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The Robot Report
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ABB announces plans to spin off its robotics division during earnings call
- ABB Group announced during its earnings call that it plans to spin off its entire robotics division to become a separately listed company in the second quarter of 2026.
- The decision to spin off the robotics division aims to support value creation for both companies, with a focus on creating customer value, growth, and talent attraction.
- ABB's Machine Automation division will transition to its Process Automation business area in the first quarter of 2026, integrating programmable logic controllers and other products.
- Despite missing revenue predictions for the first quarter of 2025, ABB remains optimistic about sustainability initiatives and reaffirms its global technology leadership in electrification and automation.
- ABB Robotics, currently holding a global No. 2 market position with revenues of $2.3 billion in 2024, will benefit from direct peer comparison and a more focused governance model.
- The robotics unit's diverse product line includes industrial robots, collaborative arms, and autonomous mobile robots, reflecting ABB's strategic shift towards software and AI-enabled offerings.
- ABB Robotics plans to continue operations with manufacturing hubs in Sweden, China, and the U.S., emphasizing regional presence and expansion of U.S. production facilities.
- The proposed spin-off will be executed through a share distribution to ABB Ltd.'s shareholders, providing them shares in the new entity, 'ABB Robotics,' in proportion to their existing shareholdings.
- With revenues of $2.3 billion in 2024, ABB Robotics accounted for approximately 7% of ABB Group's revenues and achieved an operational EBITA margin of 12.1%.
- ABB Robotics is known for its innovation and has been recognized as a top RBR50 winner, consistently earning accolades at the Robotics Summit & Expo.
- Further developments regarding ABB's robotics spin-off are awaited, with ongoing dialogues and communications to provide additional insights on the strategic move.
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