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===== SIDA 1 =====

— 
ZURICH, SWITZERLAND, JANUARY 29, 2026 
Q4 2025 results 
Strong Q4 orders, improved operational performance 
with good cash flow completes a new record year 
 
Q4 2025 
• Orders $10.3 billion, +36%; comparable1 +32%  
• Revenues $9.1 billion, +13%; comparable +9%  
• Income from operations $1,505 million; margin 16.6% 
• Operational EBITA1 $1,588 million; margin1 17.6% 
• Basic EPS $0.70, +30%2 
• Cash flow from operating activities $1,949 million; +27% 
FY 2025 
• Orders $36.8 billion, +17%; comparable1 +15%  
• Revenues $33.2 billion, +9%; comparable +7%  
• Income from operations $6,047 million; margin 18.2% 
• Operational EBITA1 $6,314 million; margin1 19.0% 
• Basic EPS $2.59, +21%2 
• Cash flow from operating activities $5,469 million; +17% 
• Return on Capital Employed 25.3% 
• Dividend proposal of CHF 0.94 per share 
KEY FIGURES         
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Comparable1 FY 2025 FY 2024 US$ Comparable1 
Orders 10,316 7,593 36% 32% 36,765 31,482 17% 15% 
Revenues 9,052 7,996 13% 9% 33,220 30,583 9% 7% 
Gross Profit 3,658 2,982 23%  13,640 12,001 14%  
as % of revenues 40.4% 37.3% +3.1 pts  41.1% 39.2% +1.9 pts  
Income from operations 1,505 1,094 38%  6,047 4,735 28%  
Operational EBITA1 1,588 1,330 19% 14% 3  6,314 5,572 13% 11% 3  
as % of operational revenues1 17.6% 16.6% +1 pts  19.0% 18.2% +0.8 pts  
Income from continuing operations, net of tax  1,274 948 34%  4,649 3,726 25%  
Net income attributable to ABB 1,273 987 29%  4,734 3,935 20%  
Basic earnings per share ($)  0.70 0.54 30%2  2.59 2.13 21%2  
Cash flow from operating activities 1,949 1,537 27%  5,469 4,675 17%  
Cash flow from operating activities in 
continuing operations 1,988 1,505 32%  5,250 4,442 18%  
Free cash flow1 1,517 1,295 17%  4,566 3,937 16%  
          
1 For a reconciliation of alternative performance measures, see “supplemental reconciliations and definitions” in the attached Q4 2025 Financial Information. 
2 EPS growth rates are computed using unrounded amounts. 
3 Constant currency (not adjusted for portfolio changes). 
 
Ad hoc Announcement pursuant to Art. 53 Listing Rules of SIX Swiss Exchange 
 
— 
“Q4 was a strong finish to a record year for ABB. We lead in markets with strong secular 
trends and we will further build on our ABB Way operating model, which gives me confidence 
in our updated financial targets and that 2026 will be yet another all-time-high result.” 
Morten Wierod, CEO 
 
 
 
 
Q4 2025 
FULL YEAR 
PRESS RELEASE

===== SIDA 2 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 2 
 
We ended the year on a high note and delivered the 
strongest annual performance yet for ABB. The fourth 
quarter was a landmark quarter as we for the first time 
exceeded the $10 billion order level, at $10.3 billion. In 
addition to a strong development in the base business, 
orders were positively impacted by timing of large project 
bookings. Overall, it was reassuring that the strong order 
development was broad-based with double-digit growth 
across all three business areas. So, while we delivered the 
highest quarterly revenues on record, orders were even 
higher, resulting in a book-to-bill of 1.14. 
In my view, we perform well in overall favorable market 
conditions. In addition to leveraging on strong comparable 
growth, we generate internal efficiency gains which 
successfully mitigate for example tariff and rising material 
inflation. We grew operational EBITA by 19% and expanded 
margins by 100 basis points. 
I was pleased with the strong free cash flow of $1.5 billion in 
the quarter. This led to us achieving our ambition to 
improve annual free cash flow, which reached the record 
level of $4.6 billion. It was also good to see our strong 
return on capital employed at 25.3%. 
In the Electrification business area, demand increased in all 
customer segments, led by data centers which recorded a 
very strong double-digit growth. Our medium voltage 
power technology is at the forefront of the industry. One 
example of how it puts us in a front-row position for future 
data center architecture is the extended partnership with 
Applied Digital where we introduce innovative power 
designs for large-scale AI-ready data centers. Another 
future potential demand driver is our cutting-edge direct 
current (DC) and solid-state electronics technology. This 
sits at the heart of our collaboration with NVIDIA where ABB 
will support their 800 VDC architecture to accelerate the 
development of gigawatt scale next-generation data 
centers. 
In the Motion business area, the strong order growth was 
supported by continued high demand for rail projects, as 
well as in the recently formed High Power division, along 
with positive developments in the short-cycle demand for 
both low voltage motors and drives. In the Automation 
business area, we saw persistently strong activity related to 
marine and ports, and the large Rotterdam port order is yet 
another proof point of the unique customer value we 
generate when combining know-how from across our three 
business areas. Our solution will feature combined shore 
power systems expected to be the world’s largest to date, 
able to charge up to 32 container ships simultaneously 
during loading and unloading operations. We also provide a 
SCADA system to monitor and control the shore power 
system while tracking energy usage for precise customer 
billing.  
We have also updated our financial targets, aiming for 
strong growth, a higher profitability range and strong EPS 
expansion with a good cash conversion. We raised our 
ROCE ambition even as we pursue a higher pace of acquired 
growth. In my view, these new targets are both ambitious 
and realistic.  
To achieve these updated long-term targets, we will further 
enhance our operational accountability and speed as we 
continue to build on the ABB Way operating model. Couple 
this with overall strong external markets where we will 
capitalize on our position within global trends of energy 
expansion, the need for energy efficiency and the transition 
to cleaner energy sources. I am confident in our market 
position, our leading technology and our ability to help 
customers become more productive and energy efficient. I 
expect these factors to support our operational 
performance in 2026 and long-term. 
Based on our strong performance, the Board of Directors 
has decided to propose an ordinary dividend of CHF0.94 
per share, up from CHF0.90 in the previous year. We also 
intend to launch a new share buyback program of up to $2.0 
billion, running until January 27, 2027. 
 
 
Morten Wierod 
CEO 
 
In the first quarter of 2026, we anticipate comparable 
revenue growth in the 7% - 10% range. The operational 
EBITA margin should increase year-on-year, excluding 
the announced real estate gains in the first quarters of 
2025 and 2026. 
In full-year 2026, we expect a positive book-to-bill, and 
comparable revenue growth in the range of 6% - 9% 
year-on-year. The operational EBITA margin should 
slightly improve year-on-year, even when excluding the 
announced real estate gain in the first quarter of 2026.
   
 
 
CEO summary 
 
 
Outlook

===== SIDA 3 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 3 
 
Order intake was record-high at $10,316 million, up by 36% 
(32% comparable). The very strong comparable growth 
benefited from persistently strong overall market dynamics 
with the added support from the timing of large project 
orders. Total growth was additionally supported by 
changes in foreign exchange rates. All three business areas 
increased at a comparable double-digit rate, led by 
exceptional growth of 49% (41% comparable) in 
Automation and 36% (33% comparable) in Electrification 
where the timing of several stand-out large orders 
combined supported order intake by about $600 million in 
each of the two business areas. In addition to the strong 
development in the project business, the short-cycle and 
services businesses both improved at a double-digit rate. 
The order backlog reached $25,282 million, up by 27% (18% 
comparable), year-on-year.  
Orders in the Americas were up by 44% (43% 
comparable), up 36% (25% comparable) in Europe and 
up 24% (23% comparable) in Asia, Middle East and 
Africa.  
Orders increased sharply on continued favourable demand 
related to the marine, ports and rail segments. Land-based 
infrastructure demand benefited from upgrades of 
electrical equipment for such as airports, tunnels etc.  
In the industrial space, the utilities segment remains 
strong. A buoyant data center market supported segment 
orders to increase at a strong double-digit rate, supported 
by timing of project orders.  
The buildings segment improved, with a stable to positive 
development in Europe and the United States more than 
offsetting the general weakness in China.  
Orders in the machine builder segment increased sharply 
from a low comparable, but the absolute level remains 
subdued in a continued challenging market.  
The oil & gas segment remains generally solid, although 
orders declined in the quarter. There was increased activity 
among nuclear customers. Mining orders increased in a 
generally capex-muted market environment.  
Quarterly revenues were record-high at $9,052 million and 
increased by 13%, supported by a strong 9% comparable 
growth as well as 4% from changes in exchange rates.  
Comparable growth was primarily due to higher volumes, 
driven by higher short-cycle and service demand as well as 
execution of the high order backlog. Additional contribution 
derived from positive pricing at a low single-digit rate. All 
three business areas recorded strong revenue growth, with 
support from virtually all divisions. Revenues increased in all 
regions, led by Europe at 21% (11% comparable) and the 
Americas at 11% (10% comparable), with Asia, Middle East 
and Africa improving by 8% (7% comparable) as a stable 
comparable trend in China was more than offset by 
strength in other parts of the region. Quarterly revenues 
were the highest on record, but orders were even higher, 
resulting in a book-to-bill of 1.14.
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 32% 9% 
FX 5% 4% 
Portfolio changes -1% 0% 
Total 36% 13% 
 
Orders by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q4 2025 Q4 2024 US$ Comparable 
Europe 3,530 2,598 36% 25% 
The Americas 4,281 2,982 44% 43% 
Asia, Middle East 
and Africa 2,505 2,013 24% 23% 
ABB Group 10,316 7,593 36% 32% 
 
Revenues by region 
($ in millions, 
unless otherwise 
indicated) 
  CHANGE 
Q4 2025 Q4 2024 US$ Comparable 
Europe 3,175 2,624 21% 11% 
The Americas 3,247 2,934 11% 10% 
Asia, Middle East 
and Africa 2,630 2,438 8% 7% 
ABB Group 9,052 7,996 13% 9% 
 
 
     
 
Orders and revenues

===== SIDA 4 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 4 
 
Gross profit 
Gross profit increased by 23% (17% constant currency) year-
on-year to $3,658 million, reflecting a gross margin of 40.4%, 
up 310 basis points. Gross margin improved in all business 
areas. 
Income from operations 
Income from operations amounted to $1,505 million and 
increased by 38% year-on-year. The increase was mainly driven 
by the positive impacts from improved operational business 
performance and Foreign exchange timing differences, while 
the prior year was also negatively impacted by fair value 
adjustments of equity investments. The Income from 
operations margin was 16.6% and improved by 290 basis 
points. 
Operational EBITA  
Operational EBITA increased by 19% year-on-year to $1,588 
million, reflecting a 100 basis points margin improvement to 
17.6%. Higher profitability was primarily due to operational 
leverage on higher volumes. The impacts from positive pricing 
and improved operational efficiency more than offset the 
increase in expenses related to commodities and tariffs, 
Research and Development (R&D), Selling, general & 
administrative (SG&A) as well as Corporate expenses. SG&A 
decreased slightly in relation to revenues to 19.5% from last 
year’s 19.6%. Operational EBITA in Corporate and other 
amounted to -$197 million compared with last year’s 
-$160 million. This is the total of Underlying corporate costs of 
$164 million which includes Stranded costs of $30 million, and a 
loss of $33 million in the E-mobility business. 
Finance net 
Net finance income contributed to results with a positive 
$48 million, representing a lower income compared with last 
year’s $56 million.  
Income tax 
Income tax expense was $292 million and the effective tax rate 
was 18.6%, in line with the historical pattern of a low tax rate 
in the fourth quarter.  
Net income and earnings per share 
Net income attributable to ABB was $1,273 million, 
representing an increase of 29% year-on-year, driven by the 
impact from improved business performance more than 
compensating for a slightly lower contribution from net 
finance and lower net income in discontinued operations. 
Basic earnings per share increased by 30% to $0.70, up from 
$0.54 in the previous year period.  
 
 
 
Earnings 
 
 
 
 
 
 
Corporate and Other 
Operational EBITA 
   
($ in millions) Q4 2025 Q4 2024 
Corporate and Other   
E-mobility (33) (72) 
Stranded corporate costs (30) (31) 
Corporate costs, intersegment 
eliminations and other1 (134) (57) 
Total (197) (160) 
1 Majority of which relates to underlying corporate

===== SIDA 5 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 5  
 
Trade net working capital1 
Trade net working capital amounted to $4,059 million, up 
slightly year-on-year from $3,967 million. The increase was 
primarily driven by impacts from changes in foreign 
exchange rates which more than offset the reduction of 
inventories and higher trade payables, in local currencies.   
The average trade net working capital as a percentage of 
revenues1 was 13.0%, a reduction from 14.3% one year 
ago. 
Capital expenditures 
Purchases of property, plant and equipment and 
intangible assets for continuing operations during the 
fourth quarter amounted to $409 million, higher than last 
year’s $271 million. For ABB Group, the total cash outflow 
on a combined basis amounted to $451 million, higher 
than last year’s $283 million.  
Net debt 
Net debt1 amounted to $1,683 million at the end of the 
quarter and increased from $1,280 million, with the year-
on-year increase mainly due to impacts of changes in 
exchange rates. The sequential decrease from $2,690 
million in the third quarter was mainly due to the strong 
cash generation in operations which more than offset the 
adverse impact from higher spend on acquisitions.  
Cash flows 
Cash flow from operating activities during the fourth 
quarter was $1,949 million, an increase of 27% from last 
year’s $1,537 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 
inventories and trade payables and timing of accrued 
expenses. Free cash flow amounted to $1,517 million, and 
improved from last year’s $1,295 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 fourth quarter, ABB 
repurchased a total of 3,099,590 shares for a total amount 
of approximately $224 million. At the end of the fourth 
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)  Dec. 31 
2025 
Dec. 31 
2024 
Short-term debt and current 
maturities of long-term debt  475  292  
Long-term debt  7,829  6,648  
Total debt  8,304  6,940  
Cash & equivalents  4,640  4,326  
Marketable securities and  
short-term investments  1,981  1,334  
Cash and marketable securities  6,621  5,660  
Net debt (cash)*  1,683  1,280  
     
Net debt (cash)* to EBITDA ratio  0.3  0.2  
Net debt (cash)* to Equity ratio  0.10  0.09  
* December 31, 2025 and December 31, 2024, net debt(cash) excludes net pension 
(assets)/liabilities of $(511) million and $(245) million, respectively.

===== SIDA 6 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 6 
 
Orders and revenues 
For the first time, quarterly order intake exceeded the 
$5 billion mark. This was achieved through a strong 
performance in a buoyant market environment, with 
additional benefit from timing of large project bookings. 
In total, orders increased by 36% (33% comparable) to 
$5,323 million. 
• Several large data center project orders, each exceeding 
the $100 million mark, boosted orders by approximately 
$600 million combined.  
• Double-digit order growth across the project, service 
and short-cycle businesses. Strong orders outpaced 
record-high revenues, resulting in a book-to-bill of 1.13, 
increasing the order backlog by 26% (21% comparable) 
to $9.4 billion. 
• All customer segments improved, led by exceptional 
growth in data centers. The increase in buildings was 
driven by the commercial segment where the US 
improved, Europe remained stable and China declined. 
Other areas of strength were utilities and land 
transport infrastructure such as airports, rail, tunnels. 
• The Americas increased by 55% (55% comparable) with 
particular support from the timing of large orders in the 
United States. Europe was up by 17% (7% comparable). 
Asia, Middle East and Africa improved by 22% (19% 
comparable) with improvements in countries like India 
and Australia more than offsetting weakness in China.    
• Revenues exceeded expectations and increased 16% 
(12% comparable) with a positive development in all 
divisions. Strong comparable revenues were primarily 
driven by higher volumes across short-cycle, service, 
and project businesses. Total growth was further 
supported by favorable changes in exchange rates of 
3%, with a slight added contribution from portfolio 
changes.  
 
Profit 
Operational EBITA reached $1,062 million and increased 
sharply by 23%, representing a 130 basis points expansion 
in margin, year-on-year. 
• Profit increased primarily due to operational leverage 
on higher volumes and improved productivity in 
operations. These combined benefits more than offset 
higher spend on raw materials – mainly linked to rising 
copper and silver prices as well as tariffs, SG&A and 
higher investments in R&D.  
— 
Electrification 
 
 
 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Comparable FY 2025 FY 2024 US$ Comparable 
Orders 5,323 3,908 36% 33% 18,757 16,422 14% 13% 
Order backlog 9,438 7,506 26% 21% 9,438 7,506 26% 21% 
Revenues 4,702 4,046 16% 12% 17,357 15,448 12% 11% 
Gross Profit 1,946 1,545 26%  7,300 6,269 16%  
as % of revenues 41.4% 38.2% +3.2 pts  42.1% 40.6% +1.5 pts  
Operational EBITA 1,062 863 23%  4,081 3,520 16%  
as % of operational revenues 22.6% 21.3% +1.3 pts  23.5% 22.7% +0.8 pts  
Cash flow from operating activities 1,425 1,214 17%  4,242 3,652 16%  
No. of employees (FTE equiv.) 53,400 51,700 3%      
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 33% 12% 
FX 4% 3% 
Portfolio changes -1% 1% 
Total 36% 16%

===== SIDA 7 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 7 
 
Orders and revenues 
Order intake totaled $2,189 million, up 17% (13% 
comparable) year-on-year, sustaining the high order levels 
achieved in recent quarters. Comparable growth was broad-
based across all divisions and regions, with additional 
growth contribution from favourable changes in exchange 
rates.   
• The rail segment showed persistently strong customer 
activity with increased orders. HVAC linked to commercial 
buildings also improved. Power generation made strong 
progress, supported by grid modernization and 
distributed energy systems. Food & beverage, marine and 
mining showed positive development. Chemicals 
contributed positively in the quarter, in an otherwise 
muted market environment. Oil & gas and pulp & paper 
weighed on order intake. 
• The Americas was up 26% (25% comparable), with 
strong improvement of 30% (29% comparable) in the 
United States. Europe increased 16% (6% comparable) 
and Asia, Middle East and Africa was up by 9% (9% 
comparable), with China at 16% (14% comparable).  
• All-time-high revenues totaled $2,260 million, up by 11% 
(6% comparable). The main driver to comparable growth 
was higher volumes, further supported by positive 
pricing. Additional contribution derived from changes in 
exchange rates as well as from portfolio changes, 
including the acquisition of Gamesa Electric in Spain, 
completed in early December. 
Profit  
Operational EBITA improved by 8% to $412 million, however 
the margin of 18.3% softened by 40 basis points year-on-
year, with broadly similar impacts from: 
• Lower profitability in the recently formed High Power 
division where some operational inefficiencies hampered 
margin.  
• The acquired business Gamesa Electric is currently 
making a slight loss and diluted the Motion Operational 
EBITA margin by approximately 20 basis points, with one 
month included in results. It is expected to be dilutive for 
the full year 2026.   
 
 
— 
Motion 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Comparable FY 2025 FY 2024 US$ Comparable 
Orders 2,189 1,866 17% 13% 8,619 7,989 8% 6% 
Order backlog 6,285 5,239 20% 8% 6,285 5,239 20% 8% 
Revenues 2,260 2,038 11% 6% 8,247 7,787 6% 4% 
Gross Profit 835 701 19%  3,152 2,804 12%  
as % of revenues 36.9% 34.4% +2.5 pts  38.2% 36.0% +2.2 pts  
Operational EBITA 412 383 8%  1,600 1,518 5%  
as % of operational revenues 18.3% 18.7% -0.4 pts  19.4% 19.4% 0 pts  
Cash flow from operating activities 493 518 -5%  1,621 1,776 -9%  
No. of employees (FTE equiv.) 22,900 22,400 2%      
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 13% 6% 
FX 4% 4% 
Portfolio changes 0% 1% 
Total 17% 11%

===== SIDA 8 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 8 
 
Orders and revenues 
Strong comparable order growth was driven by an overall 
robust market environment outside of the discrete 
segment, with the added contribution from timing of 
project orders. Total growth was further supported by 
favorable changes in exchange rates and increased by 
49% (41% comparable) to the new record order level of 
$2,817 million.  
• Several large project orders linked to the marine and 
ports segment, each valued at the $100+ million mark, 
boosted orders by close to $600 million combined. On a 
strong book-to-bill of 1.26, the order backlog reached 
$10.1 billion, up by 33% (23% comparable). 
• Persistently high customer activity was linked to marine 
and port automation and electrification. Orders from 
machine builders also increased sharply from a very low 
comparable, albeit the absolute level remains subdued. 
Customer activity in the oil & gas segment is solid, 
although quarterly orders declined. Mining orders 
increased in an otherwise capex muted market 
environment. Activity among nuclear customers 
increased.  
• The strong revenue growth of 14% was generated by a 
positive year-on-year development across divisions. 
Comparable growth of 9% was mainly due to higher 
volumes with added support from changes in exchanges 
rates, as well as a favorable price impact. The volume 
increase derived from execution of the strong order 
backlog and a positive development in both the service 
and the short-cycle product businesses. 
As earlier announced, this was the first quarter the 
financial results of the Machine Automation division were 
presented as part of the Automation business area.    
 
Profit 
Strong gross margin improvement with added support from 
stringent SG&A cost management drove Operational EBITA 
margin up by 150 basis points to 13.9%. This represents an 
earnings increase of 27% to $311 million.  
• Key levers to the gross margin increase of 140 basis points 
were operational benefits from higher volumes with some 
positive pricing, as well as productivity enhancements. 
 
— 
Automation 
   CHANGE   CHANGE 
($ millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Comparable FY 2025 FY 2024 US$ Comparable 
Orders 2,817 1,893 49% 41% 9,928 7,485 33% 30% 
Order backlog 10,133 7,631 33% 23% 10,133 7,631 33% 23% 
Revenues 2,243 1,967 14% 9% 8,084 7,692 5% 3% 
Gross Profit 830 701 18%  3,084 2,823 9%  
as % of revenues 37.0% 35.6% +1.4 pts  38.1% 36.7% +1.4 pts  
Operational EBITA 311 244 27%  1,132 1,080 5%  
as % of operational revenues 13.9% 12.4% +1.5 pts  14.0% 14.0% 0 pts  
Cash flow from operating activities 488 346 41%  1,528 1,231 24%  
No. of employees (FTE equiv.) 26,300 25,800 2%      
 
 
Growth 
  
 Q4 Q4 
Change year-on-year Orders Revenues 
Comparable 41% 9% 
FX 8% 5% 
Portfolio changes 0% 0% 
Total 49% 14%

===== SIDA 9 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 9 
 
Events from the Quarter 
• ABB has achieved A scores for climate and water in 
non-profit organization CDP’s 2025 rankings, earning 
a place on the annual A List for both climate change 
and for the first time, water stewardship. ABB joins 
the top 1 percent of the 20,000 companies scored 
that achieved a double A rating. Achieving an A rating 
for Water for the first time is testament to the 
company’s focus on water-related risks exposure, 
water stewardship, governance, as well as its 
enhanced supplier engagement on the topic of water 
risk. ABB improved its water security score from a B in 
2023, to an A- in 2024 and now an A in 2025. 
 
• ABB launched ABB Ability™ BuildingPro, a cybersecure 
integration platform designed to connect, manage, 
and optimize building operations. Available across 
more than 40 countries worldwide, the solution 
supports key sectors including commercial real 
estate, education, healthcare, hospitality, and 
government – helping organizations accelerate 
decarbonization and digital transformation. Acting as 
a central intelligence hub, it unifies data from building 
systems to improve performance, reduce energy use, 
and enhance occupant experience. 
 
• With a strategic investment in OctaiPipe, a UK-based 
innovator in AI-driven software for optimizing data 
center cooling systems, ABB will partner to equip data 
center operators with intelligent tools to achieve 
substantial energy savings, strengthen operational 
resilience, and meet the growing demands for 
sustainability and transparency. The transaction  
consists of ABB taking a minority stake in OctaiPipe 
and will bring a major advancement: an on-premises 
AI solution that enables up to 30 percent energy 
savings in cooling, with very short payback periods 
and rapid deployment - without the need for new 
hardware. 
 
• The Canadian Space Agency awarded ABB a contract to 
carry out the conceptual development for a component of 
the High-altitude Aerosols, Water Vapour and Clouds 
(HAWC) satellite mission – a Canadian-led initiative 
focused on advancing climate science and environmental 
monitoring. In addition, ABB will support further 
technology development activities to be defined over the 
course of the project. Through its role, ABB helps to 
refine global climate monitoring capabilities. The HAWC 
mission aims to deliver essential data to enhance 
forecasting of severe and extreme weather events, 
improve climate modeling, support air quality 
assessments, and aid in tracking natural disasters such 
as wildfires, volcanic eruptions and intense rainfall. 
 
• ABB celebrated Abilities, which highlights both visible and 
invisible disabilities and promotes practical inclusion 
through webinars, workshops, and panel discussions. 
From its award-winning Rehab on Wheels initiative – 
India’s first mobile rehabilitation unit developed with the 
Association of People with Disability – to “Senti come mi 
sento” (“Feel How I Feel”) in Italy, activities focus on 
breaking down barriers to access and understanding. By 
bringing rehabilitation to underserved communities and 
immersing teams in the lived experience of multiple 
sclerosis, the programs foster empathy, awareness, and a 
more inclusive culture grounded in real human 
experience.   
— 
Sustainability 
 
 Q4 2025 Q4 2024 CHANGE 12M ROLLING 
CO₂e own operations emissions,  
Ktons scope 1 and 21 21 22 -6% 126 
Total recordable incident frequency rate (TRIFR),  
frequency / 1,000,000 working hours 2 0.94 1.26 -25% 1.25 
Proportion of women in senior management roles 
in %3 22.6 21.3 +1.3 pts 22.3 
      
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 January 11, 2026 
3 The above disclosure relates to countries where policies legally permit and to the extent that it does not conflict with any applicable local laws, where ABB operates

===== SIDA 10 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 10  
 
During Q4 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. 
• On November 19, 2025 ABB announced updated 
financial targets at the Capital Markets Day. This 
included upgrading Operational EBITA margin target 
to 18-22 percent with newly introduced targets per 
business area; ROCE target raised to >20 percent. 
Organic and acquired revenue growth targets 
confirmed; Earnings Per Share target confirmed and 
free cash flow conversion to net income target 
updated to >95 percent to reflect expected strong 
growth. 
 
After Q4 2025 
• On January 28, 2026, ABB announced that it has 
completed the sale of a commercial property in 
Zurich, Switzerland. Consequently, a pre-tax 
operational gain of ~CHF290 million will be recorded 
in the first quarter of 2026. 
 
2025 was a new record year for ABB, with strong orders, 
increases across most lines of the income statement 
and all-time-high cash delivery.  
Order intake increased 17% (15% comparable) year-on-
year to $36,765 million, supported by all three business 
areas. There was a positive development across most 
customer segments, led by particular strength in data 
centers, marine, ports, utilities and land-based 
infrastructure such as tunnels and airports, which 
benefited from electrical upgrades. On the muted side, 
there were the process industry-related areas such as 
pulp & paper, chemicals and mining.  
Revenues improved by 9% (7% comparable) to $33,220 
million supported by a positive development across the 
project, service and short-cycle businesses. Revenues 
were at an all-time-high, but orders were even higher, 
resulting in a book-to-bill 1.11. The order backlog 
amounted to $25.3 billion, up by 27% (18% comparable), 
year-on-year.  
Income from operations amounted to $6,047 million, 
significantly up 28% year-on-year, resulting in a margin 
of 18.2%. The increase was mainly driven by the positive 
impacts from improved operational business 
performance, with further support from foreign 
exchange timing differences, while the prior year was 
also negatively impacted by fair value adjustments of 
assets and liabilities held for sale and equity 
investments. 
 
 
Operational EBITA increased by 13% to $6,314 million. 
The higher result was due to the improved business 
performance more than offsetting higher expenses 
linked to Corporate & other. 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 80 basis 
points to 19.0% with the main drivers being operating 
leverage on higher volumes, positive pricing and 
improved operational efficiency. Corporate and other 
Operational EBITA amounted to -$499 million. This 
includes a loss of $148 million attributed to the 
E-mobility business and Stranded costs of $123 million 
linked to the ongoing divestment of the Robotics 
business. 
Net finance contributed to results with $117 million, 
below last year’s income of $132 million. Income tax 
expense was $1,570 million reflecting a tax rate of 
25.2%.  
Net income attributable to ABB was $4,734 million, up 
from $3,935 million in the prior year period. Basic 
earnings per share was $2.59, representing an increase 
of 21%. 
Significant events 
 
Full year 2025

===== SIDA 11 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 11  
 
 
ABB Group Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 
EBITDA, $ in million 1,315 1,484 1,409 1,288 5,496 1,660 1,668 1,806 1,726 6,860 
Return on Capital Employed, % 21.5 22.5 23.4 23.8 23.8 24.4 24.5 24.8 25.3 25.3 
Net debt/Equity 0.16 0.18 0.15 0.09 0.09 0.10 0.25 0.17 0.10 0.10 
Net debt/ EBITDA 12M rolling 0.4 0.5 0.4 0.2 0.2 0.3 0.6 0.4 0.3 0.3 
Net working capital 3,159 3,213 3,231 2,403 2,403 3,037 3,423 2,993 2,372 2,372 
Trade net working capital 4,390 4,423 4,527 3,967 3,967 4,222 4,646 4,433 4,059 4,059 
Average trade net working capital as a 
% of revenues 15.9% 15.3% 14.7% 14.3% 14.3% 14.1% 13.8% 13.5% 13.0% 13.0% 
Earnings per share, basic, $ 0.49 0.59 0.51 0.54 2.13 0.60 0.63 0.66 0.70 2.59 
Earnings per share, diluted, $ 0.49 0.59 0.51 0.53 2.13 0.60 0.63 0.66 0.70 2.59 
Dividend per share, CHF n.a. n.a. n.a. n.a. 0.90 n.a. n.a. n.a. n.a.  0.94 * 
Share price at the end of period, CHF 41.89 49.92 48.99 49.07 49.07 45.22 47.31 57.32 59.22 59.22 
Number of employees (FTE 
equivalents) 108,700 109,390 109,970 109,930 109,930 110,970 110,860 110,740 111,890 111,890 
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 1,818 1,818 
*  Dividend proposal subject to shareholder approval at the 2026 Annual General Meeting 
  
 
 
Additional figures 
 
Additional 2026 guidance 
1 Excludes one project estimated to a total of ~$100 million, that is ongoing in the non-core business. Exact exit timing is difficult to assess due to legal proceedings etc. 
2 Excludes Operational EBITA from E-mobility business; and includes the real estate gain in first quarter, 2026 
3 Excludes the impact of acquisitions or divestments or any significant non-operational items 
4 Framework assumes stranded cost for the full year. Closing of Robotics divestment expected in the second half of the year, as earlier announced 
 
ABB based on discontinued operations structure 
($ in millions, unless otherwise stated) FY 20261 Q1 2026 
Corporate and Other  
Operational EBITA2 
~(125) ~230 
  
of which stranded costs4 ~(125) ~(30) 
  
Non-operating items   
  
Acquisition-related amortization ~(195) ~(50) 
  
Separation and integration ~(60) ~(20) 
  
Restructuring and related and 
Business transformation 
~(180) ~(45) 
  
 
($ in millions, unless otherwise stated) FY 2026 
Finance net ~150 
 
Effective tax rate ~25% 3  
 
Capital Expenditure ~(900) 
 
  
 
  
  
  
  
 
 
Key acquisitions and divestments, last twelve months 
Acquisitions Company/unit Closing date Revenues, $ in 
millions1 No. of employees 
2025     
Motion Gamesa Electric power electronics (Spain) 1-Dec ∼170 400 
Motion Brightloop S.A.S. 1-Oct ∼18 80 
Electrification Produits BEL Inc. 2-Jun ∼11 65 
Electrification Siemens Wiring Accessories 3-Mar ∼150 360 
Electrification Sensorfact 3-Feb ∼15 260 
Electrification Coulomb Inc.  13-Jan <5 30 
 
Divestments Company/unit Closing date Revenues, $ in 
millions1 No. of employees 
2025     
E-mobility ChargeDot, 60% sale 1-Dec ∼60 total Co. 320 total Co. 
      
2024     
E-mobility InCharge Energy Inc (share transfer) 30-Nov ∼100 n.a. 
Electrification Part of ELIP cable tray business to JV 1-Nov ∼65 110 
 
Note: comparable growth calculation includes acquisitions and divestments with revenues of greater than $50 million. 
1 Represents the estimated revenues for the last fiscal year prior to the announcement of the respective acquisition/divestment unless otherwise stated.

===== SIDA 12 =====

AB B  IN TE RIM RE P ORT  I Q4  2 02 5 12  
 
This press release includes forward-looking information 
and statements as well as other statements concerning 
the outlook for our business, including those in the 
sections of this release titled “CEO summary,” 
“Outlook,” “Sustainability” “Significant events” and 
“Additional 2026 guidance”. These statements are 
based on current expectations, estimates and 
projections about the factors that may affect our future 
performance, including global economic conditions and 
the economic conditions of the regions and industries 
that are major markets for ABB. These expectations, 
estimates and projections are generally identifiable by 
statements containing words such as “anticipates,” 
“expects,” “estimates,” “intends,” “plans,” “targets,” 
“guidance,” or similar expressions. However, there are 
many risks and uncertainties, many of which are beyond  
our control, that could cause our actual results to differ 
materially from the forward-looking information and 
statements made in this press release and which could 
affect our ability to achieve any or all of our stated 
targets. These include, among others, business risks 
associated with the volatile global economic 
environment and political conditions, market 
acceptance of new products and services, changes in 
governmental regulations and currency exchange rates. 
Although ABB Ltd believes that its expectations 
reflected in any such forward looking statement are 
based upon reasonable assumptions, it can give no 
assurance that those expectations will be achieved. 
 
The Q4 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 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 
 
Q4 results presentation on January 29, 2026 
 
 
ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient 
future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while 
becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The 
company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss 
Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com  
 
 
Financial calendar 
2026  
February 19 Planned publication of Annual Reporting Suite 
March 19 Annual General Meeting 
April 22 Q1 2026 results 
July 16 Q2 2026 results 
October 20 Q3 2026 results

===== SIDA 13 =====

1 Q4 2025 FINANCIAL INFORMATION  
January 29, 2026 
Q4 2025  
Financial Information

===== SIDA 14 =====

2 Q4 2025 FINANCIAL INFORMATION  
 
 
FINANCIAL  
INFORMATION 
Contents 
 
 
 
 
 
 
 
 
 
 
 
03 ─ 07 Key Figures 
 
 
08 ─ 35 Consolidated Financial Information (unaudited) 
 
 
36 ─ 51 Supplemental Reconciliations and Definitions

===== SIDA 15 =====

3 Q4 2025 FINANCIAL INFORMATION  
 
— 
Key Figures 
     CHANGE 
 ($ in millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Comparable(1) 
 Orders 10,316 7,593 36% 32% 
 Order backlog (end December) 25,282 19,975 27% 18% 
 Revenues 9,052 7,996 13% 9% 
 Gross Profit 3,658 2,982 23%  
  as % of revenues 40.4% 37.3% +3.1 pts  
 Income from operations 1,505 1,094 38%  
 Operational EBITA(1) 1,588 1,330 19% 14%(2) 
  as % of operational revenues(1) 17.6% 16.6% +1 pts  
 Income from continuing operations, net of tax  1,274 948 34%  
 Net income attributable to ABB 1,273 987 29%  
 Basic earnings per share ($) 0.70 0.54 30%(3)  
 Cash flow from operating activities 1,949 1,537 27%  
 Free cash flow(1) 1,517 1,295 17%  
 
     CHANGE 
 ($ in millions, unless otherwise indicated) FY 2025 FY 2024 US$ Comparable(1) 
 Orders 36,765 31,482 17% 15% 
 Revenues 33,220 30,583 9% 7% 
 Gross Profit 13,640 12,001 14%  
  as % of revenues 41.1% 39.2% +1.9 pts  
 Income from operations 6,047 4,735 28%  
 Operational EBITA(1) 6,314 5,572 13% 11%(2) 
  as % of operational revenues(1) 19.0% 18.2% +0.8 pts  
 Income from continuing operations, net of tax  4,649 3,726 25%  
 Net income attributable to ABB 4,734 3,935 20%  
 Basic earnings per share ($) 2.59 2.13 21%(3)  
 Cash flow from operating activities 5,469 4,675 17%  
 Free cash flow(1) 4,566 3,937 16%  
(1) For a reconciliation of alternative performance  measures see “ Supplemental Reconciliations and Definitions ” on page 36.  
(2) Constant currency (not adjusted for portfolio changes).  
(3) EPS growth rates are computed using unrounded amounts.

===== SIDA 16 =====

4 Q4 2025 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) Q4 2025 Q4 2024 US$ Local Comparable 
 Orders  ABB Group 10,316 7,593 36% 31% 32% 
  Electrification 5,323 3,908 36% 32% 33% 
  Motion 2,189 1,866 17% 13% 13% 
  Automation 2,817 1,893 49% 41% 41% 
  Corporate and Other  202 117 
   
  Intersegment eliminations (215) (191) 
 Order backlog (end December) ABB Group 25,282 19,975 27% 19% 18% 
  Electrification 9,438 7,506 26% 21% 21% 
  Motion 6,285 5,239 20% 10% 8% 
  Automation 10,133 7,631 33% 23% 23% 
  Corporate and Other    
   
  (incl. intersegment eliminations) (574) (401) 
 Revenues  ABB Group 9,052 7,996 13% 9% 9% 
  Electrification 4,702 4,046 16% 13% 12% 
  Motion 2,260 2,038 11% 7% 6% 
  Automation 2,243 1,967 14% 9% 9% 
  Corporate and Other  135 181 
   
  Intersegment eliminations (288) (236) 
 Income from operations ABB Group 1,505 1,094    
  Electrification 1,074 863    
  Motion 408 333    
  Automation 278 193    
  Corporate and Other   
   
  (incl. intersegment eliminations) (255) (295) 
 Income from operations % ABB Group 16.6% 13.7%    
  Electrification 22.8% 21.3%    
  Motion 18.1% 16.3%    
  Automation 12.4% 9.8%    
 Operational EBITA ABB Group 1,588 1,330 19% 14%  
  Electrification 1,062 863 23% 18%  
  Motion 412 383 8% 2%  
  Automation 311 244 27% 22%  
  Corporate and Other(1)      
  (incl. intersegment eliminations) (197) (160)    
 Operational EBITA %  ABB Group 17.6% 16.6%    
  Electrification 22.6% 21.3%    
  Motion 18.3% 18.7%    
  Automation 13.9% 12.4%    
 Cash flow from operating activities ABB Group 1,949 1,537    
  Electrification 1,425 1,214    
  Motion 493 518    
  Automation 488 346    
  Corporate and Other       
  (incl. intersegment eliminations) (418) (573)    
  Discontinued operations (39) 32    
 (1) Corporate and Other at Q4 2025 and Q4 2024 includes Stranded corporate costs of $30 million and $31 million, respectively.

===== SIDA 17 =====

5 Q4 2025 FINANCIAL INFORMATION  
    CHANGE 
 ($ in millions, unless otherwise indicated) FY 2025 FY 2024 US$ Local Comparable 
 Orders  ABB Group 36,765 31,482 17% 15% 15% 
  Electrification 18,757 16,422 14% 13% 13% 
  Motion 8,619 7,989 8% 6% 6% 
  Automation 9,928 7,485 33% 30% 30% 
  Corporate and Other 522 503    
  Intersegment eliminations (1,061) (917)    
 Order backlog (end December) ABB Group 25,282 19,975 27% 19% 18% 
  Electrification 9,438 7,506 26% 21% 21% 
  Motion 6,285 5,239 20% 10% 8% 
  Automation 10,133 7,631 33% 23% 23% 
  Corporate and Other   
   
  (incl. intersegment eliminations) (574) (401) 
 Revenues  ABB Group 33,220 30,583 9% 7% 7% 
  Electrification 17,357 15,448 12% 11% 11% 
  Motion 8,247 7,787 6% 4% 4% 
  Automation 8,084 7,692 5% 3% 3% 
  Corporate and Other 462 558 
   
  Intersegment eliminations (930) (902) 
 Income from operations ABB Group 6,047 4,735    
  Electrification 4,065 3,362    
  Motion 1,564 1,400    
  Automation 1,097 942    
  Corporate and Other   
 
  (incl. intersegment eliminations) (679) (969) 
 Income from operations % ABB Group 18.2% 15.5%    
  Electrification 23.4% 21.8%    
  Motion 19.0% 18.0%    
  Automation 13.6% 12.2%    
 Operational EBITA ABB Group 6,314 5,572 13% 11%  
  Electrification 4,081 3,520 16% 14%  
  Motion 1,600 1,518 5% 3%  
  Automation 1,132 1,080 5% 3%  
  Corporate and Other(1)    
  (incl. intersegment eliminations) (499) (546)    
 Operational EBITA %  ABB Group 19.0% 18.2%    
  Electrification 23.5% 22.7%    
  Motion 19.4% 19.4%    
  Automation 14.0% 14.0%    
 Cash flow from operating activities ABB Group 5,469 4,675    
  Electrification 4,242 3,652    
  Motion 1,621 1,776    
  Automation 1,528 1,231    
  Corporate and Other      
  (incl. intersegment eliminations) (2,141) (2,217)    
  Discontinued operations 219 233    
 (1) Corporate and Other at FY 2025 and FY 2024 includes Stranded corporate costs of $123 million and $123 million, respectively.

===== SIDA 18 =====

6 Q4 2025 FINANCIAL INFORMATION  
Operational EBITA 
  ABB Electrification Motion Automation 
 ($ in millions, unless otherwise indicated) Q4 25 Q4 24 Q4 25 Q4 24 Q4 25 Q4 24 Q4 25 Q4 24 
 Revenues 9,052 7,996 4,702 4,046 2,260 2,038 2,243 1,967 
 Foreign exchange/commodity timing         
 differences in total revenues (16) 13 1 6 (4) 11 (13) 2 
 Operational revenues 9,036 8,009 4,703 4,052 2,256 2,049 2,230 1,969 
          
 Income from operations 1,505 1,094 1,074 863 408 333 278 193 
 Acquisition-related amortization 46 43 26 25 11 9 10 10 
 Restructuring, related and          
 implementation costs(1) 53 75 10 7 9 15 16 36 
 Changes in obligations related to          
 divested businesses – 1 – – – – – – 
 Gains and losses from sale of businesses  3 (70) – (71) – – – – 
 Fair value adjustment on assets and          
 liabilities held for sale – (19) – – – – – – 
 Acquisition- and divestment-related          
 expenses and integration costs 18 15 11 5 5 2 4 3 
 Certain other non-operational items 74 145 5 4 3 2 5 1 
 Foreign exchange/commodity timing         
 differences in income from operations  (111) 46 (64) 30 (24) 22 (2) 1 
 Operational EBITA 1,588 1,330 1,062 863 412 383 311 244 
          
 Operational EBITA margin (%) 17.6% 16.6% 22.6% 21.3% 18.3% 18.7% 13.9% 12.4% 
 
 
  ABB Electrification Motion Automation 
 ($ in millions, unless otherwise indicated) FY 25 FY 24 FY 25 FY 24 FY 25 FY 24 FY 25 FY 24 
 Revenues 33,220 30,583 17,357 15,448 8,247 7,787 8,084 7,692 
 Foreign exchange/commodity timing         
 differences in total revenues (47) 82 (15) 38 (6) 27 (24) 17 
 Operational revenues 33,173 30,665 17,342 15,486 8,241 7,814 8,060 7,709 
          
 Income from operations 6,047 4,735 4,065 3,362 1,564 1,400 1,097 942 
 Acquisition-related amortization 185 194 108 94 37 35 38 56 
 Restructuring, related and         
 implementation costs(1) 92 160 26 27 26 39 20 70 
 Changes in obligations related to          
 divested businesses (3) (10) – – – – – – 
 Gains and losses from sale of businesses  3 (57) (5) (73) – – – – 
 Fair value adjustment on assets and          
 liabilities held for sale – 113 – 25 – – – – 
 Acquisition- and divestment-related          
 expenses and integration costs 55 57 35 38 8 5 11 6 
 Certain other non-operational items 132 313 (23) 7 16 7 (17) (1) 
 Foreign exchange/commodity timing         
 differences in income from operations  (197) 67 (125) 40 (51) 32 (17) 7 
 Operational EBITA 6,314 5,572 4,081 3,520 1,600 1,518 1,132 1,080 
          
 Operational EBITA margin (%) 19.0% 18.2% 23.5% 22.7% 19.4% 19.4% 14.0% 14.0% 
(1) Includes impairment of certain assets.

===== SIDA 19 =====

7 Q4 2025 FINANCIAL INFORMATION  
Depreciation and Amortization  
  ABB Electrification Motion Automation 
 ($ in millions) Q4 25 Q4 24 Q4 25 Q4 24 Q4 25 Q4 24 Q4 25 Q4 24 
 Depreciation 164 136 84 74 33 31 23 18 
 Amortization 57 58 32 35 13 11 10 11 
 including total acquisition-related amortization of: 46 43 26 25 11 9 10 10 
 
 
  ABB Electrification Motion Automation 
 ($ in millions) FY 25 FY 24 FY 25 FY 24 FY 25 FY 24 FY 25 FY 24 
 Depreciation 581 520 312 275 129 119 78 71 
 Amortization 232 241 133 120 47 42 41 60 
 including total acquisition-related amortization of: 185 194 108 94 37 35 38 56 
 
 
Orders received and revenues by region 
  Orders received CHANGE Revenues CHANGE 
 
($ in millions, unless otherwise indicated) 
    Com-     Com- 
 Q4 25 Q4 24 US$ Local parable Q4 25 Q4 24 US$ Local parable 
 Europe 3,530 2,598 36% 25% 25% 3,175 2,624 21% 11% 11% 
 The Americas 4,281 2,982 44% 42% 43% 3,247 2,934 11% 9% 10% 
 of which United States 3,467 2,206 57% 57% 57% 2,511 2,222 13% 13% 13% 
 Asia, Middle East and Africa 2,505 2,013 24% 23% 23% 2,630 2,438 8% 7% 7% 
 of which China 903 703 28% 26% 25% 955 921 4% 2% 0% 
 ABB Group 10,316 7,593 36% 31% 32% 9,052 7,996 13% 9% 9% 
 
 
  Orders received CHANGE Revenues CHANGE 
 
($ in millions, unless otherwise indicated) 
    Com-     Com- 
 FY 25 FY 24 US$ Local parable FY 25 FY 24 US$ Local parable 
 Europe 12,169 10,518 16% 11% 11% 11,407 10,138 13% 7% 7% 
 The Americas 14,537 11,575 26% 26% 26% 12,424 11,370 9% 10% 10% 
 of which United States 11,591 8,648 34% 33% 34% 9,660 8,623 12% 12% 12% 
 Asia, Middle East and Africa 10,059 9,389 7% 7% 7% 9,389 9,075 3% 4% 3% 
 of which China 3,805 3,480 9% 9% 8% 3,650 3,705 -1% -2% -4% 
 ABB Group 36,765 31,482 17% 15% 15% 33,220 30,583 9% 7% 7%

===== SIDA 20 =====

8 Q4 2025 FINANCIAL INFORMATION  
 
 
 
 
— 
Consolidated Financial Information 
 
 
 
 
 ABB Ltd Consolidated Income Statements (unaudited) 
      
      
  Year ended Three months ended 
 ($ in millions, except per share data in $) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 
 Sales of products 27,669 25,531 7,484 6,634 
 Sales of services and other 5,551 5,052 1,568 1,362 
 Total revenues 33,220 30,583 9,052 7,996 
 Cost of sales of products (16,581) (15,740) (4,524) (4,230) 
 Cost of services and other (2,999) (2,842) (870) (784) 
 Total cost of sales (19,580) (18,582) (5,394) (5,014) 
 Gross profit 13,640 12,001 3,658 2,982 
 Selling, general and administrative expenses  (6,593) (5,980) (1,769) (1,565) 
 Non-order related research and development expenses  (1,318) (1,268) (369) (358) 
 Other income (expense), net 318 (18) (15) 35 
 Income from operations 6,047 4,735 1,505 1,094 
 Interest and dividend income 203 206 61 60 
 Interest and other finance expense (86) (74) (13) (4) 
 Non-operational pension (cost) credit 55 56 13 15 
 Income from continuing operations before taxes  6,219 4,923 1,566 1,165 
 Income tax expense (1,570) (1,197) (292) (217) 
 Income from continuing operations, net of tax  4,649 3,726 1,274 948 
 Income from discontinued operations, net of tax  174 226 6 47 
 Net income 4,823 3,952 1,280 995 
 Net income attributable to noncontrolling      
 interests and redeemable noncontrolling interests  (89) (17) (7) (8) 
 Net income attributable to ABB 4,734 3,935 1,273 987 
      
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  4,561 3,709 1,267 940 
 Income from discontinued operations, net of tax  173 226 6 47 
 Net income 4,734 3,935 1,273 987 
      
 Basic earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  2.50 2.01 0.70 0.51 
 Income from discontinued operations, net of tax  0.09 0.12 – 0.03 
 Net income 2.59 2.13 0.70 0.54 
      
 Diluted earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  2.49 2.00 0.70 0.51 
 Income from discontinued operations, net of tax  0.09 0.12 – 0.03 
 Net income 2.59 2.13 0.70 0.53 
      
 Weighted-average number of shares outstanding (in millions) used to compute:      
 Basic earnings per share attributable to ABB shareholders  1,827 1,844 1,820 1,841 
 Diluted earnings per share attributable to ABB shareholders  1,831 1,851 1,823 1,846 
 Due to rounding, numbers presented may not add to the totals provided.     
 
     
 See Notes to the Consolidated Financial Information

===== SIDA 21 =====

9 Q4 2025 FINANCIAL INFORMATION  
      
      
      
      
      
      
      
 —     
 ABB Ltd Condensed Consolidated Statements of Comprehensive 
 Income (unaudited) 
      
      
  Year ended Three months ended 
 ($ in millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 
 Total comprehensive income, net of tax 4,933 3,647 1,367 695 
 Total comprehensive (income) loss attributable to noncontrolling interests and      
 redeemable noncontrolling interests, net of tax  (102) 8 (8) 14 
 Total comprehensive income attributable to ABB shareholders, net of tax  4,831 3,655 1,359 709 
 Due to rounding, numbers presented may not add to the totals provided.     
       See Notes to the Consolidated Financial Information

===== SIDA 22 =====

10 Q4 2025 FINANCIAL INFORMATION  
 —   
 ABB Ltd Consolidated Balance Sheets (unaudited)   
    
    
 ($ in millions) Dec. 31, 2025 Dec. 31, 2024 
 Cash and equivalents 4,640 4,326 
 Marketable securities and short-term investments 1,981 1,334 
 Receivables, net 7,535 6,843 
 Contract assets 1,090 889 
 Inventories, net 5,862 5,420 
 Prepaid expenses 281 282 
 Other current assets 627 511 
 Current assets held for sale and in discontinued operations  3,562 1,154 
 Total current assets 25,578 20,759 
    
 Property, plant and equipment, net 4,692 3,986 
 Operating lease right-of-use assets 765 752 
 Investments in equity-accounted companies 349 351 
 Prepaid pension and other employee benefits  937 688 
 Intangible assets, net 1,119 999 
 Goodwill 9,637 8,801 
 Deferred taxes 1,248 1,299 
 Other non-current assets 560 484 
 Non-current assets held for sale and in discontinued operations  – 2,169 
 Total assets 44,885 40,288 
    
 Accounts payable, trade 5,210 4,681 
 Contract liabilities 3,221 2,704 
 Short-term debt and current maturities of long -term debt 475 292 
 Current operating leases 253 225 
 Provisions 1,477 1,462 
 Other current liabilities 4,677 4,375 
 Current liabilities held for sale and in discontinued operations  1,108 915 
 Total current liabilities 16,421 14,654 
    
 Long-term debt 7,829 6,648 
 Non-current operating leases 533 543 
 Pension and other employee benefits 550 541 
 Deferred taxes 792 651 
 Other non-current liabilities 2,101 2,066 
 Non-current liabilities held for sale and in discontinued operations  13 194 
 Total liabilities 28,239 25,297 
    
 Commitments and contingencies   
    
 Stockholders’ equity:   
 Common stock, CHF 0.12 par value   
 (1,844 million and 1,861 million shares issued at December  31, 2025 and 2024, respectively) 160 162 
 Additional paid-in capital 64 50 
 Retained earnings 22,606 20,648 
 Accumulated other comprehensive loss (5,253) (5,350) 
 Treasury stock, at cost   
 (26 million and 22 million shares at December 31, 2025 and 2024, respectively) (1,490) (1,091) 
 Total ABB stockholders’ equity 16,087 14,419 
 Noncontrolling interests 559 572 
 Total stockholders’ equity 16,646 14,991 
 Total liabilities and stockholders’ equity 44,885 40,288 
 Due to rounding, numbers presented may not add to the totals provided.   
    
 See Notes to the Consolidated Financial Information

===== SIDA 23 =====

11 Q4 2025 FINANCIAL INFORMATION  
 —     
 ABB Ltd Consolidated Statements of Cash Flows (unaudited) 
      
  Year ended Three months ended 
 ($ in millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 
 Operating activities:     
 Net income 4,823 3,952 1,280 995 
 Income from discontinued operations, net of tax  (174) (226) (6) (47) 
 Adjustments to reconcile net income to     
 net cash provided by operating activities:     
 Depreciation and amortization 813 761 221 194 
 Changes in fair values of investments (21) 62 59 83 
 Pension and other employee benefits (48) (93) 8 (41) 
 Deferred taxes 108 1 (20) 90 
 Net loss (gain) from derivatives and foreign exchange  (311) (47) (145) 17 
 Net gain from sale of property, plant and equipment  (198) (60) (11) (18) 
 Net loss (gain) from sale of businesses 3 (57) 3 (70) 
 Fair value adjustment on assets and liabilities held for sale  – 113 – (19) 
 Other 58 155 26 45 
 Changes in operating assets and liabilities:      
 Trade receivables, net (222) (147) 15 (127) 
 Contract assets and liabilities 151 247 (42) 63 
 Inventories, net 132 (133) 250 331 
 Accounts payable, trade 147 180 198 73 
 Accrued liabilities 119 (4) 192 171 
 Provisions, net (8) (41) 15 7 
 Income taxes payable and receivable (53) (123) (125) (316) 
 Other assets and liabilities, net (69) (98) 70 74 
 Net cash provided by operating activities – continuing operations 5,250 4,442 1,988 1,505 
 Net cash provided by (used in) operating activities – discontinued operations 219 233 (39) 32 
 Net cash provided by operating activities 5,469 4,675 1,949 1,537 
      
 Investing activities:     
 Purchases of investments (1,218) (1,563) (171) (361) 
 Purchases of property, plant and equipment and intangible assets  (1,001) (799) (409) (271) 
 Acquisition of businesses (net of cash acquired)      
 and increases in cost- and equity-accounted companies (752) (617) (175) (322) 
 Proceeds from sales of investments 589 2,170 72 332 
 Proceeds from sales of property, plant and equipment  194 107 18 41 
 Proceeds from sales of businesses (net of transaction costs      
 and cash disposed) and cost- and equity-accounted companies 59 (33) (15) (29) 
 Net cash from settlement of foreign currency derivatives  (129) 87 (14) 96 
 Other investing activities (10) (13) (5) (1) 
 Net cash used in investing activities – continuing operations (2,268) (661) (699) (515) 
 Net cash used in investing activities – discontinued operations (121) (64) (52) (19) 
 Net cash used in investing activities (2,389) (725) (751) (534) 
      
 Financing activities:     
 Net changes in debt with original maturities of 90 days or less  (85) (15) (19) (8) 
 Increase in debt 1,083 1,914 (3) 550 
 Repayment of debt (433) (2,485) (214) (1) 
 Delivery of shares 99 451 66 47 
 Purchase of treasury stock (1,499) (1,247) (350) (404) 
 Dividends paid (1,907) (1,769) – – 
 Dividends paid to noncontrolling shareholders  (114) (103) – – 
 Other financing activities (22) (69) (14) (43) 
 Net cash provided by (used in) financing activities – continuing operations (2,878) (3,323) (534) 141 
 Net cash provided by (used in) financing activities – discontinued operations 1 (3) 2 – 
 Net cash provided by (used in) financing activities  (2,877) (3,326) (532) 141 
      
 Effects of exchange rate changes on cash and equivalents  111 (207) 16 (101) 
 Adjustment for the net change in cash and equivalents      
 in Assets held for sale – – 21 – 
 Net change in cash and equivalents 314 417 703 1,043 
      
 Cash and equivalents, beginning of period  4,326 3,909 3,937 3,283 
 Cash and equivalents, end of period 4,640 4,326 4,640 4,326 
      
 Supplementary disclosure of cash flow information:      
 Interest paid 290 241 62 40 
 Income taxes paid 1,627 1,382 463 430 
 Due to rounding, numbers presented may not add to the totals provided.     
 
 
     See Notes to the Consolidated Financial Information

===== SIDA 24 =====

12 Q4 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)   3,935   3,935 19 3,954 
 Foreign currency translation         
 adjustments, net of tax of $2    (271)  (271) (25) (296) 
 Effect of change in fair value of         
 available-for-sale securities,         
 net of tax of $1    5  5  5 
 Unrecognized income (expense)         
 related to pensions and other         
 postretirement plans,         
 net of tax of $24    (16)  (16)  (16) 
 Change in derivative instruments         
 and hedges, net of tax of $(2)    2  2  2 
 Changes in noncontrolling interests  (10) (62)   (72) 30 (42) 
 Dividends to         
 noncontrolling shareholders      – (104) (104) 
 Dividends to shareholders   (1,804)   (1,804)  (1,804) 
 Cancellation of treasury shares (2) (2) (828)  832 –  – 
 Share-based payment arrangements  97    97 5 102 
 Purchase of treasury stock     (1,251) (1,251)  (1,251) 
 Delivery of shares  (40) (249)  740 451  451 
 Other  (1)    (1)  (1) 
 Balance at December 31, 2024 162 50 20,648 (5,350) (1,091) 14,419 572 14,991 
          
          
 Balance at January 1, 2025 162 50 20,648 (5,350) (1,091) 14,419 572 14,991 
 Net income   4,734   4,734 89 4,823 
 Foreign currency translation         
 adjustments, net of tax of $(5)    72  72 13 85 
 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 $6    18  18  18 
 Change in derivative instruments         
 and hedges, net of tax of $0    4  4  4 
 Changes in noncontrolling interests      – (3) (3) 
 Dividends to         
 noncontrolling shareholders      – (114) (114) 
 Dividends to shareholders   (1,867)   (1,867)  (1,867) 
 Cancellation of treasury shares (2) (61) (831)  894 –  – 
 Share-based payment arrangements  89    89 4 93 
 Purchase of treasury stock     (1,485) (1,485)  (1,485) 
 Delivery of shares  (15) (77)  191 99  99 
 Balance at December 31, 2025 160 64 22,606 (5,253) (1,490) 16,087 559 16,646 
 
(1) Amount attributable to noncontrolling interests for the year ended December 31, 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 25 =====

13 Q4 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,  
• assumptions used in the determination of corporate costs directly attributable to discontinued operations,  
• estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other rece ivables, loans and 
other instruments, 
• estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries, environme ntal damages, 
product warranties, self-insurance reserves, regulatory and other proceedings,  
• assumptions and projections, principally related to future material, labor and project -related overhead costs, used in determining the 
percentage-of-completion on projects where revenue is recognized over time, as well as the amount of variable consideration the Company 
expects to be entitled to, 
• assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,  
• estimates used to record expected costs for employee severance in connection with restructuring programs,  
• assumptions used in determining inventory obsolescence and net realizable value,  
• growth rates, discount rates and other assumptions used to determine impairment of long -lived assets and in testing goodwill for 
impairment, and 
• estimates and assumptions used in determining the fair values of assets and liabilities assumed in business combinations . 
The actual results and outcomes may differ from the Company’s estimates and assumptions.  
For classification of certain current assets and liabilities, the Company has elected to use the duration of individual contr acts as its operating cycle. 
Accordingly, there are contract assets and liabilities, accounts receivable, inventories and provision s related to these contracts which will not be realized 
within one year that have been classified as current. Long -term system integration activities comprise the majority of the Company’s activities which 
have an operating cycle in excess of one year that  have been classified as current. 
Basis of presentation 
In the opinion of management, the unaudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial 
position, results of operations and cash flows for the reported periods. Management considers all such adjustm ents to be of a normal recurring nature. 
The Consolidated Financial Information is presented in United States dollars ($) unless otherwise stated. Due to rounding, nu mbers presented in the 
Consolidated Financial Information may not add to the totals provid ed. 
Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the  current year’s 
presentation, as mentioned below in this Note. 
Discontinued operations 
In October 2025, the Company entered into an agreement to divest its Robotics division to SoftBank Group Corp. The divestment  is expected to be 
completed in the second half of 2026, subject to regulatory approvals and customary closing conditions. As this divestment represents a strategic shift 
that will have a major effect on the operations and financial results of the Company, the results of operations for this busi ness have been presented as 
discontinued operations for all periods presented (see Note 3 f or details). Financial information and disclosures for prior periods have been retroactively 
recast to give effect to the discontinued operations presentation.  Unless otherwise indicated, all amounts and disclosures in the notes to the 
consolidated financial statements relate to the continuing operations of the Company.  
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, representing the impact of the policy 
change on Inventories and the related deferred tax balance.  The effect on Net income for 2024 was not considered significant and therefore no changes 
have been recorded.

===== SIDA 26 =====

14 Q4 2025 FINANCIAL INFORMATION  
The following tables detail the impact of the change in accounting policy within the Consolidated Income Statements for the year and three months 
ended December 31, 2024, and the Consolidated Balance Sheet at December 31, 2024 : 
 ($ in millions) 
 Year ended 
December 31, 2024 
Three months ended 
December 31, 2024 
 Consolidated Income Statement:    
 Cost of sales of products  (385) (96) 
 Cost of services and other  (86) (22) 
 Selling, general and administrative expenses   537 134 
 Non-order related research and development expenses   (66) (16) 
 
    
 ($ in millions)   December 31, 2024 
 Consolidated Balance Sheet:    
 Inventories   (82) 
 Current assets held for sale and in discontinued operations    (9) 
 Deferred taxes (asset)   22 
 Retained earnings   (69) 
 
Reclassifications and presentation changes  
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 ($651 million), Other non-current liabilities ($551 million) and in Assets held for sale and in discontinued operations, current 
($35 million) and non-current ($11 million). See Note 11 - Commitments and contingencies for additional information.   
In addition, in 2025, the Company reorganized its operating segments and reclassified the prior period to conform to the curr ent year’s presentation. 
See Note 17 - Operating segment data for details. 
 
 
─ 
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 update will be applied retrospectively for all periods presented in  the Company’s 2025 annual consolidated 
financial statements. Apart from the additional disclosure requirements, this update does not have a significant impact on the Company’s consolidated 
financial statements. 
Measurement of credit losses for accounts receivable and contract assets  
In July 2025, an accounting standard update was issued which provides a practical expedient related to the estimation of expe cted credit losses on 
current accounts receivable and contract assets arising from revenues generated from contracts with customers . The Company early adopted this 
accounting standard update in October 2025. 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.

===== SIDA 27 =====

15 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 3 
Discontinued operations 
In October 2025, the Company entered into an agreement to divest its Robotics division to SoftBank Group Corp., valuing the b usiness at approximately 
$5.4 billion. The business also includes certain investments and real estate properties which were previously reported within Corp orate and Other. The 
divestment is expected to be completed in the second half of 2026, subject to regulatory approvals and customary closing conditions , as well as the 
completion of certain legal entity reorganizations expected  to be finalized before the sale. 
As this planned divestment represents a strategic shift that will have a major effect on the Company’s operations and financi al results, the results of 
operations for this business have been presented as discontinued operations and the assets and liabiliti es, along with the related investments and real 
estate assets previously included in Corporate and Other,  are reflected as held-for-sale for all periods presented.  
In addition, amounts relating to stranded corporate costs have been separately disclosed as a component of Corporate and Othe r (see Note 17). 
Stranded costs represent allocated overhead and other management costs which were previously included in the measure of segment profit 
(Operational EBITA) for the Robotics division within the former Robotics & Discrete Automation operating segment but are not directly attributable to 
the discontinued operation and thus do not qualify to be recorded as part of income from discontinued operations.  
Operating results of the discontinued operations are summarized as follows:  
  Year ended Three months ended 
 ($ in millions) Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 
 Total revenues 2,331 2,267 581 594 
 Total cost of sales (1,527) (1,497) (369) (405) 
 Gross profit 804 770 212 189 
 Expenses (510) (439) (175) (118) 
 Income from operations 294 331 37 71 
 Net interest and other finance expense (36) (25) (13) (4) 
 Non-operational pension (cost) credit (1) (2) (1) (1) 
 Income from discontinued operations before taxes  257 304 23 66 
 Income tax expense (83) (78) (17) (19) 
 Income from discontinued operations, net of tax  174 226 6 47 
 
Of the total Income from discontinued operations before taxes in the table above, $ 173 million and $226 million in the year ended December 31, 2025 and 
2024, respectively, and $6 million and $47 million in the three months ended December  31, 2025 and 2024, respectively, are attributable to the Company, 
while the remainder is attributable to noncontrolling interests.  
Income from discontinued operations before taxes excluded stranded costs which were previously allocated to the Robotics divi sion. As a result, in the 
year ended December 31, 2025 and 2024, $123 million and $123 million, respectively, and for the three months ended December  31, 2025 and 2024, 
$30 million and $31 million, respectively, of allocated overhead and other management costs which were previously included in the measure of segm ent 
profit for the Robotics division are now reported as part of Corporate and Other. In the table above, Net interest and other finance expense in the year 
ended December 31, 2025 and 2024, includes $29 million and $30 million, respectively, and in the three months ended December  31, 2025 and 2024, 
includes $7 million and $6 million, respectively, of interest expense which has been recorded on an allocated basis in accordance with the Company’s 
accounting policy. In addition, as required by U.S. GAAP, subsequent to October  5, 2025, (the date of approval by the Board of Directors authorizing the 
sale of the Robotics division) the Company has not recorded depreciation or amortization on the property, plant and equipment  and intangible assets 
reported as discontinued operations.  
The Company also has retained obligations (primarily for environmental and taxes) related to other businesses disposed or otherwise exited tha t 
qualified as discontinued operations. Changes to these retained obligations are also included in Income from discontinued ope rations, net of tax.

===== SIDA 28 =====

16 Q4 2025 FINANCIAL INFORMATION  
The major components of assets and liabilities held for sale and in discontinued operations in the Company’s Consolidated Balance Sheets are 
summarized as follows: 
 ($ in millions) Dec. 31, 2025(1) Dec. 31, 2024(1) 
 Receivables, net 489 571 
 Contract assets 217 225 
 Inventories, net 372 349 
 Property, plant and equipment, net 290 – 
 Operating lease right-of-use assets 84 – 
 Goodwill 1,847 – 
 Deferred taxes 123 – 
 Other assets 140 9 
 Current assets held for sale and in discontinued operations  3,562 1,154 
    
 Property, plant and equipment, net – 190 
 Operating lease right-of-use assets – 88 
 Goodwill – 1,754 
 Deferred taxes – 64 
 Other non-current assets – 73 
 Non-current assets held for sale and in discontinued operations  – 2,169 
    
 Accounts payable, trade 317 367 
 Contract liabilities 250 264 
 Operating leases 87 – 
 Other liabilities 454 284 
 Current liabilities held for sale and in discontinued operations  1,108 915 
    
 Non-current operating leases – 87 
 Deferred taxes – 24 
 Other non-current liabilities 13 83 
 Non-current liabilities held for sale and in discontinued operations  13 194 
(1) At December 31, 2025 and 2024, the balances reported as held for sale and in discontinued operations also include amounts pertaining to Power Grids activities and other 
obligations which will remain with the Company until such time as the obligations are settled or the activities are fully wound down. 
 
 
─ 
Note 4 
Acquisitions and divestments 
Acquisition of controlling interests 
Acquisitions of controlling interests were as follows: 
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except number of acquired businesses) (1) 2025 2024 2025 2024 
 Purchase price for acquisitions (net of cash acquired) (2) 723 581 170 317 
 Aggregate excess of purchase price over     
 fair value of net assets acquired(3) 569 428 116 208 
 Number of acquired businesses  6 7 2 3 
(1) Amounts include adjustments arising during the measurement period of acquisitions . 
(2) Excluding changes in cost - and equity -accounted companies.  
(3)  Recorded as goodwill.  
In the table above, the “Purchase price for acquisitions” and “Aggregate excess of purchase price over fair value of net assets acquired ” in the year ended 
December 31, 2025, relate primarily to the acquisitions of Sensorfact BV, the Siemens Wiring Accessories Business  in China and the power electronics 
business of Gamesa Electric in Spain, while in the year ended December 31, 2024, relate primarily to the acquisitions of the Födisch Group, 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. 
On March 3, 2025, the Company acquired, through numerous share and asset purchases, all of the assets, liabilities and business activities of the 
Siemens Wiring Accessories Business in China. The Siemens Wiring Accessories Business offering, which distributes throughout China, includes wiring 
accessories, smart home systems, smart door locks and further peripheral home automation products . The cash outflows to complete the transaction 
amounted to $386 million (net of cash acquired). This acquisition will broaden the market reach of the Company’s Electrification segment and 
complement the segment’s regional customer offering within smart buildings .

===== SIDA 29 =====

17 Q4 2025 FINANCIAL INFORMATION  
On December 1, 2025, the Company acquired, through numerous share and asset purchases , all of the assets, liabilities and business activities of the 
power electronics business of Gamesa Electric in Spain. Gamesa’s power electronics business focuses on electrical products fo r power conversion, 
including Doubly-fed induction generator (DFIG) wind converters, industrial battery energy storage system s (BESS) and utility-scale solar power 
inverters. The cash outflows to complete the transaction amounted to $ 81 million (net of cash acquired). This acquisition will expand the existing power 
conversion product and service offering within the Company’s Motion segment.  
On October 1, 2024, the Company acquired all the shares of the Födisch Group. The Födisch Group is a worldwide provider of advanced meas urement 
and analytical solutions for the energy and industrial sectors. The cash outflows to complete the transaction amounted to $ 287 million (net of cash 
acquired). This acquisition enhances the Automation segment offering in continuous emission monitoring systems (CEMS) and bol sters its 
competitiveness in technology and innovation in this segment.  
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.  
The aggregate allocation of the purchase consideration for business acquisitions in the year ended December 31, 2025, was as follows: 
  2025 2024 
  Allocated Weighted-average Allocated Weighted-average 
 ($ in millions) amounts useful life amounts useful life 
 Technology 82 6 years 34 6 years 
 Customer relationships 108 10 years 107 11 years 
 Other intangibles 34 8 years 11 7 years 
 Intangible assets  224  152  
 Property, plant and equipment 19  35  
 Deferred tax liabilities  (43)  (29)  
 Inventories 42  36  
 Other assets and liabilities, net (88)  (41)  
 Goodwill 569  428  
 Total consideration (net of cash acquired)  723  581  
 
Business divestments 
In November 2024, the Company together with the Niedax Group formed Abnex Inc. (Abnex), a new joint venture company  where each party has joint 
control. Under the terms of the agreement, the Company contributed its North American cable tray business to Abnex in return for a 5 0 percent 
ownership interest in the new joint venture. The transaction was  recorded as a sale of its North American cable tray business, for which the Company 
recorded a gain of $72 million, in Other income (expense), net, with a separate acquisition at fair value of the 50  percent investment in Abnex, amounting 
to $124 million and accounted for using the equity method . The results of operations of the North American cable tray business are included in the 
continuing operations of the Electrification operating segment for all periods presented through to the date of transfer. 
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 by settling the contracts on a net basis. T his agreement, 
completed in November 2024, resulted in the Company returning a portion of its shares to In -Charge, thereby reducing its direct ownership to 
approximately 46 percent and thus losing control. This transaction was treated similar to a business divestment and with a separate re -acquisition at 
fair value of the 46 percent investment (amounting to $69  million) accounted for using the equity method. The Company recorded a loss of $88 million, 
representing the excess of the carrying value over the estimated fair value of this business , 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. The loss is based on the net assets of the business at the time of the deemed sale. 
Investments in equity-accounted companies 
In connection with the establishment of the Joint Venture with the Niedax Group in November 2024, the Company obtained a 50  percent interest in 
Abnex, the resulting new joint venture entity. For accounting purposes, the acquisition of the 50  percent interest had a fair value at the transaction date 
of $124 million. The fair value was based on a discounted cash flow model considering the expected results of the future business ope rations of Abnex 
and using relevant market inputs including a risk-adjusted weighted-average cost of capital. As Abnex is jointly owned and controlled by ABB and the 
Niedax Group, the investment is accounted for using the equity method.  
In November 2024, the reduction in the Company’s share ownership and simultaneous loss of control of In -Charge resulted in, for accounting purposes, a 
separate acquisition of a 46 percent interest in this company. The fair value of this investment at the t ransaction date amounted to $69 million and is 
accounted for using the equity method.

===== SIDA 30 =====

18 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 5 
Cash and equivalents, marketable securities and short-term investments 
Cash and equivalents, marketable securities and short -term investments consisted of the following:  
   December 31, 2025 
        Marketable 
    Gross Gross   securities 
    unrealized unrealized  Cash and and short-term 
 ($ in millions) Cost basis gains losses Fair value equivalents investments 
 Changes in fair value        
 recorded in net income       
 Cash 1,398   1,398 1,398  
 Time deposits 3,804   3,804 3,242 562 
 Equity securities 1,348 57  1,405  1,405 
  6,550 57 – 6,607 4,640 1,967 
 Changes in fair value recorded       
 in other comprehensive income       
 Debt securities available-for-sale:       
  Other government obligations 14   14  14 
  14 – – 14 – 14 
 Total 6,564 57 – 6,621 4,640 1,981 
         
 
   December 31, 2024 
        Marketable 
    Gross Gross   securities 
    unrealized unrealized  Cash and and short-term 
 ($ in millions) Cost basis gains losses Fair value equivalents investments 
 Changes in fair value       
 recorded in net income       
 Cash 1,328   1,328 1,328  
 Time deposits 3,518   3,518 2,998 520 
 Equity securities 794 22 (2) 814  814 
 Total 5,640 22 (2) 5,660 4,326 1,334

===== SIDA 31 =====

19 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 6 
Derivative financial instruments 
The Company is exposed to certain currency, commodity  and interest rate risks arising from its global operating, financing and investing activities. The 
Company uses derivative instruments to reduce and manage the economic impact of these exposures.  
Currency risk  
Due to the global nature of the Company’s operations, many of its subsidiaries are exposed to currency risk in their operatin g activities from entering 
into transactions in currencies other than their functional currency. To manage such currency risks, the  Company operates programs to hedge the 
foreign currency exposures from forecasted cash flows, committed orders and project -related exposures. Forward foreign exchange contracts are the 
main instrument used to protect the Company against the volatility of future cash flows (caused by changes in exchange rates) of contracted and 
forecasted sales and purchases denominated in foreign currencies. In addition, within its treasury operations, the Company pr imarily uses foreign 
exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management activities.  
Commodity risk 
Various commodity products are used in the Company’s manufacturing activities. Consequently, it is exposed to volatility in f uture cash flows arising 
from changes in commodity prices. To manage the price risk of commodities, the Company operates programs t o hedge the forecasted commodity 
exposure and project-related exposures. 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) December 31, 2025 December 31, 2024 
 Foreign exchange contracts 14,743 12,657 
 Embedded foreign exchange derivatives  1,640 1,153 
 Cross-currency interest rate swaps 940 833 
 Interest rate contracts 1,644 1,510 
 
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 
   December 31, 2025 December 31, 2024 
 Copper swaps metric tonnes 33,912 40,699 
 Silver swaps ounces 2,059,055 2,648,681 
 Steel swaps metric tonnes 14,198 20,185 
 Aluminum swaps metric tonnes 3,850 4,525

===== SIDA 32 =====

20 Q4 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 year and three months ended December  31, 2025 and 2024, there 
were no significant amounts recorded for cash flow hedge accounting activities.  
Fair value hedges 
To reduce its interest rate exposure arising primarily from its debt issuance activities, the Company uses interest rate swap s and cross-currency interest 
rate swaps. Where such instruments are designated as fair value hedges, the changes in the fair value of these instruments, as well as the changes in the 
fair value of the risk component of the underlying debt being hedged, are recorded as offsetting gains and 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: 
   Year ended December 31, Three months ended December 31, 
 ($ in millions)  2025 2024 2025 2024 
 Gains (losses) recognized in Interest and other finance expense:      
 Interest rate contracts Designated as fair value hedges (10) 28 (5) – 
  Hedged item 10 (29) 5 – 
 Cross-currency interest rate swaps Designated as fair value hedges 5 33 2 13 
  Hedged item (2) (30) (1) (12) 
 
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  Year ended December 31, Three months ended December 31, 
 ($ in millions) Location 2025 2024 2025 2024 
 Foreign exchange contracts Total revenues 165 (242) 26 (132) 
  Total cost of sales (31) 75 (6) 40 
  SG&A expenses(1) (38) 35 3 11 
  Non-order related research      
  and development – – – – 
  Interest and other finance expense (178) 282 13 192 
 Embedded foreign exchange Total revenues (2) 26 (8) 32 
 contracts Total cost of sales 6 (6) – (6) 
 Commodity contracts Total cost of sales 176 14 107 (35) 
 Other Interest and other finance expense 1 (1) – – 
 Total  99 183 135 102 
(1) SG&A expenses represent “Selling, general and  administrative expenses”.  
The fair values of derivatives included in the Consolidated Balance Sheets were as follows:  
  December 31, 2025 
  Derivative assets  Derivative liabilities 
  Current in Non-current in  Current in Non-current in 
  “Other current “Other non-current  “Other current “Other non-current 
 ($ in millions) assets” assets”  liabilities” liabilities” 
 Derivatives designated as hedging instruments:       
 Foreign exchange contracts – –  6 – 
 Interest rate contracts – 2  – 4 
 Cross-currency interest rate swaps – –  – 142 
 Total – 2  6 146 
       
 Derivatives not designated as hedging instruments:       
 Foreign exchange contracts 101 23  50 5 
 Commodity contracts 129 –  5 – 
 Embedded foreign exchange derivatives  20 14  29 4 
 Total 250 37  84 9 
 Total fair value 250 39  90 155

===== SIDA 33 =====

21 Q4 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 150 17  108 15 
 Commodity contracts 4 –  20 – 
 Embedded foreign exchange derivatives  22 6  11 5 
 Other – 5  – – 
 Total 176 28  139 20 
 Total fair value 180 35  140 276 
 
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 December 31, 2025 and 2024, have been presented on a gross basis.  
The Company’s netting agreements and other similar arrangements allow net settlements under certain conditions. At December  31, 2025 and 2024, 
information related to these offsetting arrangements was as follows:  
 ($ in millions) December 31, 2025 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or of recognized eligible for set-off collateral collateral Net asset 
 similar arrangement assets in case of default received received exposure 
 Derivatives 255 (56) – – 199 
 Total 255 (56) – – 199 
       
 
 ($ in millions) December 31, 2025 
  Gross amount Derivative liabilities Cash Non-cash  
 Type of agreement or   of recognized eligible for set-off collateral collateral Net liability 
 similar arrangement liabilities in case of default pledged pledged exposure 
 Derivatives 212 (56) – – 156 
 Total 212 (56) – – 156 
 
 ($ 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 187 (90) – – 97 
 Total 187 (90) – – 97 
       
  
 ($ 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 400 (90) – – 310 
 Total 400 (90) – – 310

===== SIDA 34 =====

22 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 7 
Fair values 
The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis an d, when necessary, to record 
certain non-financial assets at fair value on a non-recurring basis, as well as to determine fair value disclosures for certain financial instruments carried 
at amortized cost in the financial statements. Financial assets and liabilities recorded at fair value on a recurring basis i nclude foreign currency, 
commodity and interest rate derivatives, as well as available -for-sale securities. Non-financial assets recorded at fair value on a non -recurring basis 
include long-lived assets that are reduced to their estimated fair value due to impairments.  
Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transactio n between market participants at 
the measurement date. In determining fair value, the Company uses various valuation techniques inc luding the market approach (using observable 
market data for identical or similar assets and liabilities), the income approach (discounted cash flow models) and the cost approach (using costs a 
market participant would incur to develop a comparable asset).  Inputs used to determine the fair value of assets and liabilities are defined by a 
three-level hierarchy, depending on the nature of those inputs. The Company has categorized its financial assets and liabilities and non -financial assets 
measured at fair value within this hierarchy based on whether the inputs to the valuation technique are observable or unobser vable. An observable input 
is based on market data obtained from independent sources, while an unobservable input reflects the Company’s assumptions about market data.  
The levels of the fair value hierarchy are as follows:  
Level 1:  Valuation inputs consist of quoted prices in an active market for identical assets or liabilities (observable quoted prices).  Assets and liabilities 
valued using Level 1 inputs include exchange‑traded equity securities, listed derivatives which are actively traded such as commodity futures, 
interest rate futures and certain actively traded debt securities . 
Level 2:  Valuation inputs consist of observable inputs (other than Level 1 inputs) such as actively quoted prices for similar assets, quoted prices in 
inactive markets and inputs other than quoted prices such as interest rate yield curves, credit spreads, or inputs  derived from other observable 
data by interpolation, correlation, regression or other means. The adjustments applied to quoted prices or the inputs used in  valuation models 
may be both observable and unobservable. In these cases, the fair value measuremen t is classified as Level 2 unless the unobservable portion of 
the adjustment or the unobservable input to the valuation model is significant, in which case the fair value measurement woul d be classified as 
Level 3. Assets and liabilities valued or disclose d using Level 2 inputs include investments in certain funds, certain debt securities that are not 
actively traded, interest rate swaps, cross-currency interest rate swaps, commodity swaps, forward foreign exchange contracts, foreign 
exchange swaps and forward rate agreements, time deposits, as well as financing receivables and debt.  
Level 3:  Valuation inputs are based on the Company’s assumptions which require significant judgement or estimation (unobservable input).  
Whenever quoted prices involve bid-ask spreads, the Company ordinarily determines fair values based on mid -market quotes. When determining fair 
values based on quoted prices in an active market, the Company considers if the level of transaction activity for the financi al instrument has significantly 
decreased or would not be considered orderly. In such cases, the resulting ch anges in valuation techniques would be disclosed. If the market is 
considered disorderly or if quoted prices are not available, the Company is required to use another valuation technique, such  as an income approach. 
Recurring fair value measures 
The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:  
  December 31, 2025 
 ($ in millions) Level 1 Level 2 Level 3 Total fair value 
 Assets     
 Securities in “Marketable securities and short-term investments”:     
 Equity securities  1,405  1,405 
 Debt securities—Other government obligations 14   14 
 Derivative assets—current in “Other current assets”  250  250 
 Derivative assets—non-current in “Other non-current assets”  39  39 
 Total 14 1,694 – 1,708 
      
 Liabilities     
 Derivative liabilities—current in “Other current liabilities”  90  90 
 Derivative liabilities—non-current in “Other non-current liabilities”  155  155 
 Total – 245 – 245 
 
 
  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”  180  180 
 Derivative assets—non-current in “Other non-current assets”  35  35 
 Total – 1,029 – 1,029 
      
 Liabilities     
 Derivative liabilities—current in “Other current liabilities”  140  140 
 Derivative liabilities—non-current in “Other non-current liabilities”  276  276 
 Total – 416 – 416

===== SIDA 35 =====

23 Q4 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 year and three months ended December 31, 2025, there were no significant non‑recurring fair value measurements. In the year and three months 
ended December 31, 2024, the Company recognized $88 million and $73 million, respectively, in fair value adjustments of equity investments. This 
primarily related to an impairment recorded in the three months ended December  31, 2024, of the Company’s investment in Northvolt AB. In the year 
ended December 31, 2024, the Company also recognized $113 million of fair value adjustments on assets and liabilities held for sale, primarily related to 
the fair value adjustment of In-Charge for $88 million (see Note 4). There were no other significant non-recurring fair value measurements during the 
year and three months ended December 31, 2024. 
Disclosure about financial instruments carried on a cost basis  
The fair values of financial instruments carried on a cost basis were as follows:  
  December 31, 2025 
 ($ in millions) Carrying value  Level 1 Level 2 Level 3 Total fair value 
 Assets       
 Cash and equivalents (excluding securities with original        
 maturities up to 3 months):       
 Cash 1,398  1,398   1,398 
 Time deposits 3,242   3,242  3,242 
 Marketable securities and short-term investments       
 (excluding securities):       
 Time deposits 562   562  562 
        
 Liabilities       
 Short-term debt and current maturities of long -term debt       
 (excluding finance lease obligations) 448  416 32  448 
 Long-term debt (excluding finance lease obligations)  7,681  7,013 733  7,746 
 
 
  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 36 =====

24 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 8 
Contract assets and liabilities 
The following table provides information about Contract assets and Contract liabilities:  
 ($ in millions) December 31, 2025 December 31, 2024 December 31, 2023 
 Contract assets 1,090 889 885 
 Contract liabilities 3,221 2,704 2,559 
 
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:  
  Year ended December 31, 
  2025  2024 
  Contract  Contract  Contract  Contract 
 ($ in millions) assets  liabilities  assets  liabilities 
 Revenue recognized, which was included in the Contract liabilities balance at Jan 1, 2025/2024    (1,599)    (1,361) 
 Additions to Contract liabilities - excluding amounts recognized as revenue during the period    1,895    1,651 
 Receivables recognized that were included in the Contract assets balance at Jan 1, 2025/2024  (582)    (456)   
 
The Company considers its order backlog to represent its unsatisfied performance obligations. At December 31, 2025, the Company had unsatisfied 
performance obligations totaling $25,282 million and, of this amount, the Company expects to fulfill approximately 65 percent of the obligations in 2026, 
approximately 16 percent of the obligations in 2027 and the balance thereafter. 
 
 
─ 
Note 9 
Supplier finance programs 
The Company has several supplier finance programs, all with similar characteristics, with various financial institutions acti ng as paying agent. These 
programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier. The Company’s payment terms 
related to suppliers’ finance programs are not impacted by the suppliers’ decisions to sell amounts under the arrangements an d are typically consistent 
with local market practices. Outstanding supplier finance obligations are included in Accounts payable, trade in the Consolidated Balance Sheets and are 
reported as operating or investing (if capitalized) activities in the Consolidated Statement of Cash Flows when paid. At Dece mber 31, 2025 and 2024, the 
total obligation outstanding under supplier finance programs amounted to $482 million and $403 million, respectively.

===== SIDA 37 =====

25 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 10 
Debt 
The Company’s total debt at December 31, 2025 and 2024, amounted to $8,304 million and $6,940 million, respectively. 
Short-term debt and current maturities of long-term debt  
The Company’s Short-term debt and current maturities of long -term debt consisted of the following: 
 ($ in millions) December 31, 2025 December 31, 2024 
 Short-term debt 26 83 
 Current maturities of long-term debt 449 209 
 Total 475 292 
 
Short-term debt primarily represented short-term bank borrowings from various banks. 
In October 2025, the Company repaid at maturity its CHF  150 million 2.1% CHF Bonds, equivalent to $188  million on date of repayment. 
Long-term debt 
The Company’s Long-term debt at December 31, 2025 and 2024, amounted to $7,829 million and $6,648 million, respectively.  
Significant long-term borrowings (including maturities within the next 12 months) were as follows:   
  December 31, 2025 December 31, 2024 
 (in millions) Nominal outstanding  Carrying value(1) Nominal outstanding  Carrying value(1) 
 2.1% CHF Bonds, due 2025     CHF 150 $ 166 
 1.965% CHF Bonds, due 2026 CHF 325 $ 410 CHF 325 $ 359 
 3.25% EUR Instruments, due 2027 EUR 500 $ 586 EUR 500 $ 518 
 0.75% CHF Bonds, due 2027 CHF 425 $ 535 CHF 425 $ 468 
 3.8% USD Notes, due 2028(2) USD 383 $ 382 USD 383 $ 382 
 1.9775% CHF Bonds, due 2028 CHF 150 $ 189 CHF 150 $ 165 
 3.125% EUR Instruments, due 2029 EUR 500 $ 588 EUR 500 $ 523 
 1.0% CHF Bonds, due 2029 CHF 170 $ 214 CHF 170 $ 188 
 0% EUR Instruments, due 2030 EUR 800 $ 838 EUR 800 $ 727 
 2.375% CHF Bonds, due 2030 CHF 150 $ 189 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 $ 440     
 2.1125% CHF Bonds, due 2033 CHF 275 $ 346 CHF 275 $ 303 
 3.375% EUR Instruments, due 2034 EUR 750 $ 872 EUR 750 $ 780 
 1.2762% CHF Bonds, due 2036 CHF 250 $ 314     
 4.375% USD Notes, due 2042(2) USD 609 $ 592 USD 609 $ 591 
 Total    $ 7,905   $ 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). 
 
 
─ 
Note 11 
Commitments and contingencies 
Contingencies—Regulatory, Compliance and Legal  
General 
The Company is subject to proceedings, litigation or threatened litigation and other claims and inquiries related to various regulatory, commercial and 
other matters. The Company assesses the likelihood of any adverse judgments or outcomes to these matters , as well as potential ranges of probable 
losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue, with assistance, when 
necessary, from internal and external legal counsel and tech nical experts.  
At December 31, 2025 and 2024, the Company had aggregate liabilities of $ 25 million and $72 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 adverse outco mes beyond the amounts 
accrued.

===== SIDA 38 =====

26 Q4 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) December 31, 2025 December 31, 2024 
 Performance guarantees 1,926 2,299 
 Financial guarantees 18 22 
 Total(1) 1,944 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 December 31, 2025 and 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 2032, mainly consist of performance guarantees whereby (i)  the Company guarantees the performance of a third party’s 
product or service according to the terms of a contract and (ii) as member of a consortium/joint-venture that includes third parties, the Company 
guarantees not only its own performance but also the work of third parties. Such guarantees may include guarantees that a  project will be completed 
within a specified time. If the third party does not fulfill the obligation, the Company will compensate the guaranteed party  in cash or in kind. The 
original maturity dates for the majority of these performance guarantees range from one to ten years. 
In conjunction with the divestment of the high -voltage cable and cables accessories businesses  in 2017, the Company has entered into various 
performance guarantees with other parties with respect to certain liabilities of the divested business. At December  31, 2025 and 2024, the maximum 
potential payable under these guarantees amounts to $681 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 December 31, 2025 and 2024, have been fully indemnified by Hitachi Ltd. These 
guarantees, having various maturities up to 2032, primarily consist of bank guarantees, standby letters of credit, business performance guarantees and 
other trade-related guarantees, the majority of which have original maturity dates ranging from one to ten years. The maximum amount paya ble under 
these guarantees at December 31, 2025 and 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  December 31, 2025 and 2024, the total outstanding performance bonds aggregated to  $3.6 billion and 
$3.2 billion, respectively, of which $0.1 billion and $0.1 billion, respectively, relate to discontinued operations. There have been no significant amounts 
reimbursed to financial institutions under these types of arrangements in the year and three months ended  December 31, 2025 and 2024. 
Product and order-related contingencies 
The Company calculates its provision for product warranties based on historical claims experience and specific review of cert ain contracts. The 
reconciliation of the Provisions for warranties, including guarantees of product performance, was as follows:  
 ($ in millions) 2025 2024 
 Balance at January 1, 1,202 1,163 
 Net change in warranties due to acquisitions and divestments  – 2 
 Claims paid in cash or in kind (150) (141) 
 Net increase in provision for changes in estimates, warranties issued and warranties expired  230 240 
 Exchange rate differences 104 (62) 
 Balance at December 31, 1,386 1,202 
 Included in:   
 ”Provisions” — current liabilities 683 651 
 ”Other non-current liabilities” — non-current liabilities 703 551 
 Provisions for warranties - Total 1,386 1,202 
 
 
 
─ 
Note 12 
Income taxes 
In calculating income tax expense, the Company uses an estimate of the annual effective tax rate based upon the facts and cir cumstances known at each 
interim period. On a quarterly basis, the actual effective tax rate is adjusted, as appropriate, based upon changed facts and  circumstances, if any, as 
compared to those forecasted at the beginning of the year and each interim period thereafter.  
The effective tax rate of 25.2 percent in the year ended December 31, 2025, was higher than the effective tax rate of 24.3 percent in the year ended 
December 31, 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 year ended December 31, 2024. This resulted in an increase of $0.04 in earnings per share (basic and diluted) for the year ended 
December 31, 2024.

===== SIDA 39 =====

27 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 13 
Employee benefits 
The Company operates defined benefit pension plans, defined contribution pension plans, and termination indemnity plans, in a ccordance with local 
regulations and practices. At December 31, 2025, the Company’s most significant defined benefit pension plans are in Switzerland as well as in Germany, 
the United Kingdom, and the United States. These plans cover a large portion of the Company’s employees and provide benefits to employees in the 
event of death, disability, retirement, or termination of employment. Certain of these plans are multi -employer plans. The Company also operates other 
postretirement benefit plans including postretirement health care benefits and other employee -related benefits for active employees including 
long-service award plans. The postretirement benefit plans are not significant. The measurement date used for the Company’s employ ee benefit plans is 
December 31. The funding policies of the Company’s plans are consistent with the local government and tax requi rements. 
In August 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 partic ipants. However, the 
primary benefit obligation remains with the Company. As part of the buy -in agreements, 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 investments. No cash contribution was required to be made by the Company for the insurance contrac ts. The buy-in 
arrangements also allow for the possible future conversion int o 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 pension plan and realize a 
settlement loss or gain as a component of the net periodic benefit cost.  
The following tables include amounts relating to defined benefit pension plans for both continuing and  discontinued operations. 
Net periodic benefit cost of the Company’s defined benefit pension plans consist s of the following: 
 ($ in millions) Defined pension benefits 
  Switzerland International 
 Year ended December 31, 2025 2024 2025 2024 
 Operational pension cost:     
 Service cost 56 46 26 28 
 Operational pension cost 56 46 26 28 
 Non-operational pension cost (credit):     
 Interest cost 22 35 154 156 
 Expected return on plan assets (118) (126) (167) (168) 
 Amortization of prior service cost (credit) – (8) (2) (2) 
 Amortization of net actuarial loss 1 – 54 52 
 Curtailments, settlements and special termination benefits  3 5 (1) 3 
 Non-operational pension cost (credit) (92) (94) 38  41  
 Net periodic benefit cost (credit) (36) (48) 64 69 
 
 ($ in millions) Defined pension benefits 
  Switzerland International 
 Three months ended December 31, 2025 2024 2025 2024 
 Operational pension cost:     
 Service cost 14 11 8 8 
 Operational pension cost 14 11 8 8 
 Non-operational pension cost (credit):     
 Interest cost 6 8 39 37 
 Expected return on plan assets (29) (28) (41) (42) 
 Amortization of prior service cost (credit) – (3) – (1) 
 Amortization of net actuarial loss – – 12 12 
 Curtailments, settlements and special termination benefits  3 2 (2) (1) 
 Non-operational pension cost (credit) (20) (21) 8  5 
 Net periodic benefit cost (credit) (6) (10) 16 13 
 
The components of net periodic benefit cost other than the service cost component are included in the line Non -operational pension cost (credit) in the 
Consolidated Income Statements. Net periodic benefit cost (credit) related to discontinued operations for the year and three months ended 
December 31, 2025 and 2024, is not significant. 
Employer contributions were as follows: 
 ($ in millions) Defined pension benefits 
  Switzerland International 
 Year ended December 31, 2025 2024 2025 2024 
 Total contributions to defined benefit pension plans  63 45 37 77 
 Three months ended December 31, 2025 2024 2025 2024 
 Total contributions to defined benefit pension plans  13 1 12 47 
 
The Company expects to make contributions totaling approximately $100 million to its defined benefit pension plans for the full year 2026.

===== SIDA 40 =====

28 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 14 
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. In February 2025, the Company launched a new share buyback program of up to 
$1.5 billion, as announced in late January 2025, also executed on a second trading line on the SIX Swiss Exchange . Under these buyback programs, the 
Company purchased approximately 22 million shares in the year ended December 31, 2025, resulting in an increase in Treasury stock of $1,314 million. 
In the second quarter of 2025, the Company cancelled approximately 17 million shares which had been purchased under its share buyback program s. This 
resulted in a decrease in Treasury stock of $ 894 million and a corresponding combined decrease in Capital stock, Additional paid-in capital and Retained 
earnings. 
 
 
─ 
Note 15 
Earnings per share 
Basic earnings per share is calculated by dividing income by the weighted -average number of shares outstanding during the period. Diluted earnings per 
share is calculated by dividing income by the weighted -average number of shares outstanding during the period, assuming that all pot entially dilutive 
securities were exercised, if dilutive. Potentially dilutive securities comprise outstanding written call options, and outsta nding options and shares 
granted subject to certain conditions under the Company’s share -based payment arrangements. 
 Basic earnings per share   
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except per share data in $) 2025 2024 2025 2024 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  4,561 3,709 1,267 940 
 Income from discontinued operations, net of tax  173 226 6 47 
 Net income 4,734 3,935 1,273 987 
      
 Weighted-average number of shares outstanding (in millions)  1,827 1,844 1,820 1,841 
      
 Basic earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  2.50 2.01 0.70 0.51 
 Income from discontinued operations, net of tax  0.09 0.12 – 0.03 
 Net income 2.59 2.13 0.70 0.54 
 
      
 Diluted earnings per share   
  Year ended December 31, Three months ended December 31, 
 ($ in millions, except per share data in $) 2025 2024 2025 2024 
 Amounts attributable to ABB shareholders:      
 Income from continuing operations, net of tax  4,561 3,709 1,267 940 
 Income from discontinued operations, net of tax  173 226 6 47 
 Net income 4,734 3,935 1,273 987 
      
 Weighted-average number of shares outstanding (in millions)  1,827 1,844 1,820 1,841 
 Effect of dilutive securities:     
 Call options and shares 4 7 3 5 
 Adjusted weighted-average number of shares outstanding (in millions)  1,831 1,851 1,823 1,846 
      
 Diluted earnings per share attributable to ABB shareholders:      
 Income from continuing operations, net of tax  2.49 2.00 0.70 0.51 
 Income from discontinued operations, net of tax  0.09 0.12 – 0.03 
 Net income 2.59 2.13 0.70 0.53

===== SIDA 41 =====

29 Q4 2025 FINANCIAL INFORMATION  
─ 
Note 16 
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 (319) 1 (47) (8) (373) 
 Amounts reclassified from OCI 23 4 31 10 68 
 Total other comprehensive (loss) income  (296) 5 (16) 2 (305) 
       
 Less:      
 Amounts attributable to      
  noncontrolling interests and      
 redeemable noncontrolling interests (25) – – – (25) 
 Balance at December 31, 2024 (4,248) (3) (1,091) (8) (5,350) 
 Other comprehensive (loss) income:      
 Other comprehensive (loss) income      
 before reclassifications 93 3 (32) (3) 61 
 Amounts reclassified from OCI (8) – 50 7 49 
 Total other comprehensive (loss) income  85 3 18 4 110 
       
 Less:      
 Amounts attributable to      
 noncontrolling interests 13 – – – 13 
 Balance at December 31, 2025 (4,176) – (1,073) (4) (5,253) 
 
The amounts reclassified out of OCI for the year and three months ended December 31, 2025 and 2024, were not significant. 
 
 
─ 
Note 17 
Operating segment data 
The Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM allocates resources to and assesses the pe rformance of each 
operating segment using the information outlined below. The Company is organized into the following segments, based on products and services: 
Electrification, Motion and Automation. The remaining operations of the Company are included in Corporate and Other.  
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).  
On October 8, 2025, the Company entered into an agreement to divest its Robotics division. As a result of the planned divestment, the Co mpany 
announced a reorganization of its operating segments into three business areas. Following the announcement to divest its Robo tics division, the 
Company reclassified the results of operations for this division, formerly part of the Robotics & Discrete Automation segment , and certain related 
amounts previously included in Corporate and Other to discontinued operations (see Note 3). The Process Automation segment, renamed the 
Automation segment, remains unchanged except that it now includes the Machine Automation division from the former Robotics & Discrete Automation 
segment. The segment information for the year and three months ended December 31, 2024, and at December 31, 2024, has been recast to reflect this 
change. 
A description of the types of products and services provided by each reportable segment is as follows:  
• Electrification: manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution 
of electricity from source to socket. The portfolio of increasingly digital and connected solutions includes renewable power solutions, 
modular substation packages, distribution automation products, switchboards and panelboards, switchgear, UPS solutions, circuit breakers, 
measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems and intelligent home and building 
solutions, designed to integrate and automate lighting, heating, ventilation, security and data communication networks. The products and 
services are delivered through five operating divisions: Distribution Solutions, Smart Power, Smart Buildings, Installation Products, and 
Service.

===== SIDA 42 =====

30 Q4 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. 
 
• Automation: offers a broad range of industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services 
for the process, hybrid and marine industries. The product portfolio includes control technologies; process, machine and factory automation; 
industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems. In addition, Automation 
offers a comprehensive range of services, from repair to advanced digital capabilities such as remote monitoring, preventive maintenance, 
asset performance management, emission monitoring and cybersecurity. The products, systems and services are currently delivered through 
five operating divisions: Energy Industries, Process Industries, Marine & Ports, Measurement & Analytics and Machine Automation. 
 
Corporate and Other: Corporate includes headquarter costs, the Company’s corporate real estate activities and Corporate Treasury while Other inclu des 
the E-mobility operating segment and other non-core operating activities as well as the operating activities of certain divested businesses  and stranded 
corporate costs related to the planned divestment of the Robotics division.  
The primary measure of profitability on which the operating segments are evaluated is Operational EBITA, which represents inc ome from operations 
excluding: 
• amortization expense on intangibles arising upon acquisition ( acquisition-related amortization),  
• restructuring, related and implementation costs, 
• changes in the amount recorded for obligations related to divested businesses occurring after the divestment date (changes in  obligations 
related to divested businesses), 
• gains and losses from sale of businesses (including fair value adjustment on assets and liabilities held for sale , if any),  
• acquisition- and divestment-related expenses and integration costs, 
• certain other non-operational items, as well as  
• foreign exchange/commodity timing differences in income from operations consisting of:  (a) unrealized gains and losses on derivatives 
(foreign exchange, commodities, embedded derivatives), (b)  realized gains and losses on derivatives where the underlying hedged transaction 
has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).  
Certain other non-operational items generally includes certain regulatory, compliance and legal costs, certain asset write downs/impairments  and 
certain other fair value changes, as well as other items which are determined by management on a case -by-case basis. 
For all operating segments, the primary performance measure the CODM uses to allocate resources (including capital expenditur e and financial 
resources) and assess performance as part of the monthly business review process is Operational EBITA. As part of t his review process, current 
year-to-date budget-to-actual variances are provided (inclusive of key deviations) along with forecasted annual expectations and plans to address an y 
negative variances. Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the 
compensation of the Company’s employees. 
The CODM primarily reviews the results of each segment on a basis that is before the elimination of profits made on inventory  sales between segments. 
Segment results below are presented before these eliminations, with a total deduction for intersegment pro fits to arrive at the Company’s consolidated 
Operational EBITA. Intersegment sales and transfers are accounted for as if the sales and transfers were to third parties, at  current market prices. 
For a category of expense to be classified as a significant segment expense, it must be significant to the segment, regularly  provided to or easily 
computed from information regularly provided to the CODM and included in the primary measure of profitabilit y. Significant segment expenses include 
Operational cost of sales, Operational selling, general and administrative expenses, and Operational non -order related research and development costs, 
which respectively are comprised of Cost of sales, Selling, gener al and administrative expenses (excluding bad debt expense), and Non -order related 
research and development costs, with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and 
any relevant non-operational items (as defined above). 
Other segment items represent Other income (expense) excluding its respective components of non -operational items (as defined above), bad debt 
expense, and foreign exchange/commodity timing differences in total revenues.

===== SIDA 43 =====

31 Q4 2025 FINANCIAL INFORMATION  
The following tables present disaggregated segment revenues from contracts with customers , significant segment expenses, and Operational EBITA for 
the year and three months ended December 31, 2025 and 2024. 
  Year ended December 31, 2025 
     Corporate  
 ($ in millions) Electrification Motion Automation and Other Total 
 Geographical markets       
 Europe  5,150 2,610 3,438 209 11,407 
 The Americas  7,589 2,663 2,024 148 12,424 
 of which: United States 6,082 2,185 1,306 87 9,660 
 Asia, Middle East and Africa  4,348 2,407 2,569 65 9,389 
 of which: China 1,793 1,098 742 17 3,650 
  17,087 7,680 8,031 422 33,220 
 Product type       
 Products 15,838 6,495 5,013 323 27,669 
 Services and other 1,249 1,185 3,018 99 5,551 
  17,087 7,680 8,031 422 33,220 
       
 Third-party revenues 17,087 7,680 8,031 422 33,220 
 Intersegment revenues 270 567 53 (890) – 
 Total revenues 17,357 8,247 8,084 (468) 33,220 
       
 Operational cost of sales (10,054) (5,096) (4,946)   
 Operational selling, general and      
 administrative expenses (2,793) (1,240) (1,561)   
 Operational non-order related research       
 and development expenses (487) (319) (414)   
 Other segment items 58 8 (31)   
 Operational EBITA 4,081 1,600 1,132   
 
  Year ended December 31, 2024 
     Corporate  
 ($ in millions) Electrification Motion Automation and Other Total 
 Geographical markets       
 Europe  4,566 2,241 3,110 221 10,138 
 The Americas  6,577 2,618 1,970 205 11,370 
 of which: United States 5,128 2,122 1,232 141 8,623 
 Asia, Middle East and Africa  4,047 2,353 2,577 98 9,075 
 of which: China 1,777 1,098 808 22 3,705 
  15,190 7,212 7,657 524 30,583 
 Product type       
 Products 14,129 6,060 4,865 477 25,531 
 Services and other 1,061 1,152 2,792 47 5,052 
  15,190 7,212 7,657 524 30,583 
       
 Third-party revenues 15,190 7,212 7,657 524 30,583 
 Intersegment revenues 258 575 35 (868) – 
 Total revenues 15,448 7,787 7,692 (344) 30,583 
       
 Operational cost of sales (9,078) (4,924) (4,803)   
 Operational selling, general and      
 administrative expenses (2,462) (1,087) (1,418)   
 Operational non-order related research      
 and development expenses (436) (310) (400)   
 Other segment items 48 52 9   
 Operational EBITA 3,520 1,518 1,080

===== SIDA 44 =====

32 Q4 2025 FINANCIAL INFORMATION  
  Three months ended December 31, 2025 
     Corporate  
 ($ in millions) Electrification Motion Automation and Other Total 
 Geographical markets       
 Europe  1,389 782 937 67 3,175 
 The Americas  2,001 665 547 34 3,247 
 of which: United States 1,610 534 350 17 2,511 
 Asia, Middle East and Africa  1,220 646 740 24 2,630 
 of which: China 449 288 213 5 955 
  4,610 2,093 2,224 125 9,052 
 Product type       
 Products 4,238 1,761 1,391 94 7,484 
 Services and other 372 332 833 31 1,568 
  4,610 2,093 2,224 125 9,052 
       
 Third-party revenues 4,610 2,093 2,224 125 9,052 
 Intersegment revenues 92 167 19 (278) – 
 Total revenues 4,702 2,260 2,243 (153) 9,052 
       
 Operational cost of sales (2,797) (1,433) (1,387)   
 Operational selling, general and      
 administrative expenses (740) (324) (414)   
 Operational non-order related research       
 and development expenses (143) (89) (113)   
 Other segment items 40 (2) (18)   
 Operational EBITA 1,062 412 311   
 
  Three months ended December 31, 2024 
     Corporate  
 ($ in millions) Electrification Motion Automation and Other Total 
 Geographical markets       
 Europe  1,175 620 767 62 2,624 
 The Americas  1,691 670 505 68 2,934 
 of which: United States 1,325 542 315 40 2,222 
 Asia, Middle East and Africa  1,117 604 681 36 2,438 
 of which: China 440 271 202 8 921 
  3,983 1,894 1,953 166 7,996 
 Product type       
 Products 3,685 1,605 1,188 156 6,634 
 Services and other 298 289 765 10 1,362 
  3,983 1,894 1,953 166 7,996 
       
 Third-party revenues 3,983 1,894 1,953 166 7,996 
 Intersegment revenues 63 144 14 (221) – 
 Total revenues 4,046 2,038 1,967 (55) 7,996 
       
 Operational cost of sales (2,444) (1,302) (1,237)   
 Operational selling, general and      
 administrative expenses (631) (288) (372)   
 Operational non-order related research      
 and development expenses (124) (84) (115)   
 Other segment items 16 19 1   
 Operational EBITA 863 383 244

===== SIDA 45 =====

33 Q4 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 year and three months ended December 31, 2025 and 2024, and Total 
assets at December 31, 2025 and 2024: 
  Year ended  Three months ended 
  December 31, December 31, 
 ($ in millions) 2025 2024 2025 2024 
 Operational EBITA:     
 Electrification 4,081 3,520 1,062 863 
 Motion 1,600 1,518 412 383 
 Automation 1,132 1,080 311 244 
 Corporate and Other     
 ‒ E-mobility (148) (273) (33) (72) 
 ‒ Stranded corporate costs (123) (123) (30) (31) 
 ‒ Corporate costs, Intersegment elimination and other  (228) (150) (134) (57) 
 Total 6,314 5,572 1,588 1,330 
 Acquisition-related amortization (185) (194) (46) (43) 
 Restructuring, related and implementation costs (1) (92) (160) (53) (75) 
 Changes in obligations related to divested businesses  3 10 – (1) 
 Gains and losses from sale of businesses  (3) 57 (3) 70 
 Fair value adjustment on assets and liabilities held for sale  – (113) – 19 
 Acquisition- and divestment-related expenses and integration costs  (55) (57) (18) (15) 
 Foreign exchange/commodity timing differences in income from operations:      
 Unrealized gains and losses on derivatives (foreign exchange,      
 commodities, embedded derivatives) 210 (109) 104 (73) 
 Realized gains and losses on derivatives where the underlying hedged      
 transaction has not yet been realized 3 3 6 (4) 
 Unrealized foreign exchange movements on receivables/payables (and      
 related assets/liabilities) (16) 39 1 31 
 Certain other non-operational items:     
 Other income/expense relating to the Power Grids joint venture  6 16 – 2 
 Regulatory, compliance and legal costs 29 2 30 1 
 Business transformation costs(2) (166) (204) (33) (56) 
 Certain other fair value changes, including asset impairments  5 (107) (67) (76) 
 Other non-operational items (6) (20) (4) (16) 
 Income from operations 6,047 4,735 1,505 1,094 
 Interest and dividend income 203 206 61 60 
 Interest and other finance expense (86) (74) (13) (4) 
 Non-operational pension (cost) credit 55 56 13 15 
 Income from continuing operations before taxes  6,219 4,923 1,566 1,165 
(1) Includes impairment of certain assets. 
(2) Amount includes ABB Way process transformation costs of $144 million and $199 million for the year ended December 31, 2025 and 2024, respectively, and $23 million and 
$54 million for the three months ended December 31, 2025 and 2024, respectively. 
 Depreciation and amortization     
  Year ended Three months ended 
  December 31, December 31, 
 ($ in millions) 2025 2024 2025 2024 
 Electrification 445 395 116 109 
 Motion 176 161 46 42 
 Automation 119 131 33 29 
 Corporate and Other 73 74 26 14 
 Consolidated 813 761 221 194 
 
 Capital expenditures     
  Year ended Three months ended  
  December 31, December 31, 
 ($ in millions) 2025 2024 2025 2024 
 Electrification 636 473 308 194 
 Motion 203 191 63 51 
 Automation 80 81 26 18 
 Corporate and Other 82 54 12 8 
 Consolidated(1) 1,001 799 409 271 
(1) Capital expenditures  are after intersegment eliminations and therefore reflect third -party assets only.

===== SIDA 46 =====

34 Q4 2025 FINANCIAL INFORMATION  
  Total assets(1) 
 ($ in millions) December 31, 2025 December 31, 2024 
 Electrification 15,088 13,089 
 Motion 7,648 6,870 
 Automation 7,070 6,647 
 Corporate and Other(2) 15,079 13,682 
 Consolidated 44,885 40,288 
(1) Total assets are after intersegment eliminations and therefore reflect third-party assets only. 
(2) At December 31, 2025 and 2024, respectively, Corporate and Other includes $3,562 million and $3,323 million of assets reported in discontinued operations (see Note 3). 
 
 
─ 
Note 18 
Subsequent events 
On January 27, 2026, the Company completed the sale of a commercial property located in Zurich, Switzerland, for proceeds of approximately 
CHF 330 million, resulting in an estimated gain of CHF  290 million before tax. The Company has evaluated this subsequent event and determined that it 
does not require adjustment to the financial statements for the year and three months ended December 31, 2025.

===== SIDA 47 =====

35 Q4 2025 FINANCIAL INFORMATION

===== SIDA 48 =====

36 Q4 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 year and three months ended December  31, 2025.  
 
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 
  Q4 2025 compared to Q4 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  36% -4% 1% 33%  16% -3% -1% 12% 
 Motion 17% -4% 0% 13%  11% -4% -1% 6% 
 Automation 49% -8% 0% 41%  14% -5% 0% 9% 
 ABB Group 36% -5% 1% 32%  13% -4% 0% 9% 
 
 
  FY 2025 compared to FY 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  14% -1% 0% 13%  12% -1% 0% 11% 
 Motion 8% -2% 0% 6%  6% -2% 0% 4% 
 Automation 33% -3% 0% 30%  5% -2% 0% 3% 
 ABB Group 17% -2% 0% 15%  9% -2% 0% 7%

===== SIDA 49 =====

37 Q4 2025 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  
Regional comparable growth rate reconciliation  for ABB Group - Quarter 
  Q4 2025 compared to Q4 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 36% -11% 0% 25%  21% -10% 0% 11% 
 The Americas 44% -2% 1% 43%  11% -2% 1% 10% 
 of which: United States 57% 0% 0% 57%  13% 0% 0% 13% 
 Asia, Middle East and Africa 24% -1% 0% 23%  8% -1% 0% 7% 
 of which: China 28% -2% -1% 25%  4% -2% -2% 0% 
 ABB Group 36% -5% 1% 32%  13% -4% 0% 9% 
Regional comparable growth rate reconciliation  by Business Area - Quarter 
 
  Q4 2025 compared to Q4 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% -10% 0% 7%  19% -10% 0% 9% 
 The Americas 55% 0% 0% 55%  19% -1% 0% 18% 
 of which: United States 68% 0% 0% 68%  22% 0% 0% 22% 
 Asia, Middle East and Africa 22% -2% -1% 19%  10% -1% -2% 7% 
 of which: China -5% -2% -3% -10%  2% -2% -3% -3% 
 Electrification 36% -4% 1% 33%  16% -3% -1% 12% 
  
  Q4 2025 compared to Q4 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% -9% -1% 6%  23% -10% -1% 12% 
 The Americas 26% -1% 0% 25%  0% -2% 0% -2% 
 of which: United States 30% -1% 0% 29%  -1% -1% 0% -2% 
 Asia, Middle East and Africa 9% 0% 0% 9%  10% -1% -1% 8% 
 of which: China 16% -2% 0% 14%  10% -3% 0% 7% 
 Motion 17% -4% 0% 13%  11% -4% -1% 6% 
  
  Q4 2025 compared to Q4 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 73% -15% 0% 58%  22% -10% 0% 12% 
 The Americas 15% -2% 0% 13%  8% -2% 0% 6% 
 of which: United States 32% -2% 0% 30%  12% -1% 0% 11% 
 Asia, Middle East and Africa 43% -2% 0% 41%  9% -2% 0% 7% 
 of which: China 188% -7% 0% 181%  5% -2% 0% 3% 
 Automation 49% -8% 0% 41%  14% -5% 0% 9%

===== SIDA 50 =====

38 Q4 2025 FINANCIAL INFORMATION  
Regional comparable growth rate reconciliation  for ABB Group – Year to date 
  FY 2025 compared to FY 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% -5% 0% 11%  13% -6% 0% 7% 
 The Americas 26% 0% 0% 26%  9% 1% 0% 10% 
 of which: United States 34% -1% 1% 34%  12% 0% 0% 12% 
 Asia, Middle East and Africa 7% 0% 0% 7%  3% 1% -1% 3% 
 of which: China 9% 0% -1% 8%  -1% -1% -2% -4% 
 ABB Group 17% -2% 0% 15%  9% -2% 0% 7% 
Regional comparable growth rate reconciliation  by Business Area – Year to date 
 
  FY 2025 compared to FY 2024 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 10% -5% 0% 5%  13% -5% 0% 8% 
 The Americas 22% 0% 1% 23%  15% 1% 0% 16% 
 of which: United States 29% 0% -1% 28%  19% 0% -1% 18% 
 Asia, Middle East and Africa 7% 0% -1% 6%  7% 0% -2% 5% 
 of which: China -1% 0% -3% -4%  1% 0% -4% -3% 
 Electrification 14% -1% 0% 13%  12% -1% 0% 11% 
  
  FY 2025 compared to FY 2024 
  Order growth rate  Revenue growth rate 
  US$ Foreign    US$ Foreign   
  (as exchange Portfolio   (as exchange Portfolio  
 Region reported) impact changes Comparable  reported) impact changes Comparable 
 Europe 7% -5% 0% 2%  14% -5% -1% 8% 
 The Americas 20% 0% 0% 20%  2% 0% 0% 2% 
 of which: United States 27% -1% 0% 26%  3% 0% 0% 3% 
 Asia, Middle East and Africa -2% 0% 0% -2%  2% 0% 0% 2% 
 of which: China 8% 0% 0% 8%  1% -1% 0% 0% 
 Motion 8% -2% 0% 6%  6% -2% 0% 4% 
  
  FY 2025 compared to FY 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 33% -5% 0% 28%  11% -5% 0% 6% 
 The Americas 46% -1% 0% 45%  3% 0% 0% 3% 
 of which: United States 73% -4% 0% 69%  6% 0% 0% 6% 
 Asia, Middle East and Africa 21% -1% 0% 20%  0% -1% 0% -1% 
 of which: China 40% -1% 0% 39%  -8% -1% 0% -9% 
 Automation 33% -3% 0% 30%  5% -2% 0% 3%

===== SIDA 51 =====

39 Q4 2025 FINANCIAL INFORMATION  
Order backlog growth rate reconciliation 
  December 31, 2025 compared to December 31, 2024  
  US$ Foreign    
  (as exchange Portfolio   
 Business Area reported) impact changes Comparable  
 Electrification  26% -5% 0% 21%  
 Motion 20% -10% -2% 8%  
 Automation 33% -10% 0% 23%  
 ABB Group 27% -8% -1% 18%  
 
 
Other growth rate reconciliations 
  Q4 2025 compared to Q4 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  23% -4% 0% 19%  25% -5% 0% 20% 
 Motion 22% -6% 0% 16%  15% -5% 0% 10% 
 Automation 22% -6% 0% 16%  9% -5% 0% 4% 
 ABB Group 24% -6% 0% 18%  15% -5% 0% 10% 
 
 
  FY 2025 compared to FY 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% -2% -3% 16%  18% -2% -4% 12% 
 Motion 11% -1% 0% 10%  3% -2% 0% 1% 
 Automation 31% -3% 0% 28%  8% -2% 0% 6% 
 ABB Group 25% -2% -1% 22%  10% -2% -1% 7%

===== SIDA 52 =====

40 Q4 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  
  Year ended December 31, Three months ended December 31, 
 ($ in millions) 2025 2024 2025 2024 
 Operational EBITA 6,314 5,572 1,588 1,330 
 Acquisition-related amortization (185) (194) (46) (43) 
 Restructuring, related and implementation costs (1) (92) (160) (53) (75) 
 Changes in obligations related to divested businesses  3 10 – (1) 
 Gains and losses from sale of businesses  (3) 57 (3) 70 
 Fair value adjustment on assets and liabilities held for sale  – (113) – 19 
 Acquisition- and divestment-related expenses and integration costs  (55) (57) (18) (15) 
 Certain other non-operational items (132) (313) (74) (145) 
 Foreign exchange/commodity timing differences in income from operations  197 (67) 111 (46) 
 Income from operations 6,047 4,735 1,505 1,094 
 Interest and dividend income 203 206 61 60 
 Interest and other finance expense (86) (74) (13) (4) 
 Non-operational pension (cost) credit 55 56 13 15 
 Income from continuing operations before taxes  6,219 4,923 1,566 1,165 
 Income tax expense (1,570) (1,197) (292) (217) 
 Income from continuing operations, net of tax  4,649 3,726 1,274 948 
 Income from discontinued operations, net of tax  174 226 6 47 
 Net income 4,823 3,952 1,280 995 
(1) Includes impairment of certain assets.

===== SIDA 53 =====

41 Q4 2025 FINANCIAL INFORMATION  
Reconciliation of Operational EBITA margin by business  
   Three months ended December 31, 2025 
      Corporate and  
      Other and  
      Intersegment  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation elimination Consolidated 
 Total revenues  4,702 2,260 2,243 (153) 9,052 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives  6 (6) (13) 1 (12) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  (1) – (4) (2) (7) 
 Unrealized foreign exchange movements       
 on receivables (and related assets)  (4) 2 4 1 3 
 Operational revenues  4,703 2,256 2,230 (153) 9,036 
        
 Income (loss) from operations  1,074 408 278 (255) 1,505 
 Acquisition-related amortization  26 11 10 (1) 46 
 Restructuring, related and       
 implementation costs(1)  10 9 16 18 53 
 Gains and losses from sale of businesses   – – – 3 3 
 Acquisition- and divestment-related expenses       
 and integration costs  11 5 4 (2) 18 
 Certain other non-operational items  5 3 5 61 74 
 Foreign exchange/commodity timing        
 differences in income from operations:        
 Unrealized gains and losses on derivatives        
 (foreign exchange, commodities,        
 embedded derivatives)  (63) (23) 2 (20) (104) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  (1) – (7) 2 (6) 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities)  – (1) 3 (3) (1) 
 Operational EBITA  1,062 412 311 (197) 1,588 
        
 Operational EBITA margin (%)  22.6% 18.3% 13.9% n.a. 17.6% 
(1) Includes impairment of certain assets.  
 
In the three months ended December 31, 2025, Certain other non-operational items in the table above includes the following:  
   Three months ended December 31, 2025 
      Corporate  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation and Other Consolidated 
 Certain other non-operational items:       
 Regulatory, compliance and legal costs  – – – (30) (30) 
 Business transformation costs(1)  – 2 – 31 33 
 Certain other fair values changes,       
 including asset impairments  4 2 6 55 67 
 Other non-operational items  1 (1) (1) 5 4 
 Total  5 3 5 61 74 
(1) Amounts include ABB Way process transformation costs of $23  million for the three months ended December  31, 2025.

===== SIDA 54 =====

42 Q4 2025 FINANCIAL INFORMATION  
   Three months ended December 31, 2024 
      Corporate and  
      Other and  
      Intersegment  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation elimination Consolidated 
 Total revenues  4,046 2,038 1,967 (55) 7,996 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives  23 18 15 (1) 55 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  1 3 4 (1) 7 
 Unrealized foreign exchange movements       
 on receivables (and related assets)  (18) (10) (17) (4) (49) 
 Operational revenues  4,052 2,049 1,969 (61) 8,009 
        
 Income (loss) from operations  863 333 193 (295) 1,094 
 Acquisition-related amortization  25 9 10 (1) 43 
 Restructuring, related and       
 implementation costs(1)  7 15 36 17 75 
 Changes in obligations related to       
 divested businesses  – – – 1 1 
 Gains and losses from sale of businesses   (71) – – 1 (70) 
 Fair value adjustment on assets and liabilities        
 held for sale  – – – (19) (19) 
 Acquisition- and divestment-related expenses       
 and integration costs  5 2 3 5 15 
 Certain other non-operational items  4 2 1 138 145 
 Foreign exchange/commodity timing        
 differences in income from operations:        
 Unrealized gains and losses on derivatives        
 (foreign exchange, commodities,        
 embedded derivatives)  44 26 9 (6) 73 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  – 1 1 2 4 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities)  (14) (5) (9) (3) (31) 
 Operational EBITA  863 383 244 (160) 1,330 
        
 Operational EBITA margin (%)  21.3% 18.7% 12.4% n.a. 16.6% 
(1) Includes impairment of certain assets.  
 
In the three months ended December 31, 2024, Certain other non-operational items in the table above includes the following:  
   Three months ended December 31, 2024 
      Corporate  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the        
 Power Grids joint venture  – – – (2) (2) 
 Regulatory, compliance and legal costs  – – – (1) (1) 
 Business transformation costs(1)  2 – – 54 56 
 Certain other fair values changes,       
 including asset impairments  2 1 1 72 76 
 Other non-operational items  – 1 – 15 16 
 Total  4 2 1 138 145 
(1) Amounts include ABB Way process transformation costs of $54  million for the three months ended December  31, 2024.

===== SIDA 55 =====

43 Q4 2025 FINANCIAL INFORMATION  
   Year ended December 31, 2025 
      Corporate and  
      Other and  
      Intersegment  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation elimination Consolidated 
 Total revenues  17,357 8,247 8,084 (468) 33,220 
 Foreign exchange/commodity timing       
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives  (38) (11) (23) 1 (71) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  (1) – (9) (3) (13) 
 Unrealized foreign exchange movements       
 on receivables (and related assets)  24 5 8 – 37 
 Operational revenues  17,342 8,241 8,060 (470) 33,173 
        
 Income (loss) from operations  4,065 1,564 1,097 (679) 6,047 
 Acquisition-related amortization  108 37 38 2 185 
 Restructuring, related and       
 implementation costs(1)  26 26 20 20 92 
 Changes in obligations related to       
 divested businesses  – – – (3) (3) 
 Gains and losses from sale of businesses   (5) – – 8 3 
 Acquisition- and divestment-related expenses        
 and integration costs  35 8 11 1 55 
 Certain other non-operational items  (23) 16 (17) 156 132 
 Foreign exchange/commodity timing        
 differences in income from operations:        
 Unrealized gains and losses on derivatives        
 (foreign exchange, commodities,        
 embedded derivatives)  (143) (55) (12) – (210) 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  2 1 (7) 1 (3) 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities)  16 3 2 (5) 16 
 Operational EBITA  4,081 1,600 1,132 (499) 6,314 
        
 Operational EBITA margin (%)  23.5% 19.4% 14.0% n.a. 19.0% 
(1) Includes impairment of certain assets.  
 
In the year ended December 31, 2025, Certain other non-operational items in the table above includes the following:  
   Year ended December 31, 2025 
      Corporate  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense relating to the       
 Power Grids joint venture  – – – (6) (6) 
 Regulatory, compliance and legal costs  – – – (29) (29) 
 Business transformation costs(1)  1 9 – 156 166 
 Certain other fair values changes,       
 including asset impairments  (19) 7 (17) 24 (5) 
 Other non-operational items  (5) – – 11 6 
 Total  (23) 16 (17) 156 132 
(1) Amounts include ABB Way process transformation costs of $144  million for the year ended December  31, 2025.

===== SIDA 56 =====

44 Q4 2025 FINANCIAL INFORMATION  
   Year ended December 31, 2024 
      Corporate and  
      Other and  
      Intersegment  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation elimination Consolidated 
 Total revenues  15,448 7,787 7,692 (344) 30,583 
 Foreign exchange/commodity timing        
 differences in total revenues:       
 Unrealized gains and losses       
 on derivatives  68 47 35 1 151 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  (1) 3 8 (2) 8 
 Unrealized foreign exchange movements       
 on receivables (and related assets)  (29) (23) (26) 1 (77) 
 Operational revenues  15,486 7,814 7,709 (344) 30,665 
        
 Income (loss) from operations  3,362 1,400 942 (969) 4,735 
 Acquisition-related amortization  94 35 56 9 194 
 Restructuring, related and       
 implementation costs(1)  27 39 70 24 160 
 Changes in obligations related to       
 divested businesses  – – – (10) (10) 
 Gains and losses from sale of businesses   (73) – – 16 (57) 
 Fair value adjustment on assets and liabilities        
 held for sale  25 – – 88 113 
 Acquisition- and divestment-related expenses       
 and integration costs  38 5 6 8 57 
 Certain other non-operational items  7 7 (1) 300 313 
 Foreign exchange/commodity timing        
 differences in income from operations:        
 Unrealized gains and losses on derivatives        
 (foreign exchange, commodities,        
 embedded derivatives)  56 41 15 (3) 109 
 Realized gains and losses on derivatives       
 where the underlying hedged       
 transaction has not yet been realized  (7) 1 5 (2) (3) 
 Unrealized foreign exchange movements        
 on receivables/payables       
 (and related assets/liabilities)  (9) (10) (13) (7) (39) 
 Operational EBITA  3,520 1,518 1,080 (546) 5,572 
        
 Operational EBITA margin (%)  22.7% 19.4% 14.0% n.a. 18.2% 
(1) Includes impairment of certain assets.  
 
In the year ended December 31, 2024, certain other non-operational items in the table above includes the following:  
   Year ended December 31, 2024 
      Corporate  
 ($ in millions, unless otherwise indicated)  Electrification Motion Automation and Other Consolidated 
 Certain other non-operational items:       
 Other income/expense related to the       
 Power Grids joint venture  – – – (16) (16) 
 Regulatory, compliance and legal costs  – – – (2) (2) 
 Business transformation costs(1)  5 1 – 198 204 
 Certain other fair values changes,       
 including asset impairments  3 5 (1) 100 107 
 Other non-operational items  (1) 1 – 20 20 
 Total  7 7 (1) 300 313 
(1) Amounts include ABB Way process transformation costs of $199  million for the year ended December  31, 2024.

===== SIDA 57 =====

45 Q4 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)  December 31, 2025 December 31, 2024 
 Short-term debt and current maturities of long -term debt  475 292 
 Long-term debt  7,829 6,648 
 Total debt  8,304 6,940 
 Cash and equivalents  4,640 4,326 
 Marketable securities and short-term investments  1,981 1,334 
 Cash and marketable securities  6,621 5,660 
 Net debt  1,683 1,280 
 
 
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) December 31, 2025 December 31, 2024 
 Total stockholders' equity 16,646 14,991 
 Net debt (as defined above) 1,683 1,280 
 Net debt / Equity ratio 0.10 0.09 
 
 
Net debt/EBITDA ratio 
Definition  
Net debt/EBITDA ratio 
Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.  
EBITDA 
EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciati on and amortization for 
the same trailing twelve-month period.  
Reconciliation 
 ($ in millions, unless otherwise indicated) December 31, 2025 December 31, 2024 
 Income from operations for the year ended 6,047 4,735 
 Depreciation and Amortization for the year ended  813 761 
 EBITDA  6,860 5,496 
 Net debt (as defined above) 1,683 1,280 
 Net debt / EBITDA ratio 0.25 0.23

===== SIDA 58 =====

46 Q4 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 
   December 31, 
 ($ in millions, unless otherwise indicated)  2025 2024 
 Net working capital:    
  Receivables, net  7,535 6,843 
  Contract assets  1,090 889 
  Inventories, net  5,862 5,420 
  Prepaid expenses  281 282 
  Accounts payable, trade  (5,210) (4,681) 
  Contract liabilities  (3,221) (2,704) 
  Other current liabilities(1)  (3,965) (3,646) 
 Net working capital  2,372 2,403 
(1) Amounts exclude $712 million and $729 million at December  31, 2025 and 2024, respectively, related primarily to (a) income taxes payable,  (b) current  derivative  
liabilities,  (c) pension  and other employee  benefits,  (d) payables  under the share buyback  program and (e) liabilities  related to certain  restructuring -related  
activitie s.

===== SIDA 59 =====