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