ABB's Process Automation: Poised for Further Growth?

ABB Ltd's Process Automation segment continues driving overall growth. Strong performance in marine, ports, and energy helps. Q1 2025 orders jumped 23%. Revenues also rose 5% year-over-year.

Momentum Builds in Key Sectors

Project activity is robust. Passenger vessels, port electrification, and industrial automation fuel this. Customers invest in advanced automation. They seek efficiency and operational control. This bodes well for the segment. Follow-on orders also increase. Interest in smart solutions is growing.

Strong Backlog Signals Future Stability

The segment's order backlog reached $8.1 billion. This was up from $7.4 billion in Q4 2024. This strong backlog shows steady project execution. Digital automation platforms gain traction. Adopting these technologies helps recurring revenue. It strengthens customer relationships long-term.

Challenges and Opportunities Ahead

However, demand is weak in chemicals. Pulp & paper and mining also lag. Global uncertainty, especially trade policies, may affect projects. Slower investment decisions are also a risk. Despite risks, Process Automation is strong. It boasts a solid backlog. Momentum in core industries is high. Digital automation adoption is rising.

Peer Performance Snapshot

Eaton Corporation's Electrical Americas segment saw strong growth. Q1 2025 net sales were $3.01 billion. This was up 11.9% year-over-year. Eaton's backlog also increased 6%.

Emerson Electric's Software and Control Automation Solutions performed well. Q2 fiscal 2025 net sales hit $1.42 billion. This was up 7% year-over-year. AspenTech growth drove this. Power and process markets showed strength.

Valuation and Outlook

ABBNY trades at 23.20X forward P/E. This exceeds the industry's 22.71X average. ABB holds a Value Score of C. Analysts recently lowered Q2 2025 earnings estimates. Currently, ABB has a Zacks Rank #4 (Sell).