ABB beats Q3 forecasts, names new CFO; Q4 guidance in-line

Investing.com -- ABB reported higher third-quarter revenue and profit and named Christian Nilsson as its next chief financial officer.

The company said current CFO Timo Ihamuotila will step down from both the role and the executive committee to focus on non-operational responsibilities. Nilsson, who joined ABB in 2017 and serves as CFO of the electrification division, will take over on Feb. 1, 2026.

ABB’s net profit for the quarter reached $1.21 billion, compared with $947 million a year earlier. Revenue rose 9% on a comparable basis to $9.08 billion.

Operational EBITDA also increased 9% on a comparable basis to $1.74 billion, with a margin of 19.2%, slightly above the 19.0% recorded in the same period last year.

The figures topped expectations. Analysts had forecast $1.15 billion in net profit, $8.89 billion in revenue and $1.70 billion in operational EBITA, based on company-compiled consensus.

Orders rose 9% on a comparable basis to $9.14 billion, coming in around 2% above expectations.

Looking to the fourth quarter, ABB said it expects mid-single-digit organic revenue growth and operational EBITA margin "to sequentially soften by c.150bps, in line with historical patterns." Consensus currently points to a 17.8% margin.

For full-year 2025, the company reiterated its outlook for a book-to-bill ratio above 1.0x, mid-single-digit organic revenue growth and an operational EBITA margin "at higher end of 16-19% target range", compared with the previous guidance of "to improve yoy." Consensus sits at 19.1% for the year.

"ABB delivered yet another very solid set of results with all key metrics a slight beat," RBC Capital Markets analysts commented. 

"ABB should turn net cash next year and could accelerate the share buyback or - more likely - look to expand its electrification portfolio," they added.