Featured image courtesy of ABB.

Electrification and automation manufacturing conglomerate ABB announced plans to spin off its robotics division, marking its largest portfolio shift since divesting its power grids business in 2018.

This move comes as ABB Robotics — a provider of automation solutions — aims to address operational challenges such as labor shortages and sustainability demands. The company is expected to begin trading as a separately listed entity in the second quarter of 2026.

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ABB Robotics employs around 7,000 people, generated $2.3 billion in revenue in 2024 to represent roughly 7% of ABB Group’s total revenue, with an operational EBITDA margin of 12.1%.

ABB is considering a potential listing in either Sweden or Switzerland, though no final decision has been made. Following the announcement, ABB shares rose 3.5% in early trading.

Despite optimism about a boost from reshoring manufacturing to the U.S., Reuters said the sector has grown more cautious due to concerns over President Donald Trump’s tariff policies and their potential impact on the global economy.

“The board believes listing ABB Robotics as a separate company will optimize both companies’ ability to create customer value, grow and attract talent,” said ABB Chairman Peter Voser in an April 17 news release. “Both companies will benefit from more focused governance and capital allocation. ABB will continue to focus on its long-term strategy, building on its leading positions in electrification and automation.”

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If approved by shareholders, the spin-off will be executed through a share distribution, with ABB shareholders receiving shares in the new company as a dividend in proportion to their current holdings.

ABB reported its 1Q25 financial results on April 17, showing that orders and revenues increased 3% and 1% year-over-year, respectively, with comparable sale sup 5% and 3%. Gross margin improved 2.8-percentage-points year-over-year to 41.7%, while net profit jumped 22%.