ABB Reports Strong Q2 2026 Performance as Electrification and Automation Drive Growth Despite Softer Pulp and Paper Markets

ABB reported record second-quarter 2026 orders and revenues, supported by robust demand across electrification, automation and infrastructure markets. While the company highlighted continued investments in energy transition, utilities, data centers and industrial automation, it noted that demand from the pulp and paper industry remained subdued during the quarter.

ABB's total orders increased 30% year over year to $12.04 billion, while revenues rose 14% to $9.48 billion. Operational EBITA improved 20% to $1.93 billion, with the margin expanding to 20.2%. Income from operations reached $1.59 billion, and cash flow from operating activities increased 9% to $1.15 billion.

For the pulp and paper sector, ABB reported weaker market conditions across both its Motion and Automation business areas. Within the Motion division, the company said demand remained strong in rail, commercial buildings, food and beverage, marine, mining, nuclear and wind markets, while chemical and pulp and paper demand was soft during the quarter.

Similarly, the Automation business reported continued investment in energy efficiency and resilience across energy-intensive industries but said customer demand remained weaker in process industries such as pulp and paper, chemicals and mining, where capital expenditure for mine expansions and new projects also stayed muted. Despite these market conditions, Automation generated revenues of $2.19 billion, up 9% year over year, while Operational EBITA increased 17% to $338 million, lifting the margin to 15.4%.

Across the broader business, ABB continued to benefit from strong investments in electrification infrastructure, utilities, transportation, commercial buildings and particularly data centers, where customer demand remained exceptionally strong. The company also announced plans to invest approximately $200 million over the next three years to expand medium-voltage manufacturing capacity across Europe, supporting growing demand for next-generation power infrastructure.

ABB also announced its agreement to acquire Rotork plc for approximately $5.5 billion, a transaction intended to strengthen its automation portfolio through the addition of intelligent electric actuator technologies serving energy and process industries. The company expects the acquisition to expand its automation capabilities and enhance its offerings for industrial customers.

Looking ahead, ABB expects low- to mid-teens comparable revenue growth in the third quarter of 2026 and anticipates continued improvement in Operational EBITA margins. For the first half of 2026, however, the company noted that process industries—including pulp and paper, chemicals and mining—remained among the weaker-performing customer segments, in contrast to strong activity in utilities, data centers, ports and transportation infrastructure.