ABB Targets Higher Operational Earnings Margin, Reshapes Portfolio

By Nina Kienle

ABB said it is targeting a higher operational earnings margin, as it reshapes its portfolio to focus on electrification and industrial automation.

The Swiss industrial-technology company said Tuesday that its new structure and streamlined focus comprise three business areas that build on shared sales and technology opportunities. The reshaping of its portfolio follows the announcement of the planned divestment of its robotics division.

ABB is targeting annual operational earnings before interest, taxes and amortization margin in the range of 18% to 22%, as a result of all business areas operating on higher levels of profitability, it said. It had previously anticipated a range of between 16% to 19%.

The company also introduced specific operational Ebita margin targeted ranges for all business areas.

In electrification, ABB targets a range of 22% to 26%, and a range of 18% to 22% in motion. In automation--previously called the process automation business area--ABB foresees a margin range of 14% to 18%.

The group confirmed its annual comparable revenue growth target of 5% to 7%, as well as the ambition to add 1% to 2% of revenues in acquired growth per year. The company's objective for basic EPS growth through the economic cycle of at least high single-digit remains unchanged, it said.

Write to Nina Kienle at [e-mail]

(END) Dow Jones Newswires

11-18-25 0244ET