ABB Ltd’s ABBNY Motion segment continues to contribute steadily to its overall performance. In the first quarter of 2025, the segment reported revenues of $1.84 billion, up 3% year over year on a comparable basis. Solid backlog execution and strength in commercial building HVAC, power generation, and water & wastewater markets are augmenting its top-line performance. In the first quarter, the segment’s operational EBITA rose 5% year over year to $360 million. The operational EBITA margin also increased 110 basis points to 19.6% reflecting positive pricing and improved operational efficiency. The order backlog was $5.72 billion compared with $5.61 billion reported at the end of the year-ago quarter, with a book-to-bill ratio of 1.17.
However, in the same period, the segment’s total orders decreased 6% year over year to $2.16 billion. The decline in orders was mainly due to a tough comparison with the previous year, which included a one-time $150 million order in the traction division. Demand for products remained weak across end markets, including oil & gas, food & beverage, chemicals and rail. Also, global uncertainty related to trade policies could weigh on the segment’s near-term performance.
Despite this, backed by solid momentum in the service business and a strong backlog level, the Motion segment is well-positioned to play a key role in ABB’s growth in the coming quarters.
Among its major peers, Eaton Corporation plc’s ETN eMobility segment reported net sales of $162 million in the first quarter of 2025, up 2% year over year. Eaton generated 2.5% of its total sales from this segment in the quarter. However, Eaton’s segment reported an operating loss of $4 million due to launch costs incurred related to new programs.
EnerSys’ ENS Motive Power segment generated net sales of $392 million in fourth-quarter fiscal 2025, down 0.6% year over year. However, EnerSys’ segment’s volume growth was flat in the quarter and price/mix had a positive impact of 1% on sales. EnerSys derived 40.2% of its total revenues from this segment during the quarter.
Shares of ABB have gained 8.5% in the past six months compared with the industry’s growth of 3.5%.
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From a valuation standpoint, ABBNY is trading at a forward price-to-earnings ratio of 23.17X, above the industry’s average of 23.12X. ABB carries a Value Score of C.
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The Zacks Consensus Estimate for ABB’s second-quarter 2025 earnings has declined over the past 60 days.