ZURICH (dpa-AFX) - Technology group ABB posted significant growth and improved profitability in the final quarter of 2025. For the first time, the Swiss company surpassed the milestone of $10 billion (€8.3 billion) in order intake. All three business segments posted double-digit percentage increases, including a marked upturn in the Automation division, which had long suffered from weak demand. Management remains upbeat for the newly started year. The group also plans another share buyback program of up to $2 billion.

The stock hit an all-time high following the news. Shortly after trading opened on the Swiss exchange, shares jumped as much as 7 percent to 65.50 francs. Since the start of the year, the stock has already gained around 10 percent. The rally also lifted shares of Siemens (+3.3%) and Siemens Energy (+2%) in this market, both of which compete with ABB in certain segments.

Analyst Phil Buller from US bank JPMorgan particularly praised ABB's order intake. The feared decline in the electrification business, anticipated by investors, did not materialize at all. The group also saw strong order growth in automation from machinery manufacturers. With robust booking growth in China and Europe as well, ABB's growth outlook for 2026 is broader and better than previous market expectations, "and probably also for the entire electrical engineering sub-sector." He described the company's outlook as "well-founded."

According to the group, which specializes in electrification, automation, and motion technology, order intake in the three months to the end of December rose by about one third year-on-year to just over $10.3 billion. Analysts had expected around $8.5 billion. The electrical engineering group also benefited from major orders. CEO Morten Wierod called it a "milestone" that had been reached.

He was especially pleased that the "strong order development" was broadly based. Specifically, automation saw a 41 percent increase on a comparable basis, electrification was up 33 percent, and motion technology rose 13 percent.

Order intake is particularly important for future revenue development. For the current first quarter, ABB is planning for comparable revenue growth of 7 to 10 percent, with an expected increase in margin. For the full year, growth of 6 to 9 percent is forecast, along with a slightly higher margin.

In the final quarter of 2025, comparable revenue rose 9 percent to $9.05 billion. This also led to improved profitability. The operating margin (Ebita margin) climbed from 16.6 to 17.6 percent. Net profit, influenced by special items, increased by 29 percent to $1.27 billion. The figures are adjusted for the announced sale of the robotics division.

For the full year, net profit reached $4.73 billion, up a fifth from the previous year. The dividend is to be raised to 0.94 from 0.90 francs. With these results, the company exceeded analysts' expectations across the board, especially in terms of order intake.

Electrification, Automation, and Motion are now ABB's three divisions, following last October's announcement of the sale of the robotics business to Softbank. The sales process is still ongoing. The Swiss company now expects completion between mid and late 2026, having previously targeted the first half of 2026.

ABB is continuing its share buybacks. Just mid-week, a buyback program launched a year ago with a volume of up to $1.5 billion expired. In reality, about 20.7 million shares were bought for around $1.3 billion, corresponding to 1.11 percent of the issued share capital. The new, up to $2 billion buyback is set to run until January 27, 2027./rw/AWP/tav/nas/mis