—ZURICH, SWITZERLAND | OCTOBER 17, 2024 | MORTEN WIEROD, CEO; TIMO IHAMUOTILA, CFO Q3 2024 results Order growth and record level margin — Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and i ...

Financial Data and Key Metrics - Orders increased by 2% in Q3 2024, with a positive book-to-bill ratio and record-level margins [3] - Revenues improved by 2% in the quarter, but excluding Robotics & Discrete Automation (RA) and E-mobility, revenues were up 7% year-to-date [3] - Operational EBITA margin reached 19%, with Electrification contributing significantly at 24% margin [4] - Free cash flow year-to-date was $2.6 billion, with a target to match last year's $3.7 billion [5] - Earnings per share reached $0.51, up $0.03 from last year [14] Business Line Performance - **Electrification**: Orders grew by 10%, with revenues reaching a record $3.9 billion, up 10% YoY. Operational EBITA margin hit 24.1% [15][16] - **Motion**: Orders decreased by 4%, but short-cycle orders remained stable. Revenues were up 1% to $2 billion, with a record margin of 20.7% [17][18] - **Process Automation**: Orders remained stable at $1.8 billion, with revenues growing 6% YoY. Operational EBITA margin was 15.2% [19][20] - **Robotics & Discrete Automation**: Orders dropped by 4%, with Machine Automation facing significant challenges. Revenues declined by 20%, with a focus on cost-saving measures [21][22] Regional Performance - **Americas**: Orders declined by 6%, but excluding timing impacts, orders grew at a double-digit rate [12] - **EMEA**: Orders increased by 8%, driven by strong performance in Australia and India [12] - **China**: Orders declined by 2% YoY, but sequentially remained stable [12] - **Europe**: Orders grew by 6%, with significant improvement in Germany [12] Strategic Direction and Industry Competition - The company is focusing on the electrification trend, with strong demand in data centers and utilities [9][10] - ABB aims to outgrow the data center market, which is expected to grow in double digits in the midterm [11] - The company is investing in R&D, with 55% of R&D employees focusing on software and digital solutions [67] - ABB is also focusing on sustainability, targeting an 80% reduction in Scope 1 and 2 greenhouse gas emissions by 2030 [80] Management Commentary on Market Environment and Future Outlook - The company expects full-year revenue growth of below 5%, with operational EBITA margin slightly above 18% [25][26] - Management highlighted challenges in Discrete Automation, with normalization expected by Q2 2025 [32] - The company is optimistic about the long-term growth of automation and robotics, despite short-term challenges [90] Other Important Information - ABB completed the acquisition of Födisch Group, adding $55 million in revenues, and closed the SEAM deal, adding $19 million in revenues [5][6] - The company welcomed new business area Presidents for Electrification and Motion, both with long careers at ABB [6] - ABB is focusing on cost-saving measures, including a 25% reduction in headcount in Machine Automation [22] Q&A Session Summary Question: Electrification Margins and Capacity - ABB has added capacity in North America, particularly in the U.S. and Mexico, to meet market demand with shorter lead times [28] - The company does not believe it has reached the peak of benefits from volume drivers in electrification [29] Question: Machine Automation Trends - Machine Automation is facing prolonged inventory adjustments, with normalization expected by Q2 2025 [31][32] - Germany showed a 33% growth in orders, but this was from a low base, indicating stabilization at a lower level [33] Question: Pricing Trends for 2025 - ABB expects pricing to remain a positive driver in 2025, with a focus on better project execution and cost control [35] Question: Order Backlog and 2025 Outlook - The order backlog shows growth in Electrification and Motion, but a significant decline in Robotics & Discrete Automation [38] - ABB does not provide specific guidance for 2025 but expects to remain within the 5% to 7% growth range [37] Question: Cost-Saving Measures in E-mobility and Robotics - ABB is focusing on reducing variable costs and streamlining fixed costs in E-mobility and Robotics, with a focus on R&D investments [40][43] Question: Seasonality in Q4 Margins - Q4 margins are expected to be lower than usual due to higher corporate costs and losses in E-mobility [44] Question: Competition in Robotics in China - ABB is facing increased competition from local players in China and is focusing on a "China for China" strategy to remain competitive [46][47] Question: Data Center Revenue Split - ABB's data center business is growing rapidly, with strong demand in medium voltage switchgear and low-voltage UPS [51][52] Question: Medium Voltage Profitability - ABB's medium voltage business has seen significant profitability improvements, driven by trends in data centers and utilities [91] Question: Software Strategy - ABB focuses on combining hardware and software to solve customer problems, with 55% of R&D engineers working on software [104] Question: E-mobility Recovery and Industry Consolidation - ABB is focusing on renewing its E-mobility product portfolio and will consider IPO or industry consolidation when the market is ready [109][110] Question: M&A and Leverage - ABB has capacity for M&A, with a net debt to EBITDA ratio of 1.4, and could comfortably increase leverage for the right deals [112]

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For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has ABB (ABBNY) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. ABB is a member of the Industrial Products sector. This group includes 218 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the i ...

Bjorn Rosengren Yeah, I would really like to do that. And it is four years ago since we in June 2020 met for the first time in the Capital Market Day, and when we drew up the direction for the Group with ABB Way, but also a purposedriven focused organization. It's been a fantastic journey for me and for the company. It's been a challenging external environment with COVID, with wars, with supply chain issues, with inflation, things that I haven't experienced in my career before. But at the same time it's bee ...

Op. EBITA ($ mn) Op. EBITA margin (%) Operational EBITA $263 mn, +10% YoY Orders $1,802 mn Markets remain buoyant with robust project pipeline intact; order growth supported by relatively easy comparable Strength in marine, ports and chemicals; oil & gas stable; negative order development in pulp & paper, metals and mining Revenues $1,717 mn Strong growth driven by execution of the high order backlog as well as service Revenue growth in 3 out of 4 divisions Strong growth across all regions Book-to-bill 1.05 ...

The broader U.S. equity markets witnessed a steady uptrend over the past few trading days, buoyed by optimism related to rate cuts driven by easing inflationary pressures. The June consumer price index declined for the first time in more than four years by 0.1% from May, putting the 12-month rate at 3% – the lowest level in more than three years. As investors employ a wait-and-see approach in a classic example of "backing and filling" in the market, they can benefit from "cash cow" stocks that garner higher ...

Among Wall Street's favorite tech shares, robotics stocks stand as an important segment. From self-driving cars to robotic arms in manufacturing, these innovative companies are reshaping our world. For investors seeking a slice of this dynamic sector, robotics stocks offer a compelling opportunity. The robotics sector is experiencing significant growth, with an estimated value of $46 billion in 2024 and projected to reach $96 billion by 2029. Meanwhile, the Global X Robotics & Artificial Intelligence ETF (N ...

High-flying growth stocks have helped lift major indices this quarter. The S&P 500 is on track for a 4% gain, and the tech-heavy Nasdaq is set to rise by around 7%. Analysts attribute the gains to strong demand for artificial intelligence (AI) creating triple-digit growth for firms in that sector. Return on equity (ROE), calculated by dividing a company's net income by shareholder equity, helps identify firms generating higher returns. Companies earning more profits can return more to shareholders through d ...

ABB is one of 222 individual stocks in the Industrial Products sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. One other Industrial Products stock that has outperformed the sector so far this year is Esab (ESAB) . The stock is up 8.4% year-to-date. For those looking to find strong Industrial Product ...