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Global Idea: ABB Ltd - Accelerating Momentum

  • Writer: Lester Davids
    Lester Davids
  • Feb 26
  • 2 min read

Research Notes February 2026 > https://www.unum.capital/post/rfeb2026

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za


Buy at $71.40 or lower

Stop-loss: $63.00

Target(s): $88.00


Code: ABBN



ABB reported a record-breaking performance for the fourth quarter and full year of 2025, driven by a surge in orders from data centers and the energy transition. The company capped the year with its strongest annual results to date, prompting an increased dividend and a new $2.0 billion share buyback program.


Q4 2025 Performance Highlights

The fourth quarter was a "landmark" period for ABB, as it exceeded the $10 billion order level for the first time in its history.


Full Year 2025 Summary

ABB achieved all-time highs across its primary financial metrics for the 2025 calendar year.

  • Total Revenue: Reached $33.2 billion, a 9% increase over 2024.

  • Record Margins: The annual operational EBITA margin hit 19.0%, supported by internal efficiency gains and high volumes.

  • Cash Flow: Free cash flow reached a record $4.6 billion, allowing the company to propose a higher dividend of CHF 0.94 per share.

  • Backlog Growth: The order backlog remains robust at over $25 billion, providing high revenue visibility for the coming year.


Key Growth Drivers & Outlook

The results reflect strong demand in segments aligned with global "megatrends":

  • AI & Data Centers: This was the standout performer, particularly in the Electrification segment. ABB’s collaboration with NVIDIA on 800V DC architecture for next-gen data centers is a major focal point.

  • Infrastructure & Marine: Large-scale project bookings, such as the system to power 32 container ships in Rotterdam, boosted the Automation and Motion divisions.

  • Regional Strength: While global performance was strong, ABB India reported its highest fourth-quarter order intake in five years, though it faced some margin pressure from rising labor and material costs.

  • 2026 Guidance: ABB anticipates 2026 to be another "all-time-high" year. It projects comparable revenue growth of 6%–9% and expects further improvement in operational EBITA margins.


Lester Davids

Senior Investment Analyst: Unum Capital


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