ABB, the Switzerland-based technology company, has recently announced an upward revision of its financial targets due to significant progress made by the majority of its divisions towards a strategic growth mandate.
Increased Revenue Growth Target
ABB has lifted its long-term comparable revenue growth target to a range of 5% to 7% percent across the economic cycle, up from the previous range of 3% to 5%.
Improved Operational Earnings Margin
The company has also raised its target for annual operational earnings before interest and taxes margin to a range of 16% to 19%, compared to the previous target of at least 15%.
Strong Confidence and Ambitions
Chief Executive Bjorn Rosengren expressed confidence in achieving the previous margin target earlier than planned, attributing this success to improved agility and faster decision-making within the company. As a result, ABB is now formulating stronger ambitions and lifting its margin target.
Focus on Growth Areas
Around 70% of ABB’s group revenue is derived from divisions that are experiencing growth. Rosengren emphasized the company’s focus on capturing the full potential of the transition towards electrification, energy security, energy efficiency, automation, and digitalization.
Bolstering Growth Through Acquisitions
Abb plans to enhance its growth trajectory by pursuing five to ten small to mid-size bolt-on acquisitions per year.