ABB Ltd, the Swiss industrial automation and electrification group, closed a record year with a strong fourth quarter and offered upbeat initial guidance for the start of 2026.
In the three months ended at year-end, the company said orders climbed 36% to $10.3 billion. Revenues in the quarter rose 13% to $9.1 billion, a performance ABB attributed to broad-based demand across its businesses.
Income from operations for the quarter increased to $1.51 billion, up from $1.1 billion in the prior-year period, producing an operating margin of 16.6% compared with a lower margin a year earlier.
On a full-year basis, ABB recorded orders of $36.8 billion, an increase of 17%, and annual revenues of $33.2 billion, up 9% versus the prior year.
Alongside the financial results, the board proposed raising the dividend to CHF 0.94 per share from CHF 0.90 the previous year. The company also said it intends to launch a new share buyback program of up to $2.0 billion, to run until January 27, 2027.
ABB set out its initial outlook for 2026, forecasting comparable revenue growth of 7% to 10% in the first quarter and expecting an increase in its operational EBITA margin compared with the year-ago period, excluding certain real estate gains. For the full year 2026, the company anticipates comparable revenue growth of 6% to 9% and further margin improvement.
These results and forward-looking ranges complete a year in which ABB achieved significant order intake and incremental margin gains, while returning capital to shareholders via a higher proposed dividend and a planned buyback. The guidance is presented as comparable growth and margin changes, with an explicit caveat regarding the exclusion of certain real estate gains in the operational EBITA comparison for the first quarter.
Sector implications and context
The quarter's results reflect demand dynamics across ABB's industrial automation and electrification businesses. The company's reported order and revenue increases, combined with higher operating income and margins, suggest improving operating leverage within those segments.
Investor actions announced
- Proposed dividend increase to CHF 0.94 per share from CHF 0.90.
- Intention to launch a new share buyback program of up to $2.0 billion, running until January 27, 2027.
The company has provided ranges for comparable revenue growth and indicated expected margin expansion for 2026, while distinguishing the operational EBITA comparison by excluding certain real estate gains in the quarter-over-quarter analysis for Q1 2026.