ABB Group announces spin-off of robotics business, plans to list independently in 2026
Compiled by | Jiang Yu
Edited by | Moying
Swiss industrial giant ABB Group officially announced during its Q1 2025 earnings conference that it plans to spin off its Robotics & Discrete Automation business as an independent publicly traded company in Q2 2026.
ABB CEO Martin Wierod stated that the independent listing aims to "optimize resource allocation and enhance business transparency." After the spin-off, ABB will retain three major regional manufacturing centers in Sweden, China, and the United States. Its Machine Automation Division (producing PLCs, servo systems, etc.) will be merged into the Group's Process Automation Division in Q1 2026 to strengthen industrial process control capabilities.
1. Order Recovery, Robotics Business Shows Signs of Stabilization
ABB's Robotics Division saw a quarter-on-quarter rebound in orders in Q1 2025. While global orders recovered from the sharp decline during 2023-2024 (excluding the European market), Europe still faces pressure.
▲ ABB's Robotics & Discrete Automation business orders and revenue rebounded in Q1 2025 after a steep decline in 2023. (Source: ABB)
Despite continued weak demand in the automotive sector, ABB's robotics business achieved significant growth in non-automotive sectors, driven by diverse applications such as spray painting technology, consumer electronics, food & beverage, and industrial machinery. Among these, spray painting solutions maintained a leading position and were widely adopted in new construction and expansion projects by multinational manufacturers worldwide. ABB stated that its robotics products are advancing in sync with customers' global expansion strategies.
According to the financial report, ABB's Robotics Division achieved an operational EBITDA margin of 12.1% in 2024. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key metric for evaluating a company's core profitability, excluding the impact of financing, taxes, and capital expenditures to reflect operational quality.
Meanwhile, the Machine Automation business, originally part of this division, also reached breakeven in Q1 2025, signaling stabilization.
However, ABB noted that due to rising tariffs and geopolitical economic uncertainties related to supply chains, its Q1 2025 revenue fell short of forecasts by $260 million. Despite external cost pressures, ABB maintained stable customer retention rates.
Against the backdrop of shifting global manufacturing dynamics and accelerating localization trends, this stability is particularly valuable and lays the foundation for future independent operations.
2. Over 80% of Robots Now Integrated with AI Capabilities
ABB's robotics portfolio includes industrial robots, collaborative robotic arms, and autonomous mobile robots (AMRs), positioning it among the top global industrial automation suppliers. In recent years, ABB has accelerated its push toward intelligence and software capabilities, strengthening its technological position in high-end manufacturing solutions.
In 2021, ABB acquired Spanish AMR manufacturer ASTI to enter the AMR market. In 2023, it further acquired Swiss startup Sevensense, integrating its visual navigation technology into AMR products to develop the Flexly intelligent navigation system, enhancing adaptability and path planning in dynamic environments. Flexly has become a key module in ABB's AMR lineup.
▲ ABB's product range includes autonomous mobile robots (AMRs), industrial robotic arms, collaborative robots (cobots), and supporting software platforms.
As of 2024, over 80% of ABB's robotics products have integrated software or AI capabilities, driving the transition from hardware devices to "intelligent systems." The RoboMasters training platform, launched in 2024, features modular APIs and virtual simulation environments, targeting developers, educators, and SMEs, becoming a key component of its technology ecosystem.
According to the financial report, ABB's Robotics Division generated $2.3 billion in revenue in 2024, ranking second globally in market share behind Japan's Fanuc. Major competitors also include KUKA (owned by Midea) and Switzerland's Stäubli.
Within ABB Group, the division has maintained double-digit profit margins in most quarters since 2019, demonstrating relatively independent market dynamics and growth potential.
3. After the Spin-off, How Will ABB Redefine Its Growth Path?
ABB management emphasized in the announcement that the robotics business has maintained double-digit profit margins in most quarters since 2019, with market demands significantly different from the Group's other businesses. ABB Chairman Peter Voser noted that an independent structure would improve capital allocation efficiency, while the Group would continue investing in core electrification and automation sectors.
The financial report also mentioned that the spun-off ABB Robotics would compete more directly with peers and address geopolitical economic challenges through regional strategies—such as the $20 million U.S. factory expansion plan announced in 2023 to strengthen supply chain stability in North America.
However, ABB's spin-off plan still requires approval from antitrust regulators in the EU, U.S., and China, with compliance procedures expected to take 8-12 months. If shareholders approve, ABB Robotics plans to list on the Swiss Stock Exchange in Q2 2026.
ABB stated that further details of the spin-off will be disclosed at the Boston Robotics Summit in May 2024. Third-party data shows that China currently accounts for 52% of global industrial robot installations, with ABB's Shanghai factory contributing 35% of its global production capacity—a strategic advantage that could provide critical market support post-spin-off.