ABB's Strong Q2 Performance

ABB announced record orders. The company also posted strong profit margins. Automation tools drove demand. Data center investments fueled growth. These factors exceeded expectations.

CEO Morten Wierod spoke to Bloomberg TV. He confirmed market share gains. Electrification unit grew double-digits. This unit supplies power companies.

AI Wave Powers Growth

Utilities need more investment. Data center power consumption is rising. Wierod noted the AI wave. This trend will continue for long.

Orders surged 16% in Q2. Total orders hit $9.79 billion. A $600 million US deal boosted process automation. Analysts expected less, around $8.93 billion.

Shares Climb, Margins Rise

ABB shares jumped 8.5%. This was the biggest gain in months. Peers like Schneider Electric and Legrand also rose. Legrand shared positive updates too.

Ebita margins reached 19.2% for ABB. This beat the 18.8% estimate. Process automation margins grew. Electrification business margins also increased. Utilities demand more power. Data centers for AI need more power.

Outlook and Future Plans

ABB reaffirmed its full-year outlook. Global uncertainties exist. The US shows strong development. Some customers delay investments. This affects the auto industry. Tariffs create uncertainty. Wierod expects a turnaround soon. This may take a quarter or two.

Citigroup analyst Martin Wilkie expects upgrades. He foresees "small single digit percentage upgrades." This follows the Q2 results. ABB will spin off its robotics unit. The listing is planned for Q2 2026. Wierod prioritizes profitable units. Electrification is a key focus. ABB might sell the robotics unit. It could be worth more than $3.5 billion. This is an alternative to the spinoff.