ABB lifts margin targets, sales outlook remains intact; shares dip

Investing.com -- ABB on Tuesday raised its profitability targets, now aiming for an operational EBITA margin of 18–22% over the next few years, an upgrade from its previous 16–19% goal.

The Swiss engineering group kept its growth outlook unchanged, saying it still expects comparable annual sales to rise 5–7%, with acquisitions adding a further 1–2% each year. Management said this reflects the typical pace of small and mid-sized deals, while any larger purchases would sit on top of that range.

Despite the updated profitability ambitions, ABB’s shares were down around 4% in Zurich in early trading.

Last month, ABB struck a deal to sell its robotics business to SoftBank Group for $5.4 billion. The move advances the Japanese firm’s push to combine robotics with artificial intelligence.

The deal marks another step in founder and CEO Masayoshi Son’s effort to position SoftBank at the centre of AI development.

For ABB, the sale signals a change in plans, with the group no longer pursuing a spin-off and separate listing of the automation unit.