Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

By Reuters News


Overview

  • Switzerland electrification and automation firm's Q3 revenue rose 14% year-over-year

  • Q3 operational EBITA increased 24%, with margin expanding to 20.8%

  • Company to form electrification joint venture with Mitsubishi Electric, acquiring 51% stake


Outlook

  • ABB expects Q4 2026 comparable revenue growth broadly similar to Q3 2026

  • Company sees Q4 2026 Operational EBITA margin to sequentially soften, but less than historical pattern

  • ABB expects full-year 2026 comparable revenue growth in the 'low teens' range, y/y


Result Drivers

  • RECORD ORDER INTAKE - Co said Q3 orders reached record $12 bln, up 40%, driven by strong growth in two business areas and triple-digit increase in data center segment

  • WORKING CAPITAL MANAGEMENT - Co said robust earnings and disciplined management of trade net working capital supported strong free cash flow


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$9.70 bln

Q3 Net Income

$1.18 bln

Q3 Basic EPS

$0.65

Q3 EBITA

$2.03 bln

Q3 Operating Income

$1.85 bln

Q3 Orders

$12.06 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 22 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the heavy electrical equipment peer group is "buy."

  • Wall Street's median 12-month price target for ABB Ltd is CHF83.00, about 11.1% above its October 19 closing price of CHF74.70

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 31 three months ago


Reuters Recommended Reads

  • Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand

  • Oct 19 - Roche puts future German investments 'on hold'

  • Oct 19 - UBS capital rules have Swiss stuck between a rock and a hard place


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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