ABB Announces Robotics Division Spin-Off

ABB will spin off its Robotics division. The company plans a separate listing. This will occur in the second quarter of 2026. ABB shareholders will receive shares. This distribution will be a dividend in-kind. The allocation will match their current holdings. ABB announced this plan today. They will propose it at the 2026 AGM.

Strategic Rationale for Separation

The board believes this listing optimizes both companies. It will improve their ability to create customer value. Growth and talent attraction will also benefit. Focused governance and capital allocation are key. ABB will concentrate on electrification and automation. They aim to build on their leading market positions.

Robotics: A Strong Industry Performer

ABB Robotics is a technology leader. They provide intelligent automation solutions. These solutions improve productivity and flexibility. They also simplify operations for customers. This helps solve labor shortages. Sustainable operations are another benefit. Their offering includes broad robotics platforms. Autonomous Mobile Robots are included. Software and AI are also key. They combine this with domain expertise. This serves traditional and new industries. Over 80 percent of their offering is software/AI enabled.

Limited Synergies Drive Decision

ABB Robotics leads its industry. There are limited business synergies. Technology synergies are also limited with other ABB divisions. Demand and market characteristics differ. ABB believes this change will create value. This applies to both ABB Group and the new robotics company.

Robotics' Financial Strength

ABB Robotics performs strongly among peers. Their decentralized model shows margin resilience. This has been evident since 2019. The market has stabilized recently. Order growth is now supported. This follows a volatile period. Pre-buys strained the supply chain earlier. The new company will have a strong capital structure. It is well invested with solid cash flow. They operate locally with regional hubs. These are in Europe, Asia, and the Americas.

Division Details and Future Structure

ABB Robotics has about 7,000 employees. Their 2024 revenues were $2.3 billion. This was about 7 percent of ABB Group revenue. Their Operational EBITA margin was 12.1 percent. Shareholders must approve the spin-off. The share distribution will then occur. The new company's working name is “ABB Robotics.”

Machine Automation Integration

Starting in Q1 2026, Machine Automation will move. It will join the Process Automation business area. Currently, it is with ABB Robotics. This integration will create technology synergies. Software and control technologies will benefit. Hybrid industries will also see advantages. Machine Automation holds a leading position. This is in high-end PLC, IPC, and servo motion solutions. Industrial transport systems and vision are included. Software is also a key part. The divisional management will retain strategy and business priorities. They will operate under the ABB Way model.

ABB's Broader Vision

ABB is a global technology leader. They focus on electrification and automation. They enable a sustainable and resource-efficient future. ABB connects engineering and digitalization expertise. This helps industries achieve high performance. They become more efficient and productive. Sustainability is also a key outcome. ABB calls this ‘Engineered to Outrun’. The company has over 140 years of history. They have around 110,000 employees globally. ABB's shares trade on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).