ABB Robotics makes industrial methods akin to this IRB robotic demonstrating friction stir welding. Supply: ABB
One among world’s high industrial automation suppliers is changing into extra unbiased. ABB Group introduced throughout its earnings name at the moment 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.
“Right this moment, we additionally introduced our plan to spin off the Robotics division as a individually listed firm,” mentioned Martin Wierod, CEO of ABB Group, throughout the first-quarter 2025 earnings name. “In overview, this modification will assist worth creation for each firms.”
“Our robotics enterprise had elevated orders from the automotive section, and our paint know-how is one of the best in the marketplace, and we had clients selecting to stay with us as they expanded their worldwide footprint,” he famous. “One can say we journey with the shopper.”
“The workforce did 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 12 months. However importantly, they confirmed a optimistic sequential improvement, and the machine automation division improved to a break-even degree.”
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 staff worldwide, ABB mentioned it’s a world know-how chief in electrification and automation to handle 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 12 months over 12 months however mentioned it has executed nicely retaining clients.
The corporate’s Machine Automation division, which is presently a part of its Robotics & Discrete Automation unit, will turn out to be 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 methods, and imaginative and prescient and software program merchandise.
ABB’s Electrification and Movement enterprise areas will likely be unaffected by the spinoff.
“The board believes itemizing ABB Robotics as a separate firm will optimize each firms’ potential to create buyer worth, develop and entice expertise,” acknowledged ABB Chairman Peter Voser. “Each firms 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 contains AMRs, industrial arms, cobots, and software program. Supply: ABB
ABB Robotics is world No. 2
“ABB Robotics holds a worldwide No. 2 market place, with revenues of $2.3 billion in 2024, and as a robust performer in its business, it could profit from being measured extra immediately in opposition to its friends,” Wierod acknowledged. “As well as, there are restricted synergies between the ABB Robotics enterprise and the rest of the ABB divisions with totally different demand and market traits.”
Different main automation suppliers, by way of annual gross sales, embody 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, underneath 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 risky market scenario, which has included the normalization of order patterns after the interval of pre-buys when the availability chain was strained.”
The robotics unit’s product line features a full vary of industrial robots, collaborative robotic arms, and autonomous cell robots or AMRs (acquired with ASTI in 2021). Final 12 months, 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 instrument.
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 develop U.S. manufacturing.
ABB Robotics presently has about 7,000 staff, 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, will probably be performed by way of a share distribution, whereby ABB Ltd.’s shareholders will obtain shares within the firm to be listed (with the working identify “ABB Robotics”) as a dividend in-kind in proportion to their current shareholdings.
The Robotic Report has communicated with ABB and can share additional info because it turns into obtainable. ABB Robotics is without doubt one of the high 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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