Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

Abb

Tue 06:01

Overview
Switzerland electrification and automation firm's Q3 revenue rose 14% year-over-year
Q3 operational EBITA increased 24%, with margin expanding to 20.8%
Company to form electrification joint venture with Mitsubishi Electric, acquiring 51% stake

Outlook
ABB expects Q4 2026 comparable revenue growth broadly similar to Q3 2026
Company sees Q4 2026 Operational EBITA margin to sequentially soften, but less than historical pattern
ABB expects full-year 2026 comparable revenue growth in the 'low teens' range, y/y

Result Drivers
RECORD ORDER INTAKE - Co said Q3 orders reached record $12 bln, up 40%, driven by strong growth in two business areas and triple-digit increase in data center segment
WORKING CAPITAL MANAGEMENT - Co said robust earnings and disciplined management of trade net working capital supported strong free cash flow

Company press release: ID:nEQ595xyca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$9.70 bln
 
Q3 Net Income
 
$1.18 bln
 
Q3 Basic EPS
 
$0.65
 
Q3 EBITA
 
$2.03 bln
 
Q3 Operating Income
 
$1.85 bln
 
Q3 Orders
 
$12.06 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 22 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy."
Wall Street's median 12-month price target for ABB Ltd is CHF83.00, about 11.1% above its October 19 closing price of CHF74.70
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads
Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand
Oct 19 - Roche puts future German investments 'on hold'
Oct 19 - UBS capital rules have Swiss stuck between a rock and a hard place

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)