Finance
ABB sees 'robust market' so far unaffected by US tariffs
Published by Global Banking & Finance Review®
Posted on October 16, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 16, 2025
2 min readLast updated: January 21, 2026
ABB reports strong demand with minimal tariff impact, showing 12% earnings growth and 11% revenue increase, despite a drop in China orders.
By John Revill
ZURICH (Reuters) -ABB is seeing a "robust" market situation with so far little impact on customer demand from the uncertainties caused by U.S. tariffs, the Swiss engineering company said on Thursday, as it reported its third quarter results.
ABB, which makes motors and drives used in factory production lines, said operating earnings before interest, tax and amortisation (EBITA) rose 12% to $1.74 billion for the three months to the end of September.
The figure was slightly above forecasts for $1.70 billion expected in a company-compiled consensus of analysts.
Revenue at the company, which also makes electrification systems used in data centres, rose 11% to $9.08 billion, beating forecasts for $8.88 billion, while orders rose 12%.
NO MATERIAL IMPACT FROM TARIFFS SO FAR
Chief Executive Morten Wierod said he was seeing a "robust overall market situation" with customers still spending on electrical power and automation.
"U.S. tariff-related market uncertainties remain, but so far we have not seen any material impact on demand or profitability," Wierod said.
US ORDERS JUMP, CHINA FALLS
ABB's orders in the U.S. increased 27% during the quarter, with steep growth in all business areas, while business boomed in Brazil with orders 38% higher.
In contrast, China suffered a 4% drop in new business due to a steep decline in process automation and electrification, while orders in India were down 7%.
ABB's results give an insight into the health of the broader industrial economy, with its products used to electrify and control buildings, mines and data centres.
For the fourth quarter, ABB said it expects its comparable sales to grow in the mid-single digit percentage range.
Also on Thursday, ABB said Chief Financial Officer Timo Ihamuotila will leave the company in 2026. He will be replaced by Christian Nilsson, who is currently CFO at the company's electrification business.
(Reporting by John RevillEditing by Ludwig Burger and Lincoln Feast.)
EBITA stands for Earnings Before Interest, Taxes, and Amortization. It is a measure of a company's profitability that focuses on its core operations.
Operating earnings refer to the profit a company makes from its regular business operations, excluding any income from non-operational activities.
Revenue growth is the increase in a company's sales over a specific period, indicating its ability to expand its business and market presence.
Orders refer to requests made by customers for products or services. Tracking orders helps businesses understand demand and manage inventory.
Explore more articles in the Finance category
