By Nina Kienle
ABB is set to kick off earnings season for the European industrial sector, with the company scheduled to report fourth-quarter results on Thursday. Here is what you need to know:
REVENUE FORECAST: The Switzerland-based technology company is expected to book revenue of $8.73 billion for the period, according to consensus estimates provided by the company. The company reported $8.00 billion in the year-earlier period.
EARNINGS FORECAST: Analysts forecast operational earnings before interest, taxes and amortization of $1.54 billion compared with $1.33 billion the prior year.
NET-PROFIT FORECAST: Net profit is expected at $1.13 billion, according to the same consensus. ABB reported $987 million a year earlier.
ABB shares traded 1.8% higher at 61.5 Swiss francs in European afternoon trade and have risen 3.8% year to date.
WHAT TO WATCH:
--ABB showcases a more simplified structure with automation at its core, after the sale of its robotics division, HSBC analysts said in a note to clients. The analysts remain confident that ABB achieved higher on-year free cash flow in 2025. This should support a more ambitious mergers-and-acquisitions strategy, as well as future cash returns, they added.
-- In the electrification division, strong demand from data centers and utilities should drive robust double-digit on-year order intake growth in the fourth quarter, HSBC analysts said. The analysts also expect quarterly revenues to reach the upper end of the 4% to 6% guided range, but see the typical seasonality driving an around 200 basis points dip in the margin on quarter, they said.
--While ABB hasn't provided an outlook yet, J.P. Morgan analysts don't expect anything too ambitious as the year marks a chief financial officer transition. In December, Citi analysts said they expect ABB to guide to 2026 organic sales growth within its midterm range of 5% to 7%. The Ebita margin for 2026 is expected to increase sequentially from 2025's expected level of around 19%.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
January 27, 2026 09:48 ET (14:48 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments