ABB Exits Robotics to Focus on Automation

ABB Strategic Shift: Exiting Robotics to Strengthen Core Automation Business

Strong Quarterly Performance Drives Optimism

ABB delivered impressive Q3 2025 results with 11% revenue growth. The company expanded EBITDA margins by 4 percentage points. Consequently, this performance demonstrates strong operational execution.

Strategic Portfolio Realignment Underway

ABB announced the sale of its Robotics division to SoftBank Group. The transaction values the segment at $5.4 billion enterprise value. Therefore, this move allows ABB to focus on core electrification and automation markets.

Electrification Business Shows Robust Growth

The electrification segment achieved 15% order growth in Q3. Data center and utility investments drove this performance. Moreover, ABB expects continued strength from grid modernization projects.

Data Center Partnerships Create New Opportunities

ABB collaborates with Nvidia on 800VDC ecosystem development. This technology supports next-generation AI data center requirements. Additionally, the partnership addresses increasing power demands per rack.

Industrial Automation Maintains Steady Progress

Process automation orders grew 4% year-over-year. Motion segment orders increased by 17% during the same period. However, some industrial markets showed modest softness.

Financial Strength Supports Future Investments

ABB maintains a robust balance sheet with minimal debt. The robotics sale will provide additional capital for strategic initiatives. Furthermore, management plans targeted mergers and acquisitions.

Market Megatrends Favor ABB’s Core Business

US reindustrialization and infrastructure spending create tailwinds. Utilities plan significant grid modernization investments. Meanwhile, data center expansion continues accelerating globally.

Strategic Implications for Industrial Automation

ABB’s decision reflects changing industrial automation priorities. The company focuses on higher-margin control systems and electrification. However, successful integration requires careful portfolio management.

Frequently Asked Questions

Why is ABB selling its robotics division?

ABB aims to concentrate resources on core electrification and automation businesses where it holds stronger market positions.

How will the robotics sale affect ABB’s financial position?

The $5.4 billion transaction significantly strengthens ABB’s balance sheet, providing capital for strategic investments.

Which markets are driving ABB’s current growth?

Data centers, utility grid modernization, and US industrial automation investments represent key growth drivers.

What is the 800VDC ecosystem ABB is developing?

This technology supports higher power requirements in AI data centers, enabling up to 1 megawatt per rack capacity.

When will the robotics division sale be completed?

The transaction is expected to close in mid-to-late 2026, subject to regulatory approvals.