ABB Weighs Sale of Robotics Division as Alternative to Spin-Off

Published 1 hours agoABB

ABB Weighs Sale of Robotics Division as Alternative to Spin-Off

ABB is contemplating the sale of its robotics division, the second-largest in the world, as an alternative to spinning it off into an independent company. This strategic review reflects ABB's aim to refine its business focus and possibly move away from its earlier plan to list the division separately by the second quarter of 2026.

In 2024, ABB's robotics unit reported sales of $2.3 billion, which constituted around 7% of the company's total revenue. However, the unit's profit margin stood at 12.1%, noticeably lower than ABB's broader margin of 18.1%. The lower margin is partly attributed to weaker demand in the automotive sector, illustrating the challenges within the robotics market.

As part of its ongoing portfolio management strategy, ABB is exploring whether selling the robotics division might better align with its business objectives, which are heavily focused on electrification and automation. Reuters reported on ABB's initial spin-off plan as a way to allow the robotics unit more room to grow independently. The company is actively reviewing both options to ensure an outcome that supports its strategic goals.

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