ABB's US orders rise 82% on utility and data-center grid demand

ABB reported Tuesday that third-quarter orders rose 40% from a year earlier to a record $12 billion, with US orders up 82% year over year. The Americas region was up about 70%, and the company said orders improved at double-digit year-over-year rates in every region. The Zurich-based grid equipment maker manufactures switchgear, circuit breakers, transfer switches and low voltage transformers for utilities and industrial users.

ABB's electrification segment booked record orders of $7.67 billion, up 70% year over year, with electrification orders in the Americas up 117%. Europe grew about 20% and China almost 40% on a comparable basis. On the company's reported figures, the electrification segment alone accounted for just under two-thirds of group orders in the quarter.

Chief Financial Officer Christian Nilsson called data centers the “standout” customers of the results, with orders from that segment increasing by triple digits. “But it's not just data centers, of course. The general investment and build-out of the grid really demonstrates strong growth,” Nilsson said in a recorded video released by the company.

Net income fell 2% to $1.9 billion, partly on $115 million in non-cash hedging charges tied to the company's ongoing acquisition of Rotork, a maker of electric actuators.

ABB attributed the demand to the physical work of reinforcing the network. “Utilities continue to invest in refurbishment and build-out of the electrical grid to secure power availability and efficiency,” the company said in a press release. It described “strong improvement” in its utilities segment, with aging assets requiring upgrades “to not only mitigate outage risks, but to also meet accelerating power demands.” The company also cited “the need for more electrical power, higher power density, and transition toward decarbonized solutions.”