Swiss engineering conglomerate ABB has highlighted a promising future as early as 2026 by recording a record financial result in 2025 and declaring fresh $2 billion buyback on its stock which has pushed its share price up by about 4% in the pre-market trading at the Zurich market.
The message TOI is clear to investors, the company will pursue profitable growth, stay disciplined on capital returns and will keep enjoying the benefit of some of the greatest historical institutions like artificial intelligence data centers, rail infrastructure and maritime ports. ABB records went up by 19 % to make a total of $1.58 billion before interest, tax, depreciation, amortized earnings during the fourth quarter, contrary to the forecast of $1.54 billion.
The revenue also increased by 13% raking in $9.05 bn. compared to a forecast of $8.73 bn., despite the fact that it does not have its robotics unit which it is going through the process of divesting. Orders added up to 2025 to $36.77 billion, revenue to $33.22 billion and the operating EBITA margin was record 19%.
According to a formal announcement by the CEO Morten Wierod,
Q4 was a strong finish to a record year for ABB. We lead in markets with strong secular trends which gives me confidence in our updated financial targets and that 2026 will be yet another all-time-high result.
Capital Returns and AI Tailwinds
ABB tried to reassure its stockholders by remunerating them with 0.94 Swiss francs per share of their stock, as compared to 0.90 Swiss francs, and exchanging a buyback of $1.3 billion dollars with a new $2 billion program.
At the same time, the company is pouring 80 million Swiss francs towards a new headquarters in Zurich, which is set to be unveiled in 2031, which indicates a long-term investment in the prospective headquarters.
ABB has been positioning itself as a strategic developer of secular expansion of electrification and automation, such as collaborating with Nvidia in creating power systems in next-generation AI data centers.
The company is also winning contracts in rail and marine industries including an assignment to set up 32 container vessels to be powered at once during loading and offloading at Port of Rotterdam.
Outlook for 2026 and Risks
Morten Wierod repeated the idea that it was an excellent fourth-quarter completion of a record year and that ABB is a market leader where there is a good secular trend, providing that 2026 will result in another record year.
The company is aiming at similar revenue growth of 6-9% by 2026 and believes that the margin will continue to increase beyond the 19 % mark it is at present.
The key question that investors will have to discuss is whether a need in AI-related solutions, grid upgrades, and transport electrification will counterbalance any possible macroeconomic slowdowns or project schedules.
ABB stands as a growth opportunity with record margins, strong order flows which has combined cyclical and structural dynamics, but a reduction in capital expenditure on data centers or industry spending may result in swift contraction of the positive 2026 projections.
