ABB's Bold Gambit: Robotics Division to Break Free in $2.3 Billion Spinoff

On April 17, global electrification and automation technology giant ABB announced a major strategic shift: it will spin off 100% of its robotics business unit (ABB Robotics) as an independently listed company. This proposal will be submitted for shareholder approval at the 2026 annual general meeting. If approved, the new entity, tentatively named "ABB Robotics," will begin independent operations in the second quarter of 2026. This move aims to optimize governance structures, capital allocation capabilities, and market competitiveness for both companies while enabling each to focus on the long-term development of their core businesses.

Strategic Rationale Behind the Spinoff

ABB Robotics is a global leader in robotics and intelligent automation solutions, with a portfolio spanning industrial robots, autonomous mobile robots (AMRs), artificial intelligence, and industrial software. Its customers range across traditional and emerging industries including automotive, electronics, and logistics. In 2024, the division generated $2.3 billion in revenue, representing 7% of ABB Group's total revenue, with an operational EBITA margin of 12.1% and approximately 7,000 employees.

Despite its solid performance, ABB Chairman Peter Voser stated: "The ABB Board believes that the robotics business differs significantly from the Group's other divisions (such as electrification and process automation) in terms of market demands, technological synergies, and growth dynamics." Post-spinoff, both entities will be able to respond more flexibly to industry challenges, such as labor shortages and sustainability requirements, while attracting specialized investment and talent.

ABB CEO Morten Wierod emphasized: "Operating independently as a pure robotics technology company, ABB Robotics will strengthen its leadership position in the automation sector, while ABB Group will continue to deepen its focus on core electrification and automation businesses, driving an 'efficient, sustainable' industrial future."

source: ABB 

Spinoff Structure and Business Reorganization

According to the plan, the spinoff will be executed through a "dividend in-kind" distribution of shares in the new company to existing shareholders, ensuring a seamless transition of shareholder value. The independent ABB Robotics will maintain its regionalized manufacturing footprint across Europe, Asia, and the Americas, and leverage its software and AI-driven technological advantages to accelerate expansion in high-growth markets.

Concurrently, ABB Group will restructure its internal operations: the "Machine Automation" business, originally part of the Robotics & Discrete Automation division, will be integrated into the Process Automation division. This unit, known for its high-end solutions including programmable logic controllers (PLCs), industrial computers (IPCs), and servo motion systems, will create synergies with Process Automation's software and control technologies, further strengthening ABB's competitiveness in hybrid industrial applications.

Market Impact and Future Outlook

ABB's robotics division has shown strong performance relative to its peers. The robotics market has stabilized following supply chain fluctuations, demonstrating double-digit profit margins in most quarters since 2019. Post-spinoff, ABB Robotics will reinforce its leading position in the automation sector through its "localized service + global technology" operational model.

This spinoff is viewed as a continuation of ABB's strategy to "reduce diversification and focus on core businesses." Since divesting its power grid business in 2018, ABB has significantly improved profitability and market valuation through business streamlining and organizational optimization. The independent listing of the robotics business may replicate this successful path, unlocking long-term value for both the group and the new entity.

The spinoff of ABB Robotics reflects the increasingly specialized nature of the industrial automation sector. As demand for intelligent manufacturing surges, companies focused specifically on robotics and AI can more easily capture emerging opportunities, while traditional giants strengthen ecosystem synergies through business focus. This move may set a precedent for strategic adjustments by competitors such as Siemens and FANUC, further driving the differentiation and advancement of the global industrial automation landscape.