VOL. XCIV, NO. 247
WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES
ABB Ltd ABBN
SIX SwissElectrical equipmentFinancials to Jun 30, 2026 · Updated Oct 6, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 4.6 | 3.9 |
| Securities | 2.0 | 2.0 |
| Debt | 8.1 | 8.0 |
| Net cash | -1.5 | -2.1 |
| Equity | 16.1 | 15.9 |
- Debt / EBITDA
- 1.09×
- Debt / equity
- 0.50×
- Leases (6/30/26)
- $993M
- Diluted shares
- 1,818M
- Book value / share
- $8.75
- Price / book
- 11.2×
- Net cash / share
- −$1.17
- Market cap
- $178.4B
- Enterprise value
- $180.5B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 14.2% | – | |
| Operating margin | 16.7% | -0.9 pts | |
| FCF margin | 11.3% | +2.0 pts | |
| Capex / revenue | 2.5% | +0.1 pts | |
| Motion orders | $2.6B | +23% | |
| Motion order backlog | $7.0B | +14% | |
| Motion operational EBITA margin | 18.5% | -1.3 pts | |
| Automation orders | $2.5B | -13% | |
| Automation order backlog | $10.5B | +12% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About ABBN
ABB sells electrical equipment, motors and industrial control systems. Electrification produced about 52% of 2025 business-area revenue, Motion 24%, and Automation 24%.
- Service Field Network
ABB and its partners maintain a leading global service presence across motors, drives, generators, and traction systems.
- Data Workflow Lockin
Industrial control replacements can be costly and impractical, allowing ABB to modernize mixed legacy and new infrastructure in steps while preserving plant workflows.
- Sep 21, 2026
ABB launched the Infinitus direct-current portfolio for AI data centers, addressing higher power demand and smaller power-infrastructure footprints.
- Jul 16, 2026
ABB proposed a recommended 503 pence cash offer for Rotork, adding intelligent flow-control products if shareholders and regulators approve the transaction.
- Jul 15, 2026
ABB agreed to acquire Advantics, expanding its direct-current power-conversion offering.
- Jul 1, 2026
ABB acquired Specialtrasfo, adding specialized medium-voltage transformers to its industrial electrification offering.
- Apr 22, 2026
ABB introduced Automation Extended, allowing customers to connect existing control systems with a separate digital environment while retaining control infrastructure.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 11.57 | 11.73 | 12.93 | 13.10 | 12.33 | 14.34 | 15.42 | 17.27 | 16.52 | 18.14 | 19.67 | +5.1%/yr | |
| Cash flow | 1.21 | 1.20 | 1.10 | 0.89 | 0.88 | 1.65 | 0.70 | 2.30 | 2.40 | 2.87 | 3.29 | +10.1%/yr | |
| Earnings | 0.54 | 0.67 | 0.71 | 0.49 | 0.14 | 2.29 | 1.32 | 2.02 | 2.00 | 2.49 | 2.73 | +18.4%/yr | |
| Free cash flow | 0.92 | 0.85 | 0.74 | 0.53 | 0.56 | 1.25 | 0.30 | 1.89 | 1.97 | 2.32 | 2.72 | +10.9%/yr | |
| Capex | 0.29 | 0.35 | 0.36 | 0.36 | 0.33 | 0.41 | 0.40 | 0.41 | 0.43 | 0.55 | 0.57 | +7.2%/yr | |
| Dividends | 0.00 | 0.76 | 0.80 | 0.78 | 0.82 | 0.85 | 0.89 | 0.92 | 0.96 | 1.04 | 1.19 | – | |
| Book value | 6.22 | 6.90 | 6.52 | 6.34 | 7.40 | 7.72 | 6.69 | 7.18 | 7.79 | 8.79 | 8.75 | +3.9%/yr | |
| Diluted shares (M) | 2,154 | 2,148 | 2,139 | 2,135 | 2,119 | 2,019 | 1,910 | 1,867 | 1,851 | 1,831 | 1,818 | -1.8%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 24.9 | 25.2 | 27.7 | 28.0 | 26.1 | 28.9 | 29.4 | 32.2 | 30.6 | 33.2 | 35.8 | +3.2%/yr | |
| Operating income | 1.9 | 2.2 | 2.2 | 1.9 | 1.6 | 5.7 | 3.3 | 4.9 | 4.7 | 6.0 | 6.5 | +13.5%/yr | |
| Net income | 1.2 | 1.4 | 1.5 | 1.0 | 0.3 | 4.6 | 2.5 | 3.8 | 3.7 | 4.6 | 5.0 | +16.3%/yr | |
| Free cash flow | 2.0 | 1.8 | 1.6 | 1.1 | 1.2 | 2.5 | 0.6 | 3.5 | 3.6 | 4.2 | 5.0 | +8.9%/yr | |
| Buybacks | 1.3 | 0.3 | 0.3 | 0.0 | 3.0 | 3.7 | 3.6 | 1.3 | 1.2 | 1.5 | 1.2 | +1.6%/yr | |
| Dividends | 0.0 | 1.6 | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | 1.8 | 1.9 | 2.2 | – | |
| Net cash | -1.1 | -1.7 | -4.3 | -4.8 | -0.5 | -0.1 | -2.6 | -1.8 | -1.1 | -1.5 | -2.1 | −$0.4B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 30.2 | 31.1 | 30.9 | 31.8 | 30.1 | 32.7 | 33.0 | 34.8 | 39.2 | 41.1 | 40.2 | +10.8 pts | |
| Operating margin | 7.7 | 8.9 | 8.0 | 6.9 | 6.1 | 19.8 | 11.3 | 15.1 | 15.5 | 18.2 | 18.1 | +10.5 pts | |
| Net margin | 4.7 | 5.7 | 5.5 | 3.7 | 1.1 | 16.0 | 8.5 | 11.7 | 12.1 | 13.7 | 13.9 | +9.0 pts | |
| FCF margin | 7.9 | 7.3 | 5.7 | 4.1 | 4.5 | 8.7 | 1.9 | 10.9 | 11.9 | 12.8 | 13.9 | +4.9 pts | |
| ROIC | 10.1 | 10.2 | 9.2 | 8.0 | 7.4 | 27.6 | 16.4 | 24.1 | 23.0 | 25.9 | 27.1 | +15.9 pts | |
| Return on equity | 8.7 | 9.7 | 10.9 | 7.7 | 1.9 | 29.7 | 19.7 | 28.1 | 25.7 | 28.4 | 31.2 | +19.6 pts | |
| R&D % of revenue | 3.9 | 4.0 | 4.1 | 4.3 | 4.3 | 4.2 | 4.0 | 4.1 | 4.1 | 4.0 | 3.9 | +0.1 pts | |
| Stock pay % of revenue | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.1 | 0.3 | 0.3 | 0.3 | – | +0.1 pts | |
| Capex % of revenue | 2.5 | 3.0 | 2.8 | 2.7 | 2.7 | 2.8 | 2.6 | 2.4 | 2.6 | 3.0 | 2.9 | +0.5 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- medium
- Trajectory
- stable
- Pricing power
- moderate
- Electrification51.5%Not scored: evidence insufficient
- Motion24.5%1 claim
- Automation24.0%1 claim
Moat claims
- Applies to
- Motion
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
ABB and its partners maintain a leading global service presence across motors, drives, generators, and traction systems. That reach supports lifecycle service access, though ABB does not disclose service mix or network density here and scaled peers have competing networks.
ABB opened a drive service workshop in Canada and Motion backlog reached $6.953 billion in Q2 2026. Service mix and retention remain undisclosed, so these facts support continued reach without proving a wider advantage.
- Motion orders$2.6B+23%
- Motion order backlog$7.0B+14%
- Motion operational EBITA margin18.5%-1.3 pts
- Independent service providers and customer in-sourcing
- Component standardization reducing OEM-specific service advantage
- Price pressure in commoditized motors/drives
- SourceABB Q4/FY2025 Financial Information - Motion overviewJan 29, 2026
- Applies to
- Automation
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Industrial control replacements can be costly and impractical, allowing ABB to modernize mixed legacy and new infrastructure in steps while preserving plant workflows. Open standards and major rebuilds limit the lock-in.
Automation backlog reached $10.544 billion in Q2 2026. The Automation Extended program retains existing control infrastructure, but open interfaces and strong competing platforms limit evidence of rising switching costs.
- Automation orders$2.5B-13%
- Automation order backlog$10.5B+12%
- Automation operational EBITA margin15.4%+1.2 pts
- Adoption of open automation standards reducing proprietary lock-in
- Cybersecurity incidents impacting customer trust
- Customer platform consolidation around alternative vendors
- SourceABB - Automate with confidenceAug 8, 2026
Profile change log
- Oct 6, 2026 · business change
ABB sold its oil-and-gas engineering, procurement and construction business, reducing exposure to large project execution risks.
- Oct 6, 2026 · business change
ABB settled the Kusile investigation with US, South African and Swiss authorities after a $325 million provision for the historic matter.
- Oct 6, 2026 · business change
ABB distributed Accelleron to shareholders, removing turbocharging from Automation and changing the comparable business mix.
- Oct 6, 2026 · business change
ABB sold Dodge mechanical power transmission to RBC Bearings, narrowing Motion and generating a large disposal gain.
- Oct 6, 2026 · business change
ABB sold control of Power Grids to Hitachi, removing that business from continuing operations and recognizing a disposal gain in discontinued earnings.
- Oct 6, 2026 · business change
ABB completed the solar-inverter business sale for no consideration and agreed to fund the buyer, exiting a loss-making product line.
- Oct 6, 2026 · business change
ABB sold its high-voltage cable business, reducing the portfolio; cable and oil-and-gas engineering disposals generated net gains of $252 million across 2017.
- Oct 6, 2026 · analyst revision
The two existing moat claims retain their strengths and now have stable trajectories. Electrification explicitly retains insufficient evidence: the latest annual report names strong rivals but does not isolate retention, switching or cost advantages. Segment revenue shares use the 2025 business-area mix; profit shares are removed because corporate costs prevent reconciliation to the group.
- Oct 6, 2026 · business change
ABB launched the Infinitus direct-current portfolio for AI data centers, addressing higher power demand and smaller power-infrastructure footprints.
- Oct 6, 2026 · business change
ABB proposed a recommended 503 pence cash offer for Rotork, adding intelligent flow-control products if shareholders and regulators approve the transaction.
- Oct 6, 2026 · business change
ABB agreed to acquire Advantics, expanding its direct-current power-conversion offering.
- Oct 6, 2026 · business change
ABB acquired Specialtrasfo, adding specialized medium-voltage transformers to its industrial electrification offering.
- Oct 6, 2026 · business change
ABB introduced Automation Extended, allowing customers to connect existing control systems with a separate digital environment while retaining control infrastructure.
- Oct 6, 2026 · business change
ABB opened its first drive service workshop in Canada with a $1.65 million investment, expanding local repair and modernization access.
- Oct 6, 2026 · business change
Christian Nilsson became ABB CFO after leading Electrification finance, taking responsibility for capital use during the planned Robotics disposal.
- Oct 6, 2026 · business change
ABB completed the Zurich commercial-property sale, generating a $377 million Q1 capital gain that does not reflect recurring industrial earnings.
- Oct 6, 2026 · business change
ABB agreed to sell Robotics to SoftBank for a $5.375 billion enterprise value, concentrating the remaining group on electrification, motion and automation.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global low- and medium-voltage electrification
Low- and medium-voltage switching, protection, distribution, wiring and power-conversion products for buildings, infrastructure and industry, with related uninterruptible power, data-center cooling and building controls. Excludes high-voltage transmission equipment and electricity sales.
- ABB
- Schneider Electric
- Eaton
- Siemens
- Legrand
- Hubbell
- Chint
- Mitsubishi Electric
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| ABBN | 53 | 40.2% | 18.1% | |
| Industry median | 5 | 53 | 35.9% | 17.7% |
| Sector median | 88 | 76 | 37.0% | 17.5% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Data-center power demand supports switchgear, protection and power-distribution investment.
- Grid modernization and electrification of transport and buildings expand the installed equipment base.
- Safety standards and efficiency requirements support upgrades of older electrical installations.
- Local production reduces trade exposure and helps suppliers serve regional specifications.
- Higher computing density increases demand for reliable power distribution, uninterruptible power and liquid cooling, as well as installation and maintenance.
- High interest rates and weak construction delay building and infrastructure projects.
- Copper, steel and tariff costs can rise before contracts or channel prices adjust.
- Large rivals and lower-priced local suppliers limit price increases in standard products.
- Power-access constraints or lower AI investment can delay data-center delivery schedules.
- A stronger dollar reduces reported USD sales from foreign-currency markets.
- Copper and silver costs, tariffs and price timing can limit profit even when sales increase.
- Currency effects depend on the supplier’s reporting currency: a stronger euro reduces EUR sales translated from dollar and rupee markets.
- Competition enforcement and safety or security failures can raise costs and weaken customer trust.
Bulls & bears
Can ABB turn its expanding order book and installed equipment into sustained service and control-system earnings while protecting profit from competitors, input costs and acquisition spending?
Arguments
What to watch
- 1Motion and Automation orders, backlog and service mix
- 2Reported operating income versus property-sale gains and operational EBITA
- 3Continuing operating cash flow and net borrowing after planned disposals and acquisitions
Next check: Q3 2026 results on October 20, 2026; then Robotics sale approvals and the proposed Rotork transaction.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 5, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 53/100 by <a href="https://www.findmymoat.com/stocks/XSWX:ABBN">Find My Moat</a> (as of September 2026)Request update
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