ABB to Spin Off Robotics Division, Creating independant Automation Powerhouse
Unlocking Value: ABB’s Strategic Move in the Automation Landscape
In a significant strategic shift, ABB, the global technology giant, has announced its intention to spin off its Robotics division into a separate, publicly listed entity. The move, slated for completion in the second quarter of 2026, aims to capitalize on the burgeoning demand for automation solutions and unlock greater value for both the core ABB Group and the newly independent robotics business.
The proposal for a complete separation of the Robotics business will be put forth at the 2026 Annual General Meeting (AGM). If approved, ABB shareholders will receive shares in the new entity, tentatively named “ABB Robotics,” as a dividend proportional to their existing holdings. This distribution method ensures that current investors directly benefit from the future success of the robotics venture.
ABB Robotics is a technology leader delivering smart automation solutions that enhance productivity, flexibility, and operational efficiency for global customers. This spin-off will unlock greater value for both ABB Group and the standalone robotics business.Peter Voser, Chairman of ABB
ABB Robotics: A Deep Dive into Performance and capabilities
ABB Robotics has demonstrated strong financial performance, reporting $2.3 billion in revenue in 2024, representing 7% of ABB Group’s total sales. The division boasts an extraordinary Operational EBITA margin of 12.1%, consistently maintaining double-digit margins in most quarters as 2019, even amidst market fluctuations. this resilience underscores the strength of its offerings, which include Autonomous Mobile Robots (AMRs), AI-powered software, and comprehensive automation solutions.
With regional manufacturing hubs strategically located in Europe (Sweden), Asia (China), and the Americas (U.S.), ABB Robotics employs approximately 7,000 individuals globally.This widespread presence allows the company to effectively serve a diverse range of customers and adapt to regional market demands.
The global robotics market is experiencing rapid growth. According to a recent report by the International Federation of Robotics (IFR), the annual installation of industrial robots reached a new high of 517,000 units in 2023. This surge is driven by factors such as increasing labor costs, the need for greater efficiency, and the rise of e-commerce, which demands advanced warehouse automation solutions.
ABB’s Future Focus: Electrification, Automation, and Synergies
Following the spin-off, ABB will sharpen its focus on strengthening its leadership position in electrification and automation. As part of this strategic realignment, the Machine Automation division, currently part of the Robotics & Discrete Automation segment, will be integrated into the Process Automation business area. This move aims to leverage synergies in software and control technologies, creating a more cohesive and efficient operational structure.
ABB Robotics has a distinct growth trajectory compared to other group divisions. As a standalone listed company, it will benefit from more agile management and enhanced capital allocation opportunities.morten Wierod, CEO of ABB
The Road Ahead for ABB Robotics
The spin-off represents a bold move by ABB to unlock the full potential of its Robotics division. As an independent entity, ABB Robotics will have the agility and focus necessary to capitalize on the rapidly expanding market for automation solutions. With a proven track record of innovation and a strong global presence, ABB Robotics is well-positioned to become a leading force in the future of automation.
ABB, with its 140-year history, will continue to operate as a global leader in electrification and automation, employing approximately 110,000 people worldwide. Its shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).
