in the second quarter. A new record-high
order intake of $2,592 million was achieved, representing an
increase of 23% (20% comparable) year-on-year.
• Motion’s synchronous condensers with flywheel
technology constitute an industry-leading solution, with
instant inertia acting like a shock absorber for the grid to
keep electricity stable. In the second quarter, a large
order of approximately $150 million was recorded.
• Along with strong grid investments, there was persistent
strength in rail. Positive trend in HVAC for commercial
buildings and data center cooling. Strength was noted in
food & beverage, marine, mining and low carbon areas
like nuclear and wind. Oil & gas remained broadly stable
while chemical and pulp & paper demand was soft.
• The Americas was up 46% (44% comparable), with strong
improvement of 52% (51% comparable) in the United
States. Europe increased 15% (9% comparable) and Asia,
Middle East and Africa was up 6% (5% comparable), with
China at 9% (3% comparable).
• Revenues increased by 7% (4% comparable) driven mainly
by higher volumes and positive pricing. Portfolio changes
added 1% to growth, related to the fairly recent acquisition
of Gamesa Electric in Spain. And lastly, favorable changes in
exchanges rates added 2%.
Profit
Operational EBITA remained virtually stable at $413 million,
with a margin decline of 130 basis points to 18.5%, with just
more than half of the impact linked to portfolio changes.
• Gross margin drop of 120 basis points was primarily due to
the impacts from weak performance in the Gamesa
acquisition and unrealized FX and commodities derivatives.
• Operational EBITA margin was positively impacted by
operational leverage on comparable growth. This was more
than offset by lower profitability in the High Power division,
including 70 basis points linked to the Gamesa acquisition
as well as lower profitability in the Traction division due to
delayed production volumes.
—
Motion
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Comparable H1 2026 H1 2025 US$ Comparable
Orders 2,592 2,112 23% 20% 5,140 4,268 20% 14%
Order backlog 6,953 6,102 14% 14% 6,953 6,102 14% 14%
Revenues 2,217 2,065 7% 4% 4,359 3,905 12% 5%
Gross Profit 820 788 4% 1,591 1,521 5%
as % of revenues 37.0% 38.2% -1.2 pts 36.5% 39.0% -2.5 pts
Operational EBITA 413 407 1% 811 767 6%
as % of operational revenues 18.5% 19.8% -1.3 pts 18.5% 19.7% -1.2 pts
Cash flow from operating activities 370 354 5% 676 664 2%
No. of employees (FTE equiv.) 23,800 22,600 5%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable 20% 4%
FX 3% 2%
Portfolio changes 0% 1%
Total 23% 7%
Strong orders,
but pressure on
profitability
===== SIDA 8 =====
AB B IN TE RIM RE P ORT I Q2 20 26 8
Orders and revenues
Continued investments in higher efficiency and
resilience across energy-intensive industries resulted in
order intake of $2,454 million, one of the strongest
quarters on record. The order backlog increased by 12%
(13% comparable) to $10.5 billion.
• The underlying market environment remains robust
and order intake remained stable from the prior
quarter. However, orders declined by 13% (14%
comparable) from last year’s very high comparable,
which included the extraordinarily large booking of
$600 million.
• Persistently high customer activity was linked to
marine and port automation and electrification.
Orders from machine builders increased sharply from
last year, and the market has seemingly stabilized,
although volumes remain low at a pre-covid level.
Customer activity in the oil & gas segment is solid,
with softness linked to the Middle-East conflict
remaining contained to the local market. Customer
activity in the nuclear segment increased. Demand
remains softer in the process industry-related
markets like pulp & paper and chemicals as well as
mining where capex spend to extend existing mines
or greenfield projects remains muted.
• Revenues amounted to $2,193 million and improved by
9% (7% comparable). Strong backlog execution and a
positive trend in both the service and product
businesses all contributed to higher revenues.
Additional support of 2% related to favorable changes
in exchange rates.
Profit
Operational EBITA improved by 17% (14% in local
currencies) to $338 million, reflecting a margin
improvement of 120 basis points to 15.4%.
• Gross margin softened slightly by 10 basis points due to
an adverse mix with a higher share of revenues derived
from the project- and system integration business.
• While R&D spend increased in relation to revenues, a
stringent cost control reduced the SG&A ratio,
supporting the improvement in the Operational EBITA
margin.
• Additional earnings support was derived from a
project settlement triggering a provision release of
~$15 million.
—
Automation
CHANGE CHANGE
($ millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Comparable H1 2026 H1 2025 US$ Comparable
Orders 2,454 2,814 -13% -14% 4,918 5,011 -2% -6%
Order backlog 10,544 9,450 12% 13% 10,544 9,450 12% 13%
Revenues 2,193 2,010 9% 7% 4,340 3,828 13% 8%
Gross Profit 835 767 9% 1,629 1,484 10%
as % of revenues 38.1% 38.2% -0.1 pts 37.5% 38.8% -1.3 pts
Operational EBITA 338 288 17% 649 543 20%
as % of operational revenues 15.4% 14.2% +1.2 pts 15.0% 14.2% +0.8 pts
Cash flow from operating activities 356 286 24% 649 557 17%
No. of employees (FTE equiv.) 26,200 25,900 1%
Growth
Q2 Q2
Change year-on-year Orders Revenues
Comparable -14% 7%
FX 1% 2%
Portfolio changes 0% 0%
Total -13% 9%
Robust market;
booktobill 1.12
===== SIDA 9 =====
AB B IN TE RIM RE P ORT I Q2 20 26 9
Events from the quarter
• Rockwool was able to advance its sustainability
agenda and reduce energy consumption and
emissions thanks to ABB services and technology.
Following an energy appraisal the company upgraded
legacy motors to IE4/IE5 SynRM motors with ACS880
drives. The project saves 738 MWh of electricity and
avoids 142 tons of CO₂ annually while meeting the
customer's payback target, demonstrating how
targeted motor modernization can deliver both
sustainability and financial value.
• ABB modernized the propulsion drives of CoolCo’s
nine LNG carriers, extending their operational lifetime
by more than 10 years through targeted upgrades
rather than full replacement. The project improved
fleet reliability and availability while reducing material
use, preserving embodied carbon, and demonstrating
how lifecycle services can deliver both circularity and
business value.
• India’s Cochin Shipyard awarded ABB a contract to
supply power and propulsion systems for two electric
tugs. Due for delivery to Polestar Maritime in 2027 as
part of India’s Green Tug Transition Programme
(GTTP), the vessels will operate out of India’s largest
container port, which accounts for around 50 percent
of the total containerized cargo volume across the
major ports of the country. The GTTP aims to
transition India's harbor tug fleet from conventional
diesel-powered vessels to greener alternatives in five
phases from 2024 to 2040.
• ABB has signed a Memorandum of Understanding
with Swedish textile impact company Syre to jointly
explore technologies to support the development of
Syre’s first textile-to-textile recycling plant in Vietnam
aiming to produce circular polyester at industrial
scale. With the challenges associated with
industrializing textile-to-textile recycling ABB will
bring automation, electrification and digital
technologies to the project that can contribute to
safe, efficient and scalable operations.
• ABB also continued to make progress towards its
sustainability targets at several of its own sites. In
Porvoo, Finland, where ABB manufactures installation
products, the company achieved the UL Platinum
certification for Zero Waste to Landfill. In addition,
further sites in the US qualified for its Mission to Zero
program, ABB’s journey to achieve net-zero emissions
in our own operations and operate more sustainably,
with the addition of electrification manufacturing
plants in Florence, South Carolina, and Vega Baja,
Puerto Rico.
—
Sustainability
Q2 20264 Q2 20254 CHANGE 12M ROLLING
CO₂e own operations emissions,
Ktons scope 1 and 21 39 44 -11% 120
Total recordable incident frequency rate (TRIFR),
frequency / 1,000,000 working hours 2 1.41 1.44 -2% 1.36
Proportion of women in senior management roles
in %3 24.6 23.0 +1.6 pts 23.1
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter
2 To align with CSRD reporting requirements, we have replaced our primary safety KPI, Lost Time Injury Frequency Rate (LTIFR), with Total Recordable Incident Frequency Rate (TRIFR). This new
measure includes all incidents and injuries except first aid cases and near misses, promoting improved system learning, enhanced transparency, and greater openness in reporting. Current quarter
Includes all incidents reported until July 7, 2026
3 The above disclosure relates to countries where policies legally permit and to the extent that it does not conflict with any applicable local laws, where ABB operates
4 The above disclosures represent ABB Group incl. Robotics data
===== SIDA 10 =====
AB B IN TE RIM RE P ORT I Q2 20 26 10
During Q2 2026
• On April 30, 2026, ABB announced it had cancelled
shares during the month. As authorized under the
company’s capital band, ABB’s Board of Directors
resolved to cancel 20,744,831 shares of ABB Ltd
repurchased under ABB’s 2025 share buyback
program. The new total number of issued shares and
votes of ABB Ltd after cancellation was 1,823,154,373,
compared with 1,843,899,204 before cancellation.
As of April 29, 2026, the company’s holding of own
shares amounted to 7,576,598, which corresponded to
0.42 percent of the total number of issued shares in
the company. This included 3,445,104 shares
purchased for capital reduction.
• On May 11, 2026, ABB announced it is investing
around $200 million in its medium-voltage
manufacturing capabilities across Europe over the
next three years. This is to expand production
capacity, accelerate the transition to next-generation
technologies for power distribution and strengthen
supply for customers that are modernizing their
power infrastructure. This includes utilities, industry,
and rapidly growing data center markets.
After Q2 2026
• On July 16, 2026, ABB announced that it has agreed
with Rotork, a well-established provider of mission-
critical intelligent flow control solutions and a leading
independent manufacturer of electric actuators, the
terms of a recommended cash offer for the entire
issued and to be issued share capital of Rotork. The
transaction is expected to further strengthen ABB’s
focus on electrification and automation and expand
its Automation business area’s offering for large and
complex infrastructure and industries. Under the
terms of the offer, each Rotork shareholder would be
entitled to receive 503 pence in cash per Rotork
share. Rotork shareholders will also be entitled to
receive an interim dividend for the period to June 30,
2026 of up to 3 pence per Rotork share. Rotork is
expected to add 3% to ABB’s revenues with
immediate accretion to Operational EBITA margin.
The transaction is expected to close in the first half of
2027 and is subject to shareholder vote and
customary regulatory approvals.
Order intake increased 31% (26% comparable) year-on-
year to $23,340 million. A positive market environment
supported customer activity in all three business areas.
While orders in the Electrification and Motion business
areas increased at a double-digit rate, orders in the
Automation business area declined against a high
comparable. There was a positive development across
most customer segments, led by particular strength in
data centers, ports, utilities and land-based
infrastructure such as tunnels and airports, which
benefited from electrical upgrades. Marine market is
persistently strong, although orders declined against a
high comparable. On the muted side, there were the
process industry-related areas such as pulp & paper,
chemicals and mining.
Revenues improved by 16% (12% comparable) to
$18,209 million supported by a positive development
across the project, service and short-cycle businesses.
Revenues were at an all-time-high, but orders were even
higher, resulting in a book-to-bill 1.28. The order backlog
amounted to $30.0 billion, up by 27% (28% comparable),
year-on-year.
Income from operations amounted to $3,365 million, up
14% year-on-year, resulting in a margin of 18.5%. The
increase was mainly driven by the positive impacts from
improved operational business performance, with
further support from a higher contribution related to a
real estate sale. Combined, these impacts more than
offset adverse impacts from unrealized FX and
commodity derivatives, from provisions for certain
legacy claims and remediations of approximately $100
million as well as fair value adjustments on equity
investments.
Operational EBITA increased by 28% to $3,974 million.
The higher result was primarily due to the improved
business performance. Moreover, an operational net
gain of $377 million relating to a real estate sale in
Corporate and Other had a positive impact.
The Operational EBITA margin improved by 200 basis
points to 21.8% with the main drivers being operating
leverage on higher volumes, positive pricing, improved
operational efficiency and the real estate sale.
Corporate and other Operational EBITA contributed
with $108 million. This includes the benefit of $377
million from the real estate sale, a loss of $65 million
attributed to the E-mobility business and Stranded
costs of $51 million linked to the ongoing divestment of
the Robotics business.
Net finance contributed to results with $52 million,
similar to last year’s income of $46 million. Income tax
expense was $883 million reflecting a tax rate of 25.6%.
Net income attributable to ABB was $2,555 million, up
from $2,253 million in the prior year period. Basic
earnings per share was $1.41, representing an increase
of 14%.
Significant events
First six months of 2026
===== SIDA 11 =====
AB B IN TE RIM RE P ORT I Q2 20 26 11
ABB Group Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Q2 2026
EBITDA, $ in million 1,660 1,668 1,806 1,726 6,860 1,990 1,805
Return on Capital Employed, % 24.4 24.5 24.8 25.3 25.3 27.2 28.4
Net debt/Equity 0.10 0.25 0.17 0.10 0.10 0.15 0.14
Net debt/ EBITDA 12M rolling 0.3 0.6 0.4 0.3 0.3 0.3 0.3
Net working capital 3,037 3,423 2,993 2,372 2,372 2,705 3,046
Trade net working capital 4,222 4,646 4,433 4,059 4,059 4,017 4,327
Average trade net working capital as a % of revenues 14.1% 13.8% 13.5% 13.0% 13.0% 12.5% 11.9%
Earnings per share, basic, $ 0.60 0.63 0.66 0.70 2.59 0.73 0.68
Earnings per share, diluted, $ 0.60 0.63 0.66 0.70 2.59 0.73 0.68
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.94 n.a. n.a.
Share price at the end of period, CHF 45.22 47.31 57.32 59.22 59.22 63.24 87.58
Number of employees (FTE equivalents) 110,100 110,900 110,700 111,900 111,900 112,700 114,800
No. of shares outstanding at end of period (in
millions) 1,833 1,826 1,822 1,818 1,818 1,814 1,815
Additional figures
Additional 2026 guidance
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc.
2 Excludes Operational EBITA from E-mobility business; and includes the real estate gain of $377 million in Q1 2026
3 Excludes the impact of acquisitions or divestments or any significant non-operational items
4 Framework assumes stranded cost for the full year. Closing of Robotics divestment expected in the second half of the year, as earlier announced
ABB based on discontinued operations structure
($ in millions, unless otherwise stated) FY 20261 Q3 2026
Corporate and Other
Operational EBITA2
~(100) ~(125)
of which stranded costs4 ~(100) ~(25)
Non-operating items
Acquisition-related amortization ~(195) ~(50)
Separation and integration ~(75) ~(25)
from ~(60)
Restructuring and related and
Business transformation
~(200) ~(50)
($ in millions, unless otherwise stated) FY 2026
Finance net ~150
Effective tax rate ~25% 3
Capital Expenditure ~(1,000)
Key acquisitions and divestments, last twelve months
Acquisitions Company/unit Closing date Revenues, $ in
millions1 No. of employees
2026
Electrification Netcontrol Oy 4-May ∼24 109
Electrification IPEC Ltd. 1-Apr ∼28 58
Electrification Premium Power 2-Mar ∼9 40
2025
Motion Gamesa Electric power electronics (Spain) 1-Dec ∼170 400
Motion Brightloop S.A.S. 1-Oct ∼18 80
Divestments Company/unit Closing date Revenues, $ in
millions1 No. of employees
2025
E-mobility ChargeDot, 60% sale 1-Dec ∼60 total Co. 320 total Co.
2024
E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a.
Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110
Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million.
1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated.
===== SIDA 12 =====
AB B IN TE RIM RE P ORT I Q2 20 26 12
This press release includes forward-looking information
and statements as well as other statements concerning
the outlook for our business, including those in the
sections of this release titled “CEO summary,”
“Outlook,” “Sustainability” “Significant events” and
“Additional 2026 guidance”. These statements are
based on current expectations, estimates and
projections about the factors that may affect our future
performance, including global economic conditions and
the economic conditions of the regions and industries
that are major markets for ABB. These expectations,
estimates and projections are generally identifiable by
statements containing words such as “anticipates,”
“expects,” “estimates,” “intends,” “plans,” “targets,”
“guidance,” or similar expressions. However, there are
many risks and uncertainties, many of which are beyond
our control, that could cause our actual results to differ
materially from the forward-looking information and
statements made in this press release and which could
affect our ability to achieve any or all of our stated
targets. These include, among others, business risks
associated with the volatile global economic
environment and political conditions, market
acceptance of new products and services, changes in
governmental regulations and currency exchange rates.
Although ABB Ltd believes that its expectations
reflected in any such forward looking statement are
based upon reasonable assumptions, it can give no
assurance that those expectations will be achieved.
The Q2 2026 results press release and presentation
slides are available on the ABB News Center at
www.abb.com/news and on the Investor Relations
homepage at www.abb.com/investorrelations.
A conference call and webcast for analysts and investors
is scheduled to begin at 10:00 a.m. CET. To join the
webcast, please refer to the ABB website:
www.abb.com/investorrelations.
The recorded session will be available after the event on
ABB’s website.
Important notice about forward-looking information
For additional information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Q2 results presentation on July 16, 2026
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The
company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss
Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
Financial calendar
2026
September 24 Webcast on ABB portfolio of Direct Current technology solutions for high-power data centers
October 20 Q3 2026 results
2027
January 28 Q4 2026 results
April 20 Q1 2027 results
July 21 Q2 2027 results
October 19 Q3 2027 results
===== SIDA 13 =====
1 Q2 2026 FINANCIAL INFORMATION
July 16, 2026
Q2 2026
Financial Information
===== SIDA 14 =====
2 Q2 2026 FINANCIAL INFORMATION
FINANCIAL
INFORMATION
Contents
03 ─ 07 Key Figures
08 ─ 32 Consolidated Financial Information (unaudited)
33 ─ 48 Supplemental Reconciliations and Definitions
===== SIDA 15 =====
3 Q2 2026 FINANCIAL INFORMATION
—
Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Comparable(1)
Orders 12,042 9,254 30% 28%
Order backlog (end June) 30,007 23,670 27% 28%
Revenues 9,475 8,295 14% 12%
Gross Profit 3,793 3,362 13%
as % of revenues 40.0% 40.5% -0.5 pts
Income from operations 1,585 1,466 8%
Operational EBITA(1) 1,925 1,598 20% 18%(2)
as % of operational revenues(1) 20.2% 19.3% +0.9 pts
Income from continuing operations, net of tax 1,218 1,113 9%
Net income attributable to ABB 1,231 1,151 7%
Basic earnings per share ($) 0.68 0.63 8%(3)
Cash flow from operating activities 1,150 1,059 9%
Free cash flow(1) 881 845 4%
CHANGE
($ in millions, unless otherwise indicated) H1 2026 H1 2025 US$ Comparable(1)
Orders 23,340 17,843 31% 26%
Revenues 18,209 15,677 16% 12%
Gross Profit 7,233 6,484 12%
as % of revenues 39.7% 41.4% -1.7 pts
Income from operations 3,365 2,940 14%
Operational EBITA(1) 3,974 3,093 28% 23%(2)
as % of operational revenues(1) 21.8% 19.8% +2 pts
Income from continuing operations, net of tax 2,569 2,168 18%
Net income attributable to ABB 2,555 2,253 13%
Basic earnings per share ($) 1.41 1.23 14%(3)
Cash flow from operating activities 2,179 1,743 25%
Free cash flow(1) 2,131 1,497 42%
(1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 33.
(2) Constant currency (not adjusted for portfolio changes).
(3) EPS growth rates are computed using unrounded amounts.
===== SIDA 16 =====
4 Q2 2026 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) Q2 2026 Q2 2025 US$ Local Comparable
Orders ABB Group 12,042 9,254 30% 28% 28%
Electrification 7,231 4,518 60% 58% 58%
Motion 2,592 2,112 23% 20% 20%
Automation 2,454 2,814 -13% -14% -14%
Corporate and Other 79 110
Intersegment eliminations (314) (300)
Order backlog (end June) ABB Group 30,007 23,670 27% 28% 28%
Electrification 13,676 8,685 57% 59% 59%
Motion 6,953 6,102 14% 16% 14%
Automation 10,544 9,450 12% 13% 13%
Corporate and Other
(incl. intersegment eliminations) (1,166) (567)
Revenues ABB Group 9,475 8,295 14% 12% 12%
Electrification 5,200 4,331 20% 18% 19%
Motion 2,217 2,065 7% 5% 4%
Automation 2,193 2,010 9% 7% 7%
Corporate and Other 117 107
Intersegment eliminations (252) (218)
Income from operations ABB Group 1,585 1,466
Electrification 1,172 990
Motion 376 393
Automation 327 266
Corporate and Other
(incl. intersegment eliminations) (290) (183)
Income from operations % ABB Group 16.7% 17.7%
Electrification 22.5% 22.9%
Motion 17.0% 19.0%
Automation 14.9% 13.2%
Operational EBITA ABB Group 1,925 1,598 20% 18%
Electrification 1,301 1,033 26% 23%
Motion 413 407 1% -1%
Automation 338 288 17% 14%
Corporate and Other(1)
(incl. intersegment eliminations) (127) (130)
Operational EBITA % ABB Group 20.2% 19.3%
Electrification 24.9% 23.9%
Motion 18.5% 19.8%
Automation 15.4% 14.2%
Cash flow from operating activities ABB Group 1,150 1,059
Electrification 1,253 956
Motion 370 354
Automation 356 286
Corporate and Other
(incl. intersegment eliminations) (676) (625)
Discontinued operations (153) 88
(1) Corporate and Other at Q2 2026 and Q2 2025 includes Stranded corporate costs of $25 million and $33 million, respectively.
===== SIDA 17 =====
5 Q2 2026 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) H1 2026 H1 2025 US$ Local Comparable
Orders ABB Group 23,340 17,843 31% 27% 26%
Electrification 13,878 8,912 56% 51% 51%
Motion 5,140 4,268 20% 16% 14%
Automation 4,918 5,011 -2% -6% -6%
Corporate and Other 151 238
Intersegment eliminations (747) (586)
Order backlog (end June) ABB Group 30,007 23,670 27% 28% 28%
Electrification 13,676 8,685 57% 59% 59%
Motion 6,953 6,102 14% 16% 14%
Automation 10,544 9,450 12% 13% 13%
Corporate and Other
(incl. intersegment eliminations) (1,166) (567)
Revenues ABB Group 18,209 15,677 16% 12% 12%
Electrification 9,813 8,156 20% 17% 17%
Motion 4,359 3,905 12% 8% 5%
Automation 4,340 3,828 13% 8% 8%
Corporate and Other 205 203
Intersegment eliminations (508) (415)
Income from operations ABB Group 3,365 2,940
Electrification 2,141 1,912
Motion 687 754
Automation 614 521
Corporate and Other
(incl. intersegment eliminations) (77) (247)
Income from operations % ABB Group 18.5% 18.8%
Electrification 21.8% 23.4%
Motion 15.8% 19.3%
Automation 14.1% 13.6%
Operational EBITA ABB Group 3,974 3,093 28% 23%
Electrification 2,406 1,919 25% 20%
Motion 811 767 6% 1%
Automation 649 543 20% 13%
Corporate and Other(1)
(incl. intersegment eliminations) 108 (136)
Operational EBITA % ABB Group 21.8% 19.8%
Electrification 24.5% 23.6%
Motion 18.5% 19.7%
Automation 15.0% 14.2%
Cash flow from operating activities ABB Group 2,179 1,743
Electrification 2,264 1,477
Motion 676 664
Automation 649 557
Corporate and Other
(incl. intersegment eliminations) (1,274) (1,119)
Discontinued operations (136) 164
(1) Corporate and Other at H1 2026 and H1 2025 includes Stranded corporate costs of $51 million and $62 million, respectively.
===== SIDA 18 =====
6 Q2 2026 FINANCIAL INFORMATION
Operational EBITA
ABB Electrification Motion Automation
($ in millions, unless otherwise indicated) Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25
Revenues 9,475 8,295 5,200 4,331 2,217 2,065 2,193 2,010
Foreign exchange/commodity timing
differences in total revenues 45 1 23 (8) 18 (8) 8 18
Operational revenues 9,520 8,296 5,223 4,323 2,235 2,057 2,201 2,028
Income from operations 1,585 1,466 1,172 990 376 393 327 266
Acquisition-related amortization 51 48 27 29 15 9 9 9
Restructuring, related and
implementation costs(1) 16 7 4 4 3 5 6 1
Changes in obligations related to
divested businesses – (2) – – – – – –
Gains and losses from sale of businesses (5) (1) (2) (2) – – (9) –
Acquisition- and divestment-related
expenses and integration costs 23 19 17 9 2 1 3 4
Certain other non-operational items 171 38 7 2 3 4 2 –
Foreign exchange/commodity timing
differences in income from operations 84 23 76 1 14 (5) – 8
Operational EBITA 1,925 1,598 1,301 1,033 413 407 338 288
Operational EBITA margin (%) 20.2% 19.3% 24.9% 23.9% 18.5% 19.8% 15.4% 14.2%
ABB Electrification Motion Automation
($ in millions, unless otherwise indicated) H1 26 H1 25 H1 26 H1 25 H1 26 H1 25 H1 26 H1 25
Revenues 18,209 15,677 9,813 8,156 4,359 3,905 4,340 3,828
Foreign exchange/commodity timing
differences in total revenues 24 (24) 23 (13) 22 (11) (17) 1
Operational revenues 18,233 15,653 9,836 8,143 4,381 3,894 4,323 3,829
Income from operations 3,365 2,940 2,141 1,912 687 754 614 521
Acquisition-related amortization 98 91 54 55 26 18 18 17
Restructuring, related and
implementation costs(1) 64 20 30 10 10 7 19 5
Changes in obligations related to
divested businesses (5) (3) – – – – – –
Gains and losses from sale of businesses (7) (12) (2) (13) – – (9) –
Acquisition- and divestment-related
expenses and integration costs 35 27 24 19 4 2 5 5
Certain other non-operational items 252 58 13 (29) 49 10 7 (2)
Foreign exchange/commodity timing
differences in income from operations 172 (28) 146 (35) 35 (24) (5) (3)
Operational EBITA 3,974 3,093 2,406 1,919 811 767 649 543
Operational EBITA margin (%) 21.8% 19.8% 24.5% 23.6% 18.5% 19.7% 15.0% 14.2%
(1) Includes impairment of certain assets.
===== SIDA 19 =====
7 Q2 2026 FINANCIAL INFORMATION
Depreciation and Amortization
ABB Electrification Motion Automation
($ in millions) Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25 Q2 26 Q2 25
Depreciation 155 141 88 76 33 32 20 18
Amortization 65 61 35 36 18 11 11 10
including total acquisition-related amortization of: 51 48 27 29 15 9 9 9
ABB Electrification Motion Automation
($ in millions) H1 26 H1 25 H1 26 H1 25 H1 26 H1 25 H1 26 H1 25
Depreciation 305 272 174 147 66 63 39 36
Amortization 125 116 68 68 32 22 22 20
including total acquisition-related amortization of: 98 91 54 55 26 18 18 17
Orders received and Revenues by region
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
Q2 26 Q2 25 US$ Local parable Q2 26 Q2 25 US$ Local parable
Europe 3,360 2,903 16% 12% 12% 2,994 2,793 7% 4% 3%
The Americas 5,728 3,746 53% 52% 52% 3,788 3,146 20% 19% 19%
of which United States 4,917 3,027 62% 62% 62% 3,047 2,444 25% 25% 24%
Asia, Middle East and Africa 2,954 2,605 13% 12% 12% 2,693 2,356 14% 13% 13%
of which China 1,133 972 17% 10% 10% 1,081 937 15% 9% 10%
ABB Group 12,042 9,254 30% 28% 28% 9,475 8,295 14% 12% 12%
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
H1 26 H1 25 US$ Local parable H1 26 H1 25 US$ Local parable
Europe 7,115 5,880 21% 13% 12% 5,986 5,341 12% 5% 3%
The Americas 10,312 6,757 53% 51% 50% 7,179 5,956 21% 19% 19%
of which United States 8,770 5,293 66% 65% 64% 5,743 4,641 24% 23% 23%
Asia, Middle East and Africa 5,913 5,206 14% 12% 11% 5,044 4,380 15% 13% 13%
of which China 2,285 2,029 13% 7% 6% 2,030 1,746 16% 10% 10%
ABB Group 23,340 17,843 31% 27% 26% 18,209 15,677 16% 12% 12%
===== SIDA 20 =====
8 Q2 2026 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, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
Sales of products 15,323 13,065 7,984 6,909
Sales of services and other 2,886 2,612 1,491 1,386
Total revenues 18,209 15,677 9,475 8,295
Cost of sales of products (9,425) (7,773) (4,919) (4,185)
Cost of services and other (1,551) (1,420) (763) (748)
Total cost of sales (10,976) (9,193) (5,682) (4,933)
Gross profit 7,233 6,484 3,793 3,362
Selling, general and administrative expenses (3,400) (3,205) (1,725) (1,671)
Non-order related research and development expenses (704) (623) (371) (320)
Other income (expense), net 236 284 (112) 95
Income from operations 3,365 2,940 1,585 1,466
Interest and dividend income 90 95 41 41
Interest and other finance expense (38) (49) (9) (6)
Non-operational pension (cost) credit 35 30 17 16
Income from continuing operations before taxes 3,452 3,016 1,634 1,517
Income tax expense (883) (848) (416) (404)
Income from continuing operations, net of tax 2,569 2,168 1,218 1,113
Income from discontinued operations, net of tax 20 131 38 68
Net income 2,589 2,299 1,256 1,181
Net income attributable to noncontrolling interests (34) (46) (25) (30)
Net income attributable to ABB 2,555 2,253 1,231 1,151
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 2,529 2,122 1,192 1,083
Income from discontinued operations, net of tax 26 131 39 68
Net income 2,555 2,253 1,231 1,151
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.39 1.16 0.66 0.59
Income from discontinued operations, net of tax 0.01 0.07 0.02 0.04
Net income 1.41 1.23 0.68 0.63
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.39 1.16 0.66 0.59
Income from discontinued operations, net of tax 0.01 0.07 0.02 0.04
Net income 1.40 1.23 0.68 0.63
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders 1,816 1,833 1,815 1,830
Diluted earnings per share attributable to ABB shareholders 1,819 1,836 1,818 1,832
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 21 =====
9 Q2 2026 FINANCIAL INFORMATION
—
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Six months ended Three months ended
($ in millions) Jun. 30, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
Total comprehensive income, net of tax 2,440 2,333 1,283 1,040
Total comprehensive income attributable to noncontrolling interests,
net of tax (26) (65) (28) (43)
Total comprehensive income attributable to ABB shareholders, net of tax 2,414 2,268 1,255 997
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 22 =====
10 Q2 2026 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Jun. 30, 2026 Dec. 31, 2025
Cash and equivalents 3,867 4,640
Marketable securities and short-term investments 1,990 1,981
Receivables, net 8,033 7,535
Contract assets 1,189 1,090
Inventories, net 6,471 5,862
Prepaid expenses 358 281
Other current assets 512 627
Current assets held for sale and in discontinued operations 3,931 3,562
Total current assets 26,351 25,578
Property, plant and equipment, net 4,700 4,692
Operating lease right-of-use assets 783 765
Investments in equity-accounted companies 340 349
Prepaid pension and other employee benefits 982 937
Intangible assets, net 1,075 1,119
Goodwill 9,636 9,637
Deferred taxes 1,344 1,248
Other non-current assets 490 560
Non-current assets held for sale and in discontinued operations 35 –
Total assets 45,736 44,885
Accounts payable, trade 5,868 5,210
Contract liabilities 3,545 3,221
Short-term debt and current maturities of long -term debt 1,610 475
Current operating leases 252 253
Provisions 1,492 1,477
Other current liabilities 4,518 4,677
Current liabilities held for sale and in discontinued operations 1,155 1,108
Total current liabilities 18,440 16,421
Long-term debt 6,567 7,829
Non-current operating leases 553 533
Pension and other employee benefits 552 550
Deferred taxes 827 792
Other non-current liabilities 2,309 2,101
Non-current liabilities held for sale and in discontinued operations 83 13
Total liabilities 29,331 28,239
Commitments and contingencies
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,823 million and 1,844 million shares issued at June 30, 2026, and December 31, 2025, respectively) 158 160
Additional paid-in capital 23 64
Retained earnings 21,630 22,606
Accumulated other comprehensive loss (5,394) (5,253)
Treasury stock, at cost
(8 million and 26 million shares at June 30, 2026, and December 31, 2025, respectively) (518) (1,490)
Total ABB stockholders’ equity 15,899 16,087
Noncontrolling interests 506 559
Total stockholders’ equity 16,405 16,646
Total liabilities and stockholders’ equity 45,736 44,885
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 23 =====
11 Q2 2026 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Six months ended Three months ended
($ in millions) Jun. 30, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
Operating activities:
Net income 2,589 2,299 1,256 1,181
Income from discontinued operations, net of tax (20) (131) (38) (68)
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 430 388 220 202
Changes in fair values of investments 64 (40) 34 (28)
Pension and other employee benefits (12) (40) 4 (19)
Deferred taxes (53) 102 (67) 73
Net loss (gain) from derivatives and foreign exchange 117 (86) 75 (29)
Net gain from sale of property, plant and equipment (409) (184) (17) (51)
Net gain from sale of businesses (7) (12) (5) (1)
Other 62 15 18 24
Changes in operating assets and liabilities:
Trade receivables, net (538) (250) (433) (194)
Contract assets and liabilities 250 74 33 (58)
Inventories, net (725) (52) (457) 33
Accounts payable, trade 709 (88) 462 15
Accrued liabilities (329) (346) 202 139
Provisions, net 174 (52) 138 (6)
Income taxes payable and receivable 162 183 70 (29)
Other assets and liabilities, net (149) (201) (192) (213)
Net cash provided by operating activities – continuing operations 2,315 1,579 1,303 971
Net cash provided by (used in) operating activities – discontinued operations (136) 164 (153) 88
Net cash provided by operating activities 2,179 1,743 1,150 1,059
Investing activities:
Purchases of investments (843) (996) (10) (150)
Purchases of property, plant and equipment and intangible assets (417) (385) (236) (202)
Acquisition of businesses (net of cash acquired)
and increases in cost- and equity-accounted companies (149) (570) (122) (18)
Proceeds from sales of investments 826 517 634 188
Proceeds from sales of property, plant and equipment 462 173 25 10
Proceeds from sales of businesses (net of transaction costs
and cash disposed) and cost- and equity-accounted companies 28 73 27 23
Net cash from settlement of foreign currency derivatives 69 (3) 63 (113)
Other investing activities 10 1 11 (1)
Net cash provided by (used in) investing activities – continuing operations (14) (1,190) 392 (263)
Net cash used in investing activities – discontinued operations (95) (42) (61) (23)
Net cash provided by (used in) investing activities (109) (1,232) 331 (286)
Financing activities:
Net changes in debt with original maturities of 90 days or less (5) 139 (32) (261)
Increase in debt 36 1,090 13 795
Repayment of debt (49) (131) (19) (124)
Delivery of shares – 19 – 19
Purchase of treasury stock (473) (783) (225) (494)
Dividends paid (2,161) (1,907) (547) (1,907)
Dividends paid to noncontrolling shareholders (123) (105) (123) (105)
Other financing activities (20) 8 (5) 7
Net cash used in financing activities – continuing operations (2,795) (1,670) (938) (2,070)
Net cash used in financing activities – discontinued operations (2) – (5) –
Net cash used in financing activities (2,797) (1,670) (943) (2,070)
Effects of exchange rate changes on cash and equivalents (46) 99 4 69
Net change in cash and equivalents (773) (1,060) 542 (1,228)
Cash and equivalents, beginning of period 4,640 4,326 3,325 4,494
Cash and equivalents, end of period 3,867 3,266 3,867 3,266
Supplementary disclosure of cash flow information:
Interest paid 167 184 57 66
Income taxes paid 898 637 498 379
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
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12 Q2 2026 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
($ in millions)
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total ABB
stockholders’
equity
Non-
controlling
interests
Total
stockholders’
equity
Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991
Net income 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
Balance at January 1, 2026 160 64 22,606 (5,253) (1,490) 16,087 559 16,646
Net income 2,555 2,555 34 2,589
Foreign currency translation
adjustments, net of tax of $0 (180) (180) (8) (188)
Effect of change in fair value of
available-for-sale securities,
net of tax of $0 – – –
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $12 38 38 38
Change in derivative instruments
and hedges, net of tax of $0 1 1 1
Changes in noncontrolling interests (40) (40) 41 1
Dividends to
noncontrolling shareholders – (123) (123)
Dividends to shareholders (2,146) (2,146) (2,146)
Cancellation of treasury shares (2) (41) (1,283) 1,326 – –
Share-based payment arrangements 48 48 1 49
Purchase of treasury stock (462) (462) (462)
Delivery of shares (6) (102) 108 – –
Balance at June 30, 2026 158 23 21,630 (5,394) (518) 15,899 506 16,405
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 25 =====
13 Q2 2026 FINANCIAL INFORMATION
—
Notes to the Consolidated Financial Information (unaudited)
─
Note 1
The Company and basis of presentation
ABB Ltd and its subsidiaries (collectively, the Company) together form a global technology leader in electrification and automation, enabling a more
sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform .
The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted a ccounting principles
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the information and notes required under
U.S. GAAP for annual consolidated financial statements. Therefore, such financial information should be read in conjunction w ith the audited
consolidated financial statements in the Company’s Financial Report for the year ended December 31, 2025.
The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates t hat directly affect the
amounts reported in the Consolidated Financial Information. These accounting assumptions and estimates incl ude:
• estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,
• estimates 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,
• 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,
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the
percentage-of-completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company
expects to be entitled to,
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,
• estimates used to record expected costs for employee severance in connection with restructuring programs,
• assumptions used in determining inventory obsolescence and net realizable value,
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for
impairment, and
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations .
The actual results and outcomes may differ from the Company’s estimates and assumptions.
For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contr acts as its operating cycle.
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provision s related to these contracts which will not be realized
within one year that have been classified as current. Long -term system integration activities comprise the majority of the Company’s activities which
have an operating cycle in excess of one year that have been classified as current.
Basis of presentation
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial
position, results of operations and cash flows for the reported periods. Management considers all such adjustm ents to be of a normal recurring nature.
The Consolidated Financial Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, nu mbers presented in the
Consolidated Financial Information may not add to the totals provid ed.
Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the current year’s
presentation.
Adjustments related to prior periods
In the three months ended June 30, 2026, the Company identified certain errors in its previously issued financial statements that were corrected through
cumulative out-of-period adjustments. The errors were identified by management and related to provisions for unasserted asbestos claims, as wel l as
environmental remediation matters (see Note 11), resulting in additional expenses of $65 million and $31 million, respectively, in Other income (expense)
in the Consolidated Income Statement for the three months ended June 30, 2026. The Company evaluated the impact of the corrections on both a
quantitative and qualitative basis under the guidance of ASC 250, Accounting Changes and Error Corrections, and determined th ere were no material
impacts to the consolidated financial statemen ts for the six and three months ended June 30, 2026, as well as previously issued annual financial
statements.
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14 Q2 2026 FINANCIAL INFORMATION
─
Note 2
Recent accounting pronouncements
Applicable for future periods
Disaggregation of Income Statement expenses
In November 2024, an accounting standard update was issued which requires the Company to disclose additional information for certain types of
expenses, including purchases of inventory, employee compensation, depreciation, and amortization, presented in ea ch relevant income statement
expense caption (such as cost of sales, selling, general and administrative expenses). This update is effective for the Compa ny prospectively, with
retrospective adoption permitted, for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028. The Company is currently
evaluating the impact of adopting this update on its consolidated financial statements.
Targeted Improvements to the Accounting for Internal -Use Software
In September 2025, an accounting standard update was issued related to accounting for internal -use software costs. This update modernizes the
guidance for accounting for software costs , aligning the accounting model with how software is developed today , by removing all references to project
stages and clarifying the threshold entities apply to begin capitalizing costs. This update is effective for the Company for annual and interim periods
beginning January 1, 2028, and may be applied (i) prospectively, (ii) retrospectively, or (iii) utilizing a modified transition approach . Early adoption is
permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of adopting this update on its consolidated
financial statements.
─
Note 3
Discontinued operations
In October 2025, the Company entered into an agreement to divest its Robotics division to SoftBank Group Corp., valuing the b usiness at approximately
$5.4 billion. The business also includes certain investments and real estate properties which were previously reported within Corp orate and Other. The
divestment is expected to be completed in the second half of 2026, subject to regulatory approvals and customary closing conditions , as well as the
completion of certain legal entity reorganizations expected to be finalized before the sale.
As this planned divestment represents a strategic shift that will have a major effect on the Company’s operations and financi al results, the results of
operations for this business have been presented as discontinued operations and the assets and liabiliti es, along with the related investments and real
estate assets previously included in Corporate and Other, are reflected as held-for-sale for all periods presented.
In addition, amounts relating to stranded corporate costs have been separately disclosed as a component of Corporate and Othe r (see Note 16).
Stranded costs represent allocated overhead and other management costs which were previously included in the measure of segment profit
(Operational EBITA) for the Robotics division within the former Robotics & Discrete Automation operating segment but are not directly attributable to
the discontinued operation and thus do not qualify to be recorded as part of income from discontinued operations.
Operating results of the discontinued operations are summarized as follows:
Six months ended Three months ended
($ in millions) Jun. 30, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025
Total revenues 1,113 1,158 576 605
Total cost of sales (727) (765) (386) (398)
Gross profit 386 393 190 207
Expenses (303) (201) (143) (105)
Income from operations 83 192 47 102
Net interest and other finance expense (10) (14) (1) (10)
Non-operational pension credit 1 – – –
Income from discontinued operations before taxes 74 178 46 92
Income tax expense (54) (47) (8) (24)
Income from discontinued operations, net of tax 20 131 38 68
Of the total Income from discontinued operations before taxes in the table above, $73 million and $178 million in the six months ended June 30, 2026 and
2025, respectively, and $46 million and $92 million in the three months ended June 30, 2026 and 2025, respectively, are attributable to the Company,
while the remainder is attributable to noncontrolling interests.
Income from discontinued operations before taxes exclude s stranded costs which were previously allocated to the Robotics division. As a result, for the
six months ended June 30, 2026 and 2025, $51 million and $62 million, respectively, and for the three months ended June 30, 2026 and 2025, $25 million
and $33 million, respectively, of allocated overhead and other management costs which were previously included in the measure of segment profit for
the Robotics division are now reported as part of Corporate and Other. In addition, as required by U.S. GAAP , the Company has not recorded
depreciation or amortization on the property, plant and equipment and intangible assets reported as discontinued operations in the six and three
months ended June 30, 2026.
The Company also has retained obligations (primarily for environmental and taxes) related to other businesses disposed or otherwise exited tha t
qualified as discontinued operations. Changes to these retained obligations are also included in Income from discontinued ope rations, net of tax.
===== SIDA 27 =====
15 Q2 2026 FINANCIAL INFORMATION
The major components of assets and liabilities held for sale and in discontinued operations in the Company’s Consolidated Balance Sheets are
summarized as follows:
($ in millions) Jun. 30, 2026(1) Dec. 31, 2025(1)
Receivables, net 598 489
Contract assets 204 217
Inventories, net 425 372
Property, plant and equipment, net 363 290
Operating lease right-of-use assets 133 84
Goodwill 1,823 1,847
Deferred taxes 254 123
Other assets 131 140
Current assets held for sale and in discontinued operations 3,931 3,562
Other non-current assets 35 –
Non-current assets held for sale and in discontinued operations 35 –
Accounts payable, trade 373 317
Contract liabilities 216 250
Operating leases 125 87
Other liabilities 441 454
Current liabilities held for sale and in discontinued operations 1,155 1,108
Other non-current liabilities 83 13
Non-current liabilities held for sale and in discontinued operations 83 13
(1) At June 30, 2026, and December 31, 2025, the balances reported as held for sale and in discontinued operations also include amounts pertaining to previously divested
businesses and other obligations which will remain with the Company until such time as the obligations are settled or the activities are fully wound down.
─
Note 4
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) (1) 2026 2025 2026 2025
Purchase price for acquisitions (net of cash acquired) (2) 124 551 108 10
Aggregate excess of purchase price over
fair value of net assets acquired(3) 64 436 58 10
Number of acquired businesses 5 4 3 1
(1) Amounts include adjustments arising during the measurement period of acquisitions .
(2) Excluding changes in cost - and equity -accounted companies.
(3) Recorded as goodwill.
In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired ” in the six months
ended June 30, 2026, were not significant, while 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 expands the
Company’s portfolio of energy management solutions that use big data and AI within its Electrification segment.
On March 3, 2025, the Company acquired, through numerous share and asset purchases, all of the assets, liabilities and business activities of the
Siemens wiring accessories business in China. The Siemens wiring accessories business offering, which distributes throughout China, includes wiring
accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction
amounted to $386 million (net of cash acquired). This acquisition broadens the market reach of the Company’s Electrification segment and
complements the segment’s regional customer offering within smart buildings .
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.
===== SIDA 28 =====
16 Q2 2026 FINANCIAL INFORMATION
Subsequent events
Completed acquisition
On July 1, 2026, the Company acquired the shares of Specialtrasfo S.p.A. Specialtrasfo is an Italian manufacturer of specialized medium voltage
transformers, including converter and rectifier transformers, with a worldwide installed base. To complete the transaction, the Company’s cash outflows
amounted to $183 million. This acquisition closes a gap in the Company’s industrial automation portfolio. The initial accounting and disclosures for th is
acquisition are incomplete as Specialtrasfo was only recently acquired.
Planned acquisition
On July 16, 2026, the Company announced that it had reached an agreement on the terms of a recommended cash offer for the entire issu ed and to be
issued share capital of Rotork plc (Rotork) for 503 pence per share (approximately $5.5 billion based on issued share capital at June 30, 2026). Rotork,
headquartered in the United Kingdom, is a provider of intelligent flow control solutions and a manufacturer of electric actua tors. The acquisition is
expected to expand the Company’s offering for large and complex infrastructure and industries within its Automation business area. The Company
expects to complete the acquisition in the first half of 2027 subject to approval by Rotork’s shareholders and customary clos ing conditions, including
regulatory clearances.
─
Note 5
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short -term investments consisted of the following:
June 30, 2026
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,659 1,659 1,659
Time deposits 2,826 2,826 2,208 618
Equity securities 1,315 57 1,372 1,372
Total 5,800 57 – 5,857 3,867 1,990
December 31, 2025
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,398 1,398 1,398
Time deposits 3,804 3,804 3,242 562
Equity securities 1,348 57 1,405 1,405
6,550 57 – 6,607 4,640 1,967
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
Other government obligations 14 14 14
14 – – 14 – 14
Total 6,564 57 – 6,621 4,640 1,981
===== SIDA 29 =====
17 Q2 2026 FINANCIAL INFORMATION
─
Note 6
Derivative financial instruments
The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The
Company uses derivative instruments to reduce and manage the economic impact of these exposures.
Currency risk
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering
into transactions in currencies other than their functional currency. To manage such currency risks, the Company operates programs to hedge the
foreign currency exposures from forecasted cash flows, committed orders and project -related exposures. Forward foreign exchange contracts are the
main instrument used to protect the Company against the volatility of future cash flows (caused by changes in exchange rates) of contracted and
forecasted sales and purchases denominated in foreign currencies. In addition, within its treasury operations, the Company pr imarily uses foreign
exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management activities.
The Company also has numerous investments in its foreign subsidiaries, the net assets of which are exposed to volatility in f oreign currency exchange
rates. Forward foreign exchange contracts are used to reduce the foreign currency exchange risk related to the Company’s investment in certain foreign
subsidiaries. These derivatives are designated as net investment hedges.
Commodity risk
Various commodity products are used in the Company’s manufacturing activities. Consequently, it is exposed to volatility in f uture cash flows arising
from changes in commodity prices. To manage the price risk of commodities, the Company operates programs t o hedge the forecasted commodity
exposure and project-related exposures. Swap contracts are primarily used to manage the associated price risks of commodities.
Interest rate risk
The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and
foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to tim e, the
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to mana ge interest rate risk
arising from the Company’s balance sheet structure but does not designate such instruments as hedges.
Volume of derivative activity
In general, while the Company’s primary objective in its use of derivatives is to minimize exposures arising from its busines s, certain derivatives are
designated and qualify for hedge accounting treatment while others either are not designated or do not q ualify for hedge accounting.
Foreign exchange and interest rate derivatives
The gross notional amounts of outstanding foreign exchange and interest rate derivatives (whether designated as hedges or not ) were as follows:
Type of derivative Total notional amounts at
($ in millions) June 30, 2026 December 31, 2025 June 30, 2025
Foreign exchange contracts 17,877 14,743 16,810
Embedded foreign exchange derivatives 1,874 1,640 1,524
Cross-currency interest rate swaps 912 940 938
Interest rate contracts 570 1,644 1,762
Derivative commodity contracts
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver,
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is,
to reflect the Company’s requirements for these commodities:
Total notional amounts at
Type of derivative Unit June 30, 2026 December 31, 2025 June 30, 2025
Copper swaps metric tonnes 45,945 33,912 35,997
Silver swaps ounces 4,761,561 2,059,055 2,430,081
Steel swaps metric tonnes 15,604 14,198 18,144
Aluminum swaps metric tonnes 5,275 3,850 4,700
Cash flow hedges
As noted above, the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operati ons and commodity
swaps to manage its commodity risks. The Company applies cash flow hedge accounting in only limited cases. In these cases, th e effective portion of
the changes in their fair value is recorded in Accumulated other comprehensive loss and subsequen tly reclassified into earnings in the same line item
and in the same period as the underlying hedged transaction affects earnings. For the six and three months ended June 30, 2026 and 2025, there were no
significant amounts recorded for cash flow hedge accounting activities.
Net investment hedges
The Company designates forward foreign exchange contracts used to reduce the foreign currency exchange risk related to its ne t investment in certain
foreign subsidiaries as net investment hedges. Accordingly, the gains and losses on the derivatives are rec orded in Accumulated other comprehensive
loss as part of Foreign currency translation adjustments. The accumulated gains and losses associated with these instruments will remain in
Accumulated other comprehensive loss until the foreign subsidiaries are sol d or substantially liquidated, at which point they will be reclassified into
earnings. The cash flows associated with derivatives designated as net investment hedges are recorded within investing activi ties in the Consolidated
Statements of Cash Flows. For the six and three months ended June 30, 2026 and 2025, there were no significant amounts recognized in or reclassified
out of Accumulated other comprehensive loss related to net investment hedges. In addition, in the six and three months ended June 30, 2026 and 2025,
the Company did not have any ineffectiveness related to net investment hedges .
Fair value hedges
To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swap s and cross-currency interest
rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the
fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and losse s in Interest and other finance expense.
===== SIDA 30 =====
18 Q2 2026 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) 2026 2025 2026 2025
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges (2) (1) 6 4
Hedged item 2 1 (6) (4)
Cross-currency interest rate swaps Designated as fair value hedges 9 2 13 3
Hedged item (9) – (13) (2)
Derivatives not designated in hedge relationships
Derivative instruments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are econo mic hedges used for risk
management purposes. Gains and losses from changes in the fair values of such derivatives are recognized i n the same line in the income statement as
the economically hedged transaction.
Furthermore, under certain circumstances, the Company is required to split and account separately for foreign currency deriva tives that are embedded
within certain binding sales or purchase contracts denominated in a currency other than the functional curr ency of the subsidiary and the counterparty.
The gains (losses) recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships we re as follows:
Type of derivative not Gains (losses) recognized in income
designated as a hedge Six months ended June 30, Three months ended June 30,
($ in millions) Location 2026 2025 2026 2025
Foreign exchange contracts Total revenues (18) 140 (10) 66
Total cost of sales (18) (22) (14) (8)
SG&A expenses(1) 10 (51) 6 (33)
Interest and other finance expense 85 (238) 62 (288)
Embedded foreign exchange Total revenues (11) (8) (14) (5)
contracts Total cost of sales (3) 9 (1) 6
SG&A expenses(1) (1) – (1) –
Commodity contracts Total cost of sales (17) 36 (4) (5)
Other Interest and other finance expense 2 (1) 1 (1)
Total 29 (135) 25 (268)
(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, 2026
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts 1 – 16 –
Interest rate contracts – – – 4
Cross-currency interest rate swaps – – – 160
Total 1 – 16 164
Derivatives not designated as hedging instruments:
Foreign exchange contracts 140 27 73 17
Commodity contracts 51 – 73 –
Embedded foreign exchange derivatives 19 8 35 8
Total 210 35 181 25
Total fair value 211 35 197 189
===== SIDA 31 =====
19 Q2 2026 FINANCIAL INFORMATION
December 31, 2025
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – 6 –
Interest rate contracts – 2 – 4
Cross-currency interest rate swaps – – – 142
Total – 2 6 146
Derivatives not designated as hedging instruments:
Foreign exchange contracts 101 23 50 5
Commodity contracts 129 – 5 –
Embedded foreign exchange derivatives 20 14 29 4
Total 250 37 84 9
Total fair value 250 39 90 155
Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions betw een two
counterparties on the occurrence of one or more pre -defined trigger events.
Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the
Consolidated Balance Sheets at June 30, 2026, and December 31, 2025, have been presented on a gross basis.
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At June 30, 2026, and December 31,
2025, information related to these offsetting arrangements was as follows:
($ in millions) June 30, 2026
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 219 (107) – – 112
Total 219 (107) – – 112
($ in millions) June 30, 2026
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 343 (107) – – 236
Total 343 (107) – – 236
($ in millions) December 31, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 255 (56) – – 199
Total 255 (56) – – 199
($ in millions) December 31, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 212 (56) – – 156
Total 212 (56) – – 156
===== SIDA 32 =====
20 Q2 2026 FINANCIAL INFORMATION
─
Note 7
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis an d, when necessary, to record
certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis i nclude foreign currency,
commodity and interest rate derivatives, as well as available -for-sale securities. Non-financial assets recorded at fair value on a non -recurring basis
include long-lived assets that are reduced to their estimated fair value due to impairments.
Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transactio n between market participants at
the measurement date. In determining fair value, the Company uses various valuation techniques inc luding the market approach (using observable
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a
market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and liabilities are defined by a
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobser vable. An observable input
is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions about market data.
The levels of the fair value hierarchy are as follows:
Level 1: Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (observable quoted prices). Assets and liabilities
valued using Level 1 inputs include exchange‑traded equity securities, listed derivatives which are actively traded such as commodity futures,
interest rate futures and certain actively traded debt securities .
Level 2: Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively quoted prices for similar assets, quoted prices in
inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs derived from other observable
data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in valuation models
may be both observable and unobservable. In these cases, the fair value measuremen t is classified as Level 2 unless the unobservable portion of
the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as
Level 3. Assets and liabilities valued or disclose d using Level 2 inputs include investments in certain funds, certain debt securities that are not
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign
exchange swaps and forward rate agreements, time deposits, as well as financing receivables and debt.
Level 3: Valuation inputs are based on the Company’s assumptions which require significant judgement or estimation (unobservable input).
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid -market quotes. When determining fair
values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financi al instrument has significantly
decreased or would not be considered orderly. In such cases, the resulting ch anges in valuation techniques would be disclosed. If the market is
considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach.
Recurring fair value measures
The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:
June 30, 2026
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 1,372 1,372
Derivative assets—current in “Other current assets” 211 211
Derivative assets—non-current in “Other non-current assets” 35 35
Total – 1,618 – 1,618
Liabilities
Derivative liabilities—current in “Other current liabilities” 197 197
Derivative liabilities—non-current in “Other non-current liabilities” 189 189
Total – 386 – 386
December 31, 2025
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 1,405 1,405
Debt securities—Other government obligations 14 14
Derivative assets—current in “Other current assets” 250 250
Derivative assets—non-current in “Other non-current assets” 39 39
Total 14 1,694 – 1,708
Liabilities
Derivative liabilities—current in “Other current liabilities” 90 90
Derivative liabilities—non-current in “Other non-current liabilities” 155 155
Total – 245 – 245
===== SIDA 33 =====
21 Q2 2026 FINANCIAL INFORMATION
The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a
recurring basis:
• Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available,
these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices
are not available, fair value is determined using market prices for similar assets or present value techniques, applying an a ppropriate risk-free
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level 2 category.
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market, if
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value
techniques, based on available market data, or option pricing models are used. The fair values obtained using price quotes fo r similar
instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used.
Non-recurring fair value measures
There were no significant non-recurring fair value measurements during the six and three months ended June 30, 2026 and 2025.
Disclosure about financial instruments carried on a cost basis
The fair values of financial instruments carried on a cost basis were as follows:
June 30, 2026
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,659 1,659 1,659
Time deposits 2,208 2,208 2,208
Marketable securities and short-term investments
(excluding securities):
Time deposits 618 618 618
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 1,560 1,512 48 1,560
Long-term debt (excluding finance lease obligations) 6,429 6,310 726 7,036
December 31, 2025
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,398 1,398 1,398
Time deposits 3,242 3,242 3,242
Marketable securities and short-term investments
(excluding securities):
Time deposits 562 562 562
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 448 416 32 448
Long-term debt (excluding finance lease obligations) 7,681 7,013 733 7,746
The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost b asis:
• Cash and equivalents (excluding securities with original maturities up to 3 months) and Marketable securities and short-term investments
(excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in banks, are
equal to the deposit amount.
• Short-term debt and current maturities of long -term debt (excluding finance lease obligations): Short-term debt includes commercial paper,
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease
obligations, approximate their fair values.
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using quoted market prices (Level 1 inputs), if
available. For bonds without available quoted market prices and other long -term debt, the fair values are determined using a discounted cash
flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate ad justments for non-performance risk
(Level 2 inputs).
===== SIDA 34 =====
22 Q2 2026 FINANCIAL INFORMATION
─
Note 8
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) June 30, 2026 December 31, 2025 June 30, 2025
Contract assets 1,189 1,090 1,083
Contract liabilities 3,545 3,221 3,109
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,
2026 2025
Contract Contract Contract Contract
($ in millions) assets liabilities assets liabilities
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2026/2025 (1,296) (1,127)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 1,654 1,332
Receivables recognized that were included in the Contract assets balance at Jan 1, 2026/2025 (521) (443)
The Company considers its order backlog to represent its unsatisfied performance obligations. At June 30, 2026, the Company had unsatisfied
performance obligations totaling $30,007 million and, of this amount, the Company expects to fulfill approximately 47 percent of the obligations in
2026, approximately 33 percent of the obligations in 2027 and the balance thereafter.
─
Note 9
Supplier finance programs
The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng as paying agent. These
programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms
related to suppliers’ finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements an d are typically consistent
with local market practices. Outstanding supplier finance obligations are included in Accounts payable, trade in the Consolidated Balance Sheets and are
reported as operating or investing (if capitalized) activities in the Consolidated Statement s of Cash Flows when paid. At June 30, 2026, and December 31,
2025, the total obligation outstanding under supplier finance programs amounted to $627 million and $482 million, respectively.
===== SIDA 35 =====
23 Q2 2026 FINANCIAL INFORMATION
─
Note 10
Debt
The Company’s total debt at June 30, 2026, and December 31, 2025, amounted to $8,177 million and $8,304 million, respectively.
Short-term debt and current maturities of long-term debt
The Company’s Short-term debt and current maturities of long -term debt consisted of the following:
($ in millions) June 30, 2026 December 31, 2025
Short-term debt 56 26
Current maturities of long-term debt 1,554 449
Total 1,610 475
Short-term debt primarily represented short-term bank borrowings from various banks.
Long-term debt
The Company’s Long-term debt at June 30, 2026, and December 31, 2025, amounted to $6,567 million and $7,829 million, respectively.
Significant long-term borrowings (including maturities within the next 12 months) were as follows:
June 30, 2026 December 31, 2025
(in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1)
1.965% CHF Bonds, due 2026 CHF 325 $ 402 CHF 325 $ 410
3.25% EUR Instruments, due 2027 EUR 500 $ 569 EUR 500 $ 586
0.75% CHF Bonds, due 2027 CHF 425 $ 525 CHF 425 $ 535
3.8% USD Notes, due 2028 USD 383 $ 382 USD 383 $ 382
1.9775% CHF Bonds, due 2028 CHF 150 $ 185 CHF 150 $ 189
3.125% EUR Instruments, due 2029 EUR 500 $ 569 EUR 500 $ 588
1.0% CHF Bonds, due 2029 CHF 170 $ 210 CHF 170 $ 214
0% EUR Instruments, due 2030 EUR 800 $ 819 EUR 800 $ 838
2.375% CHF Bonds, due 2030 CHF 150 $ 185 CHF 150 $ 189
3.375% EUR Instruments, due 2031 EUR 750 $ 846 EUR 750 $ 871
Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539
0.8725% CHF Bonds, due 2032 CHF 350 $ 431 CHF 350 $ 440
2.1125% CHF Bonds, due 2033 CHF 275 $ 339 CHF 275 $ 346
3.375% EUR Instruments, due 2034 EUR 750 $ 847 EUR 750 $ 872
1.2762% CHF Bonds, due 2036 CHF 250 $ 308 CHF 250 $ 314
4.375% USD Notes, due 2042 USD 609 $ 593 USD 609 $ 592
Total $ 7,749 $ 7,905
(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.
─
Note 11
Commitments and contingencies
Contingencies—Environmental
The Company has been notified by the United States Environmental Protection Agency (EPA) that the Company, along with others, has been identified
as a potentially responsible party at a location on the EPA’s National Priorities List of Superfund sites. Thi s site is associated with a business acquired by
the Company in 2012 and the claim relates to operations of the acquired business prior to the acquisition. The Company determ ined that a loss related
to this matter is probable. The reasonably estimable rang e of loss based upon currently available information is between $31 million and $204 million. As
no amount within the range is a better estimate than any other, the Company has recorded a provision of $31 million during the three months ended
June 30, 2026. The estimated range reflects potential exposure associated with currently identified remediation activities while a subsequent phase of
remediation could result in additional losses that are not presently estimable as the related remediation stra tegy is yet to be defined. Although the
Company believes its estimated range of potential loss is reasonable, the outcome of these matters is inherently uncertain an d actual losses could
exceed the amounts accrued or disclosed.
Contingencies—Regulatory, Compliance and Legal
General
The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and
other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters , as well as potential ranges of probable
losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue, with assistance, when
necessary, from internal and external legal counsel and tech nical experts.
As it is not possible to make an informed judgment on, or reasonably predict, the outcome of certain matters and as it is not possible, based on
information currently available to management, to estimate the maximum potential liability on other matters, th ere could be adverse outcomes beyond
the amounts accrued; however, the Company does not expect the resolution of current matters to have a material adverse effect on its financial
statements.
===== SIDA 36 =====
24 Q2 2026 FINANCIAL INFORMATION
Guarantees
General
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a
“worst-case scenario”, and do not reflect management’s expected outcomes.
Maximum potential payments ($ in millions) June 30, 2026 December 31, 2025
Performance guarantees 1,594 1,926
Financial guarantees 17 18
Total(1) 1,611 1,944
(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 amo unts of liabilities at June 30, 2026, and
December 31, 2025, were not significant.
The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guar antees, which have
various maturities up to 2032, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s
product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a project will be completed
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party in cash or in kind. The
original maturity dates for the majority of these performance guarantees range from one to ten years.
In conjunction with the divestment of the high -voltage cable and cables accessories businesses in 2017, the Company has entered into various
performance guarantees with other parties with respect to certain liabilities of the divested business. At June 30, 2026, and December 31, 2025, the
maximum potential payable under these guarantees amounted to $657 million and $681 million, respectively, and these guarantees have various original
maturities up to ten years.
The Company retained obligations for financial and performance guarantees related to its former Power Grids business (reporte d as discontinued
operations prior to its sale to Hitachi Ltd in 2020), which at both June 30, 2026, and December 31, 2025, have been fully indemnified by Hitachi Ltd. These
guarantees, having various maturities up to 2032, 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 both June 30, 2026, and December 31, 2025, amounted to approximately $0.9 billion.
Commercial commitments
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance
bonds and surety bonds (collectively “performance bonds”) with various financial institutions. Customer s can draw on such performance bonds in the
event that the Company does not fulfill its contractual obligations. The Company would then have an obligation to reimburse t he financial institution for
amounts paid under the performance bonds. At both June 30, 2026, and December 31, 2025, the total outstanding performance bonds aggregated to
$3.6 billion, of which $0.1 billion relate to discontinued operations. There have been no significant amounts reimbursed to financial institutions under
these types of arrangements in the six and three months ended June 30, 2026 and 2025.
Product and order-related contingencies
The Company calculates its provision for product warranties based on historical claims experience and specific review of cert ain contracts. The
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:
($ in millions) 2026 2025
Balance at January 1, 1,386 1,202
Net change in warranties due to acquisitions and divestments 2 –
Claims paid in cash or in kind (77) (78)
Net increase in provision for changes in estimates, warranties issued and warranties expired 125 106
Exchange rate differences (14) 93
Balance at June 30, 1,422 1,323
Included in:
”Provisions” 685 698
”Other non-current liabilities” 737 625
Provisions for warranties - Total 1,422 1,323
─
Note 12
Income taxes
In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances known at each
interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as
compared to those forecasted at the beginning of the year and each interim period thereafter.
The effective tax rate of 25.6 percent in the six months ended June 30, 2026, was lower than the effective tax rate of 28.1 percent in the six months ended
June 30, 2025, primarily due to the tax impact of the gain on sale of real estate in the six months ended June 30, 2026, which is taxed at a rate lower than
the Company’s weighted‑average tax rate.
===== SIDA 37 =====
25 Q2 2026 FINANCIAL INFORMATION
─
Note 13
Employee benefits
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local
regulations and practices. At June 30, 2026, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, the
United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the event
of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates other
postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requi rements.
The following tables include amounts relating to defined benefit pension plans for both continuing and discontinued operations.
Net periodic benefit cost of the Company’s defined benefit pension plans consist s of the following:
($ in millions) Defined pension benefits
Switzerland International
Six months ended June 30, 2026 2025 2026 2025
Operational pension cost:
Service cost 28 28 13 12
Operational pension cost 28 28 13 12
Non-operational pension cost (credit):
Interest cost 13 11 74 78
Expected return on plan assets (62) (59) (84) (83)
Amortization of prior service cost (credit) 1 – (1) (2)
Amortization of net actuarial loss – – 21 25
Curtailments, settlements and special termination benefits – – 1 –
Non-operational pension cost (credit) (48) (48) 11 18
Net periodic benefit cost (credit) (20) (20) 24 30
($ in millions) Defined pension benefits
Switzerland International
Three months ended June 30, 2026 2025 2026 2025
Operational pension cost:
Service cost 14 15 6 6
Operational pension cost 14 15 6 6
Non-operational pension cost (credit):
Interest cost 6 6 38 40
Expected return on plan assets (30) (32) (42) (42)
Amortization of prior service cost (credit) – – – (1)
Amortization of net actuarial loss – – 9 13
Curtailments, settlements and special termination benefits – – 1 –
Non-operational pension cost (credit) (24) (26) 6 10
Net periodic benefit cost (credit) (10) (11) 12 16
The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the
Consolidated Income Statements. Net periodic benefit cost (credit) related to discontinued operations for the six and three months ended June 30, 2026
and 2025, is not significant.
─
Note 14
Stockholders' equity
At the Annual General Meeting of Shareholders on March 19, 2026, shareholders approved the proposal of the Board of Directors to distribute 0. 94 Swiss
francs per share to shareholders. The declared dividend amounted to $2,146 million.
In January 2026, the Company announced the completion of its share buyback program of up to $1.5 billion that was launched in February 2025. This
program was executed on a second trading line on the SIX Swiss Exchange. In February 2026, the Company launched a new share buyback program of up
to $2.0 billion, as announced in January 2026. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to
run until January 2027. Under these buyback programs, the Company purchased approximately 5 million shares in the six months ended June 30, 2026,
resulting in an increase in Treasury stock of $415 million.
In the second quarter of 2026, the Company cancelled 21 million shares which had been purchased under its share buyback program. This resulted in a
decrease in Treasury stock of $1,326 million and a corresponding total decrease in Common stock, Additional paid-in capital and Retained earnings.
===== SIDA 38 =====
26 Q2 2026 FINANCIAL INFORMATION
─
Note 15
Reclassifications out of accumulated other comprehensive loss
The following table shows changes in Accumulated other comprehensive loss (OCI) attributable to ABB, by component, net of tax :
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2025 (4,248) (3) (1,091) (8) (5,350)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications 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 19 – – – 19
Balance at June 30, 2025 (4,157) – (1,173) (5) (5,335)
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2026 (4,176) – (1,073) (4) (5,253)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications (188) – 22 1 (165)
Amounts reclassified from OCI – – 16 – 16
Total other comprehensive (loss) income (188) – 38 1 (149)
Less:
Amounts attributable to
noncontrolling interests (8) – – – (8)
Balance at June 30, 2026 (4,356) – (1,035) (3) (5,394)
The amounts reclassified out of OCI for the six and three months ended June 30, 2026 and 2025, were not significant.
===== SIDA 39 =====
27 Q2 2026 FINANCIAL INFORMATION
─
Note 16
Operating segment data
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the pe rformance of each
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services:
Electrification, Motion and Automation. The remaining operations of the Company are included in Corporate and Other.
A description of the types of products and services provided by each reportable segment is as follows:
• Electrification: manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution
of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power solutions,
modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit breakers,
measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building
solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The products and
services are delivered through five operating divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation Products, and
Service.
• Motion: designs, manufactures and sells drives, motors, generators and traction converters that are driving the low -carbon future for
industries, cities, infrastructure and transportation. These products, digital technology and related services enable industr ial customers to
increase energy efficiency, improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of
cumulative experience in electric powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide
range of applications in all industrial segments. In addition, Motion, along with its partners, has a leading global service presence. These
products and services are delivered through six operating divisions: Motion High Power, Drive Products, Motion Services, Traction, IEC LV
Motors and NEMA Motors.
• Automation: offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services
for the process, hybrid and marine industries. The product portfolio includes control technologies; process, machine and factory automation;
industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems. In addition, Automation
offers a comprehensive range of services, from repair to advanced digital capabilities such as remote monitoring, preventive maintenance,
asset performance management, emission monitoring and cybersecurity. The products and services are currently delivered through five
operating divisions: Energy Industries, Process Industries, Marine & Ports, Measurement & Analytics and Machine Automation.
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other inclu des
the E-mobility operating segment and other non-core operating activities as well as the operating activities of certain divested businesses and stranded
corporate costs related to the planned divestment of the Robotics division.
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations
excluding:
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, and certain environmental and related costs (net of insurance recoveries), as well as other items which are determined
by management on a case-by-case basis.
For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial
resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of t his review process, current
year-to-date budget-to-actual variances are provided (inclusive of key deviations) along with forecasted annual expectations and plans to address an y
negative variances. Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the
compensation of the Company’s employees.
The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory sales between segments.
Segment results below are presented before these eliminations, with a total deduction for intersegment pro fits to arrive at the Company’s consolidated
Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at current market prices.
For a category of expense to be classified as a significant segment expense, it must be significant to the segment, regularly provided to or easily
computed from information regularly provided to the CODM and included in the primary measure of profitabilit y. Significant segment expenses include
Operational cost of sales, Operational selling, general and administrative expenses, and Operational non -order related research and development costs,
which respectively are comprised of Cost of sales, Selling, gener al and administrative expenses (excluding bad debt expense), and Non -order related
research and development costs, with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and
any relevant non-operational items (as defined above).
Other segment items represent Other income (expense) excluding its respective components of non -operational items (as defined above), bad debt
expense, and foreign exchange/commodity timing differences in total revenues.
===== SIDA 40 =====
28 Q2 2026 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, 2026 and 2025.
Six months ended June 30, 2026
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 2,700 1,316 1,885 85 5,986
The Americas 4,545 1,489 1,055 90 7,179
of which: United States 3,749 1,231 697 66 5,743
Asia, Middle East and Africa 2,415 1,234 1,381 14 5,044
of which: China 999 617 414 – 2,030
9,660 4,039 4,321 189 18,209
Product type
Products 9,034 3,434 2,707 148 15,323
Services and other 626 605 1,614 41 2,886
9,660 4,039 4,321 189 18,209
Third-party revenues 9,660 4,039 4,321 189 18,209
Intersegment revenues 153 320 19 (492) –
Total revenues 9,813 4,359 4,340 (303) 18,209
Operational cost of sales (5,687) (2,726) (2,676)
Operational selling, general and
administrative expenses (1,506) (677) (784)
Operational non-order related research
and development expenses (264) (177) (218)
Other segment items 50 32 (13)
Operational EBITA 2,406 811 649
Six months ended June 30, 2025
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 2,451 1,159 1,648 83 5,341
The Americas 3,585 1,314 984 73 5,956
of which: United States 2,874 1,087 637 43 4,641
Asia, Middle East and Africa 2,009 1,169 1,176 26 4,380
of which: China 866 534 339 7 1,746
8,045 3,642 3,808 182 15,677
Product type
Products 7,481 3,095 2,348 141 13,065
Services and other 564 547 1,460 41 2,612
8,045 3,642 3,808 182 15,677
Third-party revenues 8,045 3,642 3,808 182 15,677
Intersegment revenues 111 263 20 (394) –
Total revenues 8,156 3,905 3,828 (212) 15,677
Operational cost of sales (4,670) (2,376) (2,328)
Operational selling, general and
administrative expenses (1,358) (603) (757)
Operational non-order related research
and development expenses (223) (151) (197)
Other segment items 14 (8) (3)
Operational EBITA 1,919 767 543
===== SIDA 41 =====
29 Q2 2026 FINANCIAL INFORMATION
Three months ended June 30, 2026
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 1,377 653 918 46 2,994
The Americas 2,418 770 541 59 3,788
of which: United States 2,003 639 362 43 3,047
Asia, Middle East and Africa 1,316 642 727 8 2,693
of which: China 529 333 219 – 1,081
5,111 2,065 2,186 113 9,475
Product type
Products 4,774 1,749 1,368 93 7,984
Services and other 337 316 818 20 1,491
5,111 2,065 2,186 113 9,475
Third-party revenues 5,111 2,065 2,186 113 9,475
Intersegment revenues 89 152 7 (248) –
Total revenues 5,200 2,217 2,193 (135) 9,475
Operational cost of sales (3,025) (1,388) (1,354)
Operational selling, general and
administrative expenses (765) (343) (404)
Operational non-order related research
and development expenses (142) (93) (115)
Other segment items 33 20 18
Operational EBITA 1,301 413 338
Three months ended June 30, 2025
Corporate
($ in millions) Electrification Motion Automation and Other Total
Geographical markets
Europe 1,297 619 833 44 2,793
The Americas 1,893 679 531 43 3,146
of which: United States 1,517 563 341 23 2,444
Asia, Middle East and Africa 1,074 633 635 14 2,356
of which: China 458 291 185 3 937
4,264 1,931 1,999 101 8,295
Product type
Products 3,959 1,639 1,240 71 6,909
Services and other 305 292 759 30 1,386
4,264 1,931 1,999 101 8,295
Third-party revenues 4,264 1,931 1,999 101 8,295
Intersegment revenues 67 134 11 (212) –
Total revenues 4,331 2,065 2,010 (111) 8,295
Operational cost of sales (2,481) (1,263) (1,240)
Operational selling, general and
administrative expenses (708) (314) (396)
Operational non-order related research
and development expenses (118) (78) (100)
Other segment items 9 (3) 14
Operational EBITA 1,033 407 288
===== SIDA 42 =====
30 Q2 2026 FINANCIAL INFORMATION
The following tables present Operational EBITA, the reconciliations of consolidated Operational EBITA to Income from continui ng operations before
taxes, as well as Depreciation and amortization, and Capital expenditures for the six and three months ended June 30, 2026 and 2025, and Total assets
at June 30, 2026, and December 31, 2025:
Six months ended Three months ended
June 30, June 30,
($ in millions) 2026 2025 2026 2025
Operational EBITA:
Electrification 2,406 1,919 1,301 1,033
Motion 811 767 413 407
Automation 649 543 338 288
Corporate and Other
‒ E-mobility (65) (89) (18) (42)
‒ Stranded corporate costs (51) (62) (25) (33)
‒ Corporate costs, Intersegment elimination and other 224 15 (84) (55)
Total 3,974 3,093 1,925 1,598
Acquisition-related amortization (98) (91) (51) (48)
Restructuring, related and implementation costs (1) (64) (20) (16) (7)
Changes in obligations related to divested businesses 5 3 – 2
Gains and losses from sale of businesses 7 12 5 1
Acquisition- and divestment-related expenses and integration costs (35) (27) (23) (19)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange,
commodities, embedded derivatives) (209) 72 (95) (4)
Realized gains and losses on derivatives where the underlying hedged
transaction has not yet been realized 5 1 4 1
Unrealized foreign exchange movements on receivables/payables (and
related assets/liabilities) 32 (45) 7 (20)
Certain other non-operational items:
Business transformation costs(2) (48) (92) (20) (48)
Environmental and related costs (94) (1) (94) (1)
Certain other fair value changes, including asset impairments (106) 26 (53) 10
Other non-operational items (4) 9 (4) 1
Income from operations 3,365 2,940 1,585 1,466
Interest and dividend income 90 95 41 41
Interest and other finance expense (38) (49) (9) (6)
Non-operational pension (cost) credit 35 30 17 16
Income from continuing operations before taxes 3,452 3,016 1,634 1,517
(1) Includes impairment of certain assets.
(2) Amount includes ABB Way process transformation costs of $86 million and $43 million for the six and three months ended June 30, 2025, respectively.
Depreciation and amortization
Six months ended Three months ended
June 30, June 30,
($ in millions) 2026 2025 2026 2025
Electrification 242 215 123 112
Motion 98 85 51 43
Automation 61 56 31 28
Corporate and Other 29 32 15 19
Consolidated 430 388 220 202
Capital expenditures
Six months ended Three months ended
June 30, June 30,
($ in millions) 2026 2025 2026 2025
Electrification 283 198 164 119
Motion 69 90 40 44
Automation 39 45 19 23
Corporate and Other 26 52 13 16
Consolidated(1) 417 385 236 202
(1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only.
===== SIDA 43 =====
31 Q2 2026 FINANCIAL INFORMATION
Total assets(1)
($ in millions) June 30, 2026 December 31, 2025
Electrification 16,401 15,088
Motion 7,909 7,648
Automation 6,957 7,070
Corporate and Other(2) 14,469 15,079
Consolidated 45,736 44,885
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.
(2) At June 30, 2026, and December 31, 2025, Corporate and Other includes $3,966 million and $3,562 million, respectively, of assets reported in discontinued operations (see
Note 3).
===== SIDA 44 =====
32 Q2 2026 FINANCIAL INFORMATION
===== SIDA 45 =====
33 Q2 2026 FINANCIAL INFORMATION
—
Supplemental Reconciliations and Definitions
The following reconciliations and definitions include alternative performance measures which ABB uses to supplement its Consolidated Financial
Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of
these financial measures are not defined under U.S. GAAP.
While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Therefore these measures should not be viewed in isolation but considered together with the Consolidated Financial Informatio n (unaudited)
prepared in accordance with U.S. GAAP as of and for the six and three months ended June 30, 2026.
Comparable growth rates
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measu res growth on a
constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars is affected by foreign
currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current -year periods’ reported key
figures into U.S. dollar amounts using the exchange rates in effect for t he comparable periods in the previous year.
Comparable growth rates are also adjusted for changes in our business portfolio. Adjustments to our business portfolio occur due to acquisitions,
divestments, or by exiting specific business activities or customer markets. The adjustment for portfolio chan ges is calculated as follows: where the
results of any business acquired or divested have not been consolidated and reported for the entire duration of both the curr ent and comparable
periods, the reported key figures of such business are adjusted to exclu de the relevant key figures of any corresponding quarters which are not
comparable when computing the comparable growth rate. Certain portfolio changes which do not qualify as divestments under U.S . GAAP have been
treated in a similar manner to divestments. Changes in our portfolio where we have exited certain business activities or customer markets are adjusted
as if the relevant business was divested in the period when the decision to cease business activities was taken. We do not ad just for portfolio changes
where the relevant business has annualized revenues of less than $50 million.
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate.
Comparable growth rate reconciliation by Business Area
Q2 2026 compared to Q2 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 60% -2% 0% 58% 20% -2% 1% 19%
Motion 23% -3% 0% 20% 7% -2% -1% 4%
Automation -13% -1% 0% -14% 9% -2% 0% 7%
ABB Group 30% -2% 0% 28% 14% -2% 0% 12%
H1 2026 compared to H1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 56% -5% 0% 51% 20% -3% 0% 17%
Motion 20% -4% -2% 14% 12% -4% -3% 5%
Automation -2% -4% 0% -6% 13% -5% 0% 8%
ABB Group 31% -4% -1% 26% 16% -4% 0% 12%
===== SIDA 46 =====
34 Q2 2026 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter
Q2 2026 compared to Q2 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 16% -4% 0% 12% 7% -3% -1% 3%
The Americas 53% -1% 0% 52% 20% -1% 0% 19%
of which: United States 62% 0% 0% 62% 25% 0% -1% 24%
Asia, Middle East and Africa 13% -1% 0% 12% 14% -1% 0% 13%
of which: China 17% -7% 0% 10% 15% -6% 1% 10%
ABB Group 30% -2% 0% 28% 14% -2% 0% 12%
Regional comparable growth rate reconciliation by business area - Quarter
Q2 2026 compared to Q2 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 19% -3% 0% 16% 6% -3% 0% 3%
The Americas 114% 0% 0% 114% 28% -1% 0% 27%
of which: United States 132% 0% 0% 132% 32% 0% 0% 32%
Asia, Middle East and Africa 21% -2% 1% 20% 24% -2% 1% 23%
of which: China 20% -7% 1% 14% 15% -6% 2% 11%
Electrification 60% -2% 0% 58% 20% -2% 1% 19%
Q2 2026 compared to Q2 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 15% -4% -2% 9% 6% -3% -3% 0%
The Americas 46% -1% -1% 44% 12% -1% -2% 9%
of which: United States 52% -1% 0% 51% 13% 0% -3% 10%
Asia, Middle East and Africa 6% -1% 0% 5% 3% -1% -1% 1%
of which: China 9% -6% 0% 3% 13% -6% 0% 7%
Motion 23% -3% 0% 20% 7% -2% -1% 4%
Q2 2026 compared to Q2 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 11% -4% 0% 7% 10% -4% 0% 6%
The Americas -46% -1% 0% -47% 2% -2% 0% 0%
of which: United States -55% 0% 0% -55% 6% 0% 0% 6%
Asia, Middle East and Africa 4% 0% 0% 4% 14% -1% 0% 13%
of which: China 21% -7% 0% 14% 18% -5% 0% 13%
Automation -13% -1% 0% -14% 9% -2% 0% 7%
===== SIDA 47 =====
35 Q2 2026 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation for ABB Group – Year to date
H1 2026 compared to H1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 21% -8% -1% 12% 12% -7% -2% 3%
The Americas 53% -2% -1% 50% 21% -2% 0% 19%
of which: United States 66% -1% -1% 64% 24% -1% 0% 23%
Asia, Middle East and Africa 14% -2% -1% 11% 15% -2% 0% 13%
of which: China 13% -6% -1% 6% 16% -6% 0% 10%
ABB Group 31% -4% -1% 26% 16% -4% 0% 12%
Regional comparable growth rate reconciliation by Business Area – Year to date
H1 2026 compared to H1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 27% -9% 0% 18% 10% -7% 0% 3%
The Americas 99% -2% 0% 97% 27% -1% 0% 26%
of which: United States 116% 0% 0% 116% 31% 0% 0% 31%
Asia, Middle East and Africa 23% -2% 0% 21% 21% -3% 1% 19%
of which: China 20% -7% 0% 13% 15% -6% 1% 10%
Electrification 56% -5% 0% 51% 20% -3% 0% 17%
H1 2026 compared to H1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 16% -8% -2% 6% 13% -7% -5% 1%
The Americas 34% -2% -4% 28% 13% -1% -2% 10%
of which: United States 39% -2% -4% 33% 14% -1% -2% 11%
Asia, Middle East and Africa 11% -2% 0% 9% 8% -2% -1% 5%
of which: China 10% -7% 0% 3% 17% -6% 0% 11%
Motion 20% -4% -2% 14% 12% -4% -3% 5%
H1 2026 compared to H1 2025
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 22% -9% 0% 13% 14% -8% 0% 6%
The Americas -30% -2% 0% -32% 8% -3% 0% 5%
of which: United States -36% 0% 0% -36% 10% -1% 0% 9%
Asia, Middle East and Africa -2% -2% 0% -4% 17% -2% 0% 15%
of which: China 3% -4% 0% -1% 22% -6% 0% 16%
Automation -2% -4% 0% -6% 13% -5% 0% 8%
===== SIDA 48 =====
36 Q2 2026 FINANCIAL INFORMATION
Order backlog growth rate reconciliation
June 30, 2026 compared to June 30, 2025
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 57% 2% 0% 59%
Motion 14% 2% -2% 14%
Automation 12% 1% 0% 13%
ABB Group 27% 1% 0% 28%
Other growth rate reconciliations
Q2 2026 compared to Q2 2025
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 31% -2% 0% 29% 10% -1% 0% 9%
Motion 8% -2% -1% 5% 8% -3% 0% 5%
Automation -36% -2% 0% -38% 8% -3% 0% 5%
ABB Group -18% -2% 0% -20% 8% -3% 0% 5%
H1 2026 compared to H1 2025
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 23% -4% 0% 19% 11% -3% 0% 8%
Motion 9% -5% -1% 3% 11% -5% -1% 5%
Automation -20% -3% 0% -23% 11% -5% 0% 6%
ABB Group -7% -4% 0% -11% 10% -4% 0% 6%
===== SIDA 49 =====
37 Q2 2026 FINANCIAL INFORMATION
Operational EBITA as % of operational revenues (Operational EBITA margin)
Definition
Operational EBITA margin
Operational EBITA margin is Operational EBITA as a percentage of operational revenues.
Operational EBITA
Operational earnings before interest, taxes and acquisition -related amortization (Operational EBITA) represents Income from operations excluding:
• acquisition-related amortization (as defined below),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying h edged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, and certain environmental and related costs (net of insurance recoveries), 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 Company as a whole.
Acquisition-related amortization
Amortization expense on intangibles arising upon acquisition.
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) 2026 2025 2026 2025
Operational EBITA 3,974 3,093 1,925 1,598
Acquisition-related amortization (98) (91) (51) (48)
Restructuring, related and implementation costs (1) (64) (20) (16) (7)
Changes in obligations related to divested businesses 5 3 – 2
Gains and losses from sale of businesses 7 12 5 1
Acquisition- and divestment-related expenses and integration costs (35) (27) (23) (19)
Certain other non-operational items (252) (58) (171) (38)
Foreign exchange/commodity timing differences in income from operations (172) 28 (84) (23)
Income from operations 3,365 2,940 1,585 1,466
Interest and dividend income 90 95 41 41
Interest and other finance expense (38) (49) (9) (6)
Non-operational pension (cost) credit 35 30 17 16
Income from continuing operations before taxes 3,452 3,016 1,634 1,517
Income tax expense (883) (848) (416) (404)
Income from continuing operations, net of tax 2,569 2,168 1,218 1,113
Income from discontinued operations, net of tax 20 131 38 68
Net income 2,589 2,299 1,256 1,181
(1) Includes impairment of certain assets.
===== SIDA 50 =====
38 Q2 2026 FINANCIAL INFORMATION
Reconciliation of Operational EBITA margin by business
Three months ended June 30, 2026
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 5,200 2,217 2,193 (135) 9,475
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 18 9 10 (2) 35
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) – (2) (1) (4)
Unrealized foreign exchange movements
on receivables (and related assets) 6 9 – (1) 14
Operational revenues 5,223 2,235 2,201 (139) 9,520
Income (loss) from operations 1,172 376 327 (290) 1,585
Acquisition-related amortization 27 15 9 – 51
Restructuring, related and
implementation costs(1) 4 3 6 3 16
Gains and losses from sale of businesses (2) – (9) 6 (5)
Acquisition- and divestment-related expenses
and integration costs 17 2 3 1 23
Certain other non-operational items 7 3 2 159 171
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 81 11 6 (3) 95
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – 1 (3) (2) (4)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (5) 2 (3) (1) (7)
Operational EBITA 1,301 413 338 (127) 1,925
Operational EBITA margin (%) 24.9% 18.5% 15.4% n.a. 20.2%
(1) Includes impairment of certain assets.
In the three months ended June 30, 2026, Certain other non-operational items in the table above includes the following:
Three months ended June 30, 2026
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs 2 3 4 11 20
Environmental and related costs – – – 94 94
Certain other fair values changes,
including asset impairments 4 – (2) 51 53
Other non-operational items 1 – – 3 4
Total 7 3 2 159 171
===== SIDA 51 =====
39 Q2 2026 FINANCIAL INFORMATION
Three months ended June 30, 2025
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 4,331 2,065 2,010 (111) 8,295
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (19) (7) 20 – (6)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – (1) (1) (1) (3)
Unrealized foreign exchange movements
on receivables (and related assets) 11 – (1) – 10
Operational revenues 4,323 2,057 2,028 (112) 8,296
Income (loss) from operations 990 393 266 (183) 1,466
Acquisition-related amortization 29 9 9 1 48
Restructuring, related and
implementation costs(1) 4 5 1 (3) 7
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 5 19
Certain other non-operational items 2 4 – 32 38
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (7) (8) 9 10 4
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – – – (1) (1)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 8 3 (1) 10 20
Operational EBITA 1,033 407 288 (130) 1,598
Operational EBITA margin (%) 23.9% 19.8% 14.2% n.a. 19.3%
(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
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs – 3 – 45 48
Environmental and related costs – – – 1 1
Certain other fair values changes,
including asset impairments – 1 – (11) (10)
Other non-operational items 2 – – (3) (1)
Total 2 4 – 32 38
(1) Amounts include ABB Way process transformation costs of $43 million for the three months ended June 30, 2025.
===== SIDA 52 =====
40 Q2 2026 FINANCIAL INFORMATION
Six months ended June 30, 2026
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 9,813 4,359 4,340 (303) 18,209
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 47 21 (1) 2 69
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) – (6) – (7)
Unrealized foreign exchange movements
on receivables (and related assets) (23) 1 (10) (6) (38)
Operational revenues 9,836 4,381 4,323 (307) 18,233
Income (loss) from operations 2,141 687 614 (77) 3,365
Acquisition-related amortization 54 26 18 – 98
Restructuring, related and
implementation costs(1) 30 10 19 5 64
Changes in obligations related to
divested businesses – – – (5) (5)
Gains and losses from sale of businesses (2) – (9) 4 (7)
Acquisition- and divestment-related expenses
and integration costs 24 4 5 2 35
Certain other non-operational items 13 49 7 183 252
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 166 36 11 (4) 209
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – 1 (7) 1 (5)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (20) (2) (9) (1) (32)
Operational EBITA 2,406 811 649 108 3,974
Operational EBITA margin (%) 24.5% 18.5% 15.0% n.a. 21.8%
(1) Includes impairment of certain assets.
In the six months ended June 30, 2026, Certain other non-operational items in the table above includes the following:
Six months ended June 30, 2026
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs 9 7 9 23 48
Environmental and related costs – – – 94 94
Certain other fair values changes,
including asset impairments 2 41 (2) 65 106
Other non-operational items 2 1 – 1 4
Total 13 49 7 183 252
===== SIDA 53 =====
41 Q2 2026 FINANCIAL INFORMATION
Six months ended June 30, 2025
Corporate and
Other and
Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation elimination Consolidated
Total revenues 8,156 3,905 3,828 (212) 15,677
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (53) (16) (3) (3) (75)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (1) – (6) (1) (8)
Unrealized foreign exchange movements
on receivables (and related assets) 41 5 10 3 59
Operational revenues 8,143 3,894 3,829 (213) 15,653
Income (loss) from operations 1,912 754 521 (247) 2,940
Acquisition-related amortization 55 18 17 1 91
Restructuring, related and
implementation costs(1) 10 7 5 (2) 20
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 1 27
Certain other non-operational items (29) 10 (2) 79 58
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (64) (31) (9) 32 (72)
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/payables
(and related assets/liabilities) 28 6 8 3 45
Operational EBITA 1,919 767 543 (136) 3,093
Operational EBITA margin (%) 23.6% 19.7% 14.2% n.a. 19.8%
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
Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs(1) 1 5 – 86 92
Environmental and related costs – – – 1 1
Certain other fair values changes,
including asset impairments (25) 4 (2) (3) (26)
Other non-operational items (5) 1 – (5) (9)
Total (29) 10 (2) 79 58
(1) Amounts include ABB Way process transformation costs of $86 million for the six months ended June 30, 2025.
===== SIDA 54 =====
42 Q2 2026 FINANCIAL INFORMATION
Net debt
Definition
Net debt
Net debt is defined as Total debt less Cash and marketable securities.
Total debt
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.
Cash and marketable securities
Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments.
Reconciliation
($ in millions) June 30, 2026 December 31, 2025
Short-term debt and current maturities of long -term debt 1,610 475
Long-term debt 6,567 7,829
Total debt 8,177 8,304
Cash and equivalents 3,867 4,640
Marketable securities and short-term investments 1,990 1,981
Cash and marketable securities 5,857 6,621
Net debt 2,320 1,683
Net debt/Equity ratio
Definition
Net debt/Equity ratio
Net debt/Equity ratio is defined as Net debt divided by Equity.
Equity
Equity is defined as Total stockholders’ equity.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2026 December 31, 2025
Total stockholders' equity 16,405 16,646
Net debt (see above) 2,320 1,683
Net debt / Equity ratio 0.14 0.10
Net debt/EBITDA ratio
Definition
Net debt/EBITDA ratio
Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.
EBITDA
EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for
the same trailing twelve-month period.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2026 June 30, 2025
Income from operations for the three months ended:
September 30, 2025 / 2024 1,602 1,225
December 31, 2025 / 2024 1,505 1,094
March 31, 2026 / 2025 1,780 1,474
June 30, 2026 / 2025 1,585 1,466
Depreciation and Amortization for the three months ended:
September 30, 2025 / 2024 204 184
December 31, 2025 / 2024 221 194
March 31, 2026 / 2025 210 186
June 30, 2026 / 2025 220 202
EBITDA 7,327 6,025
Net debt (as defined above) 2,320 3,694
Net debt / EBITDA ratio 0.32 0.61
===== SIDA 55 =====
43 Q2 2026 FINANCIAL INFORMATION
Net working capital
Definition
Net working capital
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade,
(vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and
other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring -related activities); and
including the amounts related to these accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
($ in millions, unless otherwise indicated) June 30, 2026 June 30, 2025
Net working capital:
Receivables, net 8,033 7,461
Contract assets 1,189 1,083
Inventories, net 6,471 6,007
Prepaid expenses 358 354
Accounts payable, trade (5,868) (4,918)
Contract liabilities (3,545) (3,109)
Other current liabilities(1) (3,592) (3,455)
Net working capital 3,046 3,423
(1) Amounts exclude $926 million and $1,027 million at June 30, 2026 and 2025, respectively, related primarily to (a) income taxes payable, (b) current derivative
liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program, (e) dividends payable and (f) liabilities related to certain
restructuring -related activitie s.
===== SIDA 56 =====
44 Q2 2026 FINANCIAL INFORMATION
Average trade net working capital as a percentage of revenues
Definition
Average trade net working capital as a percentage of revenues
Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the
trailing twelve months (being total revenues for the twelve months preceding the relevant balance sheet date).
Average trade net working capital
Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during
the trailing twelve-month period (4-quarter average).
Trade net working capital
Trade net working capital is the sum of (i) trade receivables, net (comprised of trade accounts receivable net of related allowance, presented within
Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract
liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating
expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these
accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2026 2026 2025 2025 2025
Trade net working capital:
Trade receivables, net 7,400 6,959 6,884 6,838 6,837
Contract assets 1,189 1,152 1,090 1,062 1,083
Inventories, net 6,471 6,056 5,862 6,051 6,007
Accounts payable, trade (5,868) (5,423) (5,210) (4,936) (4,918)
Contract liabilities (3,545) (3,475) (3,221) (3,204) (3,109)
Accrued expenses, operating (1,320) (1,252) (1,346) (1,370) (1,254)
Trade net working capital in assets and liabilities held for sale – – – (8) –
Trade net working capital 4,327 4,017 4,059 4,433 4,646
Average of opening and closing Trade net working capital 4,172 4,038 4,246 4,540
Average trade net working capital 4,249
Total revenues for the three months ended:
September 30, 2025 8,491
December 31, 2025 9,052
March 31, 2026 8,734
June 30, 2026 9,475
Total revenues for the trailing twelve months 35,752
Average trade net working capital as a percentage of revenues
(%)
11.9%
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, net 6,837 6,401 6,277 6,360 6,415
Contract assets 1,083 992 889 967 868
Inventories, net 6,007 5,680 5,420 6,100 5,809
Accounts payable, trade (4,918) (4,676) (4,681) (4,798) (4,759)
Contract liabilities (3,109) (2,986) (2,704) (2,795) (2,682)
Accrued expenses, operating (1,254) (1,189) (1,234) (1,327) (1,228)
Trade net working capital in assets and liabilities held for sale – – – 20 –
Trade net working capital 4,646 4,222 3,967 4,527 4,423
Average of opening and closing Trade net working capital 4,434 4,095 4,247 4,475
Average trade net working capital 4,313
Total revenues for the three months ended:
September 30, 2024 7,591
December 31, 2024 7,996
March 31, 2025 7,382
June 30, 2025 8,295
Total revenues for the trailing twelve months 31,264
Average trade net working capital as a percentage of revenues
(%)
13.8%
===== SIDA 57 =====
45 Q2 2026 FINANCIAL INFORMATION
Return on Capital employed (ROCE)
Definition
Return on Capital employed (ROCE)
Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the unrounded average of the
opening and closing Capital employed for each of the four quarters during the trailing twelve -month period (4-quarter average).
Capital employed
Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital (as defined above).
Adjusted total fixed assets
Adjusted total fixed assets is the sum of (i) property, plant and equipment, net, (ii) goodwill, (iii) intangible assets, net, (iv) investments in
equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities
recognized in certain acquisitions.
Notional tax on Operational EBITA
The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the Company’s weighted -
average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant changes in the Company’s
weighted-average global tax rate.
Reconciliation
June 30, March 31, December 31, September 30, June 30,
($ in millions, unless otherwise indicated) 2026 2026 2025 2025 2025
Adjusted total fixed assets:
Property, plant and equipment, net 4,700 4,605 4,692 4,443 4,396
Goodwill 9,636 9,585 9,637 9,522 9,507
Intangible assets, net 1,075 1,088 1,119 1,096 1,140
Investments in equity-accounted companies 340 321 349 381 369
Operating lease right-of-use assets 783 785 765 754 761
Fixed assets included in assets held for sale – – – 9 –
Total fixed assets 16,534 16,384 16,562 16,205 16,173
Less: Deferred taxes recognized in certain acquisitions (1) (177) (188) (199) (210) (220)
Adjusted total fixed assets 16,357 16,196 16,363 15,995 15,953
Net working capital - (as defined above) 3,046 2,705 2,372 2,993 3,423
Capital employed 19,403 18,901 18,735 18,988 19,376
Average of opening and closing Capital employed 19,152 18,818 18,862 19,182
Operational EBITA for the three months ended 1,925 2,049 1,588 1,633
Operational EBITA for the trailing twelve months 7,195
Notional tax on Operational EBITA (1,799)
Operational EBITA after tax for the trailing twelve months 5,396
Average Capital employed (4 quarters) 19,003
Return on Capital Employed (ROCE) 28.4%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 58 =====
46 Q2 2026 FINANCIAL INFORMATION
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 4,396 4,099 3,986 4,050 3,911
Goodwill 9,507 9,305 8,801 8,774 8,752
Intangible assets, net 1,140 1,134 999 981 1,034
Investments in equity-accounted companies 369 361 351 172 173
Operating lease right-of-use assets 761 765 752 779 772
Fixed assets included in assets held for sale – – – 176 –
Total fixed assets 16,173 15,664 14,889 14,932 14,642
Less: Deferred taxes recognized in certain acquisitions (1) (220) (231) (242) (253) (265)
Adjusted total fixed assets 15,953 15,433 14,647 14,679 14,377
Net working capital - (as defined above) 3,423 3,037 2,403 3,231 3,213
Capital employed 19,376 18,470 17,050 17,910 17,590
Average of opening and closing Capital employed 18,923 17,760 17,480 17,750
Operational EBITA for the three months ended 1,598 1,495 1,330 1,457
Operational EBITA for the trailing twelve months 5,880
Notional tax on Operational EBITA (1,470)
Operational EBITA after tax for the trailing twelve months 4,410
Average Capital employed (4 quarters) 17,978
Return on Capital Employed (ROCE) 24.5%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 59 =====
47 Q2 2026 FINANCIAL INFORMATION
Free cash flow
Definition
Free cash flow
Free cash flow is calculated as net cash provided by operating activities adjusted for: (i) purchases of property, plant and equipment and intangible
assets, and (ii) proceeds from sales of property, plant and equipment .
Reconciliation
Six months ended June 30, Three months ended June 30,
($ in millions, unless otherwise indicated) 2026 2025 2026 2025
Net cash provided by operating activities – continuing operations 2,315 1,579 1,303 971
Adjusted for the effects of continuing operations:
Purchases of property, plant and equipment and intangible assets (417) (385) (236) (202)
Proceeds from sale of property, plant and equipment 462 173 25 10
Free cash flow – continuing operations 2,360 1,367 1,092 779
Net cash provided by (used in) operating activities – discontinued operations (136) 164 (153) 88
Adjusted for the effects of discontinued operations:
Purchases of property, plant and equipment and intangible assets (93) (34) (58) (22)
Free cash flow – discontinued operations (229) 130 (211) 66
Free cash flow 2,131 1,497 881 845
Free cash flow conversion to net income
Definition
Free cash flow conversion to net income
Free cash flow conversion to net income is calculated as free cash flow divided by Adjusted net income.
Adjusted net income
Adjusted net income is calculated as Net income adjusted for gains or losses arising on sale of certain businesses and certain other significant items
within net income which are also excluded / adjusted for when calculating operating cashflows.
Free cash flow for the trailing twelve months
Free cash flow for the trailing twelve months is defined as Free cash flow for the twelve months preceding the relevant balan ce sheet date.
Adjusted net income for the trailing twelve months
Adjusted net income for the trailing twelve months is defined as Adjusted net income for the twelve months preceding the rele vant balance sheet date.
Reconciliation
Trailing twelve months to
($ in millions, unless otherwise indicated) June 30, 2026 December 31, 2025
Net cash provided by operating activities 5,887 5,469
Adjusted for the effects of continuing operations:
Purchases of property, plant and equipment and intangible assets (1,033) (1,001)
Proceeds from sale of property, plant and equipment 483 194
Adjusted for the effects of discontinued operations:
Purchases of property, plant and equipment and intangible assets (157) (98)
Proceeds from sale of property, plant and equipment 2 2
Free cash flow 5,182 4,566
Adjusted net income(1) 5,084 4,757
Free cash flow conversion to net income 102% 96%
(1) Adjusted net income for the year ended December 31, 2025, is adjusted to exclude $53 million of gains arising on sale of certain investments and intangible assets, and
adjustments to the gain on sale of Power Grids of $13 million.
Reconciliation of the trailing twelve months to June 30, 2026
Continuing operations Discontinued operations
($ in millions)
Net cash
provided by
operating
activities
Purchases of
property, plant
and equipment
and intangible
assets
Proceeds
from sale of
property, plant
and equipment
Purchases of
property, plant
and equipment
and intangible
assets
Proceeds
from sale of
property, plant
and equipment
Adjusted net
income(1)
Q3 2025 1,777 (207) 3 (22) 1 1,215
Q4 2025 1,949 (409) 18 (42) 1 1,280
Q1 2026 1,011 (181) 437 (35) – 1,333
Q2 2026 1,150 (236) 25 (58) – 1,256
Total for the trailing twelve
months to June 30, 2026 5,887 (1,033) 483 (157) 2 5,084
(1) Adjusted net income for Q3 2025 is adjusted to exclude adjustments to the gain on sale of Power Grids of $13 million and $16 million of gains arising on sale of
certain intangible assets .
===== SIDA 60 =====
48 Q2 2026 FINANCIAL INFORMATION
Net finance income (expense)
Definition
Net finance income (expense) is calculated as Interest and dividend income less Interest and other finance expense.
Reconciliation
Six months ended June 30, Three months ended June 30,
($ in millions) 2026 2025 2026 2025
Interest and dividend income 90 95 41 41
Interest and other finance expense (38) (49) (9) (6)
Net finance income 52 46 32 35
Book-to-bill ratio
Definition
Book-to-bill ratio is calculated as Orders received divided by Total revenues.
Reconciliation
Six months ended June 30,
2026 2025
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 13,878 9,813 1.41 8,912 8,156 1.09
Motion 5,140 4,359 1.18 4,268 3,905 1.09
Automation 4,918 4,340 1.13 5,011 3,828 1.31
Corporate and Other (incl. intersegment eliminations) (596) (303) n.a. (348) (212) n.a.
ABB Group 23,340 18,209 1.28 17,843 15,677 1.14
Three months ended June 30,
2026 2025
($ in millions, except Book-to-bill presented as a ratio) Orders Revenues Book-to-bill Orders Revenues Book-to-bill
Electrification 7,231 5,200 1.39 4,518 4,331 1.04
Motion 2,592 2,217 1.17 2,112 2,065 1.02
Automation 2,454 2,193 1.12 2,814 2,010 1.40
Corporate and Other (incl. intersegment eliminations) (235) (135) n.a. (190) (111) n.a.
ABB Group 12,042 9,475 1.27 9,254 8,295 1.12
===== SIDA 61 =====
ABB Ltd
Corporate Communications
P.O. Box 8131
8050 Zurich
Switzerland
Tel: +41 (0)43 317 71 11
www.abb.com