Swiss industrial giant ABB says it is planning to spin off its robotics division, establishing it as an independent, publicly traded company by the second quarter of 2026.
This strategic move aims to enhance focus and agility for both ABB and the new entity, provisionally named “ABB Robotics”.
ABB’s robotics division, recognized as the world’s second-largest industrial robot manufacturer after Japan’s Fanuc, reported revenues of $2.3 billion in 2024, accounting for approximately 7 percent of ABB’s total sales.
Despite its significant market position, the division’s profit margin stood at 12.1 percent, below the group’s average of 18.1 percent, influenced by subdued demand in the automotive sector.
ABB’s board believes that operating as separate entities will allow both companies to better serve their customers, attract talent, and allocate capital more effectively.
Peter Voser, ABB chairman, said: “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.”
Morten Wierod, ABB CEO, 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 spin-off will be executed through a share distribution, with ABB shareholders receiving shares in the new company proportionate to their existing holdings.
The listing location is yet to be finalized, with Switzerland and Sweden under consideration.
Investor AB, ABB’s largest shareholder with a 14.3 percent stake, supports the spin-off, viewing it as a logical step that will create two companies with sharpened focus and strong potential for continued profitable growth.
In conjunction with the spin-off announcement, ABB reported a 13 percent increase in operational EBITA for Q1 2025, reaching $1.59 billion, surpassing analyst expectations.
However, sales for the quarter were slightly below forecasts, totaling $7.94 billion.
As part of the restructuring, ABB’s Machine Automation division, which currently operates alongside the Robotics division, will be integrated into the Process Automation business area starting Q1 2026.
This realignment aims to leverage technology synergies, particularly in software and control technologies, to better serve hybrid industries.
The spin-off positions ABB Robotics to capitalize on emerging opportunities in automation, driven by labor shortages and the need for sustainable operations.
With over 80 percent of its offerings enabled by software and AI, and manufacturing hubs in Europe, Asia, and the Americas, ABB Robotics is well-equipped to operate as a standalone entity in the evolving industrial landscape.
