ZURICH (dpa-AFX) - ABB Ltd (ABBN.SW), a global technology company, on Tuesday said it is hosting its Capital Markets Day today, where it will outline progress on its strategic priorities and present updated financial targets aligned with its new structure focused on electrification and automation.
The company reaffirmed its comparable revenue growth target of 5-7% and maintained its goal of adding a further 1-2% through acquisitions. Its objective for basic EPS growth of at least high single digits through the economic cycle also remains unchanged.
ABB is raising its annual Operational EBITA margin target to 18-22%, from 16-19%, reflecting sustained improvements across its business areas. It also introduced new margin ranges of 22-26% for Electrification, 18-22% for Motion, and 14-18% for Automation, while lifting its return on capital employed target to above 20 percent.
The company reiterated its commitment to organic investment-targeting 4.5-5% of revenues for R&D-and said bolt-on acquisitions will remain a priority, with larger deals possible if strategically aligned. ABB also reaffirmed its focus on maintaining a strong investment-grade rating while delivering rising dividends and additional shareholder returns when appropriate.
With the planned divestment of its Robotics division, ABB said its streamlined portfolio will strengthen the value of its electrification and automation businesses, operating through three business areas that share sales channels and technology capabilities.
'ABB is well positioned at the center of robust markets helping our customers optimize, electrify and decarbonize across the power, industry, transport and building segments. These structurally growing end markets with long term secular drivers are underpinning our organic growth ambition,' CEO Morten Wierod said.
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