ABB Robotics makes industrial programs equivalent to this IRB robotic demonstrating friction stir welding. Supply: ABB
One in every of world’s high industrial automation suppliers is turning into extra impartial. ABB Group introduced throughout its earnings name right this moment that it plans to spin off its total robotics division. The Zurich-based firm mentioned it intends for the enterprise to begin buying and selling as a individually listed firm within the second quarter of 2026.
“Right now, we additionally introduced our plan to spin off the Robotics division as a individually listed firm,” mentioned Martin Wierod, CEO of ABB Group, throughout the first-quarter 2025 earnings name. “In overview, this modification will assist worth creation for each firms.”
“Our robotics enterprise had elevated orders from the automotive phase, and our paint know-how is one of the best available on the market, and we had prospects selecting to stay with us as they expanded their worldwide footprint,” he famous. “One can say we journey with the client.”
“The workforce did a great job additionally on operational EBITDA. Margin improved in three out of our 4 enterprise areas,” added Wierod. “Solely robotics and discrete automation declined from final yr. However importantly, they confirmed a constructive sequential growth, and the machine automation division improved to a break-even stage.”
The corporate reported that, excluding Europe, world Q1 robotics orders improved over a pointy drop from 2023 to 2024. It added that “the automotive phase stays difficult” however pointed to growing demand for robots in portray, client electronics, meals and beverage, attire, and industrial equipment.
ABB Robotics & Discrete Automation mixture orders and revenues improved in Q1 of 2025 after a steep drop in 2023. Supply: ABB
Machine Automation to affix Course of Automation unit
With greater than 140 years in enterprise and about 110,000 staff worldwide, ABB mentioned it’s a world know-how chief in electrification and automation to deal with labor shortages, security, and productiveness wants. It reported slower-than-expected development however remained optimistic for continued progress in sustainability initiatives.
The firm missed its income prediction for the primary quarter of 2025 by $260 million and acknowledged that macroeconomic uncertainty from tariffs has affected its enterprise. It mentioned that robotics gross sales had declined yr over yr however mentioned it has carried out effectively retaining prospects.
The corporate’s Machine Automation division, which is at present a part of its Robotics & Discrete Automation unit, will turn out to be a part of its Course of Automation enterprise space within the first quarter of 2026. It mentioned the Machine Automation division is a number one provider of programmable logic controllers (PLCs), clever pump controls (IPCs), servo movement, industrial transport programs, and imaginative and prescient and software program merchandise. Its earnings reportedly elevated in Q1.
ABB’s Electrification and Movement enterprise areas might be unaffected by the spinoff.
“The board believes itemizing ABB Robotics as a separate firm will optimize each firms’ capability to create buyer worth, develop and entice expertise,” said ABB Chairman Peter Voser. “Each firms will profit from a extra targeted governance and capital allocation. ABB will proceed to deal with its long-term technique, constructing on its main positions in electrification and automation.”
ABB’s product line contains AMRs, industrial arms, cobots, and software program. Supply: ABB
ABB Robotics is world No. 2
“ABB Robotics holds a world No. 2 market place, with revenues of $2.3 billion in 2024, and as a robust performer in its business, it might profit from being measured extra immediately towards its friends,” Wierod said. “As well as, there are restricted synergies between the ABB Robotics enterprise and the rest of the ABB divisions with completely different demand and market traits.”
Different main automation suppliers, by way of annual gross sales, embrace Japan-based FANUC, Mitsubishi, and Denso, plus Switzerland-based Stäubli, and Germany-based KUKA (owned by China’s Midea Group). No main industrial robotics distributors are headquartered within the U.S.
The corporate cited the “ABB Manner” decentralized enterprise mannequin, below which “ABB Robotics has confirmed its double-digit margin resilience in most quarters since 2019.” It noticed that “the market has seemingly stabilized – supporting the divisional order development – after what has been an unusually risky market state of affairs, which has included the normalization of order patterns after the interval of pre-buys when the availability chain was strained.”
The robotics unit’s product line features a full vary of industrial robots, collaborative robotic arms, and autonomous cell robots or AMRs (acquired with ASTI in 2021). Final yr, it expanded its modular IRB line and acquired Sevensense, which supplied to navigation capabilities for its AMRs, rebranded because the Flexly line.
Like different main robotics suppliers, ABB has positioned growing deal with software program and synthetic intelligence, saying that greater than 80% of its choices are “software program/AI-enabled.” Final month, it launched the RoboMasters coaching instrument.
The firm mentioned its robotics spinoff will proceed to function with regional manufacturing hubs in Sweden, China, and the U.S. In 2023, ABB deliberate to spend $20 million to broaden U.S. manufacturing.
ABB Robotics just lately celebrated 50 years and at present has about 7,000 staff. Its U.S. workplace is in Auburn Hills, Mich. With 2024 revenues of $2.3 billion, it represented about 7% of ABB Group’s revenues and had an operational EBITA (earnings earlier than curiosity, taxes, and amortization) margin of 12.1%.
If ABB shareholders approve the spinoff, will probably be carried out via a share distribution, whereby ABB Ltd.’s shareholders will obtain shares within the firm to be listed (with the working title “ABB Robotics”) as a dividend in-kind in proportion to their present shareholdings.
The Robotic Report has communicated with ABB and can share additional info because it turns into obtainable. ABB Robotics is likely one of the high RBR50 winners of all time, incomes recognition yearly within the innovation award’s historical past. Be taught extra on the RBR50 Gala on the Robotics Summit & Expo later this month.
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