ABB reported record order intake of $12,055 million for the third quarter, an increase of 40% year-on-year on both reported and comparable bases. Revenue rose 14% to $9,701 million, while operational EBITA increased 24% to $2,026 million. The operational EBITA margin improved by 160 basis points to 20.8%.
Income from operations stood at $1,846 million, representing a margin of 19%. Basic earnings per share were $0.65, down 2% year-on-year. Cash flow from operating activities increased 5% to $1,862 million, while return on capital employed reached 29.9%.
ABB Chief Executive Officer Morten Wierod said the company had delivered record order intake, improved operational performance, strong cash flow and higher returns on capital. He also highlighted progress in direct current (DC) technology and the announcement of an electrification joint venture with Mitsubishi Electric.
Order growth was driven by strong demand across two of ABB’s three business areas and improvements in most customer segments. Data centres recorded a triple-digit increase in orders. Revenue growth remained strong, but order intake exceeded sales, resulting in a book-to-bill ratio of 1.24.
The company generated free cash flow of $1.6 billion during the quarter, supported by earnings and disciplined management of trade net working capital, which offset higher capital expenditure. Free cash flow reached $3.7 billion year-to-date, putting ABB on course to exceed its full-year 2025 level of $4.6 billion.
ABB is maintaining capital expenditure at around $1 billion, with investments focused on incremental capacity expansion, automation and productivity improvements. The company said it would balance near-term demand with long-term operational resilience.
During the quarter, ABB introduced its Infinitus Direct Current portfolio for data centres and other energy-intensive industries. The portfolio comprises five building blocks that can be combined into systems tailored to different architectures. A solid-state transformer is expected to become commercially available in the second half of 2027.
ABB also highlighted its partnership with Ferrari Hypersail, a 100-foot renewable-powered sailing yacht project designed to demonstrate next-generation microgrid technology. The vessel will integrate an 800-volt DC architecture, renewable energy generation, storage and power distribution systems.
Separately, ABB announced plans to acquire a controlling 51% stake in a joint venture to be established with Mitsubishi Electric’s low-voltage power distribution business. ABB will also acquire full ownership of the related sales operations outside Japan, with an option for full ownership of the joint venture in the medium term.
The transaction involves total consideration of approximately JPY 79 billion, or $495 million, and values the combined businesses at an enterprise value of around $890 million. The Mitsubishi Electric business contributed to the venture generated approximately JPY 102 billion, or $640 million, in fiscal 2025 revenue. ABB expects the joint venture’s operational EBITA margin to reach at least 20% within five years.
For the fourth quarter of 2026, ABB expects comparable revenue growth to remain broadly in line with the third quarter, with a smaller-than-usual seasonal decline in operational EBITA margin. For full-year 2026, it expects a positive book-to-bill ratio, comparable revenue growth in the low teens and an improvement of at least 270 basis points in the reported operational EBITA margin year-on-year.
