ABB Robotics makes industrial systems such as this IRB robot demonstrating friction stir welding. Source: ABB
One of world’s top industrial automation providers is becoming more independent. ABB Group announced during its earnings call today that it plans to spin off its entire robotics division. The Zurich-based company said it intends for the business to start trading as a separately listed company in the second quarter of 2026.
“Today, we also announced our plan to spin off the Robotics division as a separately listed company,” said Martin Wierod, CEO of ABB Group, during the first-quarter 2025 earnings call. “In overview, this change will support value creation for both companies.”
“Our robotics business had increased orders from the automotive segment, and our paint technology is the best on the market, and we had customers choosing to remain with us as they expanded their international footprint,” he noted. “One can say we travel with the customer.”
“The team did a good job also on operational EBITDA. Margin improved in three out of our four business areas,” added Wierod. “Only robotics and discrete automation declined from last year. But importantly, they showed a positive sequential development, and the machine automation division improved to a break-even level.”
The company reported that, with the exception of Europe, global Q1 robotics orders improved over a sharp drop from 2023 to 2024. It added that “the automotive segment remains challenging” but pointed to increasing demand for robots in painting, consumer electronics, food and beverage, apparel, and industrial machinery.
ABB Robotics & Discrete Automation aggregate orders and revenues improved in Q1 of 2025 after a steep drop in 2023. Source: ABB
Machine Automation to join Process Automation unit
With more than 140 years in business and about 110,000 employees worldwide, ABB said it is a global technology leader in electrification and automation to address labor shortages, safety, and productivity needs. It reported slower-than-expected growth but remained optimistic for continued progress in sustainability initiatives.
The company missed its revenue prediction for the first quarter of 2025 by $260 million and acknowledged that macroeconomic uncertainty from tariffs has affected its business. It said that robotics sales had declined year over year but said it has done well retaining customers.
The company’s Machine Automation division, which is currently part of its Robotics & Discrete Automation unit, will become part of its Process Automation business area in the first quarter of 2026. It said the Machine Automation division is a leading supplier of programmable logic controllers (PLCs), intelligent pump controls (IPCs), servo motion, industrial transport systems, and vision and software products. Its earnings reportedly increased in Q1.
ABB’s Electrification and Motion business areas will be unaffected by the spinoff.
“The board believes listing ABB Robotics as a separate company will optimize both companies’ ability to create customer value, grow and attract talent,” stated ABB Chairman Peter Voser. “Both companies will benefit from a more focused governance and capital allocation. ABB will continue to focus on its long-term strategy, building on its leading positions in electrification and automation.”
ABB’s product line includes AMRs, industrial arms, cobots, and software. Source: ABB
ABB Robotics is global No. 2
“ABB Robotics holds a global No. 2 market position, with revenues of $2.3 billion in 2024, and as a strong performer in its industry, it would benefit from being measured more directly against its peers,” Wierod stated. “In addition, there are limited synergies between the ABB Robotics business and the remainder of the ABB divisions with different demand and market characteristics.”
Other leading automation providers, in terms of annual sales, include Japan-based FANUC, Mitsubishi, and Denso, plus Switzerland-based Stäubli, and Germany-based KUKA (owned by China’s Midea Group). No major industrial robotics vendors are headquartered in the U.S.
The company cited the “ABB Way” decentralized business model, under which “ABB Robotics has proven its double-digit margin resilience in most quarters since 2019.” It observed that “the market has seemingly stabilized – supporting the divisional order growth – after what has been an unusually volatile market situation, which has included the normalization of order patterns after the period of pre-buys when the supply chain was strained.”
The robotics unit’s product line includes a full range of industrial robots, collaborative robot arms, and autonomous mobile robots or AMRs (acquired with ASTI in 2021). Last year, it expanded its modular IRB line and acquired Sevensense, which provided to navigation capabilities for its AMRs, rebranded as the Flexly line.
Like other major robotics providers, ABB has placed increasing focus on software and artificial intelligence, saying that more than 80% of its offerings are “software/AI-enabled.” Last month, it launched the RoboMasters training tool.
The company said its robotics spinoff will continue to operate with regional manufacturing hubs in Sweden, China, and the U.S. In 2023, ABB planned to spend $20 million to expand U.S. production.
ABB Robotics recently celebrated 50 years and currently has about 7,000 employees. Its U.S. office 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 before interest, taxes, and amortization) margin of 12.1%.
If ABB shareholders approve the spinoff, it will be conducted through a share distribution, whereby ABB Ltd.’s shareholders will receive shares in the company to be listed (with the working name “ABB Robotics”) as a dividend in-kind in proportion to their existing shareholdings.
The Robot Report has communicated with ABB and will share further information as it becomes available. ABB Robotics is one of the top RBR50 winners of all time, earning recognition every year in the innovation award’s history. Learn more at the RBR50 Gala at the Robotics Summit & Expo later this month.
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