ABB beats Q2 forecasts with record orders and unveils $5.5bn Rotork acquisition, its largest ever
The Swiss engineering giant reported a 30% jump in orders to $12.04 billion and a 20% rise in operational EBITA, while announcing a cash offer for the British flow-control specialist at a 60% premium.
Second-quarter results
ABB's operational EBITA rose 20% to $1.93 billion, beating the $1.88 billion consensus. Revenue climbed 14% to $9.48 billion, in line with forecasts. Net income increased 7% to $1.23 billion, missing the $1.32 billion estimate. Orders surged 30% to a record $12.04 billion, driven by strong demand from data centre customers and electrification products. CEO Morten Wierod said high demand was visible across most customer segments.
Our second-quarter results reflect high demand in the majority of our customer segments.
- EBITA actual
- 1.93 $bn
- EBITA forecast
- 1.88 $bn
- Net income actual
- 1.23 $bn
- Net income forecast
- 1.32 $bn
- Revenue actual
- 9.48 $bn
- Revenue forecast
- 9.48 $bn
The Rotork acquisition
ABB announced a recommended cash offer for Bath-based Rotork, valuing the UK flow-control specialist at $5.5 billion. The offer of 503 pence per share (one report cited 505 pence) represents a premium of roughly 60% over the three-month average price. Rotork, which employs 3,500 people, generated revenue of about $1 billion in 2025 with an operating margin of 24.6%. ABB expects the deal to add around 3% to its revenue and to be immediately accretive to its EBITA margin. The acquisition is ABB's largest, surpassing the $4.2 billion Baldor deal in 2011.
ABB has followed Rotork over many years. We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer.
Financing and strategy
ABB will fund the purchase with available cash of $5.8 billion as of June 30 and existing bank facilities. The company also expects $4.8 billion in net proceeds from the sale of its robotics division to SoftBank, due to close in the second half of 2026. Chairman Peter Voser had signalled earlier this year that ABB was eyeing larger acquisitions after years of divestments. CEO Wierod said the group retains firepower for further deals worth $13–14 billion. The Rotork board has unanimously recommended the offer, and the transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.
- ABB announces $5.5bn cash offer for Rotork
- Robotics division sale to SoftBank closes, netting $4.8bn
- Rotork acquisition expected to close
Market reaction
ABB shares fell between 2% and 5% in Zurich trading on Thursday, with analysts pointing to the high acquisition premium. Vontobel analysts called the deal expensive but strategically sensible. Over the past 12 months, ABB's stock has climbed nearly 70%, far outpacing the Swiss Performance Index's 20% gain. Rotork's London-listed shares jumped 67% on the news.
CEO pay overhaul
Separately, ABB has adjusted CEO Morten Wierod's variable compensation to tie it more closely to share price performance. The maximum annual long-term incentive bonus rises to 6 million francs from 4.5 million francs, a change the company says aligns pay with shareholder interests and market competitiveness.
