ABB Robotics makes commercial systems such as this IRB robotic showing friction stir welding.
Source: ABBOne of world's leading industrial automation suppliers is ending up being more independent.
ABB Group revealed throughout its incomes call today that it plans to spin off its entire robotics department.
The Zurich-based business said it means for business to begin trading as an independently listed business in the second quarter of 2026.“ Today, we also revealed our strategy to spin off the Robotics department as a separately listed company,” stated Martin Wierod, CEO of ABB Group, throughout the first-quarter 2025 incomes call.
“ In introduction, this modification will support worth development for both business.”“ Our robotics business had actually increased orders from the automotive segment, and our paint innovation is the very best on the market, and we had customers selecting to remain with us as they expanded their worldwide footprint,” he noted.
One can state we travel with the customer.”“ The group did a good task also on operational EBITDA.
Margin enhanced in 3 out of our 4 company locations,” included Wierod.
Only robotics and discrete automation decreased from last year.
Importantly, they revealed a positive consecutive development, and the device automation department improved to a break-even level.” The business reported that, with the exception of Europe, international Q1 robotics orders improved over a sharp drop from 2023 to 2024.
It added that “ the vehicle segment stays difficult” however indicated increasing need for robots in painting, customer electronic devices, food and drink, apparel, and industrial machinery.ABB Robotics & & Discrete Automation aggregate orders and earnings enhanced in Q1 of 2025 after a high drop in 2023.
Source: ABBMachine Automation to sign up with Process Automation unitWith more than 140 years in company and about 110,000 workers worldwide, ABB said it is a global innovation leader in electrification and automation to deal with labor scarcities, security, and efficiency requirements.
It reported slower-than-expected growth but stayed positive for continued development in sustainability initiatives.The business missed its revenue forecast for the first quarter of 2025 by $260 million and acknowledged that macroeconomic uncertainty from tariffs has impacted its business.
It said that robotics sales had actually 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 system, will become part of its Process Automation organization area in the very first quarter of 2026.
It stated the Machine Automation division is a leading provider of programmable reasoning controllers (PLCs), smart pump controls (IPCs), servo movement, industrial transport systems, and vision and software products.
Its earnings supposedly increased in Q1.ABB's Electrification and Motion service areas will be untouched by the spinoff.“ The board thinks listing ABB Robotics as a different business will optimize both business ability to create customer value, grow and bring in skill,” specified ABB Chairman Peter Voser.
“ Both companies will take advantage of a more focused governance and capital allocation.
ABB will continue to concentrate on its long-term technique, structure on its leading positions in electrification and automation.” ABB 's line of product consists of AMRs, industrial arms, cobots, and software application.
Source: ABBABB Robotics is international No.
2“ ABB Robotics holds an international No.
2 market position, with incomes of $2.3 billion in 2024, and as a strong performer in its market, it would take advantage of being determined more straight versus its peers,” Wierod stated.
In addition, there are limited synergies between the ABB Robotics business and the rest of the ABB divisions with different demand and market qualities.” Other leading automation providers, in regards to annual sales, consist of Japan-based FANUC, Mitsubishi, and Denso, plus Switzerland-based Stäubli, and Germany-based KUKA (owned by China's Midea Group ).
No significant commercial robotics suppliers are headquartered in the U.S.The business cited the “ ABB Way decentralized company model, under which “ ABB Robotics has actually shown its double-digit margin strength in the majority of quarters given that 2019.” It observed that “ the marketplace has actually relatively supported –-- supporting the divisional order development –-- after what has been an unusually unstable market circumstance, which has actually included the normalization of order patterns after the duration of pre-buys when the supply chain was strained.” The robotics unit 's product line includes a full variety of commercial robots, collective robotic arms, and autonomous mobile robots or AMRs (gotten with ASTI in 2021).
In 2015, it expanded its modular IRB line and got Sevensense, which offered to navigation abilities for its AMRs, rebranded as the Flexly line.Like other significant robotics suppliers, ABB has actually placed increasing concentrate on software and expert system, stating that more than 80% of its offerings are “ software/AI-enabled.” Last month, it launched the RoboMasters training tool.The business stated its robotics spinoff will continue to operate with local production hubs in Sweden, China, and the U.S.
In 2023, ABB planned to spend $20 million to expand U.S.
production.ABB Robotics recently commemorated 50 years and currently has about 7,000 employees.
Its U.S.
office remains in Auburn Hills, Mich.
With 2024 revenues of $2.3 billion, it represented about 7% of ABB Group's incomes and had an operational EBITA (earnings before interest, taxes, and amortization) margin of 12.1%.
If ABB investors approve the spinoff, it will be carried out through a share distribution, whereby ABB Ltd.'s shareholders will get shares in the company to be noted (with the working name “ ABB Robotics -RRB- as a dividend in-kind in percentage to their existing shareholdings.The Robot Report has actually communicated with ABB and will share more details as it becomes available.
ABB Robotics is among the leading RBR50 winners of perpetuity, making recognition every year in the innovation award's history.
Find out more at the RBR50 Gala at the Robotics Summit & & Expo later on this month.Register now so you dont miss out on out!The post ABB plans to spin off its robotics division appeared initially on The Robot Report.