ABB Robotics makes industrial programs similar to this IRB robotic demonstrating friction stir welding. Supply: ABB
One among world’s prime industrial automation suppliers is turning into extra unbiased. ABB Group introduced throughout its earnings name at present that it plans to spin off its complete 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.
“At this time, we additionally introduced our plan to spin off the Robotics division as a individually listed firm,” mentioned Martin Wierod, CEO of ABB Group, through the first-quarter 2025 earnings name. “In overview, this variation will assist worth creation for each corporations.”
“Our robotics enterprise had elevated orders from the automotive section, and our paint expertise is the most effective 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 group did a very good 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 optimistic sequential growth, and the machine automation division improved to a break-even stage.”
ABB’s YuMi dual-armed cobot demonstrates its dexterity. Supply: ABB
Machine Automation to hitch Course of Automation unit
With greater than 140 years in enterprise and about 110,000 workers worldwide, ABB mentioned it’s a world expertise 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 completed nicely retaining prospects.
The corporate’s Machine Automation division, which is at present a part of its Robotics & Discrete Automation unit, will turn into 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.
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 corporations’ capability to create buyer worth, develop and entice expertise,” said ABB Chairman Peter Voser. “Each corporations will profit from a extra centered governance and capital allocation. ABB will proceed to give attention to its long-term technique, constructing on its main positions in electrification and automation.”
ABB’s product line consists of 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 trade, it might profit from being measured extra instantly 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 Approach” decentralized enterprise mannequin, beneath 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 unstable market scenario, which has included the normalization of order patterns after the interval of pre-buys when the provision chain was strained.”
The robotics unit’s product line features a full vary of industrial robots, collaborative robotic arms, and autonomous cellular 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 rising give attention to 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 software.
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 at present has about 7,000 workers, and 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 spin-off, it is going to be performed by means of 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 accessible. ABB Robotics is among the prime 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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