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ABB to Spin-Off Robotics Division as Separate Entity by 2026

by | Apr 18, 2025

Image: ABB

ZURICH, Switzerland, Apr 18, 2025 – ABB is set to redefine the robotics industry with a bold move: spinning off its Robotics division into a standalone, publicly traded company by the second quarter of 2026. The move aims to unlock value by allowing ABB Robotics to focus on advanced automation, while ABB sharpens its core focus on electrification and automation.

ABB chairman Peter Voser commented, “The board believes listing ABB Robotics as a separate company will optimize both companies’ ability to create customer value, grow and attract talent. 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 Robotics provides automation solutions designed to help its global customers increase productivity, flexibility, and operational simplicity. These solutions address challenges such as labor shortages and the need for sustainable operations. Customer value is achieved through a comprehensive robotics platform that integrates Autonomous Mobile Robots, software, and AI, supported by established industry expertise. These solutions serve a range of traditional and emerging sectors, with over 80% of the offer enhanced by software and AI capabilities.

ABB CEO Morten Wierod said, “ABB Robotics is a leader in its industry and there are limited business and technology synergies between the ABB Robotics business and the remainder of ABB divisions, with different demand and market characteristics. We believe this change will support value creation in both the ABB Group and in the separately listed pure play robotics business.”

The ABB Robotics division has demonstrated consistent performance compared to industry peers. Under the ABB Way decentralized operating model, ABB Robotics has maintained double-digit margins in most quarters since 2019. The market appears to have stabilized, supporting divisional order growth after a period of volatility and changes in ordering patterns due to supply-chain disruptions and earlier pre-buying activity.

The ABB Robotics division has approximately 7,000 employees. With 2024 revenues of $2.3 billion it represented about 7 percent of ABB Group revenues and had an operational EBITA margin of 12.1 percent.

If shareholders decide in favor of the proposal, the spin-off is planned through a share distribution, whereby ABB Ltd.’s shareholders will receive shares in the company to be listed (working name “ABB Robotics”) as a dividend in-kind in proportion to their existing shareholding.

Starting in the first quarter of 2026, ABB’s machine automation division will move from the robotics & discrete automation area to the process automation business area. This shift aims to leverage technological synergies, particularly in software and control technologies relevant to hybrid industries. The machine automation division specializes in advanced solutions such as PLCs, IPCs, servo motion, industrial transport systems, vision, and software. The division’s strategy and business priorities will continue to be managed by its divisional leadership under the ABB Way operating model.

Source: ABB

About ABB

ABB is a global technology leader in electrification and automation, headquartered in Zürich, Switzerland, and Västerås, Sweden. Formed in 1988 through the merger of Sweden’s ASEA and Switzerland’s Brown, Boveri & Cie, the company traces its roots back to 1883. ABB operates in over 100 countries, serving industries such as utilities, transportation, infrastructure, and manufacturing. Its offerings include robotics, industrial automation, electrification products, and motion solutions. As of 2024, ABB reported revenues of approximately $33 billion and employed around 110,000 people worldwide. The company operates in over 100 countries, across Europe, Asia, the Middle East, Africa, and the Americas. ABB focuses on innovation and sustainability by investing in research and development to support the shift toward a more resource-efficient future.