ABB Ltd. - ADR

Strong Start to 2024: ABB reported a 5% increase in comparable orders year-over-year (YOY), demonstrating strong market activity, especially with a notable improvement in demand in March 2024. Key sectors contributing to growth included utilities, marine, ports, and commercial buildings, while the robotics division saw increased orders from automotive segments.

Operational EBITDA Margin Growth: The operational EBITDA margin improved significantly to 20.2%, bolstered by a one-time property sale that contributed 170 basis points. Without this one-time effect, the company still managed to deliver margin improvements across most business areas, setting a solid foundation for future profitability.

Strong Cash Flow Performance: ABB generated free cash flow of $652 million in Q1, which is a positive start for a typically weaker quarter. This performance positions the company favorably toward exceeding the previous annual free cash flow of $3.9 billion.