ABB to Spin Off Its Global Robotics Business

Strategic Separation in Industrial Automation

ABB, the Swiss-based industrial automation leader, announced plans to fully spin off its robotics division. The proposal will be submitted at the 2026 Annual General Meeting, with the goal of launching the new company in Q2 2026. This move highlights ABB’s strategy to streamline operations and unlock value in specialized markets such as factory automation, PLC, and DCS systems.

Scale and Market Position of ABB Robotics

The robotics unit employs about 7,000 people worldwide. In 2024, it generated $2.3 billion in revenue, representing 7% of ABB’s total sales. Despite maintaining a double-digit profit margin in most quarters since 2019, the division’s operating margin fell to 12.1% in 2024. ABB’s CEO emphasized that robotics holds the world’s second-largest market share, competing directly with FANUC, Yaskawa, and KUKA.

Historical Context of ABB Divestments

This spin-off marks ABB’s largest restructuring since selling its power grids business to Hitachi in 2018 for $11 billion. That transaction involved 36,000 employees and reshaped ABB’s portfolio toward electrification, motion control, and process automation. The robotics separation continues ABB’s long-term strategy of focusing on high-growth industrial automation segments.

ABB’s Business Structure and Revenue Drivers

ABB currently operates four divisions: Electrification, Motion, Process Automation, and Robotics & Discrete Automation. Electrification remains the largest contributor, accounting for 47% of revenue in 2024. The robotics unit, while strategically important, has limited synergy with other divisions. Therefore, ABB believes independence will allow robotics to pursue distinct market opportunities in control systems and smart factory automation.

Market Challenges Facing Robotics

Global demand for industrial robots has slowed due to weaker investment in automotive and consumer electronics. Orders in ABB’s robotics and discrete automation division fell 26% in 2023 and another 15% in 2024. However, logistics and general industry applications showed resilience, reflecting broader adoption of automation in warehousing and material handling.

Financial Performance Comparison

ABB achieved record results in 2024, driven by electrification growth. Operating EBITA rose 10% to $5.97 billion, with margins reaching 18.1%. In contrast, robotics delivered only $329 million EBITA, down 39% year-on-year. This divergence underscores why ABB views robotics as better positioned for independent growth outside the group’s core.

Shareholder Benefits and Spin-Off Structure

The separation will be executed via share distribution. ABB shareholders will receive proportional shares in the new robotics company as a dividend in kind. This approach ensures investors retain exposure to both ABB’s core automation portfolio and the standalone robotics business.

Industry Analysis and Author Commentary

The robotics spin-off reflects a broader trend in industrial automation: specialization. Companies increasingly separate divisions to focus on distinct technologies such as PLC-based control systems, DCS platforms, and robotics. ABB’s move may accelerate innovation in collaborative robots and AI-driven factory automation. However, success will depend on capturing growth in logistics, electronics assembly, and smart manufacturing.

Application Scenarios and Solutions

• Automotive Manufacturing: ABB robots streamline welding, painting, and assembly lines.

• Electronics Production: Precision robotics enhance PCB assembly and testing.

• Logistics Automation: Robotic arms and AGVs optimize warehouse operations.

• Process Industries: Integration with DCS and PLC systems improves efficiency in chemical and food plants.