ABB plans to spin off its robotics division

ABB Robotics makes industrial techniques equivalent to this IRB robotic demonstrating friction stir welding. Supply: ABB

One in all world’s prime industrial automation suppliers is turning into extra unbiased. ABB Group introduced throughout its earnings name immediately that it plans to spin off its total robotics division. The Zurich-based firm mentioned it intends for the enterprise to start out buying and selling as a individually listed firm within the second quarter of 2026.

“As we speak, we additionally introduced our plan to spin off the Robotics division as a individually listed firm,” mentioned Martin Wierod, CEO of ABB Group, in the course of the first-quarter 2025 earnings name. “In overview, this variation will help worth creation for each corporations.”

“Our robotics enterprise had elevated orders from the automotive section, and our paint expertise is the perfect 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 shopper.”

“The group 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 yr. However importantly, they confirmed a constructive sequential improvement, 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 staff worldwide, ABB mentioned it’s a world expertise chief in electrification and automation to handle labor shortages, security, and productiveness wants. It reported slower-than-expected progress 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 effectively retaining prospects.

The corporate’s Machine Automation division, which is at present a part of its Robotics & Discrete Automation unit, will change 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 techniques, and imaginative and prescient and software program merchandise.

ABB’s Electrification and Movement enterprise areas will probably be unaffected by the spinoff.

“The board believes itemizing ABB Robotics as a separate firm will optimize each corporations’ means to create buyer worth, develop and entice expertise,” said ABB Chairman Peter Voser. “Each corporations will profit from a extra targeted governance and capital allocation. ABB will proceed to deal with 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 world No. 2 market place, with revenues of $2.3 billion in 2024, and as a powerful performer in its business, it will profit from being measured extra immediately 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 totally different demand and market traits.”

Different main automation suppliers, when it comes to 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 Method” 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 progress – after what has been an unusually risky market state of affairs, 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 offered to navigation capabilities for its AMRs, rebranded because the Flexly line.

Like different main robotics suppliers, ABB has positioned growing deal with 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 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, it is going to be carried out by means 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 present shareholdings.

The Robotic Report has communicated with ABB and can share additional info because it turns into accessible. ABB Robotics is without doubt one of the prime RBR50 winners of all time, incomes recognition yearly within the innovation award’s historical past. Study extra on the RBR50 Gala on the Robotics Summit & Expo later this month.

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