ABB to consider spinning off Robotics division

Global automation and technology systems provider ABB announced today it will launch a process to propose a decision to 100% spin off of its Robotics division at its 2026 Annual General Meeting. The intention is for the business to start trading as a separately listed company during the second quarter of 2026.

“The board believes listing ABB Robotics as a separate company will optimize both companies’ ability to create customer value, grow and attract talent,” said Peter Voser, ABB Chairman. “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 AMRs, AI software

ABB Robotics provides intelligent automation systems to help its global customer base achieve improved productivity, flexibility, and simplicity to address operational challenges including labor shortages and the need to operate more sustainably. 

The company said it creates customer value through the differentiated offering of the broadest robotics platforms, including autonomous mobile robots (AMRs), software, and AI combined with proven domain expertise to a broad range of traditional and new industry segments. More than 80% of the offering is software and/or AI enabled.

“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,” said Morten Wierod, ABB CEO. “We believe this change will support value creation in both the ABB Group and in the separately listed pure play robotics business.”

2024 revenues of $2.3 billion

ABB said its Robotics division is a strong performer amongst its peers. Under the ABB Way decentralized operating model, ABB Robotics has shown double-digit margin resilience in most quarters since 2019. 

The market has seemingly stabilized - supporting the divisional order growth - after what has been an unusually volatile market situation which has included the normalization of order patterns after the period of pre-buys when the supply chain was strained. 

The company will be listed with a strong capital structure, is well invested with a solid cash flow profile, and operates through its local-for-local set-up with regional manufacturing hubs in Sweden, China, and the U.S.

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

Machine Automation components division

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

In the first quarter of 2026, the Machine Automation division, which together with ABB Robotics currently forms the Robotics & Discrete Automation business area, will become a part of the Process Automation business area. ABB said customer value creation ability in divisions will benefit from technology synergies for software and control technologies, for example towards hybrid industries. 

The Machine Automation business provides systems based on programmable logic controllers (PLCs), industrial personal computers (IPCs), servo motion, industrial transport systems, machine vision systems, and software. 

Strategy and business priorities will remain the responsibility of the divisional management team, under the ABB Way operating model.