FULLTEXT DEL 1 AV 2
Kvartalsrapport Q3 2025
===== SIDA 1 =====
—
ZURICH, SWITZERLAND, OCTOBER 16, 2025
Q3 2025 results
High order and revenue growth, improved margin and
strong free cash flow
• Orders $9,143 million, +12%; comparable1 +9%
• Revenues $9,083 million, +11%; comparable1 +9%
• Income from operations $1,662 million; margin 18.3%
• Operational EBITA1 $1,738 million; margin1 19.2%
• Basic EPS $0.66; +29%3
• Cash flow from operating activities $1,777 million; +32%
• Return on Capital Employed 23.3%
—
“I am proud of ABB achieving good order growth, further improving operational
performance and delivering a strong cash flow in the third quarter. We continue to invest
to support robust long-term demand for our electrification and automation technologies.”
Morten Wierod, CEO
KEY FIGURES
CHANGE CHANGE
($ millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable1 9M 2025 9M 2024 US$ Comparable1
Orders 9,143 8,193 12% 9% 28,141 25,602 10% 9%
Revenues 9,083 8,151 11% 9% 25,918 24,260 7% 6%
Gross Profit2 3,702 3,245 14% 10,587 9,612 10%
as % of revenues2 40.8% 39.8% +1 pts 40.8% 39.6% +1.2 pts
Income from operations 1,662 1,309 27% 4,802 3,902 23%
Operational EBITA1 1,738 1,553 12% 9% 4 5,043 4,534 11% 10% 4
as % of operational revenues1 19.2% 19.0% +0.2 pts 19.5% 18.6% +0.9 pts
Income from continuing operations, net of tax 1,235 937 32% 3,542 2,955 20%
Net income attributable to ABB 1,208 947 28% 3,461 2,948 17%
Basic earnings per share ($) 0.66 0.51 29%3 1.89 1.60 18%3
Cash flow from operating activities 1,777 1,345 32% 3,520 3,138 12%
Free cash flow1 1,552 1,173 32% 3,049 2,642 15%
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q3 2025 Financial Information.
2 Prior period amounts have been restated to reflect a change in accounting policy for IS expenses, see “Note 1 - The Company and Basis of Presentation” in the attached Q3 2025 Financial
Information for details.
3 EPS growth rates are computed using unrounded amounts.
4 Constant currency (not adjusted for portfolio changes).
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange
Q3 2025
FIRST NINE MONTHS
PRESS RELEASE
===== SIDA 2 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 2
In the third quarter 2025, I was pleased to see a robust
overall market situation as customers continue to invest
behind electrical power and automation. We achieved a
positive book-to-bill of 1.01, supported by three out of four
business areas, with Robotics & Discrete Automation still
hampered by a challenging discrete automation market.
Our operational results were even a bit better than
originally expected with a strong revenue growth of 11%
(9% comparable), a 20 basis points margin improvement to
19.2% and a strong free cash flow of $1.6 billion. All
combined, we are on a good path towards our ambition of
delivering another record year for ABB.
We improved orders by 12% (9% comparable) to $9.1 billion,
with a positive development in all four business areas.
Demand was particularly strong in the data center segment
which improved orders at a double-digit rate. Positive
development was seen in the electrification areas of
infrastructure and commercial buildings. Orders in the
machine builder segment increased significantly, but this
relates more to last year’s low comparable as the general
market conditions remain muted. Customer activity in the
energy segment is robust. Similar to recent quarters,
demand was muted in the process industry-related areas of
pulp & paper, chemicals and mining; and with weakness in
automotive and residential buildings.
US tariff-related market uncertainties remain, but so far we
have not seen any material impact on demand or
profitability. We continue to focus on what we can control:
serving our customers and taking action to improve our
market position and profitability.
Our long-standing local-for-local footprint serves us well,
and we continue to invest in increasing localization levels.
During the quarter we announced combined investments of
$210 million in North America to expand the Electrification
business area’s local R&D and manufacturing capabilities in
the United States and Canada. These investments will
support the long-term demand from the surging power
needs of AI in data centers, grid modernization and
resilience and customers improving energy efficiency and
up-time to reduce their costs.
It was good to see the Motion Drive Products division
further strengthening their customer value proposition by
launching the next-gen machinery drive. This new drive is
engineered specifically for performance and connectivity in
industrial machinery applications with stringent
cybersecurity requirements, while offering customers
reduced complexity and installation time. Well done by the
team.
After the close of the third quarter, we announced the
changed plans for the ABB Robotics division. Instead of
doing a spin-off, as communicated earlier this year, we have
signed an agreement to divest the business to SoftBank
Group for an enterprise value of $5.375 billion. In our view,
the bid reflects the long-term strengths of ABB Robotics,
which will benefit from combining its leading technology
and deep industry expertise with SoftBank’s state-of-the-
art capabilities in AI, robotics and next-generation
computing. Upon closing of the deal, anticipated for mid-
to-late 2026, we will use the proceeds from the transaction
in accordance with our capital allocation priorities. As a
result of the signing of the agreement, ABB will move to
three business areas as from the fourth quarter 2025. The
Robotics division will be reported as Discontinued
operations and the Machine Automation division will
become a part of the Process Automation business area.
We have also announced that CFO, Timo Ihamuotila, will
step down from the Executive Committee effective
February 1, 2026, as he has decided to focus on non-
operational roles. Timo will be succeeded by the internal
candidate Christian Nilsson who joined ABB in 2017 as CFO
of the Electrification business area.
Morten Wierod
CEO
In the fourth quarter of 2025, we anticipate comparable
revenue growth to be in the mid-single digit range, and
the Operational EBITA margin to sequentially soften
from the third quarter by approximately -150 basis
points, in line with historical pattern; however
acknowledging the uncertainty for the global business
environment.
In full-year 2025, we expect a positive book-to-bill,
comparable revenue growth in the mid-single digit
range and an Operational EBITA margin broadly at the
higher end of the long-term target range of 16%-19%,
however acknowledging the uncertainty for the global
business environment.
CEO summary
Outlook
Guidance based on new reporting structure effective as from fourth quarter 2025
===== SIDA 3 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 3
In the third quarter, demand for electrical power
infrastructure and automation continued its strong
trend. Uncertainties from potential impacts related to
US imposed tariffs remain, similar to the previous
quarter, but have not materially impacted business
activity. With the majority of ABB’s manufacturing set
up on a local-for-local basis, tariff-related cost inflation
has so far been limited, and mitigating pricing activities
have been implemented. Order intake amounted to
$9,143 million and improved by 12% (9% comparable)
year-on-year, supported by a positive development in all
four business areas.
Orders in the Americas were up by 19% (19%
comparable), with the mid-single digit growth in base
orders further fueled by large bookings. Orders in
Europe were up by 16% (9% comparable). Asia, Middle
East and Africa declined by 1% (1% comparable) with
China being down by 3% (4% comparable).
In transport & infrastructure, the trading environment
and pipeline remains strong in marine and ports,
although quarterly order intake remained stable year-
on-year. The rail segment remains robust and orders
increased sharply. The segment for land transport
infrastructure benefited from upgrades of electrical
equipment for such as airports, tunnels etc.
In the industrial areas, the utilities segment remains
generally very strong, although with a modest order
improvement in this quarter. The market sentiment in
data centers was very strong and orders increased by
double-digits.
The buildings segment improved overall, with a stable
to positive development in both Europe and the United
States more than offsetting the general weakness in
China.
In the robotics business, weakness in the automotive
and general industry segments was offset by a positive
development in areas like consumer electronics and
logistics. Orders in the machine builder segment
increased sharply from a low comparable, however the
absolute level remains subdued in a continued
challenging market.
Orders in the oil & gas segment improved. There was
increased activity among nuclear customers, however
slower demand in renewables. Declines were noted in
mining, pulp & paper and chemicals.
Revenues improved in all business areas and amounted
to $9,083 million, up by 11% (9% comparable). This was
supported by backlog execution as well as positive
developments in the short-cycle and service businesses.
Higher volumes was the main driver of the revenue
growth, with some added support from positive pricing.
Growth
Q3 Q3
Change year-on-year Orders Revenues
Comparable 9% 9%
FX 3% 2%
Portfolio changes 0% 0%
Total 12% 11%
Orders by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q3 2025 Q3 2024 US$ Comparable
Europe 2,971 2,572 16% 9%
The Americas 3,626 3,048 19% 19%
Asia, Middle East
and Africa 2,546 2,573 -1% -1%
ABB Group 9,143 8,193 12% 9%
Revenues by region
($ in millions,
unless otherwise
indicated)
CHANGE
Q3 2025 Q3 2024 US$ Comparable
Europe 3,131 2,659 18% 11%
The Americas 3,344 3,006 11% 12%
Asia, Middle East
and Africa 2,608 2,486 5% 4%
ABB Group 9,083 8,151 11% 9%
Orders and revenues
===== SIDA 4 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 4
Gross profit
Gross profit increased by 14% (11% constant currency) year-
on-year to $3,702 million, reflecting a gross margin of 40.8%,
up 100 basis points. Gross margin remained stable or
improved in all business areas.
Income from operations
Income from operations amounted to $1,662 million and
increased by 27% year-on-year. This was mainly driven by
improved operational business performance with additional
support from Certain other fair value changes as well as the
positive contribution from Foreign exchange timing
differences. These combined positive effects more than offset
somewhat higher Acquisition and divestment-related
expenses. The Income from operations margin was 18.3% and
improved by 220 basis points.
Operational EBITA
Operational EBITA increased by 12% year-on-year to $1,738
million, resulting in a 20 basis points margin improvement to
19.2%. Higher results were supported by improved
performance in the businesses, which more than offset
increased Corporate expenses. The positive business impacts
from higher volumes, slightly positive pricing and improved
efficiency more than compensated for the increase in expenses
related to Research and Development (R&D) as well as Sales,
General & Administrative (SG&A). SG&A increased only slightly
in relation to revenues to 19.1% from last year’s 19.0%.
Operational EBITA in Corporate and Other amounted to
-$134 million compared with last year’s -$108 million.
Underlying corporate costs were $108 million while the
E-mobility business reported a somewhat lower than
anticipated loss at $26 million.
Finance net
Net finance income contributed to results with a positive
$13 million, representing a higher income compared with last
year’s $2 million.
Income tax
Income tax expense was $452 million, and the effective tax
rate was 26.8%.
Net income and earnings per share
Net income attributable to ABB was $1,208 million,
representing an increase of 28% year-on-year, mainly helped
by the impact of improved business performance, with some
additional support from improved Net finance income and a
lower tax rate year-on-year. Basic earnings per share increased
by 29% to $0.66, up from $0.51 in the previous year period.
Earnings
Corporate and Other
Operational EBITA
($ in millions) Q3 2025 Q3 2024
Corporate and Other
E-mobility (26) (60)
Corporate costs, intersegment
eliminations and other1 (108) (48)
Total (134) (108)
1 Majority of which relates to underlying corporate
===== SIDA 5 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 5
Trade net working capital1
Trade net working capital amounted to $4,869 million,
decreasing slightly year-on-year from $4,931 million, as
the increase in receivables was mostly offset by higher
customer advances and payables. The average trade net
working capital as a percentage of revenues1 was 13.8%
which declined from 15.1% one year ago.
Capital expenditures
Purchases of property, plant and equipment and
intangible assets during the third quarter amounted to
$229 million, higher than last year’s $196 million.
Net debt
Net debt1 amounted to $2,697 million at the end of the
quarter and increased from $2,158 million year-on-year.
The sequential decrease from $3,701 million in the second
quarter was mainly due to the very strong cash generation
in the third quarter, partially offset by purchases of
treasury shares.
Cash flows
Cash flow from operating activities during the third quarter
was $1,777 million, an increase of 32% from last year’s
$1,345 million. Contribution to the strong cash flow derived
from stronger earnings as well as a reduction in Net
Working Capital, mainly linked to contribution from
contract assets and liabilities and timing of accrued
expenses. Free cash flow amounted to $1,552 million, and
improved materially from last year’s $1,173 million, despite
the higher capex spend.
Share buyback program
A share buyback program of up to $1.5 billion was launched
on February 10, 2025. During the third quarter, ABB
repurchased a total of 5,262,688 shares for a total amount
of approximately $344 million. As at the end of the third
quarter, ABB’s total number of issued shares, including
shares held in treasury, amounts to 1,843,899,204.
Balance sheet & Cash flow
($ in millions,
unless otherwise indicated)
Sep. 30
2025
Sep. 30
2024
Dec. 31
2024
Short-term debt and current
maturities of long-term debt 680 109 293
Long-term debt 7,844 6,666 6,652
Total debt 8,524 6,775 6,945
Cash & equivalents 3,937 3,283 4,326
Marketable securities and
short-term investments 1,890 1,334 1,334
Cash and marketable securities 5,827 4,617 5,660
Net debt (cash)* 2,697 2,158 1,285
Net debt (cash)* to EBITDA ratio 0.4 0.4 0.2
Net debt (cash)* to Equity ratio 0.17 0.15 0.09
* September 30, 2025, September 30, 2024 and Dec. 31, 2024, net debt(cash) excludes net
pension (assets)/liabilities of $(366) million, $(302) million and $(227) million,
respectively.
===== SIDA 6 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 6
Orders and revenues
In a buoyant business environment, orders increased by
12% (10% comparable) to $4,522 million as customers
continue to invest behind electrical power. Revenues were
record-high, yet book-to-bill was positive at 1.01.
• All customer segments had stable to positive order
development. Growth was particularly strong in data
centers which improved at a double-digit rate. Buildings
was overall positive, with the US and Europe improving
within the commercial area and remaining broadly
stable for residential. The buildings market in China
remains weak overall. Utilities remain strong, although
orders were broadly stable on a high comparable.
Another area for high customer activity was land
transport infrastructure, such as airports, rail, tunnels.
• The Americas increased by 17% (18% comparable) with
a very strong development of 23% (23% comparable) in
the United States. Europe was up by 22% (15%
comparable). Asia, Middle East and Africa declined by
5% (6% comparable) with China being down by 10%
(12% comparable).
• Revenues improved strongly in virtually all divisions and
was even a bit better than originally expected with a
strong ending to the quarter. Revenues amounted to
$4,499 million and higher volumes was the main driver
to the 15% (13% comparable) increase, reflecting high
deliveries linked to the order backlog for the medium
voltage and power protection offering, as well as
improved short-cycle demand. Additional support
derived from a slightly positive price development.
Profit
Most divisions improved earnings and margin, supporting
the total increase of 17% in Operational EBITA to $1,100
million, reflecting a margin of 24.5%, up 40 basis points
from last year.
• The improved result was driven by the impacts from
operational leverage on higher volumes which more
than offset higher spend on R&D and SG&A, year-on-
year. While R&D increased slightly as a percentage of
revenues, the SG&A percentage declined.
• Tariff-related cost impact was not material and was
offset by productivity measures and pricing.
—
Electrification
CHANGE CHANGE
($ millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable 9M 2025 9M 2024 US$ Comparable
Orders 4,522 4,049 12% 10% 13,434 12,514 7% 7%
Order backlog 8,750 7,945 10% 10% 8,750 7,945 10% 10%
Revenues 4,499 3,913 15% 13% 12,655 11,402 11% 10%
Gross Profit 1,909 1,623 18% 5,354 4,724 13%
as % of revenues 42.4% 41.5% +0.9 pts 42.3% 41.4% +0.9 pts
Operational EBITA 1,100 944 17% 3,019 2,657 14%
as % of operational revenues 24.5% 24.1% +0.4 pts 23.9% 23.2% +0.7 pts
Cash flow from operating activities 1,340 1,041 29% 2,817 2,438 16%
No. of employees (FTE equiv.) 52,800 51,700 2%
Growth
Q3 Q3
Change year-on-year Orders Revenues
Comparable 10% 13%
FX 2% 2%
Portfolio changes 0% 0%
Total 12% 15%
===== SIDA 7 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 7
Orders and revenues
Order intake was high at $2,162 million and improved by
20% (17% comparable). A positive development in both
the project and short-cycle businesses supported the
book-to-bill of 1.04.
• Orders increased in the segments of HVAC for
commercial buildings, water & wastewater, oil & gas,
power generation and food & beverage. Similar to
previous quarters, weakness was seen in the process-
related segments of chemicals, pulp & paper and
metals. The pipeline for rail is robust, and orders
improved sharply.
• Orders improved in all regions. The Americas was up
by 35% (33% comparable), with the strong
improvement of 43% (40% comparable) in the United
States positively impacted by timing of large orders
booked. The comparable was fairly low for both
Europe, which was up by 15% (8% comparable) and
Asia, Middle East and Africa up by 8% (8%
comparable), with China improving 3% (2%
comparable).
• Revenues amounted to $2,082 million and improved
by 6% (3% comparable). Higher short-cycle volumes
and a positive development in the service business
was the somewhat larger driver to comparable
revenue growth, with further support from positive
price impacts. Deliveries from the project and system-
related business were somewhat lower than
anticipated.
Profit
Operational EBITA improved by 4%, however the margin
of 20.1% softened by 60 basis points from last year’s all-
time-high level.
• The positive impact on margin from operational
leverage on higher volumes and positive price was
more than offset mainly by higher SG&A and R&D.
—
Motion
CHANGE CHANGE
($ millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable 9M 2025 9M 2024 US$ Comparable
Orders 2,162 1,806 20% 17% 6,430 6,123 5% 4%
Order backlog 6,176 5,750 7% 5% 6,176 5,750 7% 5%
Revenues 2,082 1,969 6% 3% 5,987 5,749 4% 3%
Gross Profit 796 735 8% 2,317 2,103 10%
as % of revenues 38.2% 37.3% +0.9 pts 38.7% 36.6% +2.1 pts
Operational EBITA 421 404 4% 1,188 1,135 5%
as % of operational revenues 20.1% 20.7% -0.6 pts 19.8% 19.7% +0.1 pts
Cash flow from operating activities 464 397 17% 1,128 1,258 -10%
No. of employees (FTE equiv.) 22,300 22,600 -1%
Growth
Q3 Q3
Change year-on-year Orders Revenues
Comparable 17% 3%
FX 3% 3%
Portfolio changes 0% 0%
Total 20% 6%
===== SIDA 8 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 8
Orders and revenues
At 1.05, this was the 20th consecutive quarter with
Process Automation achieving a positive book-to-bill.
Order intake of $1,896 million was up by 6% (4%
comparable) and improved despite a lower level of large
bookings, as customers continue to invest in safe and
efficient uptime solutions through automation,
electrification and digitalization.
• The strongest order improvement was seen in the
energy-related segments of oil & gas and conventional
power generation. There was also an increased
activity among nuclear customers, however slower for
renewables, such as solar and wind. The market for
marine and port automation and electrification
remains strong, although order intake was stable in
the quarter. A decline was recorded in the process
industry-related areas of chemical, pulp & paper and
mining.
• Revenues amounted to $1,801 million, up 10%
(7% comparable) with the broad-based support from
execution of the order backlog, strong growth in the
service business and improvement in the short-cycle
product business. Higher deliveries was the key driver
to comparable revenue growth, with additional
support from price and mix impacts.
Profit
Operational EBITA increased by 10% to $277 million
with margin somewhat better than expected at 15.5%,
up 30 basis points from last year.
• The margin improvement was mainly supported by
the impacts from higher volume and positive pricing.
These combined positive effects more than offset
increased spend for R&D as well as slightly higher
SG&A.
As from the fourth quarter 2025, the Process
Automation business area will also contain the Machine
Automation division, currently part of the Robotics &
Discrete Automation business area.
—
Process Automation
CHANGE CHANGE
($ millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable 9M 2025 9M 2024 US$ Comparable
Orders 1,896 1,784 6% 4% 6,540 5,283 24% 22%
Order backlog 9,353 7,782 20% 18% 9,353 7,782 20% 18%
Revenues 1,801 1,643 10% 7% 5,238 4,961 6% 5%
Gross Profit 695 614 13% 2,039 1,850 10%
as % of revenues 38.6% 37.4% +1.2 pts 38.9% 37.3% +1.6 pts
Operational EBITA 277 251 10% 822 767 7%
as % of operational revenues 15.5% 15.2% +0.3 pts 15.7% 15.4% +0.3 pts
Cash flow from operating activities 449 323 39% 965 809 19%
No. of employees (FTE equiv.) 22,900 22,100 4%
Growth
Q3 Q3
Change year-on-year Orders Revenues
Comparable 4% 7%
FX 2% 3%
Portfolio changes 0% 0%
Total 6% 10%
===== SIDA 9 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 9
Orders and revenues
As expected, there was a slight sequential order
increase, reflecting a year-on-year, improvement of 16%
(13% comparable).
• Orders in the Robotics division remained broadly
stable year-on-year as weakness in the automotive
and general industry segments was offset by a
positive development in areas like consumer
electronics and logistics.
• Orders in the Machine Automation division increased
sharply from a low level, however the absolute order
level remains subdued in a continued challenging
market.
• Revenues amounted to $807 million for the business
area, up by 8% (5% comparable). Both divisions
improved from last year’s low comparable, supported
mainly by backlog execution triggering higher
volumes, with some additional support from price.
Profit
Both earnings and margin improved materially from last
year’s low level, and remained broadly stable
sequentially with the Operational EBITA at $74 million
and margin at 9.2%.
• In Robotics, both earnings and margin improved year-
on-year as the division continued to deliver a double-
digit profitability level, supported by higher volumes
and stable pricing.
• Machine Automation delivered earnings at a break-
even level as savings from cost measures did not
offset the adverse impacts from low utilization rates
in production.
As from the fourth quarter 2025, the business area will
be dissolved as a consequence of the signed agreement
to divest the Robotics division, which will be reported in
Discontinued operations. The Machine Automation
division will become part of the Process Automation
business area.
—
Robotics & Discrete Automation
CHANGE CHANGE
($ millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable 9M 2025 9M 2024 US$ Comparable
Orders 744 640 16% 13% 2,272 2,029 12% 11%
Order backlog 1,467 1,734 -15% -16% 1,467 1,734 -15% -16%
Revenues 807 747 8% 5% 2,364 2,444 -3% -4%
Gross Profit 274 254 8% 807 851 -5%
as % of revenues 34.0% 34.0% 0 pts 34.1% 34.8% -0.7 pts
Operational EBITA 74 62 19% 222 268 -17%
as % of operational revenues 9.2% 8.3% +0.9 pts 9.4% 11.0% -1.6 pts
Cash flow from operating activities 143 83 72% 331 276 20%
No. of employees (FTE equiv.) 10,300 10,900 -5%
Growth
Q3 Q3
Change year-on-year Orders Revenues
Comparable 13% 5%
FX 3% 3%
Portfolio changes 0% 0%
Total 16% 8%
===== SIDA 10 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 10
Events from the Quarter
• ABB has opened a new $35 million manufacturing and
R&D facility in Nottingham, U.K., to expand research
and development and production of its Furse®
earthing and lightning solutions. These advanced
products help safeguard critical infrastructure against
lightning strikes and electrical surges, preventing
costly damage and disruption. The investment will
enable ABB to meet growing demand from customers
who want to protect critical industries, driven by
increased frequency and intensity of severe weather
events, along with urbanization, and more stringent
building and data center safety requirements. The site
integrates the latest technologies for sustainable
operations, bringing together ABB’s digital and
renewable energy solutions to increase energy
efficiency and reduce emissions.
• During the quarter, ABB has also expanded its IE5
SynRM motor portfolio with three smaller frame sizes.
This gives customers the broadest range of magnet-
and rare earth-free motors to boost efficiency,
reliability, and sustainability across even more
applications. With the expanded SynRM range, the
company is ensuring that every motor, no matter the
size, plays its part in helping boost productivity for
our customers while cutting emissions. ABB’s IE5
SynRM motors cut energy losses by up to 40%
compared to IE3 motors. For example, a single 90 kW
motor can save €79,800 and reduce CO₂ emissions by
95,760 kg over 20 years. Industrial sites typically
operate dozens or even hundreds of smaller motors
alongside larger ones, multiplying these savings and
environmental benefits, often delivering a payback in
as little as 5 months.
• ABB is enabling faster, safer and more cost-effective
rebuilding in areas devastated by the 2025 Southern
California wildfires through a collaboration with
Cosmic Buildings – a leading construction technology
company that uses proprietary mobile robotic
microfactories. The microfactory in the Pacific
Palisades, California, builds modular structures
onsite, offering a glimpse into the future of affordable
housing construction. ABB’s robots and digital twin
technologies are being integrated into Cosmic’s AI-
powered mobile microfactory that reduces
construction time by up to 70% and lowers total
building costs by approximately 30% compared to
conventional methods. Homes can be delivered in just
12 weeks. The process also minimizes waste and
improves build quality, easing the burden on
homeowners facing underinsurance and inflated
rebuilding costs.
• ABB will deliver 1,500 NINVA™ non-invasive
temperature sensors approved for marine use to
eMarine, a Swedish company dedicated to enabling
efficiency and sustainability in the maritime industry.
NINVA will complement eMarine’s advanced energy
management solutions already deployed on major
cruise and cargo vessels worldwide. The data
collected by the innovative NINVA temperature
sensors will play a key role in optimizing heat recovery
as well as the management of cooling water and
ventilation systems onboard. The insights will enable
lower fuel consumption, measurable energy savings,
and reduced CO₂ emissions. With enhanced vibration
resistance up to 4g, the sensors meet the demanding
conditions of marine operations while maintaining
the same accuracy as invasive thermowells – without
the need to perforate pipe walls.
—
Sustainability
Q3 2025 Q3 2024 CHANGE 12M ROLLING
CO₂e own operations emissions,
Ktons scope 1 and 21 27 28 -6% 128
Total recordable incident frequency rate (TRIFR),
frequency / 1,000,000 working hours 2 1.24 1.53 -19% 1.34
Proportion of women in senior management roles
in %3 21.9 21.3 +0.6 pts 22.0
1 CO₂ equivalent emissions from site, energy use, SF₆ and fleet, previous quarter
2 To align with CSRD reporting requirements, we have replaced our primary safety KPI, Lost Time Injury Frequency Rate (LTIFR), with Total Recordable Incident Frequency Rate (TRIFR). This new
measure includes all incidents and injuries except first aid cases and near misses, promoting improved system learning, enhanced transparency, and greater openness in reporting. Current quarter
Includes all incidents reported by October 6, 2025
3 The above disclosure relates to countries where policies legally permit and to the extent that it does not conflict with any applicable local laws, where ABB operates.
===== SIDA 11 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 11
After Q3 2025
• On October 8, 2025, ABB announced it had signed an
agreement to divest its Robotics division to SoftBank
Group for an enterprise value of $5.375 billion, and
therefore was not pursuing its earlier intention to
spin-off the business as a separately listed company.
The transaction is subject to regulatory approvals
and further customary closing conditions and is
expected to close in mid-to-late 2026.
• On October 8, 2025, ABB announced that Sami Atiya,
President Robotics & Discrete Automation business
area and Member of the Executive Committee, will
step down from the Executive Committee at the end
of 2025 and leave ABB by the end of 2026 in line with
the announced divestment of the Robotics division.
• On October 16, 2025, ABB announced that CFO, Timo
Ihamuotila, will step down from the Executive
Committee effective February 1, 2026, and leave ABB
at the end of 2026. Timo will be succeeded by the
internal candidate Christian Nilsson who joined ABB
in 2017 as CFO of the Electrification business area.
In the first nine months of 2025, order intake increased
10% (9% comparable) year-on-year to $28,141 million,
supported by all four business areas.
Revenues improved by 7% (6% comparable) to $25,918
million on execution of the large order backlog and a
positive development in the short-cycle businesses.
Overall, book-to-bill reached 1.09.
Income from operations amounted to $4,802 million,
significantly up 23% year-on-year, resulting in a margin
of 18.5%. The earnings increase was mainly driven by
improved operational business performance, with
additional support from Certain other fair value changes
as well as from impacts from Foreign
exchange/commodity timing differences.
Operational EBITA increased by 11% to $5,043 million.
Improvements in the Electrification, Motion and Process
Automation business areas, as well as lower losses in
the E-mobility business more than offset the earnings
decline in Robotics & Discrete Automation. Moreover, an
operational net gain of approximately $140 million
relating to a real estate sale in Corporate and Other had
a positive impact.
The Operational EBITA margin improved by 90 basis
points to 19.5% with the main drivers being operating
leverage on higher volumes, positive pricing and
improved operational efficiency. Corporate and Other
Operational EBITA amounted to -$208 million. This
includes a loss of $115 million attributed to the
E-mobility business, which was negatively affected by
low volumes.
Net finance contributed to results with $45 million,
below last year’s income of $55 million. Income tax
expense was $1,347 million reflecting a tax rate of
27.6%.
Net income attributable to ABB was $3,461 million, up
from $2,948 million in the prior year period. Basic
earnings per share was $1.89, representing an increase
of 18%.
Significant events
First nine months of 2025
Acquisitions Company/unit Closing date Revenues, $ in
millions1 No. of employees
2025
Electrification Produits BEL Inc. 2-Jun ∼11 65
Electrification Siemens Wiring Accessories 3-Mar ∼150 360
Electrification Sensorfact 3-Feb ∼15 260
Electrification Coulomb Inc. 13-Jan <5 30
2024
Electrification Solutions Industry & Building (SIB) 2-Dec ∼27 100
Process Automation Dr. Födisch Umweltmesstechnik AG 1-Oct ∼53 250
Divestments Company/unit Closing date Revenues, $ in
millions1 No. of employees
2024
E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a.
Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110
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.
Acquisitions and divestments, last twelve months
===== SIDA 12 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 12
ABB Group Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025
EBITDA, $ in million 1,418 1,578 1,503 1,374 5,873 1,763 1,786 1,877
Return on Capital Employed, % 20.5 21.3 22.0 22.4 22.4 23.0 23.1 23.3
Net debt/Equity 0.16 0.18 0.15 0.09 0.09 0.10 0.25 0.17
Net debt/ EBITDA 12M rolling 0.4 0.4 0.4 0.2 0.2 0.2 0.6 0.4
Net working capital 3,497 3,516 3,512 2,739 2,739 3,371 3,767 3,304
Trade net working capital 4,818 4,825 4,931 4,428 4,428 4,664 5,104 4,869
Average trade net working capital as a % of
revenues 16.1% 15.6% 15.1% 14.6% 14.6% 14.4% 14.1% 13.8%
Earnings per share, basic, $ 0.49 0.59 0.51 0.54 2.13 0.60 0.63 0.66
Earnings per share, diluted, $ 0.49 0.59 0.51 0.53 2.13 0.60 0.63 0.66
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.90 n.a. n.a. n.a.
Share price at the end of period, CHF 41.89 49.92 48.99 49.07 49.07 45.22 47.31 57.32
Number of employees (FTE equivalents) 108,700 109,390 109,970 109,930 109,930 110,970 110,860 110,740
No. of shares outstanding at end of period
(in millions) 1,851 1,849 1,843 1,838 1,838 1,833 1,826 1,822
Additional figures
Additional 2025 guidance
ABB current structure
($ in millions, unless otherwise
stated) FY 20251 Q4 2025
Corporate and Other
Operational EBITA2
~(200) ~(110)
from ~(175)
Non-operating items
Acquisition-related amortization ~(190) ~(45)
from ~(180)
Restructuring and related3 ~(250) ~(125)
ABB Way transformation ~(150) ~(30)
($ in millions, unless otherwise stated) FY 2025
Finance net ~75
from ~50
Effective tax rate ~25% 4
Capital Expenditures ~(900)
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc.
2 Excludes Operational EBITA from E-mobility business.
3 Includes restructuring and restructuring-related as well as separation and integration costs.
4 Excludes the impact of acquisitions or divestments or any significant non-operational items.
ABB based on discontinued operations structure
($ in millions, unless otherwise
stated) FY 20251 Q4 2025
Corporate and Other
Operational EBITA2
~(325) ~(150)
of which stranded costs ~(125) ~(40)
Non-operating items
Acquisition-related amortization ~(180) ~(40)
Restructuring and related3 ~(125) ~(80)
ABB Way transformation ~(150) ~(30)
($ in millions, unless otherwise stated) FY 2025
Finance net ~75
Effective tax rate ~25% 4
Capital Expenditures ~(800)
===== SIDA 13 =====
AB B IN TE RIM RE P ORT I Q3 2 02 5 13
This press release includes forward-looking information
and statements as well as other statements concerning
the outlook for our business, including those in the
sections of this release titled “CEO summary,”
“Outlook,” “Sustainability” “Significant events” and
“Additional 2025 guidance”. These statements are based
on current expectations, estimates and projections
about the factors that may affect our future
performance, including global economic conditions and
the economic conditions of the regions and industries
that are major markets for ABB. These expectations,
estimates and projections are generally identifiable by
statements containing words such as “anticipates,”
“expects,” “estimates,” “intends,” “plans,” “targets,”
“guidance,” or similar expressions. However, there are
many risks and uncertainties, many of which are beyond
our control, that could cause our actual results to differ
materially from the forward-looking information and
statements made in this press release and which could
affect our ability to achieve any or all of our stated
targets. These include, among others, business risks
associated with the volatile global economic
environment and political conditions, market
acceptance of new products and services, changes in
governmental regulations and currency exchange rates.
Although ABB Ltd believes that its expectations
reflected in any such forward looking statement are
based upon reasonable assumptions, it can give no
assurance that those expectations will be achieved.
The Q3 2025 results press release and presentation
slides are available on the ABB News Center at
www.abb.com/news and on the Investor Relations
homepage at www.abb.com/investorrelations.
A conference call and webcast for analysts and investors
is scheduled to begin at 10:00 a.m. CET. To pre-register
for the conference call or to join the webcast, please
refer to the ABB website:
www.abb.com/investorrelations.
The recorded session will be available after the event on
ABB’s website.
Important notice about forward-looking information
For additional information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
Q3 results presentation on October 16, 2025
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The
company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss
Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com
Financial calendar
2025
November 18 Capital Markets Day in New Berlin, United States
2026
January 29 Q4 2025 results
February 19 Planned publication of Annual Reporting Suite
March 19 Annual General Meeting
April 22 Q1 2026 results
July 16 Q2 2026 results
October 16 Q3 2026 results
===== SIDA 14 =====
1 Q3 2025 FINANCIAL INFORMATION
October 16, 2025
Q3 2025
Financial Information
===== SIDA 15 =====
2 Q3 2025 FINANCIAL INFORMATION
FINANCIAL
INFORMATION
Contents
03 ─ 07 Key Figures
08 ─ 32 Consolidated Financial Information (unaudited)
33 ─ 48 Supplemental Reconciliations and Definitions
===== SIDA 16 =====
3 Q3 2025 FINANCIAL INFORMATION
—
Key Figures
CHANGE
($ in millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Comparable(1)
Orders 9,143 8,193 12% 9%
Order backlog (end September) 25,052 22,881 9% 8%
Revenues 9,083 8,151 11% 9%
Gross Profit(2) 3,702 3,245 14%
as % of revenues(2) 40.8% 39.8% +1 pts
Income from operations 1,662 1,309 27%
Operational EBITA(1) 1,738 1,553 12% 9%(3)
as % of operational revenues(1) 19.2% 19.0% +0.2 pts
Income from continuing operations, net of tax 1,235 937 32%
Net income attributable to ABB 1,208 947 28%
Basic earnings per share ($) 0.66 0.51 29%(4)
Cash flow from operating activities 1,777 1,345 32%
Free cash flow(1) 1,552 1,173 32%
CHANGE
($ in millions, unless otherwise indicated) 9M 2025 9M 2024 US$ Comparable(1)
Orders 28,141 25,602 10% 9%
Revenues 25,918 24,260 7% 6%
Gross Profit(2) 10,587 9,612 10%
as % of revenues(2) 40.8% 39.6% +1.2 pts
Income from operations 4,802 3,902 23%
Operational EBITA(1) 5,043 4,534 11% 10%(3)
as % of operational revenues(1) 19.5% 18.6% +0.9 pts
Income from continuing operations, net of tax 3,542 2,955 20%
Net income attributable to ABB 3,461 2,948 17%
Basic earnings per share ($) 1.89 1.60 18%(4)
Cash flow from operating activities 3,520 3,138 12%
Free cash flow(1) 3,049 2,642 15%
(1) For a reconciliation of alternative performance measures see “ Supplemental Reconciliations and Definitions ” on page 33.
(2) Prior period amounts have been restated to reflect a change in accounting policy for IS expenses , see “Note 1 - The Company and basis of presentation” for details.
(3) Constant currency (not adjusted for portfolio changes).
(4) EPS growth rates are computed using unrounded amounts.
===== SIDA 17 =====
4 Q3 2025 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) Q3 2025 Q3 2024 US$ Local Comparable
Orders ABB Group 9,143 8,193 12% 9% 9%
Electrification 4,522 4,049 12% 10% 10%
Motion 2,162 1,806 20% 17% 17%
Process Automation 1,896 1,784 6% 4% 4%
Robotics & Discrete Automation 744 640 16% 13% 13%
Corporate and Other 82 132
Intersegment eliminations (263) (218)
Order backlog (end September) ABB Group 25,052 22,881 9% 8% 8%
Electrification 8,750 7,945 10% 9% 10%
Motion 6,176 5,750 7% 5% 5%
Process Automation 9,353 7,782 20% 18% 18%
Robotics & Discrete Automation 1,467 1,734 -15% -16% -16%
Corporate and Other
(incl. intersegment eliminations) (694) (330)
Revenues ABB Group 9,083 8,151 11% 9% 9%
Electrification 4,499 3,913 15% 13% 13%
Motion 2,082 1,969 6% 3% 3%
Process Automation 1,801 1,643 10% 7% 7%
Robotics & Discrete Automation 807 747 8% 5% 5%
Corporate and Other 124 107
Intersegment eliminations (230) (228)
Income from operations ABB Group 1,662 1,309
Electrification 1,079 893
Motion 402 397
Process Automation 298 242
Robotics & Discrete Automation 67 31
Corporate and Other
(incl. intersegment eliminations) (184) (254)
Income from operations % ABB Group 18.3% 16.1%
Electrification 24.0% 22.8%
Motion 19.3% 20.2%
Process Automation 16.5% 14.7%
Robotics & Discrete Automation 8.3% 4.1%
Operational EBITA ABB Group 1,738 1,553 12% 9%
Electrification 1,100 944 17% 14%
Motion 421 404 4% 1%
Process Automation 277 251 10% 7%
Robotics & Discrete Automation 74 62 19% 16%
Corporate and Other
(incl. intersegment eliminations) (134) (108)
Operational EBITA % ABB Group 19.2% 19.0%
Electrification 24.5% 24.1%
Motion 20.1% 20.7%
Process Automation 15.5% 15.2%
Robotics & Discrete Automation 9.2% 8.3%
Cash flow from operating activities ABB Group 1,777 1,345
Electrification 1,340 1,041
Motion 464 397
Process Automation 449 323
Robotics & Discrete Automation 143 83
Corporate and Other
(incl. intersegment eliminations) (619) (499)
===== SIDA 18 =====
5 Q3 2025 FINANCIAL INFORMATION
CHANGE
($ in millions, unless otherwise indicated) 9M 2025 9M 2024 US$ Local Comparable
Orders ABB Group 28,141 25,602 10% 9% 9%
Electrification 13,434 12,514 7% 7% 7%
Motion 6,430 6,123 5% 4% 4%
Process Automation 6,540 5,283 24% 22% 22%
Robotics & Discrete Automation 2,272 2,029 12% 11% 11%
Corporate and Other 320 386
Intersegment eliminations (855) (733)
Order backlog (end September) ABB Group 25,052 22,881 9% 8% 8%
Electrification 8,750 7,945 10% 9% 10%
Motion 6,176 5,750 7% 5% 5%
Process Automation 9,353 7,782 20% 18% 18%
Robotics & Discrete Automation 1,467 1,734 -15% -16% -16%
Corporate and Other
(incl. intersegment eliminations) (694) (330)
Revenues ABB Group 25,918 24,260 7% 6% 6%
Electrification 12,655 11,402 11% 10% 10%
Motion 5,987 5,749 4% 3% 3%
Process Automation 5,238 4,961 6% 5% 5%
Robotics & Discrete Automation 2,364 2,444 -3% -4% -4%
Corporate and Other 327 377
Intersegment eliminations (653) (673)
Income from operations ABB Group 4,802 3,902
Electrification 2,991 2,499
Motion 1,156 1,067
Process Automation 834 750
Robotics & Discrete Automation 190 168
Corporate and Other
(incl. intersegment eliminations) (369) (582)
Income from operations % ABB Group 18.5% 16.1%
Electrification 23.6% 21.9%
Motion 19.3% 18.6%
Process Automation 15.9% 15.1%
Robotics & Discrete Automation 8.0% 6.9%
Operational EBITA ABB Group 5,043 4,534 11% 10%
Electrification 3,019 2,657 14% 13%
Motion 1,188 1,135 5% 3%
Process Automation 822 767 7% 6%
Robotics & Discrete Automation 222 268 -17% -18%
Corporate and Other
(incl. intersegment eliminations) (208) (293)
Operational EBITA % ABB Group 19.5% 18.6%
Electrification 23.9% 23.2%
Motion 19.8% 19.7%
Process Automation 15.7% 15.4%
Robotics & Discrete Automation 9.4% 11.0%
Cash flow from operating activities ABB Group 3,520 3,138
Electrification 2,817 2,438
Motion 1,128 1,258
Process Automation 965 809
Robotics & Discrete Automation 331 276
Corporate and Other
(incl. intersegment eliminations) (1,721) (1,643)
===== SIDA 19 =====
6 Q3 2025 FINANCIAL INFORMATION
Operational EBITA
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24
Revenues 9,083 8,151 4,499 3,913 2,082 1,969 1,801 1,643 807 747
Foreign exchange/commodity timing
differences in total revenues (8) 6 (3) 9 9 (13) (9) 10 (2) –
Operational revenues 9,075 8,157 4,496 3,922 2,091 1,956 1,792 1,653 805 747
Income from operations 1,662 1,309 1,079 893 402 397 298 242 67 31
Acquisition-related amortization 50 44 27 23 8 9 6 2 7 7
Restructuring, related and
implementation costs(1) 20 21 6 2 10 2 – – – 20
Changes in obligations related to
divested businesses – – – – – – – – – –
Gains and losses from sale of businesses 12 (1) 8 (1) – – – – – –
Fair value adjustment on assets and
liabilities held for sale – 89 – – – – – – – –
Acquisition- and divestment-related
expenses and integration costs 50 17 5 4 1 1 2 2 2 5
Certain other non-operational items 2 55 1 1 3 2 (20) 3 1 1
Foreign exchange/commodity timing
differences in income from operations (58) 19 (26) 22 (3) (7) (9) 2 (3) (2)
Operational EBITA 1,738 1,553 1,100 944 421 404 277 251 74 62
Operational EBITA margin (%) 19.2% 19.0% 24.5% 24.1% 20.1% 20.7% 15.5% 15.2% 9.2% 8.3%
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions, unless otherwise indicated) 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24
Revenues 25,918 24,260 12,655 11,402 5,987 5,749 5,238 4,961 2,364 2,444
Foreign exchange/commodity timing
differences in total revenues (28) 67 (16) 32 (2) 16 (11) 16 4 (2)
Operational revenues 25,890 24,327 12,639 11,434 5,985 5,765 5,227 4,977 2,368 2,442
Income from operations 4,802 3,902 2,991 2,499 1,156 1,067 834 750 190 168
Acquisition-related amortization 145 157 82 69 26 26 14 5 21 48
Restructuring, related and
implementation costs(1) 44 97 16 20 17 24 3 7 7 40
Changes in obligations related to
divested businesses (3) (11) – – – – – – – –
Gains and losses from sale of businesses – 13 (5) (2) – – – – – –
Fair value adjustment on assets and
liabilities held for sale – 132 – 25 – – – – – –
Acquisition- and divestment-related
expenses and integration costs 81 54 24 33 3 3 7 3 6 12
Certain other non-operational items 58 168 (28) 3 13 5 (22) (2) – –
Foreign exchange/commodity timing
differences in income from operations (84) 22 (61) 10 (27) 10 (14) 4 (2) –
Operational EBITA 5,043 4,534 3,019 2,657 1,188 1,135 822 767 222 268
Operational EBITA margin (%) 19.5% 18.6% 23.9% 23.2% 19.8% 19.7% 15.7% 15.4% 9.4% 11.0%
(1) Includes impairment of certain assets.
===== SIDA 20 =====
7 Q3 2025 FINANCIAL INFORMATION
Depreciation and Amortization
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions) Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24 Q3 25 Q3 24
Depreciation 153 138 81 69 33 30 13 13 16 15
Amortization 62 56 33 29 12 11 6 3 9 8
including total acquisition-related amortization of: 50 44 27 23 8 9 6 2 7 7
Process Robotics & Discrete
ABB Electrification Motion Automation Automation
($ in millions) 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24 9M 25 9M 24
Depreciation 441 406 228 201 96 88 38 36 44 44
Amortization 183 191 101 85 34 31 17 8 25 51
including total acquisition-related amortization of: 145 157 82 69 26 26 14 5 21 48
Orders received and revenues by region
Orders received CHANGE Revenues CHANGE
($ in millions, unless otherwise indicated)
Com- Com-
Q3 25 Q3 24 US$ Local parable Q3 25 Q3 24 US$ Local parable
Europe 2,971 2,572 16% 9% 9% 3,131 2,659 18% 10% 11%
The Americas 3,626 3,048 19% 18% 19% 3,344 3,006 11% 11% 12%
of which United States 2,926 2,307 27% 26% 27% 2,581 2,259 14% 14% 15%
Asia, Middle East and Africa 2,546 2,573 -1% -1% -1% 2,608 2,486 5% 5% 4%
of which China 1,006 1,035 -3% -3% -4% 1,097 1,094 0% 0% -1%
ABB Group 9,143 8,193 12% 9% 9% 9,083 8,151 11% 9% 9%
($ in millions, unless otherwise indicated) Orders received CHANGE Revenues CHANGE
Com- Com-
9M 25 9M 24 US$ Local parable 9M 25 9M 24 US$ Local parable
Europe 9,335 8,656 8% 5% 5% 8,920 8,238 8% 5% 5%
The Americas 10,608 8,983 18% 19% 19% 9,534 8,755 9% 10% 11%
of which United States 8,332 6,687 25% 24% 24% 7,361 6,590 12% 12% 12%
Asia, Middle East and Africa 8,198 7,963 3% 4% 3% 7,464 7,267 3% 3% 3%
of which China 3,301 3,152 5% 5% 4% 3,163 3,226 -2% -2% -3%
ABB Group 28,141 25,602 10% 9% 9% 25,918 24,260 7% 6% 6%
===== SIDA 21 =====
8 Q3 2025 FINANCIAL INFORMATION
—
Consolidated Financial Information
ABB Ltd Consolidated Income Statements (unaudited)
Nine months ended Three months ended
($ in millions, except per share data in $) Sep. 30, 2025 Sep. 30, 2024 Sep. 30, 2025 Sep. 30, 2024
Sales of products 21,509 20,132 7,566 6,777
Sales of services and other 4,409 4,128 1,517 1,374
Total revenues 25,918 24,260 9,083 8,151
Cost of sales of products (12,998) (12,373) (4,602) (4,169)
Cost of services and other (2,333) (2,275) (779) (737)
Total cost of sales (15,331) (14,648) (5,381) (4,906)
Gross profit 10,587 9,612 3,702 3,245
Selling, general and administrative expenses (5,087) (4,647) (1,735) (1,546)
Non-order related research and development expenses (1,034) (1,005) (355) (315)
Other income (expense), net 336 (58) 50 (75)
Income from operations 4,802 3,902 1,662 1,309
Interest and dividend income 142 146 47 43
Interest and other finance expense (97) (91) (34) (41)
Non-operational pension (cost) credit 42 39 12 13
Income from continuing operations before taxes 4,889 3,996 1,687 1,324
Income tax expense (1,347) (1,041) (452) (387)
Income from continuing operations, net of tax 3,542 2,955 1,235 937
Income from discontinued operations, net of tax 1 2 9 5
Net income 3,543 2,957 1,244 942
Net income attributable to noncontrolling
interests and redeemable noncontrolling interests (82) (9) (36) 5
Net income attributable to ABB 3,461 2,948 1,208 947
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 3,460 2,945 1,199 941
Income from discontinued operations, net of tax 1 3 9 6
Net income 3,461 2,948 1,208 947
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.89 1.60 0.66 0.51
Income from discontinued operations, net of tax – – – –
Net income 1.89 1.60 0.66 0.51
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.89 1.59 0.66 0.51
Income from discontinued operations, net of tax – – – –
Net income 1.89 1.59 0.66 0.51
Weighted-average number of shares outstanding (in millions) used to compute:
Basic earnings per share attributable to ABB shareholders 1,830 1,845 1,823 1,846
Diluted earnings per share attributable to ABB shareholders 1,833 1,853 1,827 1,851
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 22 =====
9 Q3 2025 FINANCIAL INFORMATION
—
ABB Ltd Condensed Consolidated Statements of Comprehensive
Income (unaudited)
Nine months ended Three months ended
($ in millions) Sep. 30, 2025 Sep. 30, 2024 Sep. 30, 2025 Sep. 30, 2024
Total comprehensive income, net of tax 3,566 2,952 1,233 899
Total comprehensive income attributable to noncontrolling interests and
redeemable noncontrolling interests, net of tax (94) (6) (29) (8)
Total comprehensive income attributable to ABB shareholders, net of tax 3,472 2,946 1,204 891
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 23 =====
10 Q3 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Balance Sheets (unaudited)
($ in millions) Sep. 30, 2025 Dec. 31, 2024
Cash and equivalents 3,937 4,326
Marketable securities and short-term investments 1,890 1,334
Receivables, net 7,955 7,388
Contract assets 1,289 1,115
Inventories, net 6,431 5,768
Prepaid expenses 330 287
Other current assets 514 541
Current assets held for sale 45 –
Total current assets 22,391 20,759
Property, plant and equipment, net 4,690 4,177
Operating lease right-of-use assets 845 840
Investments in equity-accounted companies 401 368
Prepaid pension and other employee benefits 859 689
Intangible assets, net 1,147 1,048
Goodwill 11,368 10,555
Deferred taxes 1,378 1,363
Other non-current assets 575 489
Total assets 43,654 40,288
Accounts payable, trade 5,271 5,036
Contract liabilities 3,451 2,969
Short-term debt and current maturities of long -term debt 680 293
Current operating leases 270 235
Provisions 1,584 1,539
Other current liabilities 4,748 4,582
Current liabilities held for sale 32 –
Total current liabilities 16,036 14,654
Long-term debt 7,844 6,652
Non-current operating leases 601 631
Pension and other employee benefits 604 569
Deferred taxes 829 675
Other non-current liabilities 2,218 2,116
Total liabilities 28,132 25,297
Commitments and contingencies
Stockholders’ equity:
Common stock, CHF 0.12 par value
(1,844 million and 1,861 million shares issued at September 30, 2025, and December 31, 2024, respectively) 160 162
Additional paid-in capital 28 50
Retained earnings 21,333 20,648
Accumulated other comprehensive loss (5,339) (5,350)
Treasury stock, at cost
(22 million and 22 million shares at September 30, 2025, and December 31, 2024, respectively) (1,208) (1,091)
Total ABB stockholders’ equity 14,974 14,419
Noncontrolling interests 548 572
Total stockholders’ equity 15,522 14,991
Total liabilities and stockholders’ equity 43,654 40,288
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 24 =====
11 Q3 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Cash Flows (unaudited)
Nine months ended Three months ended
($ in millions) Sep. 30, 2025 Sep. 30, 2024 Sep. 30, 2025 Sep. 30, 2024
Operating activities:
Net income 3,543 2,957 1,244 942
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 624 597 215 194
Changes in fair values of investments (81) (18) (40) 2
Pension and other employee benefits (51) (52) (11) (17)
Deferred taxes 137 (93) 29 (115)
Net gain from derivatives and foreign exchange (164) (68) (75) (29)
Net gain from sale of property, plant and equipment (187) (42) (3) (16)
Net loss (gain) from sale of businesses (13) 4 – (10)
Fair value adjustment on assets and liabilities held for sale – 132 – 89
Other 31 113 16 40
Changes in operating assets and liabilities:
Trade receivables, net (125) 50 32 229
Contract assets and liabilities 179 121 114 (41)
Inventories, net (109) (424) (49) (113)
Accounts payable, trade (99) 79 11 (119)
Accrued liabilities (65) (191) 300 233
Provisions, net (34) (44) 30 (30)
Income taxes payable and receivable 73 193 (110) 199
Other assets and liabilities, net (139) (176) 74 (93)
Net cash provided by operating activities 3,520 3,138 1,777 1,345
Investing activities:
Purchases of investments (1,047) (1,202) (51) (286)
Purchases of property, plant and equipment and intangible assets (648) (562) (229) (196)
Acquisition of businesses (net of cash acquired)
and increases in cost- and equity-accounted companies (586) (297) (15) (163)
Proceeds from sales of investments 517 1,838 – 254
Proceeds from sales of property, plant and equipment 177 66 4 24
Proceeds from sales of businesses (net of transaction costs
and cash disposed) and cost- and equity-accounted companies 69 (13) 3 (5)
Net cash from settlement of foreign currency derivatives (115) (9) (112) (133)
Other investing activities (5) (12) (6) (6)
Net cash used in investing activities (1,638) (191) (406) (511)
Financing activities:
Net changes in debt with original maturities of 90 days or less (66) (7) (205) –
Increase in debt 1,086 1,364 (4) –
Repayment of debt (220) (2,487) (89) (336)
Delivery of shares 33 404 14 14
Purchase of treasury stock (1,149) (843) (366) (280)
Dividends paid (1,907) (1,769) – –
Dividends paid to noncontrolling shareholders (114) (103) (9) (9)
Other financing activities (8) (26) (16) 29
Net cash used in financing activities (2,345) (3,467) (675) (582)
Effects of exchange rate changes on cash and equivalents 95 (106) (4) 52
Adjustment for the net change in cash and equivalents
in Assets held for sale (21) – (21) –
Net change in cash and equivalents (389) (626) 671 304
Cash and equivalents, beginning of period 4,326 3,909 3,266 2,979
Cash and equivalents, end of period 3,937 3,283 3,937 3,283
Supplementary disclosure of cash flow information:
Interest paid 228 201 44 53
Income taxes paid 1,164 952 527 309
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 25 =====
12 Q3 2025 FINANCIAL INFORMATION
—
ABB Ltd Consolidated Statements of Changes in Stockholders’ Equity (unaudited)
($ in millions)
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total ABB
stockholders’
equity
Non-
controlling
interests
Total
stockholders’
equity
Balance at January 1, 2024 163 7 19,655 (5,070) (1,414) 13,341 647 13,988
Net income(1) 2,948 2,948 11 2,959
Foreign currency translation
adjustments, net of tax of $0 (22) (22) (3) (25)
Effect of change in fair value of
available-for-sale securities,
net of tax of $1 4 4 4
Unrecognized income (expense)
related to pensions and other
postretirement plans,
net of tax of $11 13 13 13
Change in derivative instruments
and hedges, net of tax of $(1) 3 3 3
Changes in noncontrolling interests (12) (62) (74) 43 (31)
Dividends to
noncontrolling shareholders – (103) (103)
Dividends to shareholders (1,804) (1,804) (1,804)
Cancellation of treasury shares (2) (2) (828) 832 – –
Share-based payment arrangements 69 69 4 73
Purchase of treasury stock (867) (867) (867)
Delivery of shares (25) (249) 678 404 404
Other (4) (4) (4)
Balance at September 30, 2024 162 32 19,661 (5,072) (770) 14,013 598 14,611
Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991
Net income 3,461 3,461 82 3,543
Foreign currency translation
adjustments, net of tax of $(3) 69 69 12 81
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 $(24) (64) (64) (64)
Change in derivative instruments
and hedges, net of tax of $1 3 3 3
Changes in noncontrolling interests – – (9) (9)
Dividends to
noncontrolling shareholders – (111) (111)
Dividends to shareholders (1,867) (1,867) (1,867)
Cancellation of treasury shares (2) (61) (831) 894 – –
Share-based payment arrangements 63 63 3 66
Purchase of treasury stock (1,146) (1,146) (1,146)
Delivery of shares (25) (77) 135 33 33
Balance at September 30, 2025 160 28 21,333 (5,339) (1,208) 14,974 548 15,522
(1) Amount attributable to noncontrolling interests for the nine months ended September 30, 2024, excludes a net loss of $2 million, related to redeemable noncontrolling
interests.
Due to rounding, numbers presented may not add to the totals provided.
See Notes to the Consolidated Financial Information
===== SIDA 26 =====
13 Q3 2025 FINANCIAL INFORMATION
—
Notes to the Consolidated Financial Information (unaudited)
─
Note 1
The Company and basis of presentation
ABB Ltd and its subsidiaries (collectively, the Company) together form a global technology leader in electrification and automation, enabling a more
sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while
becoming more efficient, productive and sustainable so they outperform .
The Company’s Consolidated Financial Information is prepared in accordance with United States of America generally accepted a ccounting principles
(U.S. GAAP) for interim financial reporting. As such, the Consolidated Financial Information does not include all the 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, 2024.
The preparation of financial information in conformity with U.S. GAAP requires management to make assumptions and estimates t hat directly affect the
amounts reported in the Consolidated Financial Information. These accounting assumptions and estimates incl ude:
• estimates to determine valuation allowances for deferred tax assets and amounts recorded for unrecognized tax benefits,
• estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other rece ivables, loans and
other instruments,
• estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environme ntal damages,
product warranties, self-insurance reserves, regulatory and other proceedings,
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the
percentage-of-completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company
expects to be entitled to,
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,
• estimates used to record expected costs for employee severance in connection with restructuring programs,
• assumptions used in determining inventory obsolescence and net realizable value,
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for
impairment,
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations, and
• estimates and assumptions used in determining the initial fair value of retained noncontrolling interest s and certain obligations in connection
with divestments.
The actual results and outcomes may differ from the Company’s estimates and assumptions.
For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contracts as its operating cycle.
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provisions related to these cont racts which will not be realized
within one year that have been classified as current. Long-term system integration activities comprise the majority of the Company’s activities which
have an operating cycle in excess of one year that have been classified as current.
Basis of presentation
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial
position, results of operations and cash flows for the reported periods. Management considers all such 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, as mentioned below in this Note.
Change in accounting policy
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Previously, the Company allocated information system expenses in the income statement to the functional area based on a
headcount approach while, in connection with this change, information systems expenses are allocated to the relevant income statement caption based
on the nature of the underlying system.
The Company’s consolidated financial statements have been retroactively restated to reflect this accounting policy change. In connection with this
change, the Company recorded a cumulative-effect reduction of $69 million to the balance of Retained earnings on January 1, 2023, representing the
impact of the policy change on Inventories and the related deferred tax balance. The effect on Net income for the years 2023 and 2024 was not
considered significant and therefore no changes have been recorded.
As a result, the Company’s Consolidated Balance Sheet amounts at December 31, 2024, for Inventories, Deferred taxes (asset), and Retained earnings
have changed from $5,859 million, $1,341 million and $20,717 million, respectively, to $5,768 million, $1,363 million and $20,648 million, respectively.
===== SIDA 27 =====
14 Q3 2025 FINANCIAL INFORMATION
The following table details the reclassification of information systems expenses within the Consolidated Income Statement:
Nine months ended September 30, 2024 Three months ended September 30, 2024
($ in millions) Before After Before After
Cost of sales of products 12,686 12,373 4,271 4,169
Cost of services and other 2,349 2,275 764 737
Selling, general and administrative expenses 4,205 4,647 1,399 1,546
Non-order related research and development expenses 1,060 1,005 333 315
Warranty provision split
In 2025, the Company split the amount previously reported in Provision for warranties into current and non-current components and retroactively recast
the amounts for all periods presented. The balance at December 31, 2024, which was previously recorded on a combined basis, of $1,248 million has been
reclassified into Provisions ($686 million) and Other non-current liabilities ($562 million). See Note 10 - Commitments and contingencies for additional
information.
─
Note 2
Recent accounting pronouncements
Applicable for current periods
Improvements to Income tax disclosures
In January 2025, the Company adopted an accounting standard update which requires the Company to disclose additional information related to income
taxes. Under the update, the Company is required to annually disclose by jurisdiction (i) additional disaggregated information within the tax rate
reconciliation and (ii) income taxes paid. The Company is currently evaluating the impact of adopting this update prospectively or retrospectively on its
consolidated financial statements. Apart from the additional disclosure require ments, this update does not have a significant impact on the Company’s
consolidated financial statements.
Applicable for future periods
Disaggregation of Income Statement expenses
In November 2024, an accounting standard update was issued which requires the Company to disclose additional information for certain types of
expenses, including purchases of inventory, employee compensation, depreciation, and amortization, presented in 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
Acquisitions and divestments
Acquisition of controlling interests
Acquisitions of controlling interests were as follows:
Nine months ended September 30, Three months ended September 30,
($ in millions, except number of acquired businesses) (1) 2025 2024 2025 2024
Purchase price for acquisitions (net of cash acquired) (2) 556 266 5 162
Aggregate excess of purchase price over
fair value of net assets acquired(3) 453 220 17 131
Number of acquired businesses 4 4 – 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 nine
months ended September 30, 2025, relate primarily to the acquisitions of Sensorfact BV and the Siemens Wiring Accessories Business in China and in the
nine months ended September 30, 2024, relate primarily to the acquisitions of the SEAM Group and DTN Europe B.V.
Acquisitions of controlling interests have been accounted for under the acquisition method and have been included in the Comp any’s consolidated
financial statements since the date of acquisition.
On February 3, 2025, the Company acquired all of the shares of Sensorfact BV. Sensorfact BV , headquartered in Utrecht, Netherlands, offers a scalable
software as a service (SaaS) solution that helps small and medium sized enterprises use AI in their operations and energy man agement to lower costs
and increase efficiency. The cash outflows to complete the transaction amounted to $1 48 million (net of cash acquired). This acquisition will expand the
Company’s portfolio of energy management solutions that use big data and AI within its Electrification segment.
===== SIDA 28 =====
15 Q3 2025 FINANCIAL INFORMATION
On March 3, 2025, the Company acquired through numerous share and asset purchases all of the assets, liabilities and business activities of the Siemens
Wiring Accessories Business in China. The Siemens Wiring Accessories Business offering, which distributes throughout China, includes wiring
accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction
amounted to $380 million (net of cash acquired). This acquisition will broaden the market reach of the Company’s Electrification segment and
complement the segments’ regional customer offering within smart buildings .
While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets ac quired and liabilities
assumed at the acquisition date, the purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is
subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes
available.
Planned business divestments classified as held for sale
The Company classifies its long-lived assets or disposal groups to be sold as held for sale in the period in which all of the held for sale criteria are met.
The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less
any costs to sell. Any resulting loss is recognized in the period in which the held for sale criteria are met , while gains are not recognized on the sale of a
long-lived asset or disposal group until the date of sale. The Company assesses the fair value of a long -lived asset or disposal group less any costs to sell
at each reporting period and until the asset or disposa l group is no longer classified as held for sale. At September 30, 2025, assets and liabilities held
for sale are not significant.
In September 2024, the Company and the noncontrolling shareholders of InCharge Energy Inc. (In -Charge), a subsidiary entirely within its E-mobility
Division, came to a definitive agreement to terminate their respective put and call options. This settlement was completed in the fourth quarter of 2024
and led to the Company returning a portion of its shares to In-Charge, resulting in a reduction of its direct ownership to approximately 46 percent and
thus losing control. This transaction was treated similar to a business divestment and a separate re -acquisition at fair value of the 46 percent equity-
method investment. As a result, as of September 30, 2024, the assets and liabilities of this company have been presented as held for sale and a loss of
$89 million was recorded in Other income (expense), net, in connection with the loss of control. The fair value adjustment on this business was
determined using Level 3 inputs and based on a discounted cash flow model considering the expected future results of this business.
Subsequent event
On October 8, 2025, the Company entered into an agreement to divest its Robotics Division to SoftBank Group Corp., valuing the business at
approximately $5.4 billion. The divestment is expected to be completed in the second half of 2026, subject to regulatory approvals and customary
closing conditions. The planned divestment did not meet the held -for-sale classification criteria as of September 30, 2025, as the requisite approval had
not been received from the Company’s Board of Directors authorizing management to commit to a sale in place of the previously announced plan to
spin-off the business as a separately listed company.
With the receipt of approval from the Company’s Board of Directors and the signing of the agreement in October 2025, the Company determined the
planned divestment meets the criteria to be classified as held -for-sale and represents a strategic shift that will have a major effect on the Company’s
operations and financial results. Accordingly, commencing in the fourth quarter of 2025, the results of operations for the Robotics Division will be
presented as discontinued operations and its assets and liabilities will be reflected as held-for-sale.
─
Note 4
Cash and equivalents, marketable securities and short-term investments
Cash and equivalents, marketable securities and short -term investments consisted of the following:
September 30, 2025
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,523 1,523 1,523
Time deposits 2,904 2,904 2,414 490
Equity securities 1,314 58 1,372 1,372
5,741 58 – 5,799 3,937 1,862
Changes in fair value recorded
in other comprehensive income
Debt securities available-for-sale:
European government obligations 8 8 8
Other government obligations 20 20 20
28 – – 28 28
Total 5,769 58 – 5,827 3,937 1,890
===== SIDA 29 =====
16 Q3 2025 FINANCIAL INFORMATION
December 31, 2024
Marketable
Gross Gross securities
unrealized unrealized Cash and and short-term
($ in millions) Cost basis gains losses Fair value equivalents investments
Changes in fair value
recorded in net income
Cash 1,328 1,328 1,328
Time deposits 3,518 3,518 2,998 520
Equity securities 794 22 (2) 814 814
Total 5,640 22 (2) 5,660 4,326 1,334
─
Note 5
Derivative financial instruments
The Company is exposed to certain currency, commodity and interest rate risks arising from its global operating, financing and investing activities. The
Company uses derivative instruments to reduce and manage the economic impact of these exposures.
Currency risk
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering
into transactions in currencies other than their functional currency. To manage such currency risks, the Company’s policies require its subsidiaries to
hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies. For forec asted foreign currency
denominated sales of standard products and the related foreign currency denominated purchas es, the Company’s policy is to hedge up to a maximum
of 100 percent of the forecasted foreign currency denominated exposures, depending on the length of the forecasted exposures. Foreca sted exposures
greater than 12 months are not hedged. Forward foreign exchange contracts are the main instrument used to protect the Company against the vol atility
of future cash flows (caused by changes in exchange rates) of contracted and forecasted sales and purchases denominated in foreign currencies. In
addition, within its treasury operations, the Company primarily uses foreign exchange swaps and forward foreign exchange cont racts to manage the
currency and timing mismatches arising in its liquidity management activities.
Commodity risk
Various commodity products are used in the Company’s manufacturing activities. Consequently , it is exposed to volatility in future cash flows arising
from changes in commodity prices. To manage the price risk of commodities, the Com pany’s policies require that its subsidiaries hedge the commodity
price risk exposures from binding contracts, as well as at least 50 percent (up to a maximum of 100 percent) of the forecasted commodity exposure over
the next 12 months or longer (up to a maximum of 18 months). Primarily swap contracts are used to manage the associated price risks of commodities.
Interest rate risk
The Company has issued bonds at fixed rates. Interest rate swaps and cross-currency interest rate swaps are used to manage the interest rate and
foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges. In addition, from time to tim e, the
Company uses instruments such as interest rate swaps, interest rate futures, bond futures or forward rate agreements to 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) September 30, 2025 December 31, 2024 September 30, 2024
Foreign exchange contracts 13,936 12,800 14,160
Embedded foreign exchange derivatives 1,661 1,159 1,210
Cross-currency interest rate swaps 940 833 895
Interest rate contracts 1,457 1,510 1,345
Derivative commodity contracts
The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper, silver,
steel and aluminum. The following table shows the notional amounts of outstanding derivatives (whether designated as hedges or not), on a net bas is,
to reflect the Company’s requirements for these commodities:
Type of derivative Unit Total notional amounts at
September 30, 2025 December 31, 2024 September 30, 2024
Copper swaps metric tonnes 39,692 40,699 38,292
Silver swaps ounces 1,965,274 2,648,681 2,708,095
Steel swaps metric tonnes 16,602 20,185 25,175
Aluminum swaps metric tonnes 4,450 4,525 5,250
===== SIDA 30 =====
17 Q3 2025 FINANCIAL INFORMATION
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 nine and three months ended September 30, 2025 and 2024, there
were no significant amounts recorded for cash flow hedge accounting activities.
Fair value hedges
To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swap s and cross-currency interest
rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the
fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and losse s in Interest and other finance expense.
The effect of derivative instruments, designated and qualifying as fair value hedges, on the Consolidated Income Statements w as as follows:
Nine months ended September 30, Three months ended September 30,
($ in millions) 2025 2024 2025 2024
Gains (losses) recognized in Interest and other finance expense:
Interest rate contracts Designated as fair value hedges (5) 28 (4) 18
Hedged item 5 (29) 4 (19)
Cross-currency interest rate swaps Designated as fair value hedges 3 20 1 25
Hedged item (1) (18) (1) (24)
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 Nine months ended September 30, Three months ended September 30,
($ in millions) Location 2025 2024 2025 2024
Foreign exchange contracts Total revenues 148 (119) 2 67
Total cost of sales (26) 35 (3) (17)
SG&A expenses(1) (42) 24 11 3
Non-order related research
and development – – – 1
Interest and other finance expense (192) 90 46 (104)
Embedded foreign exchange Total revenues 5 (7) 10 (23)
contracts Total cost of sales 6 – (3) 4
Commodity contracts Total cost of sales 69 49 33 4
Other Interest and other finance expense 1 (1) 2 1
Total (31) 71 98 (64)
(1) SG&A expenses represent “Selling, general and administrative expenses”.
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:
September 30, 2025
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – 5 –
Interest rate contracts – 3 – –
Cross-currency interest rate swaps – – – 144
Total – 3 5 144
Derivatives not designated as hedging instruments:
Foreign exchange contracts 104 21 79 8
Commodity contracts 44 – 4 –
Embedded foreign exchange derivatives 21 15 34 4
Total 169 36 117 12
Total fair value 169 39 122 156
===== SIDA 31 =====
18 Q3 2025 FINANCIAL INFORMATION
December 31, 2024
Derivative assets Derivative liabilities
Current in Non-current in Current in Non-current in
“Other current “Other non-current “Other current “Other non-current
($ in millions) assets” assets” liabilities” liabilities”
Derivatives designated as hedging instruments:
Foreign exchange contracts – – 1 –
Interest rate contracts – 7 – –
Cross-currency interest rate swaps – – – 256
Other 4 – – –
Total 4 7 1 256
Derivatives not designated as hedging instruments:
Foreign exchange contracts 151 17 111 15
Commodity contracts 4 – 20 –
Embedded foreign exchange derivatives 22 6 11 5
Other – 5 – –
Total 177 28 142 20
Total fair value 181 35 143 276
Close-out netting agreements provide for the termination, valuation and net settlement of some or all outstanding transactions betw een two
counterparties on the occurrence of one or more pre -defined trigger events.
Although the Company is party to close-out netting agreements with most derivative counterparties, the fair values in the tables above and in the
Consolidated Balance Sheets at September 30, 2025, and December 31, 2024, have been presented on a gross basis.
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At September 30, 2025, and
December 31, 2024, information related to these offsetting arrangements was as follows:
($ in millions) September 30, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 172 (67) – – 105
Total 172 (67) – – 105
($ in millions) September 30, 2025
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 240 (67) – – 173
Total 240 (67) – – 173
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net asset
similar arrangement assets in case of default received received exposure
Derivatives 188 (90) – – 98
Total 188 (90) – – 98
($ in millions) December 31, 2024
Gross amount Derivative liabilities Cash Non-cash
Type of agreement or of recognized eligible for set-off collateral collateral Net liability
similar arrangement liabilities in case of default pledged pledged exposure
Derivatives 403 (90) – – 313
Total 403 (90) – – 313
===== SIDA 32 =====
19 Q3 2025 FINANCIAL INFORMATION
─
Note 6
Fair values
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and, when necessary, to record
certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis include 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 transaction between market participants at
the measurement date. In determining fair value, the Company uses various valuation techniques including the market approach (using observable
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a
market participant would incur to develop a comparable asset). Inputs used to determine the fair value of assets and 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 unobservable. 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 measurement 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 would be classified as
Level 3. Assets and liabilities valued or disclosed 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 of relevant market data (unobservable input).
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid-market quotes. When determining fair
values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financial instrument has significantly
decreased or would not be considered orderly. In such cases, the resulting changes in valuation techniques would be disclosed. If the market is
considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such as an income approach.
Recurring fair value measures
The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:
September 30, 2025
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 1,372 1,372
Debt securities—European government obligations 8 8
Debt securities—Other government obligations 20 20
Derivative assets—current in “Other current assets” 1 6 9 169
Derivative assets—non-current in “Other non-current assets” 3 9 39
Total 28 1,580 – 1,608
Liabilities
Derivative liabilities—current in “Other current liabilities” 122 122
Derivative liabilities—non-current in “Other non-current liabilities” 156 156
Total – 278 – 278
December 31, 2024
($ in millions) Level 1 Level 2 Level 3 Total fair value
Assets
Securities in “Marketable securities and short-term investments”:
Equity securities 814 814
Derivative assets—current in “Other current assets” 181 181
Derivative assets—non-current in “Other non-current assets” 35 35
Total – 1,030 – 1,030
Liabilities
Derivative liabilities—current in “Other current liabilities” 143 143
Derivative liabilities—non-current in “Other non-current liabilities” 276 276
Total – 419 – 419
===== SIDA 33 =====
20 Q3 2025 FINANCIAL INFORMATION
The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a
recurring basis:
• Securities in “Marketable securities and short-term investments”: If quoted market prices in active markets for identical assets are available,
these are considered Level 1 inputs; however, when markets are not active, these inputs are considered Level 2. If such quoted market prices
are not available, fair value is determined using market prices for similar assets or present value techniques, applying an a ppropriate risk-free
interest rate adjusted for non-performance risk. The inputs used in present value techniques are observable and fall into the Level 2 category.
• Derivatives: The fair values of derivative instruments are determined using quoted prices of identical instruments from an active market , if
available (Level 1 inputs). If quoted prices are not available, price quotes for similar instruments, appropriately adjusted, or present value
techniques, based on available market data, or option pricing models are used. The fair values obtained using price quotes fo r similar
instruments or valuation techniques represent a Level 2 input unless significant unobservable inputs are used.
Non-recurring fair value measures
In the nine months ended September 30, 2024, the Company recognized $132 million of fair value adjustments on assets and liabilities held for sale,
primarily related to the fair value adjustment of In-Charge for $89 million recorded in the three months ended September 30, 2024 (see Note 3). There
were no other significant non-recurring fair value measurements during the nine and three months ended September 30, 2025 and 2024.
Disclosure about financial instruments carried on a cost basis
The fair values of financial instruments carried on a cost basis were as follows:
September 30, 2025
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,523 1,523 1,523
Time deposits 2,414 2,414 2,414
Marketable securities and short-term investments
(excluding securities):
Time deposits 490 490 490
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 657 600 57 657
Long-term debt (excluding finance lease obligations) 7,671 7,035 729 7,764
December 31, 2024
($ in millions) Carrying value Level 1 Level 2 Level 3 Total fair value
Assets
Cash and equivalents (excluding securities with original
maturities up to 3 months):
Cash 1,328 1,328 1,328
Time deposits 2,998 2,998 2,998
Marketable securities and short-term investments
(excluding securities):
Time deposits 520 520 520
Liabilities
Short-term debt and current maturities of long -term debt
(excluding finance lease obligations) 265 188 77 265
Long-term debt (excluding finance lease obligations) 6,486 6,012 551 6,563
The Company uses the following methods and assumptions in estimating fair values of financial instruments carried on a cost b asis:
• Cash and equivalents (excluding securities with original maturities up to 3 months) and Marketable securities and short-term investments
(excluding securities): The carrying amounts approximate the fair values as the items are short -term in nature or, for cash held in banks, are
equal to the deposit amount.
• Short-term debt and current maturities of long -term debt (excluding finance lease obligations): Short-term debt includes commercial paper,
bank borrowings and overdrafts. The carrying amounts of short -term debt and current maturities of long-term debt, excluding finance lease
obligations, approximate their fair values.
• Long-term debt (excluding finance lease obligations): Fair values of bonds are determined using quoted market prices (Level 1 inputs), if
available. For bonds without available quoted market prices and other long -term debt, the fair values are determined using a discounted cash
flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate ad justments for non-performance risk
(Level 2 inputs).
===== SIDA 34 =====
21 Q3 2025 FINANCIAL INFORMATION
─
Note 7
Contract assets and liabilities
The following table provides information about Contract assets and Contract liabilities:
($ in millions) September 30, 2025 December 31, 2024 September 30, 2024
Contract assets 1,289 1,115 1,236
Contract liabilities 3,451 2,969 3,081
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:
Nine months ended September 30,
2025 2024
Contract Contract Contract Contract
($ in millions) assets liabilities assets liabilities
Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2025/2024 (1,485) (1,381)
Additions to Contract liabilities - excluding amounts recognized as revenue during the period 1,777 1,625
Receivables recognized that were included in the Contract assets balance at Jan 1, 2025/2024 (635) (589)
The Company considers its order backlog to represent its unsatisfied performance obligations. At September 30, 2025, the Company had unsatisfied
performance obligations totaling $25,052 million and, of this amount, the Company expects to fulfill approximately 29 percent of the obligations in 2025,
approximately 42 percent of the obligations in 2026 and the balance thereafter.
─
Note 8
Supplier finance programs
The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng as paying agent. These
programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms
related to suppliers’ finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements an d are typically consistent
with local market practices. Outstanding supplier finance obligations are included in Accounts payable, trade in the Consolidated Balance Sheets and are
reported as operating or investing (if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At Sept ember 30, 2025, and
December 31, 2024, the total obligation outstanding under supplier finance programs amounted to $458 million and $435 million, respectively.
===== SIDA 35 =====
22 Q3 2025 FINANCIAL INFORMATION
─
Note 9
Debt
The Company’s total debt at September 30, 2025, and December 31, 2024, amounted to $8,524 million and $6,945 million, respectively.
Short-term debt and current maturities of long-term debt
The Company’s “Short-term debt and current maturities of long-term debt” consisted of the following:
($ in millions) September 30, 2025 December 31, 2024
Short-term debt 40 83
Current maturities of long-term debt 640 210
Total 680 293
Short-term debt primarily represented short-term bank borrowings from various banks.
Long-term debt
The Company’s long-term debt at September 30, 2025, and December 31, 2024, amounted to $7,844 million and $6,652 million, respectively.
Significant long-term borrowings (including maturities within the next 12 months) were as follows:
September 30, 2025 December 31, 2024
(in millions) Nominal outstanding Carrying value(1) Nominal outstanding Carrying value(1)
2.1% CHF Bonds, due 2025 CHF 150 $ 188 CHF 150 $ 166
1.965% CHF Bonds, due 2026 CHF 325 $ 407 CHF 325 $ 359
3.25% EUR Instruments, due 2027 EUR 500 $ 586 EUR 500 $ 518
0.75% CHF Bonds, due 2027 CHF 425 $ 532 CHF 425 $ 468
3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382
1.9775% CHF Bonds, due 2028 CHF 150 $ 188 CHF 150 $ 165
3.125% EUR Instruments, due 2029 EUR 500 $ 589 EUR 500 $ 523
1.0% CHF Bonds, due 2029 CHF 170 $ 213 CHF 170 $ 188
0% EUR Instruments, due 2030 EUR 800 $ 836 EUR 800 $ 727
2.375% CHF Bonds, due 2030 CHF 150 $ 188 CHF 150 $ 165
3.375% EUR Instruments, due 2031 EUR 750 $ 871 EUR 750 $ 770
Floating rate EIB R&D Loan, due 2031 USD 539 $ 539 USD 539 $ 539
0.8725% CHF Bonds, due 2032 CHF 350 $ 437
2.1125% CHF Bonds, due 2033 CHF 275 $ 343 CHF 275 $ 303
3.375% EUR Instruments, due 2034 EUR 750 $ 876 EUR 750 $ 780
1.2762% CHF Bonds, due 2036 CHF 250 $ 312
4.375% USD Notes, due 2042(2) USD 609 $ 592 USD 609 $ 591
Total $ 8,079 $ 6,644
(1) USD carrying values include unamortized debt issuance costs, bond discounts or premiums, as well as adjustments for fair value hedge accounting, where appropriate.
(2) Prior to completing a cash tender offer in November 2020, the original principal amount outstanding, on each of the 3.8% USD Notes, due 2028, and the 4.375% USD
Notes, due 2042, was USD 750 million.
In June 2025, the Company issued the following CHF bonds: (i) CHF 350 million 0.8725% Bonds, due 2032, and (ii) CHF 250 million 1.2762% Bonds, due
2036, both paying interest annually in arrears. The aggregate net proceeds of these CHF Bonds, after fees, am ounted to CHF 598 million (equivalent to
approximately $731 million on date of issuance).
Subsequent event
On October 3, 2025, the Company repaid at maturity its CHF 150 million 2.1% CHF Bonds, equivalent to $188 million on date of repayment.
─
Note 10
Commitments and contingencies
Contingencies—Regulatory, Compliance and Legal
General
The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and
other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters , as well as 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.
At September 30, 2025, and December 31, 2024, the Company had aggregate liabilities of $49 million and $83 million, respectively, included in Provisions
and Other non‑current liabilities, for the regulatory, compliance and legal contingencies, and none of the individual liabilities recognize d was significant.
As it is not possible to make an informed judgment on, or reasonably predict, the outcom e of certain matters and as it is not possible, based on
information currently available to management, to estimate the maximum potential liability on other matters, there could be a dverse outcomes beyond
the amounts accrued.
===== SIDA 36 =====
23 Q3 2025 FINANCIAL INFORMATION
Guarantees
General
The following table provides quantitative data regarding the Company’s third -party guarantees. The maximum potential payments represent a
“worst-case scenario”, and do not reflect management’s expected outcomes.
Maximum potential payments ($ in millions) September 30, 2025 December 31, 2024
Performance guarantees 2,103 2,299
Financial guarantees 19 22
Total(1) 2,122 2,321
(1) Maximum potential payments include amounts in both continuing and discontinued operations.
The carrying amount of liabilities recorded in the Consolidated Balance Sheets reflects the Company’s best estimate of future payments, which it may
incur as part of fulfilling its guarantee obligations. In respect of the above guarantees, the carrying amo unts of liabilities at September 30, 2025, and
December 31, 2024, were not significant.
The Company is party to various guarantees providing financial or performance assurances to certain third parties. These guar antees, which have
various maturities up to 2049, mainly consist of performance guarantees whereby (i) the Company guarantees the performance of a third party’s
product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a 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 September 30, 2025, and December 31, 2024,
the maximum potential payable under these guarantees amounts to $845 million and $747 million, respectively, and these guarantees have various
original maturities up to ten years.
The Company retained obligations for financial and performance guarantees related to its former Power Grids business (reporte d as discontinued
operations prior to its sale to Hitachi Ltd in 2020), which at both September 30, 2025, and December 31, 2024, have been fully indemnified by Hitachi Ltd.
These guarantees, having various maturities up to 20 49, primarily consist of bank guarantees, standby letters of credit, business performance
guarantees and other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount
payable under these guarantees at September 30, 2025, and December 31, 2024, is approximately $0.9 billion and $1.1 billion, respectively.
Commercial commitments
In addition, in the normal course of bidding for and executing certain projects, the Company has entered into standby letters of credit, bid/performance
bonds and surety bonds (collectively “performance bonds”) with various financial institutions. 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 September 30, 2025, and December 31, 2024, the total outstanding performance bonds aggregated to
$3.4 billion and $3.2 billion, respectively. There have been no significant amounts reimbursed to financial institutions under these types of arrangements
in the nine and three months ended September 30, 2025 and 2024.
Product and order-related contingencies
The Company calculates its provision for product warranties based on historical claims experience and specific review of cert ain contracts. The
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:
($ in millions) 2025 2024
Balance at January 1, 1,248 1,210
Net change in warranties due to acquisitions and divestments (6) –
Claims paid in cash or in kind (121) (116)
Net increase in provision for changes in estimates, warranties issued and warranties expired 165 192
Exchange rate differences 97 3
Balance at September 30, 1,383 1,289
Included in:
”Provisions” — current liabilities 701 707
”Other non-current liabilities” — non-current liabilities 682 582
Provisions for warranties - Total 1,383 1,289
─
Note 11
Income taxes
In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances known at each
interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and circumstances, if any, as
compared to those forecasted at the beginning of the year and each interim period thereafter.
The effective tax rate of 27.6 percent in the nine months ended September 30, 2025, was higher than the effective tax rate of 26.1 percent in the nine
months ended September 30, 2024, primarily due to a net benefit of $72 million from a partial reversal of an uncertain tax position related to the
reassessment of certain tax risks in the nine months ended September 30, 2024. This resulted in an increase of $0.04 in earnings per share (basic and
diluted) for the nine months ended September 30, 2024.
===== SIDA 37 =====
24 Q3 2025 FINANCIAL INFORMATION
─
Note 12
Employee benefits
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local
regulations and practices. At September 30, 2025, the Company’s most significant defined benefit pension plans are in Switzerland as well as in
Germany, the United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees
in the event of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates
other postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requi rements.
During the third quarter of 2025, the Trustees of the U.K. pension plan entered into two buy -in agreements with a third-party insurance company. The
buy-in arrangements are insurance contracts providing substantially all future benefit plan payments to the U.K. pension plan participants. However, the
primary benefit obligation remains with the Company. As part of the buy-in agreements, $875 million in U.K. pension plan assets were transferred to the
insurer in exchange for the insurance contracts at the effective dates of the buy -in agreements. The insurance contracts remain assets of the U.K.
pension plan and are considered Level 3 investmen ts. No cash contribution was required to be made by the Company for the insurance contracts. The
buy-in arrangements also allow for the possible future conversion into buy -out arrangements where the insurance company would assume full
responsibility for the U.K. pension plan pension obligations, at which time the Company would derecognize the assets and liabilities of the pensio n plan
and realize a settlement loss or gain as a component of the net periodic benefit cost.
Net periodic benefit cost of the Company’s defined benefit pension plans consist s of the following:
($ in millions) Defined pension benefits
Switzerland International
Nine months ended September 30, 2025 2024 2025 2024
Operational pension cost:
Service cost 42 35 18 20
Operational pension cost 42 35 18 20
Non-operational pension cost (credit):
Interest cost 16 27 115 118
Expected return on plan assets (89) (98) (126) (128)
Amortization of prior service cost (credit) – (5) (2) (1)
Amortization of net actuarial loss 1 – 42 40
Curtailments, settlements and special termination benefits – 3 1 4
Non-operational pension cost (credit) (1) (72) (73) 30 33
Net periodic benefit cost (credit) (30) (38) 48 53
($ in millions) Defined pension benefits
Switzerland International
Three months ended September 30, 2025 2024 2025 2024
Operational pension cost:
Service cost 14 12 6 7
Operational pension cost 14 12 6 7
Non-operational pension cost (credit):
Interest cost 5 10 37 40
Expected return on plan assets (30) (36) (43) (43)
Amortization of prior service cost (credit) – (1) – –
Amortization of net actuarial loss 1 – 17 14
Curtailments, settlements and special termination benefits – 1 1 –
Non-operational pension cost (credit) (1) (24) (26) 12 11
Net periodic benefit cost (credit) (10) (14) 18 18
(1) Total Non-operational pension cost (credit) includes additional credits of $0 million and $(2) million for the nine months ended September 30, 2025 and 2024, respectively,
and additional credits of $0 million and $(1) million for the three months ended September 30, 2025 and 2024, respectively, related to other postretirement benefits.
The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the
Consolidated Income Statements.
Employer contributions were as follows:
($ in millions) Defined pension benefits
Switzerland International
Nine months ended September 30, 2025 2024 2025 2024
Total contributions to defined benefit pension plans 50 44 25 30
Three months ended September 30, 2025 2024 2025 2024
Total contributions to defined benefit pension plans 17 16 5 4
The Company expects to make contributions totaling approximately $101 million to its defined benefit pension plans for the full year 2025.
===== SIDA 38 =====
25 Q3 2025 FINANCIAL INFORMATION
─
Note 13
Stockholders' equity
At the Annual General Meeting of Shareholders on March 27, 2025, shareholders approved the proposal of the Board of Directors to distribute 0. 90 Swiss
francs per share to shareholders. The declared dividend amounted to $1,867 million, and was paid in the second quarter of 2025.
In February 2025, the Company announced the completion of its $1 billion share buyback program that was launched in April 2024. This program was
executed on a second trading line on the SIX Swiss Exchange. Also in February 2025, the Company launched a new share buyback program of up to
$1.5 billion, as announced in late January 2025. This program, which is being executed on a second trading line on the SIX Swiss Exchange , is planned to
run until January 2026. Under these buyback programs, the Company purchased approximately 19 million shares in the nine months ended
September 30, 2025, resulting in an increase in Treasury stock of $1,090 million.
In the second quarter of 2025, the Company cancelled 17 million shares which had been purchased under its share buyback program. This resulted in a
decrease in Treasury stock of $894 million and a corresponding total decrease in Capital stock, Additional paid -in capital and Retained earnings.
─
Note 14
Earnings per share
Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per
share is calculated by dividing income by the weighted -average number of shares outstanding during the pe riod, assuming that all potentially dilutive
securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options, and outsta nding options and shares
granted subject to certain conditions under the Company’s sha re-based payment arrangements.
Basic earnings per share
Nine months ended September 30, Three months ended September 30,
($ in millions, except per share data in $) 2025 2024 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 3,460 2,945 1,199 941
Income from discontinued operations, net of tax 1 3 9 6
Net income 3,461 2,948 1,208 947
Weighted-average number of shares outstanding (in millions) 1,830 1,845 1,823 1,846
Basic earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.89 1.60 0.66 0.51
Income from discontinued operations, net of tax – – – –
Net income 1.89 1.60 0.66 0.51
Diluted earnings per share
Nine months ended September 30, Three months ended September 30,
($ in millions, except per share data in $) 2025 2024 2025 2024
Amounts attributable to ABB shareholders:
Income from continuing operations, net of tax 3,460 2,945 1,199 941
Income from discontinued operations, net of tax 1 3 9 6
Net income 3,461 2,948 1,208 947
Weighted-average number of shares outstanding (in millions) 1,830 1,845 1,823 1,846
Effect of dilutive securities:
Call options and shares 3 8 4 5
Adjusted weighted-average number of shares outstanding (in millions) 1,833 1,853 1,827 1,851
Diluted earnings per share attributable to ABB shareholders:
Income from continuing operations, net of tax 1.89 1.59 0.66 0.51
Income from discontinued operations, net of tax – – – –
Net income 1.89 1.59 0.66 0.51
===== SIDA 39 =====
26 Q3 2025 FINANCIAL INFORMATION
─
Note 15
Reclassifications out of accumulated other comprehensive loss
The following table shows changes in Accumulated other comprehensive loss (OCI) attributable to ABB, by component, net of tax :
Unrealized gains Pension and
Foreign currency (losses) on other Derivative
translation available-for-sale postretirement instruments
($ in millions) adjustments securities plan adjustments and hedges Total OCI
Balance at January 1, 2024 (3,977) (8) (1,075) (10) (5,070)
Other comprehensive (loss) income:
Other comprehensive (loss) income
before reclassifications (26) 4 (14) (5) (41)
Amounts reclassified from OCI 1 – 27 8 36
Total other comprehensive (loss) income (25) 4 13 3 (5)
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests (3) – – – (3)
Balance at September 30, 2024 (3,999) (4) (1,062) (7) (5,072)
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 81 3 (94) (3) (13)
Amounts reclassified from OCI – – 30 6 36
Total other comprehensive (loss) income 81 3 (64) 3 23
Less:
Amounts attributable to
noncontrolling interests and
redeemable noncontrolling interests 12 – – – 12
Balance at September 30, 2025 (4,179) – (1,155) (5) (5,339)
The amounts reclassified out of OCI for the nine and three months ended September 30, 2025 and 2024, were not significant.
─
Note 16
Operating segment data
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of each
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services:
Electrification, Motion, Process Automation and Robotics & Discrete Automation. The remaining operations of the Company are i ncluded in Corporate
and Other.
Effective January 1, 2025, the Company changed its accounting policy related to the functional classification of information system expenses in the
income statement. Under the new policy, information systems expenses are now allocated to the relevant income statement caption based on the
nature of the underlying system and the Total segment assets of each individual operating segment have been retroactively restated for the impact of
the policy change on Inventories and the related deferred tax balance (see Note 1). The segment information for the nine and three months ended
September 30, 2024, and at December 31, 2024, has been recast to reflect this change.
A description of the types of products and services provided by each reportable segment is as follows:
• Electrification: manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution
of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power
solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit
breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and
building solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The
products and services are delivered through five operating Divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation
Products and Service.
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27 Q3 2025 FINANCIAL INFORMATION
• Motion: designs, manufactures, and sells drives, motors, generators and traction converters that are driving the low -carbon future for
industries, cities, infrastructure and transportation. These products, digital technology and related services enable industr ial customers to
increase energy efficiency, improve safety and reliability, and achieve precise control of their processes. Building on over 140 years of
cumulative experience in electric powertrains, Motion combines domain expertise and technology to deliver the optimum solution for a wide
range of applications in all industrial segments. In addition, Motion, along with its partners, has a leading global service presence. These
products and services are delivered through six operating Divisions: IEC LV Motors, NEMA Motors, Drive Products, High Power, Service and
Traction.
• Process Automation: offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle
services for the process, hybrid and marine industries. The product portfolio includes control technologies, industrial software, advanced
analytics, sensing and measurement technology, and marine propulsion systems. In addition, Process Automation offers a comprehensive
range of services, from repair to advanced digital capabilities such as remote monitoring, preventive maintenance, asset performance
management, emission monitoring and cybersecurity. The products, systems and services are delivered through four operating Divisions:
Energy Industries, Process Industries, Marine & Ports and Measurement & Analytics.
• Robotics & Discrete Automation: delivers its products, solutions and services through two operating Divisions. Robotics provides industrial
and collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts and
digital services. Machine Automation specializes in automation solutions based on its programmable logic controllers (PLC), industrial PCs
(IPC), servo motion, transport systems and machine vision. Both divisions offer software across the entire life cycle, including engineering and
simulation software as well as a comprehensive range of digital solutions.
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other inclu des
the E-mobility operating segment and other non-core operating activities as well as the operating activities of certain divested businesses.
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations
excluding:
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial
resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of 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 be tween segments.
Segment results below are presented before these eliminations, with a total deduction for intersegment profits 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.
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28 Q3 2025 FINANCIAL INFORMATION
The following tables present disaggregated segment revenues from contracts with customers , significant segment expenses, and Operational EBITA for
the nine and three months ended September 30, 2025 and 2024.
Nine months ended September 30, 2025
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 3,761 1,828 2,083 1,107 141 8,920
The Americas 5,588 1,998 1,423 411 114 9,534
of which: United States 4,472 1,651 916 253 69 7,361
Asia, Middle East and Africa 3,128 1,761 1,699 835 41 7,464
of which: China 1,344 810 447 550 12 3,163
12,477 5,587 5,205 2,353 296 25,918
Product type
Products 11,600 4,734 3,020 1,927 228 21,509
Services and other 877 853 2,185 426 68 4,409
12,477 5,587 5,205 2,353 296 25,918
Third-party revenues 12,477 5,587 5,205 2,353 296 25,918
Intersegment revenues 178 400 33 11 (622) –
Total revenues 12,655 5,987 5,238 2,364 (326) 25,918
Operational cost of sales (7,257) (3,663) (3,180) (1,540)
Operational selling, general and
administrative expenses (2,053) (916) (978) (466)
Operational non-order related
research and development
expenses (344) (230) (244) (140)
Other segment items 18 10 (14) 4
Operational EBITA 3,019 1,188 822 222
Nine months ended September 30, 2024
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 3,391 1,621 1,786 1,282 158 8,238
The Americas 4,886 1,948 1,384 399 138 8,755
of which: United States 3,803 1,580 857 248 102 6,590
Asia, Middle East and Africa 2,930 1,749 1,770 756 62 7,267
of which: China 1,337 827 522 524 16 3,226
11,207 5,318 4,940 2,437 358 24,260
Product type
Products 10,444 4,455 2,913 1,999 321 20,132
Services and other 763 863 2,027 438 37 4,128
11,207 5,318 4,940 2,437 358 24,260
Third-party revenues 11,207 5,318 4,940 2,437 358 24,260
Intersegment revenues 195 431 21 7 (654) –
Total revenues 11,402 5,749 4,961 2,444 (296) 24,260
Operational cost of sales (6,634) (3,622) (3,111) (1,542)
Operational selling, general and
administrative expenses (1,831) (799) (871) (482)
Operational non-order related
research and development
expenses (312) (226) (219) (156)
Other segment items 32 33 7 4
Operational EBITA 2,657 1,135 767 268
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29 Q3 2025 FINANCIAL INFORMATION
Three months ended September 30, 2025
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,310 669 706 388 58 3,131
The Americas 2,003 684 475 141 41 3,344
of which: United States 1,598 564 304 90 25 2,581
Asia, Middle East and Africa 1,119 592 607 275 15 2,608
of which: China 478 276 161 177 5 1,097
4,432 1,945 1,788 804 114 9,083
Product type
Products 4,119 1,639 1,063 658 87 7,566
Services and other 313 306 725 146 27 1,517
4,432 1,945 1,788 804 114 9,083
Third-party revenues 4,432 1,945 1,788 804 114 9,083
Intersegment revenues 67 137 13 3 (220) –
Total revenues 4,499 2,082 1,801 807 (106) 9,083
Operational cost of sales (2,587) (1,287) (1,097) (528)
Operational selling, general and
administrative expenses (695) (313) (334) (156)
Operational non-order related
research and development
expenses (121) (79) (84) (48)
Other segment items 4 18 (9) (1)
Operational EBITA 1,100 421 277 74
Three months ended September 30, 2024
Robotics &
Process Discrete Corporate
($ in millions) Electrification Motion Automation Automation and Other Total
Geographical markets
Europe 1,095 559 605 358 42 2,659
The Americas 1,714 655 464 126 47 3,006
of which: United States 1,346 524 278 78 33 2,259
Asia, Middle East and Africa 1,037 607 570 261 11 2,486
of which: China 466 281 161 181 5 1,094
3,846 1,821 1,639 745 100 8,151
Product type
Products 3,582 1,529 975 601 90 6,777
Services and other 264 292 664 144 10 1,374
3,846 1,821 1,639 745 100 8,151
Third-party revenues 3,846 1,821 1,639 745 100 8,151
Intersegment revenues 67 148 4 2 (221) –
Total revenues 3,913 1,969 1,643 747 (121) 8,151
Operational cost of sales (2,262) (1,218) (1,030) (483)
Operational selling, general and
administrative expenses (615) (270) (296) (154)
Operational non-order related
research and development
expenses (101) (69) (71) (49)
Other segment items 9 (8) 5 1
Operational EBITA 944 404 251 62
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30 Q3 2025 FINANCIAL INFORMATION
The following tables present Operational EBITA, the reconciliations of consolidated Operational EBITA to Income from continui ng operations before
taxes, as well as Depreciation and amortization, and Capital expenditures for the nine and three months ended September 30, 2025 and 2024, and Total
assets at September 30, 2025, and December 31, 2024:
Nine months ended Three months ended
September 30, September 30,
($ in millions) 2025 2024 2025 2024
Operational EBITA:
Electrification 3,019 2,657 1,100 944
Motion 1,188 1,135 421 404
Process Automation 822 767 277 251
Robotics & Discrete Automation 222 268 74 62
Corporate and Other
‒ E-mobility (115) (201) (26) (60)
‒ Corporate costs, Intersegment elimination and other (93) (92) (108) (48)
Total 5,043 4,534 1,738 1,553
Acquisition-related amortization (145) (157) (50) (44)
Restructuring, related and implementation costs (1) (44) (97) (20) (21)
Changes in obligations related to divested businesses 3 11 – –
Gains and losses from sale of businesses – (13) (12) 1
Fair value adjustment on assets and liabilities held for sale – (132) – (89)
Acquisition- and divestment-related expenses and integration costs (81) (54) (50) (17)
Foreign exchange/commodity timing differences in income from operations:
Unrealized gains and losses on derivatives (foreign exchange,
commodities, embedded derivatives) 107 (38) 34 6
Realized gains and losses on derivatives where the underlying hedged
transaction has not yet been realized (3) 6 (2) 7
Unrealized foreign exchange movements on receivables/payables (and
related assets/liabilities) (20) 10 26 (32)
Certain other non-operational items:
Other income/expense relating to the Power Grids joint venture 6 14 – 3
Business transformation costs(2) (133) (148) (41) (47)
Certain other fair value changes, including asset impairments 72 (31) 45 (12)
Other non-operational items (3) (3) (6) 1
Income from operations 4,802 3,902 1,662 1,309
Interest and dividend income 142 146 47 43
Interest and other finance expense (97) (91) (34) (41)
Non-operational pension (cost) credit 42 39 12 13
Income from continuing operations before taxes 4,889 3,996 1,687 1,324
(1) Includes impairment of certain assets.
(2) Amount includes ABB Way process transformation costs of $121 million and $145 million for the nine months ended September 30, 2025 and 2024, respectively, and
$35 million and $46 million for the three months ended September 30, 2025 and 2024, respectively.
Depreciation and amortization
Nine months ended Three months ended
September 30, September 30,
($ in millions) 2025 2024 2025 2024
Electrification 329 286 114 98
Motion 130 119 45 41
Process Automation 55 44 19 16
Robotics & Discrete Automation 69 95 25 23
Corporate and Other 41 53 12 16
Consolidated 624 597 215 194
Capital expenditures
Nine months ended Three months ended
September 30, September 30,
($ in millions) 2025 2024 2025 2024
Electrification 330 279 132 108
Motion 140 137 50 41
Process Automation 43 46 13 15
Robotics & Discrete Automation 79 61 25 23
Corporate and Other 56 39 9 9
Consolidated 648 562 229 196
(1) Capital expenditures are after intersegment eliminations and therefore reflect third -party assets only.
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31 Q3 2025 FINANCIAL INFORMATION
Total assets(1)
($ in millions) September 30, 2025 December 31, 2024
Electrification 15,065 13,089
Motion 7,399 6,870
Process Automation 5,557 5,308
Robotics & Discrete Automation 4,923 4,753
Corporate and Other 10,710 10,268
Consolidated 43,654 40,288
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only.
2025 Realignment of segments
On October 8, 2025, the Company entered into an agreement to divest its Robotics Division. As a result of the planned divestment, the Company
announced a reorganization of its operating segments into three business areas.
Effective from the fourth quarter of 2025, the results of operations for the Robotics Division , formerly part of the Robotics & Discrete Automation
operating segment, will be presented as discontinued operations. The Process Automation segment will remain unchanged except that it will now
include the Machine Automation Division from the former Robotics & Discrete Automation segment.
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32 Q3 2025 FINANCIAL INFORMATION
===== SIDA 46 =====
33 Q3 2025 FINANCIAL INFORMATION
—
Supplemental Reconciliations and Definitions
The following reconciliations and definitions include alternative performance measures which ABB uses to supplement its Consolidated Financial
Information (unaudited) which is prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). Certain of
these financial measures are not defined under U.S. GAAP.
While ABB’s management believes that the measures herein are useful in evaluating ABB’s operating results, this information s hould be
considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance 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 nine and three months ended September 30, 2025.
Effective January 1, 2025, ABB changed its accounting policy related to the functional classification of its information system expenses in the
income statement . As a result, the consolidated financial statements for 2024 and 2023 have been retroactively restated to reflect this
accounting policy change. See Note 1 - The Company and basis of presentation for details .
Comparable growth rates
Growth rates for certain key figures may be presented and discussed on a “comparable” basis. The comparable growth rate measu res growth on a
constant currency basis. Since we are a global company, the comparability of our operating results reported in U.S. dollars is affected by foreign
currency exchange rate fluctuations. We calculate the impacts from foreign currency fluctuations by translating the current -year periods’ reported key
figures into U.S. dollar amounts using the exchange rates in effect for 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 $50 million.
The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable g rowth rate.
Comparable growth rate reconciliation by Business Area
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 12% -2% 0% 10% 15% -2% 0% 13%
Motion 20% -3% 0% 17% 6% -3% 0% 3%
Process Automation 6% -2% 0% 4% 10% -3% 0% 7%
Robotics & Discrete Automation 16% -3% 0% 13% 8% -3% 0% 5%
ABB Group 12% -3% 0% 9% 11% -2% 0% 9%
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 7% 0% 0% 7% 11% -1% 0% 10%
Motion 5% -1% 0% 4% 4% -1% 0% 3%
Process Automation 24% -2% 0% 22% 6% -1% 0% 5%
Robotics & Discrete Automation 12% -1% 0% 11% -3% -1% 0% -4%
ABB Group 10% -1% 0% 9% 7% -1% 0% 6%
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34 Q3 2025 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation
Regional comparable growth rate reconciliation for ABB Group - Quarter
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 16% -7% 0% 9% 18% -8% 1% 11%
The Americas 19% -1% 1% 19% 11% 0% 1% 12%
of which: United States 27% -1% 1% 27% 14% 0% 1% 15%
Asia, Middle East and Africa -1% 0% 0% -1% 5% 0% -1% 4%
of which: China -3% 0% -1% -4% 0% 0% -1% -1%
ABB Group 12% -3% 0% 9% 11% -2% 0% 9%
Regional comparable growth rate reconciliation by Business Area - Quarter
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 22% -7% 0% 15% 19% -7% 0% 12%
The Americas 17% 0% 1% 18% 17% 0% 1% 18%
of which: United States 23% 0% 0% 23% 19% 0% 0% 19%
Asia, Middle East and Africa -5% 0% -1% -6% 7% 0% -1% 6%
of which: China -10% 0% -2% -12% 3% 0% -4% -1%
Electrification 12% -2% 0% 10% 15% -2% 0% 13%
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 15% -7% 0% 8% 15% -7% 0% 8%
The Americas 35% -2% 0% 33% 4% 0% 0% 4%
of which: United States 43% -3% 0% 40% 7% 0% 0% 7%
Asia, Middle East and Africa 8% 0% 0% 8% -2% 0% 0% -2%
of which: China 3% -1% 0% 2% -1% -1% 0% -2%
Motion 20% -3% 0% 17% 6% -3% 0% 3%
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 9% -6% 0% 3% 17% -7% 0% 10%
The Americas 20% -1% 0% 19% 3% -1% 0% 2%
of which: United States 31% 0% 0% 31% 10% -1% 0% 9%
Asia, Middle East and Africa -8% 0% 0% -8% 6% 0% 0% 6%
of which: China -13% 0% 0% -13% 0% 0% 0% 0%
Process Automation 6% -2% 0% 4% 10% -3% 0% 7%
Q3 2025 compared to Q3 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 18% -7% 0% 11% 8% -6% 0% 2%
The Americas -2% 0% 0% -2% 13% -1% 0% 12%
of which: United States 13% 0% 0% 13% 14% 0% 0% 14%
Asia, Middle East and Africa 28% 0% 0% 28% 5% 1% 0% 6%
of which: China 30% -1% 0% 29% -2% 0% 0% -2%
Robotics & Discrete Automation 16% -3% 0% 13% 8% -3% 0% 5%
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35 Q3 2025 FINANCIAL INFORMATION
Regional comparable growth rate reconciliation for ABB Group – Year to date
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 8% -3% 0% 5% 8% -3% 0% 5%
The Americas 18% 1% 0% 19% 9% 1% 1% 11%
of which: United States 25% -1% 0% 24% 12% 0% 0% 12%
Asia, Middle East and Africa 3% 1% -1% 3% 3% 0% 0% 3%
of which: China 5% 0% -1% 4% -2% 0% -1% -3%
ABB Group 10% -1% 0% 9% 7% -1% 0% 6%
Regional comparable growth rate reconciliation by Business Area – Year to date
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 8% -3% 0% 5% 11% -4% 0% 7%
The Americas 10% 1% 0% 11% 14% 1% 1% 16%
of which: United States 15% 0% -1% 14% 18% 0% -1% 17%
Asia, Middle East and Africa 3% 1% -1% 3% 5% 1% -1% 5%
of which: China 0% 1% -3% -2% 1% 0% -4% -3%
Electrification 7% 0% 0% 7% 11% -1% 0% 10%
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 4% -3% 0% 1% 11% -4% 0% 7%
The Americas 18% 0% 0% 18% 3% 0% 0% 3%
of which: United States 26% -1% 0% 25% 4% 0% 0% 4%
Asia, Middle East and Africa -5% 0% 0% -5% -1% 1% 0% 0%
of which: China 7% -1% 0% 6% -2% 0% 0% -2%
Motion 5% -1% 0% 4% 4% -1% 0% 3%
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 12% -3% 0% 9% 17% -3% 0% 14%
The Americas 58% 0% 0% 58% 3% 1% 0% 4%
of which: United States 88% -4% 0% 84% 7% 0% 0% 7%
Asia, Middle East and Africa 11% 0% 0% 11% -4% 0% 0% -4%
of which: China 13% 0% 0% 13% -15% 0% 0% -15%
Process Automation 24% -2% 0% 22% 6% -1% 0% 5%
9M 2025 compared to 9M 2024
Order growth rate Revenue growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Region reported) impact changes Comparable reported) impact changes Comparable
Europe 17% -3% 0% 14% -13% -3% 0% -16%
The Americas -7% 2% 0% -5% 3% 2% 0% 5%
of which: United States -10% 0% 0% -10% 2% 0% 0% 2%
Asia, Middle East and Africa 17% 1% 0% 18% 10% 1% 0% 11%
of which: China 11% 0% 0% 11% 5% 0% 0% 5%
Robotics & Discrete Automation 12% -1% 0% 11% -3% -1% 0% -4%
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36 Q3 2025 FINANCIAL INFORMATION
Order backlog growth rate reconciliation
September 30, 2025 compared to September 30,
2024
US$ Foreign
(as exchange Portfolio
Business Area reported) impact changes Comparable
Electrification 10% -1% 1% 10%
Motion 7% -2% 0% 5%
Process Automation 20% -2% 0% 18%
Robotics & Discrete Automation -15% -1% 0% -16%
ABB Group 9% -1% 0% 8%
Other growth rate reconciliations
Q3 2025 compared to Q3 2024
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 19% -2% -2% 15% 19% -3% -2% 14%
Motion 4% -3% 0% 1% 5% -3% 0% 2%
Process Automation 12% -3% 0% 9% 9% -3% 0% 6%
Robotics & Discrete Automation -5% -3% 0% -8% 1% -3% 0% -2%
ABB Group 10% -4% 0% 6% 10% -3% 0% 7%
9M 2025 compared to 9M 2024
Service orders growth rate Services revenues growth rate
US$ Foreign US$ Foreign
(as exchange Portfolio (as exchange Portfolio
Business Area reported) impact changes Comparable reported) impact changes Comparable
Electrification 21% -1% -5% 15% 15% -1% -5% 9%
Motion 8% 0% 0% 8% -1% -1% 0% -2%
Process Automation 34% -2% 0% 32% 8% -1% 0% 7%
Robotics & Discrete Automation -3% -1% 0% -4% -3% -1% 0% -4%
ABB Group 23% -2% -1% 20% 7% -1% -1% 5%
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37 Q3 2025 FINANCIAL INFORMATION
Operational EBITA as % of operational revenues (Operational EBITA margin)
Definition
Operational EBITA margin
Operational EBITA margin is Operational EBITA as a percentage of operational revenues.
Operational EBITA
Operational earnings before interest, taxes and acquisition -related amortization (Operational EBITA) represents Income from operations excluding:
• acquisition-related amortization (as defined below),
• restructuring, related and implementation costs,
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in obligations
related to divested businesses),
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),
• acquisition- and divestment-related expenses and integration costs,
• certain other non-operational items, as well as
• foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives
(foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying h edged transaction
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments and
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis.
Operational EBITA is our measure of segment profit but is also used by management to evaluate the profitability of the Compan y as a whole.
Acquisition-related amortization
Amortization expense on intangibles arising upon acquisitions.
Restructuring, related and implementation costs
Restructuring, related and implementation costs consists of restructuring and other related expenses, as well as internal and external costs relating to
the implementation of group-wide restructuring programs.
Operational revenues
The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin. Operational revenues are
Total revenues adjusted for foreign exchange/commodity timing differences in total revenues of: (i) unrealized gains and losses on derivatives,
(ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange
movements on receivables (and related assets). Operational revenues are not intended to be an alternative measure to Total revenues, which represent
our revenues measured in accordance with U.S. GAAP.
Reconciliation
The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA margin by business.
Reconciliation of consolidated Operational EBITA to Net Income
Nine months ended September 30, Three months ended September 30,
($ in millions) 2025 2024 2025 2024
Operational EBITA 5,043 4,534 1,738 1,553
Acquisition-related amortization (145) (157) (50) (44)
Restructuring, related and implementation costs (1) (44) (97) (20) (21)
Changes in obligations related to divested businesses 3 11 – –
Gains and losses from sale of businesses – (13) (12) 1
Fair value adjustment on assets and liabilities held for sale – (132) – (89)
Acquisition- and divestment-related expenses and integration costs (81) (54) (50) (17)
Certain other non-operational items (58) (168) (2) (55)
Foreign exchange/commodity timing differences in income from operations 84 (22) 58 (19)
Income from operations 4,802 3,902 1,662 1,309
Interest and dividend income 142 146 47 43
Interest and other finance expense (97) (91) (34) (41)
Non-operational pension (cost) credit 42 39 12 13
Income from continuing operations before taxes 4,889 3,996 1,687 1,324
Income tax expense (1,347) (1,041) (452) (387)
Income from continuing operations, net of tax 3,542 2,955 1,235 937
Income from discontinued operations, net of tax 1 2 9 5
Net income 3,543 2,957 1,244 942
(1) Includes impairment of certain assets.
===== SIDA 51 =====
38 Q3 2025 FINANCIAL INFORMATION
Reconciliation of Operational EBITA margin by business
Three months ended September 30, 2025
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 4,499 2,082 1,801 807 (106) 9,083
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 9 11 (6) 1 2 17
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 1 – 1 (1) – 1
Unrealized foreign exchange movements
on receivables (and related assets) (13) (2) (4) (2) (5) (26)
Operational revenues 4,496 2,091 1,792 805 (109) 9,075
Income (loss) from operations 1,079 402 298 67 (184) 1,662
Acquisition-related amortization 27 8 6 7 2 50
Restructuring, related and
implementation costs(1) 6 10 – – 4 20
Gains and losses from sale of businesses 8 – – – 4 12
Acquisition- and divestment-related expenses
and integration costs 5 1 2 2 40 50
Certain other non-operational items 1 3 (20) 1 17 2
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (16) (1) (5) (1) (11) (34)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 2 – 2 (1) (1) 2
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) (12) (2) (6) (1) (5) (26)
Operational EBITA 1,100 421 277 74 (134) 1,738
Operational EBITA margin (%) 24.5% 20.1% 15.5% 9.2% n.a. 19.2%
(1) Includes impairment of certain assets.
In the three months ended September 30, 2025, Certain other non-operational items in the table above includes the following:
Three months ended September 30, 2025
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Business transformation costs(1) – 2 – – 39 41
Certain other fair values changes,
including asset impairments 2 1 (21) 1 (28) (45)
Other non-operational items (1) – 1 – 6 6
Total 1 3 (20) 1 17 2
(1) Amounts include ABB Way process transformation costs of $35 million for the three months ended September 30, 2025.
===== SIDA 52 =====
39 Q3 2025 FINANCIAL INFORMATION
Three months ended September 30, 2024
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 3,913 1,969 1,643 747 (121) 8,151
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (6) (14) (3) (3) (6) (32)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – (2) 3 – (4) (3)
Unrealized foreign exchange movements
on receivables (and related assets) 15 3 10 3 10 41
Operational revenues 3,922 1,956 1,653 747 (121) 8,157
Income (loss) from operations 893 397 242 31 (254) 1,309
Acquisition-related amortization 23 9 2 7 3 44
Restructuring, related and
implementation costs(1) 2 2 – 20 (3) 21
Gains and losses from sale of businesses (1) – – – – (1)
Fair value adjustment on assets and liabilities
held for sale – – – – 89 89
Acquisition- and divestment-related expenses
and integration costs 4 1 2 5 5 17
Certain other non-operational items 1 2 3 1 48 55
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 13 (12) (6) (4) 3 (6)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (4) (1) 3 – (5) (7)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 13 6 5 2 6 32
Operational EBITA 944 404 251 62 (108) 1,553
Operational EBITA margin (%) 24.1% 20.7% 15.2% 8.3% n.a. 19.0%
(1) Includes impairment of certain assets.
In the three months ended September 30, 2024, Certain other non-operational items in the table above includes the following:
Three months ended September 30, 2024
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (3) (3)
Business transformation costs(1) 2 – – – 45 47
Certain other fair values changes,
including asset impairments 1 2 2 – 7 12
Other non-operational items (2) – 1 1 (1) (1)
Total 1 2 3 1 48 55
(1) Amounts include ABB Way process transformation costs of $46 million for the three months ended September 30, 2024.
===== SIDA 53 =====
40 Q3 2025 FINANCIAL INFORMATION
Nine months ended September 30, 2025
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 12,655 5,987 5,238 2,364 (326) 25,918
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives (44) (5) (9) – (1) (59)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized – – (5) 1 (1) (5)
Unrealized foreign exchange movements
on receivables (and related assets) 28 3 3 3 (1) 36
Operational revenues 12,639 5,985 5,227 2,368 (329) 25,890
Income (loss) from operations 2,991 1,156 834 190 (369) 4,802
Acquisition-related amortization 82 26 14 21 2 145
Restructuring, related and
implementation costs(1) 16 17 3 7 1 44
Changes in obligations related to
divested businesses – – – – (3) (3)
Gains and losses from sale of businesses (5) – – – 5 –
Acquisition- and divestment-related expenses
and integration costs 24 3 7 6 41 81
Certain other non-operational items (28) 13 (22) – 95 58
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) (80) (32) (14) (5) 24 (107)
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized 3 1 – 1 (2) 3
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 16 4 – 2 (2) 20
Operational EBITA 3,019 1,188 822 222 (208) 5,043
Operational EBITA margin (%) 23.9% 19.8% 15.7% 9.4% n.a. 19.5%
(1) Includes impairment of certain assets.
In the nine months ended September 30, 2025, Certain other non-operational items in the table above includes the following:
Nine months ended September 30, 2025
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense relating to the
Power Grids joint venture – – – – (6) (6)
Business transformation costs(1) 1 7 – – 125 133
Certain other fair values changes,
including asset impairments (23) 5 (23) – (31) (72)
Other non-operational items (6) 1 1 – 7 3
Total (28) 13 (22) – 95 58
(1) Amounts include ABB Way process transformation costs of $121 million for the nine months ended September 30, 2025.
===== SIDA 54 =====
41 Q3 2025 FINANCIAL INFORMATION
Nine months ended September 30, 2024
Corporate and
Robotics & Other and
Process Discrete Intersegment
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation elimination Consolidated
Total revenues 11,402 5,749 4,961 2,444 (296) 24,260
Foreign exchange/commodity timing
differences in total revenues:
Unrealized gains and losses
on derivatives 45 29 20 3 2 99
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (2) – 4 – (2) –
Unrealized foreign exchange movements
on receivables (and related assets) (11) (13) (8) (5) 5 (32)
Operational revenues 11,434 5,765 4,977 2,442 (291) 24,327
Income (loss) from operations 2,499 1,067 750 168 (582) 3,902
Acquisition-related amortization 69 26 5 48 9 157
Restructuring, related and
implementation costs(1) 20 24 7 40 6 97
Changes in obligations related to
divested businesses – – – – (11) (11)
Gains and losses from sale of businesses (2) – – – 15 13
Fair value adjustment on assets and liabilities
held for sale 25 – – – 107 132
Acquisition- and divestment-related expenses
and integration costs 33 3 3 12 3 54
Certain other non-operational items 3 5 (2) – 162 168
Foreign exchange/commodity timing
differences in income from operations:
Unrealized gains and losses on derivatives
(foreign exchange, commodities,
embedded derivatives) 12 15 4 2 5 38
Realized gains and losses on derivatives
where the underlying hedged
transaction has not yet been realized (7) – 4 – (3) (6)
Unrealized foreign exchange movements
on receivables/payables
(and related assets/liabilities) 5 (5) (4) (2) (4) (10)
Operational EBITA 2,657 1,135 767 268 (293) 4,534
Operational EBITA margin (%) 23.2% 19.7% 15.4% 11.0% n.a. 18.6%
(1) Includes impairment of certain assets.
In the nine months ended September 30, 2024, certain other non-operational items in the table above includes the following:
Nine months ended September 30, 2024
Robotics &
Process Discrete Corporate
($ in millions, unless otherwise indicated) Electrification Motion Automation Automation and Other Consolidated
Certain other non-operational items:
Other income/expense related to the
Power Grids joint venture – – – – (14) (14)
Business transformation costs 3 1 – – 144 148
Certain other fair values changes,
including asset impairments 1 4 (2) – 28 31
Other non-operational items (1) – – – 4 3
Total 3 5 (2) – 162 168
(1) Amounts include ABB Way process transformation costs of $145 million for the nine months ended September 30, 2024.
===== SIDA 55 =====
42 Q3 2025 FINANCIAL INFORMATION
Net debt
Definition
Net debt
Net debt is defined as Total debt less Cash and marketable securities.
Total debt
Total debt is the sum of Short-term debt and current maturities of long-term debt, and Long-term debt.
Cash and marketable securities
Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short -term investments.
Reconciliation
($ in millions) September 30, 2025 December 31, 2024
Short-term debt and current maturities of long -term debt 680 293
Long-term debt 7,844 6,652
Total debt 8,524 6,945
Cash and equivalents 3,937 4,326
Marketable securities and short-term investments 1,890 1,334
Cash and marketable securities 5,827 5,660
Net debt 2,697 1,285
Net debt/Equity ratio
Definition
Net debt/Equity ratio
Net debt/Equity ratio is defined as Net debt divided by Equity.
Equity
Equity is defined as Total stockholders’ equity.
Reconciliation
($ in millions, unless otherwise indicated) September 30, 2025 December 31, 2024
Total stockholders' equity 15,522 14,991
Net debt (as defined above) 2,697 1,285
Net debt / Equity ratio 0.17 0.09
Net debt/EBITDA ratio
Definition
Net debt/EBITDA ratio
Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.
EBITDA
EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for
the same trailing twelve-month period.
Reconciliation
($ in millions, unless otherwise indicated) September 30, 2025 September 30, 2024
Income from operations for the three months ended:
December 31, 2024 / 2023 1,169 1,116
March 31, 2025 / 2024 1,567 1,217
June 30, 2025 / 2024 1,573 1,376
September 30, 2025 / 2024 1,662 1,309
Depreciation and Amortization for the three months ended:
December 31, 2024 / 2023 205 199
March 31, 2025 / 2024 196 201
June 30, 2025 / 2024 213 202
September 30, 2025 / 2024 215 194
EBITDA 6,800 5,814
Net debt (as defined above) 2,697 2,158
Net debt / EBITDA 0.4 0.4
===== SIDA 56 =====
43 Q3 2025 FINANCIAL INFORMATION
Net working capital
Definition
Net working capital
Net working capital is the sum of (i) receivables, net, (ii) contract assets, (iii) inventories, net, and (iv) prepaid expenses; less (v) accounts payable, trade,
(vi) contract liabilities and (vii) other current liabilities (excluding primarily: (a) income taxes payable, (b) current derivative liabilities, (c) pension and
other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain other restructuring -related activities); and
including the amounts related to these accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
($ in millions, unless otherwise indicated) September 30, 2025 September 30, 2024
Net working capital:
Receivables, net 7,955 7,448
Contract assets 1,289 1,236
Inventories, net 6,431 6,465
Prepaid expenses 330 306
Accounts payable, trade (5,271) (5,167)
Contract liabilities (3,451) (3,081)
Other current liabilities(1) (3,970) (3,714)
Net working capital in assets and liabilities held for sale (9) 19
Net working capital 3,304 3,512
(1) Amounts exclude $778 million and $903 million at September 30, 2025 and 2024, respectively, related primarily to (a) income taxes payable, (b) current derivative
liabilities, (c) pension and other employee benefits, (d) payables under the share buyback program and (e) liabilities related to certain restructuring -related
activitie s.
===== SIDA 57 =====
44 Q3 2025 FINANCIAL INFORMATION
Average trade net working capital as a percentage of revenues
Definition
Average trade net working capital as a percentage of revenues
Average trade net working capital as a percentage of revenues is calculated as Average trade net working capital divided by T otal revenues for the
trailing twelve months (being the total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date).
Average trade net working capital
Average trade net working capital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during
the trailing twelve-month period (4-quarter average).
Trade net working capital
Trade net working capital is the sum of (i) trade receivables (comprised of trade accounts receivable net of related allowance, presented within
Receivables, net, on the Consolidated Balance Sheets), (ii) contract assets, and (iii) inventories, net; less (iv) accounts payable, trade, (v) contract
liabilities and (vi) accrued expenses, operating (comprised of accruals related to customer rebates, unpaid interest and other general operating
expenses; all of which are presented within Other current liabilities on the Consolidated Balance Sheets); and including the amounts related to these
accounts which have been presented as either assets or liabilities held for sale.
Reconciliation
September 30, June 30, March 31, December 31, September 30,
($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024
Trade net working capital:
Trade receivables 7,303 7,320 6,887 6,816 6,821
Contract assets 1,289 1,301 1,210 1,115 1,236
Inventories, net 6,431 6,396 6,070 5,768 6,465
Accounts payable, trade (5,271) (5,273) (5,032) (5,036) (5,167)
Contract liabilities (3,451) (3,354) (3,248) (2,969) (3,081)
Accrued expenses, operating (1,424) (1,286) (1,223) (1,266) (1,363)
Trade net working capital in assets and liabilities held for sale (8) – – – 20
Trade net working capital 4,869 5,104 4,664 4,428 4,931
Average of opening and closing Trade net working capital 4,987 4,884 4,546 4,680
Average trade net working capital 4,774
Total revenues for the three months ended:
December 31, 2024 8,590
March 31, 2025 7,935
June 30, 2025 8,900
September 30, 2025 9,083
Total revenues for the trailing twelve months 34,508
Average trade net working capital as a percentage of revenues
(%)
13.8%
September 30, June 30, March 31, December 31, September 30,
($ in millions, unless otherwise indicated) 2024 2024 2024 2023 2023
Trade net working capital:
Trade receivables 6,821 6,898 6,790 6,822 6,863
Contract assets 1,236 1,118 1,135 1,090 1,073
Inventories, net 6,465 6,166 6,079 6,058 6,241
Accounts payable, trade (5,167) (5,118) (5,018) (4,847) (4,777)
Contract liabilities (3,081) (2,973) (2,866) (2,844) (2,610)
Accrued expenses, operating (1,363) (1,266) (1,302) (1,445) (1,524)
Trade net working capital in assets and liabilities held for sale 20 – – – –
Trade net working capital 4,931 4,825 4,818 4,834 5,266
Average of opening and closing Trade net working capital 4,878 4,822 4,826 5,050
Average trade net working capital 4,894
Total revenues for the three months ended:
December 31, 2023 8,245
March 31, 2024 7,870
June 30, 2024 8,239
September 30, 2024 8,151
Total revenues for the trailing twelve months 32,505
Average trade net working capital as a percentage of revenues
(%)
15.1%
===== SIDA 58 =====
45 Q3 2025 FINANCIAL INFORMATION
Return on Capital employed (ROCE)
In the first quarter of 2025, the Company modified its definition of Return on Capital employed (ROCE) to utilize a four -quarter average of Capital
employed in place of a simple average of the annual period’s opening and closing Capital employed . The change to an averaging method allows for a
comparable ratio that can be presented quarterly compared to our previous annual disclosure. In addition, a fixed notional tax rate (subject to review for
significant changes) is used. The new definition is provided below.
Definition
Return on Capital employed (ROCE)
Return on Capital employed (ROCE) is calculated as Operational EBITA after tax for the trailing twelve months divided by the 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) other intangible assets, net, (iv) investments in
equity-accounted companies, (v) operating lease right-of-use assets, and (vi) fixed assets included in assets held for sale, less (vii) deferred tax liabilities
recognized in certain acquisitions.
Notional tax on Operational EBITA
The Notional tax on Operational EBITA is computed using a consistent notional tax rate, approximately representative of the Company’s weighted -
average global tax rate, multiplied by Operational EBITA. The notional tax rate is subject to adjustment for significant changes in the Company’s
weighted-average global tax rate.
Reconciliation
September 30, June 30, March 31, December 31, September 30,
($ in millions, unless otherwise indicated) 2025 2025 2025 2024 2024
Adjusted total fixed assets:
Property, plant and equipment, net 4,690 4,618 4,301 4,177 4,248
Goodwill 11,368 11,352 11,088 10,555 10,582
Other intangible assets, net 1,147 1,192 1,183 1,048 1,036
Investments in equity-accounted companies 401 388 377 368 185
Operating lease right-of-use assets 845 849 861 840 873
Fixed assets included in assets held for sale 9 – – – 176
Total fixed assets 18,460 18,399 17,810 16,988 17,100
Less: Deferred taxes recognized in certain acquisitions (1) (210) (220) (231) (242) (253)
Adjusted total fixed assets 18,250 18,179 17,579 16,746 16,847
Net working capital - (as defined above) 3,304 3,767 3,371 2,739 3,512
Capital employed 21,554 21,946 20,950 19,485 20,359
Average of opening and closing Capital employed 21,750 21,448 20,218 19,922
Operational EBITA for the three months ended 1,738 1,708 1,597 1,434
Operational EBITA for the trailing twelve months 6,477
Notional tax on Operational EBITA (1,619)
Operational EBITA after tax for the trailing twelve months 4,858
Average Capital employed (4 quarters) 20,834
Return on Capital Employed (ROCE) 23.3%
(1) Amount relates to GEIS acquired in 2018, B&R acquired in 2017, Thomas & Betts acquired in 2012 and Baldor acquired in 2011.
===== SIDA 59 =====