Abb Ltd Q4 2025 results

Greetings, and welcome to this presentation of ABB's Full Year and Fourth Quarter Results. Through the year, we saw demand for Electrification and Automation solutions continue its overall strong trend. Add to that our internal focus on continuous improvements, and putting it all together, we reached new record levels in orders and across most P&L metrics, including an operational EBITA margin of 19%. The margin of 18.2% on income from operations, or EBIT, was only 80 basis points lower, in line with our ambition to keep the gap at about 100 basis points.

This leaves us with a record backlog of $25.3 billion to support future revenues. Another highlight is the strong free cash flow of $4.6 billion, as well as the outstanding return on capital employed of 25.3%. We ended the year with a strong balance sheet, with net debt to EBITDA of 0.3. This is an increase from the 2025 program of up to $1.5 billion, under which we spent about $1.3 billion.

So a good utilization in my view, and the equivalent of about 1% of market cap, which adds to the yield of about 1.6% from the proposed dividend. Let's now turn to the fourth quarter, where one highlight was the very strong increase of 32% in comparable orders. With growth this strong, it is reassuring that it wasn't a one-dimensional driver. Instead, we were up in most segments and had double-digit growth across all business areas, led by Electrification and Automation at the standout levels of 33% and 41%.