ABB has reported its financial results for the second quarter of 2024, showcasing a stable demand and a record-high Operational EBITA margin. The company recorded orders worth $8,435 million, a slight decrease of 3% compared to the previous year, though on a comparable basis, orders remained unchanged. Revenues increased by 1% to $8,239 million, with a 4% rise on a comparable basis. Income from operations reached $1,376 million, yielding a margin of 16.7%, while the Operational EBITA was $1,564 million, marking a margin of 19.0%.
The basic earnings per share rose by 22% to $0.59. ABB’s cash flow from operating activities saw a substantial increase of 40%, amounting to $1,067 million. Gross profit for the quarter was $3,174 million, which is a 10% rise from the previous year, contributing to a gross profit margin of 38.5%.
CEO Björn Rosengren attributed the solid results to operational changes introduced under the ABB Way since 2020. He highlighted improvements in the Electrification and Process Automation business areas, though these were offset by weaknesses in Machine Automation and E-mobility, as well as a challenging comparable period in the Motion business area. Despite these challenges, short-cycle orders showed improvement, and the project- and systems-related businesses maintained robust customer activity.
ABB reported a free cash flow of $918 million, a 51% increase from the previous year. The company’s positive book-to-bill ratio of 1.02 for the quarter and 1.08 for the first half of the year suggests confidence in maintaining a positive book-to-bill ratio for the full year 2024.
In line with its commitment to sustainability, ABB’s 2030 and 2050 emission reduction targets were approved by the Science Based Target initiative (SBTi). The company aims to reduce its scope 1 and 2 emissions by 80% by 2030 and achieve full reduction by 2050. Additionally, ABB has set a new scope 3 target to reduce absolute emissions by 25% from a 2022 baseline.
ABB’s R&D efforts were exemplified by the launch of the OmniCore control platform, which enhances robot efficiency by operating up to 25% faster and consuming up to 20% less energy. Furthermore, ABB invested in two clean technology start-ups, Ndustrial and GridBeyond, focusing on AI-powered solutions for optimized energy consumption and distributed energy resources.
The Electrification business area announced the acquisition of Siemens’ Wiring Accessories business in China, expected to enhance ABB’s portfolio and regional market reach in smart buildings technology.
As Morten Wierod prepares to assume the role of CEO, Rosengren expressed confidence in the company’s direction, emphasizing the effectiveness of the ABB Way in driving profitable and sustainable growth. Looking ahead, ABB anticipates a sequentially higher growth rate in comparable revenues and an Operational EBITA margin of around 18.5% for the third quarter of 2024. For the full year, the company expects a comparable revenue growth of about 5% and an Operational EBITA margin of around 18%.
