Zurich-based grid equipment manufacturer ABB saw third-quarter orders grow 40% over the same period last year, to a record $12 billion globally, with demand from data centers and utilities in the United States helping drive growth, the company reported Tuesday.
ABB produces a wide range of electrical equipment for utilities and other industrial users, including switchgear, circuit breakers, transfer switches and low voltage transformers.
Orders from all regions improved at year-over-year double-digit rates, the company said. Orders from the Americas region were up about 70%, led by an 82% year-over-year order increase from the United States.
“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.
The company reported third-quarter net income of $1.9 billion, down 2% from the same period last year. The decline was in part related to $115 million in charges on non-cash exchange hedging associated with its ongoing acquisition of Rotork, a manufacturer of electric actuators, it said.
ABB’s electrification segment booked record orders of $7.67 billion in the third quarter, up 70% year over year.
Orders for electrification equipment in the Americas region grew 117% in that period, ABB said, while those in Europe grew about 20% and China by almost 40% on a comparable basis.
“This sustained momentum underscored the tailwind from energy expansion, including the need for more electrical power, higher power density, and transition toward decarbonized solutions,” the company said.
The company reported “strong improvement” in its utilities segment, “with grid investment need remaining tangible as aging assets require upgrades to not only mitigate outage risks, but to also meet accelerating power demands,” it added.
Chief Financial Officer Christian Nilsson called data centers the “standout” customers of the company’s results, with the segment’s orders 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.
ABB’s buildings segment also saw improved results, “driven by the commercial segment in all regions,” the company said. “This includes our strong performance in an otherwise generally soft market in China ... Residential remains weak in China and broadly stable in both Europe and the United States.”
