ABB Sets Aside $14bn War Chest for Acquisitions After Record Q2 Orders
Published on 07/20/2026 at 02:53 | Redaktion boerse-global.de
The Swiss industrial group ABB is gearing up for an aggressive reallocation of capital, armed with a $14bn acquisition war chest even as it fine-tunes the purchase of two automation specialists. Chief executive Morten Wierod confirmed the firepower is available for future deals shortly after unveiling a $5.5bn bid for British flow-control expert Rotork and a separate takeover of silicon-carbide power conversion firm Advantics.
The spending spree is being underpinned by a blockbuster second quarter. On July 16, ABB reported a record order intake of $12.04bn, a 30% jump from a year earlier, while revenue climbed 14% to $9.48bn. The operating EBITA margin widened to 20.2% and net income rose 7% to $1.23bn. Operating cash flow gained 9% to $1.15bn, and free cash flow increased 4% to $881m.
Wierod pointed to the record orders and strong operational execution as the basis for the expansion strategy. The group has already lined up two distinct acquisitions with different closing timelines. The Rotork deal, valued at 503 pence per share in cash and representing an enterprise value of roughly $5.5bn, is expected to close in the first half of 2027. The smaller Advantics transaction, which strengthens ABB’s portfolio in direct-current applications for data centers and industrial microgrids, is on track to be completed in the fourth quarter of 2026.
Should investors sell immediately? Or is it worth buying ABB?
To finance the Rotork purchase, ABB is leaning on existing cash reserves and the anticipated net proceeds of roughly $4.8bn from selling its robotics division to SoftBank, a disposal that should be wrapped up in the second half of this year. The robotics exit is a key piece of a broader portfolio reshaping that also includes a continuing share buyback program. Between July 9 and July 15, ABB repurchased another 57,500 own shares, bringing the total bought back since February 2026 to 4,256,356.
Despite the buoyant numbers, the market’s initial response to the Rotork price tag was cautious. Several analysts described the offered 503 pence per share as lofty, though they conceded that Rotork’s strong operating margins could justify the valuation. Wierod pushed back against the skepticism, insisting the group has a healthy pipeline of further candidates and will pursue both smaller and larger deals.
ABB’s stock closed at €86.40 on Friday, a daily gain of 1.72%. Yet the shares have lost 6.21% over the past 30 days and remain 10.34% below the 52-week high of €96.36 reached on June 22. The relative strength index of 41.3 suggests the stock is neither overbought nor oversold, leaving room for movement in either direction. Over the longer term, the equity has rallied 35.47% since the start of 2026 and 54.34% over the past twelve months.
The company has also raised its full-year guidance for 2026, now forecasting comparable revenue growth in the low double-digit to low-teens range and a further sequential improvement in the operating EBITA margin for the third quarter. With the Rotork deal, the Advantics acquisition, and the robotics sale all advancing, ABB is testing whether its ambitious reallocation of capital will deliver the margin expansion it projects.
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