ABB announces Mitsubishi venture as ABB stock falls 1.60 percent

Published on 10/22/2026 at 09:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ABB's Q3 orders reached USD 12.06 billion, up 40 percent. ABB stock costs EUR 75.81 on October 22, 2026, 1.60 percent below its Xetra close.

ABB expands Japanese power position

ABB announced a 51 percent Mitsubishi Electric joint venture on October 20, 2026.
UBS kept its Neutral rating and CHF 88.00 target on October 13, 2026.
ABB stock trades at EUR 75.81 at 9:18 a.m. CEST at Lang & Schwarz on October 22, 2026, 1.60 percent below the Xetra close of October 21, 2026.

Zürcher Altstadt mit Limmat und Türmen als Aquarell in weichen Pastelltönen — ABB Ltd (CH0012221716) hat seinen Hauptsitz in Zürich, wo Limmat und Türme im Aquarellpanorama erleuchten, Illustration mit AI erstellt.

ABB (ISIN CH0012221716) announced on October 20, 2026, that it will take a controlling 51 percent stake in a new joint venture with Mitsubishi Electric's low-voltage power distribution business, according to ABB. ABB stock was trading at EUR 75.81 at Lang & Schwarz on October 22, 2026, at 9:18 a.m. CEST, 1.60 percent below the Xetra close of October 21, 2026, at EUR 77.04.

What does the venture add?

The transaction gives ABB control of the Japanese business and expands its position in one of the world's largest electrification markets. The contributed Mitsubishi Electric operations generated JPY 102.0 billion in fiscal year 2025 revenue, while ABB will pay JPY 79.0 billion for the controlling stake and related sales operations outside Japan, according to ABB.

ABB expects the venture to reach at least a 20.00 percent Operational EBITA margin within five years. The company also said the combined businesses have an enterprise value of USD 890.0 million and an enterprise-value-to-EBITDA multiple of 11.10 based on fiscal year 2025 figures.

Orders lead the third quarter

The deal arrived with a strong Q3 operating update. ABB reported orders of USD 12.06 billion for the third quarter of 2026, up 40.00 percent from USD 8.61 billion in the third quarter of 2025, while revenue increased 14.00 percent to USD 9.70 billion from USD 8.49 billion, according to ABB.

Operational EBITA rose 24.00 percent to USD 2.03 billion in the third quarter, and the margin reached 20.80 percent versus 19.20 percent a year earlier. Net income attributable to ABB fell 2.00 percent to USD 1.18 billion, showing that stronger operating performance did not lift every earnings measure.

Which dates matter next?

ABB expects fourth-quarter 2026 comparable revenue growth to remain broadly similar to the third quarter, while the Operational EBITA margin should soften sequentially. The next full-year results are scheduled for January 28, 2027, according to MFN.

Analyst expectations add a valuation counterweight. UBS retained a Neutral rating and a CHF 88.00 price target in its October 13, 2026 assessment, as reported by Finanznachrichten.

ABB stock stays below the Xetra close

The current euro quotation puts ABB stock below the previous Xetra session's closing level while the latest operating figures point to higher orders and a wider operating margin. The contrast leaves the Japanese venture and the quality of earnings as the central investor questions.

ABB stock was trading at EUR 75.81 at Lang & Schwarz on October 22, 2026, at 9:18 a.m. CEST, 1.60 percent below the Xetra close of October 21, 2026, at EUR 77.04. The further course of trading is shown by the continuously updated real-time quote of ABB stock.