ABB Group is shaking things up in a big way. During a recent earnings call, they announced plans to spin off their robotics division, aiming to have it running as a standalone entity by the second quarter of 2026. Martin Wierod, the CEO, explained that this move is all about creating more value for both ABB and the new company. He put it simply: “Today, we also announced our plan to spin off the Robotics division as a separately listed company.”
Now, why is ABB doing this? Well, they’ve seen a boost in orders from their automotive segment, thanks in large part to their top-notch paint technology. Even though there have been some dips in robotics and discrete automation, there’s been a positive trend recently, suggesting things are on the upswing.
ABB has been around for 140 years and employs 110,000 people worldwide. They’re a big name in electrification and automation, tackling some of the industry’s biggest challenges. However, they did hit a $260 million snag in their first-quarter revenue forecast for 2025, partly due to global economic issues like tariffs.
In terms of restructuring, ABB’s Machine Automation division is moving over to the Process Automation sector by 2026, but their Electrification and Motion sectors will stay just as they are. Peter Voser, ABB’s Chairman, said the split is meant to enhance customer value, growth, and attract top talent for both companies.
ABB Robotics is already a heavyweight in its field, ranking as the second-largest globally with $2.3 billion in revenues for 2024. By becoming independent, it’ll be able to compete on a level playing field with its peers. They’re known for their extensive lineup of industrial robots, collaborative arms, and autonomous mobile robots (AMRs), bolstered by their acquisition of ASTI in 2021. Plus, they’ve been making significant strides in AI and software, with over 80% of their products now featuring AI capabilities.
The spin-off plans to keep its manufacturing bases in Sweden, China, and the U.S., with additional investments to ramp up production in the U.S. If shareholders give the green light, ABB Robotics shares will be distributed as dividends to current ABB Ltd. shareholders. ABB Robotics has consistently been a top performer, often recognized in the RBR50 innovation awards, highlighting its significant impact in the industry.
