ABB Ltd Due Diligence

Run due diligence on ABB Ltd: check compliance and get alerts when suppliers or ownership change.

Switzerland · owned by Independent (Switzerland) · new.abb.com · 16 vendors

ABB is a global technology leader in electrification and automation, serving industries across energy, manufacturing, transportation, and infrastructure. With around 110,000 employees worldwide, ABB develops and delivers solutions including motors, drives, robotics, power conversion, and industrial automation systems. The company's mission is to enable a more sustainable and resource-efficient future by helping industries operate at high performance while reducing emissions and improving productivity.

Resilience scores

Technology vendors

Services catalogue

17 services in catalogue across 4 categories; runs on 16 sub-vendors.

Insights

Last updated 2026-10-08 · revision 22

16 direct vendors, 178 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

12 in-scope frameworks identified; showing 3.

WEEE Directive — Evidence found

ABB manufactures and sells electrical and electronic equipment in the EU, making it subject to the Waste Electrical and Electronic Equipment (WEEE) Directive regarding the collection, recycling, and recovery of such equipment.

SIX Swiss Exchange Listing Rules — Evidence found

ABB Ltd is a publicly listed company with its shares traded on the SIX Swiss Exchange under the ticker symbol ABBN.

SOC 2 (source) — No public evidence

ABB provides various digital solutions and services where they may process or store customer data, making the trust service criteria of a SOC 2 report highly relevant to their customers.

Financials

Three-year financials

Financial Resilience Score: 9/10

ABB demonstrates very strong financial resilience, underpinned by a pristine balance sheet (Net debt/EBITDA of just 0.3 at end of Q2 2026), investment-grade credit ratings (A2 Moody's, A S&P, both stable), and robust cash generation with FY2025 free cash flow of $4.57B (+16% YoY). The company's leading market positions (#1 or #2 in its segments), exposure to secular growth trends in electrification, data centers and industrial automation, and record order backlog of $25.3B at end-2025 (growing to ~$30B after Q2 2026) provide excellent revenue visibility. Profitability has expanded materially, with Operational EBITA margin reaching 19.0% in FY2025 (+80 bps YoY) and management raising long-term margin targets to 18–22%. Portfolio actions further strengthen the outlook: the Robotics divestment to SoftBank will bring ~$4.8B in net cash proceeds in H2 2026, while the Rotork acquisition (~$5.5B) expands the automation portfolio. A diversified geographic footprint (71% of revenue in non-USD currencies, local-for-local manufacturing) mitigates FX and tariff risks. Key vulnerabilities include goodwill concentration ($9.64B, 22% of total assets), with the Machine Automation division's fair value exceeding carrying value by only 16% in impairment testing. Cyclical exposure to process industries (pulp & paper, chemicals, mining) and Chinese residential buildings remains a drag, and the AI/data-center growth story creates concentration risk tied to hyperscaler capex. Legacy performance guarantees from divested businesses total $1.9B, though Power Grids exposure is indemnified by Hitachi.

Key strengths: Net debt/EBITDA of 0.3 at Q2 2026, substantial balance sheet headroom, Investment-grade credit ratings: A2 (Moody's) and A (S&P), both stable, Leading #1 or #2 market positions in electrification and automation segments, Record order backlog of $25.3B at end-2025 (+27% YoY), providing revenue visibility, Operational EBITA margin expanded to 19.0% in FY2025 (+80 bps), Strong FCF of $4.57B in FY2025 (+16% YoY), >95% FCF/net income conversion target, ~$4.8B net cash expected from Robotics divestment to SoftBank in H2 2026, Diversified currency mix (71% non-USD) with local-for-local manufacturing model, ROCE of 25.3% in FY2025

Risk factors: Goodwill of $9.64B (22% of total assets); Machine Automation fair value only 16% above carrying value, FX translation volatility — USD reporting currency vs. EUR/CHF/CNY cost base, Cyclical weakness in pulp & paper, chemicals, mining, and Chinese residential buildings, Execution risk on long-cycle fixed-price contracts (flagged as KPMG Key Audit Matter), Growth story increasingly tied to hyperscaler/data-center capex cycle, $1.9B maximum exposure under legacy performance guarantees from divested businesses, Tariffs and raw-material inflation pressures in Electrification segment

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Revenue by product/service

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