《ABB集團（ABB）2025年第一季度財報「NYSE」（英文版）（42頁）.pdf》由會員分享，可在線閱讀，更多相關《ABB集團（ABB）2025年第一季度財報「NYSE」（英文版）（42頁）.pdf（42頁珍藏版）》請在三個皮匠報告上搜索。

1、 1 Q1 2025 FINANCIAL INFORMATION April 17,2025 Q1 2025 Financial Information 2 Q1 2025 FINANCIAL INFORMATION FINANCIAL INFORMATION Contents 03 05 Key Figures 06 27 Consolidated Financial Information(unaudited)28 41 Supplemental Reconciliations and Definitions 3 Q1 2025 FINANCIAL INFORMATION Key Figu

2、res CHANGE ($in millions,unless otherwise indicated)Q1 2025 Q1 2024 US$Comparable(1)Orders 9,213 8,974 3%5%Order backlog(end March)23,036 22,015 5%5%Revenues 7,935 7,870 1%3%Gross Profit(2)3,311 3,064 8%as%of revenues(2)41.7%38.9%+2.8 pts Income from operations 1,567 1,217 29%Operational EBITA(1)1,5

3、97 1,417 13%16%(3)as%of operational revenues(1)20.2%17.9%+2.3 pts Income from continuing operations,net of tax 1,119 914 22%Net income attributable to ABB 1,102 905 22%Basic earnings per share($)0.60 0.49 22%(4)Cash flow from operating activities 684 726-6%Free cash flow(1)652 551 18%(1)For a reconc

4、iliation of alternative performance measures see“Supplemental Reconciliations and Definitions”on page 28.(2)Prior period amounts have been restated to reflect a change in accounting policy for IS expenses,see“Note 1-The Company and basis of presentation”for details.(3)Constant currency(not adjusted

5、for portfolio changes).(4)EPS growth rates are computed using unrounded amounts.4 Q1 2025 FINANCIAL INFORMATION CHANGE ($in millions,unless otherwise indicated)Q1 2025 Q1 2024 US$Local Comparable Orders ABB Group 9,213 8,974 3%5%5%Electrification 4,394 4,392 0%3%2%Motion 2,156 2,303-6%-4%-4%Process

6、Automation 2,024 1,697 19%23%23%Robotics&Discrete Automation 799 701 14%17%17%Corporate and Other 128 142 Intersegment eliminations(288)(261)Order backlog(end March)ABB Group 23,036 22,015 5%5%5%Electrification 8,173 7,389 11%11%11%Motion 5,716 5,612 2%2%2%Process Automation 8,076 7,343 10%10%10%Rob

7、otics&Discrete Automation 1,518 1,918-21%-21%-21%Corporate and Other (incl.intersegment eliminations)(447)(247)Revenues ABB Group 7,935 7,870 1%3%3%Electrification 3,825 3,680 4%6%6%Motion 1,840 1,829 1%3%3%Process Automation 1,633 1,601 2%5%5%Robotics&Discrete Automation 744 864-14%-11%-11%Corporat

8、e and Other 96 125 Intersegment eliminations(203)(229)Income from operations ABB Group 1,567 1,217 Electrification 922 769 Motion 361 301 Process Automation 263 234 Robotics&Discrete Automation 56 91 Corporate and Other (incl.intersegment eliminations)(35)(178)Income from operations%ABB Group 19.7%1

9、5.5%Electrification 24.1%20.9%Motion 19.6%16.5%Process Automation 16.1%14.6%Robotics&Discrete Automation 7.5%10.5%Operational EBITA ABB Group 1,597 1,417 13%16%Electrification 886 826 7%11%Motion 360 343 5%8%Process Automation 255 253 1%5%Robotics&Discrete Automation 74 113-35%-32%Corporate and Othe

10、r (incl.intersegment eliminations)22(118)Operational EBITA%ABB Group 20.2%17.9%Electrification 23.2%22.4%Motion 19.6%18.5%Process Automation 15.8%15.6%Robotics&Discrete Automation 9.9%13.2%Cash flow from operating activities ABB Group 684 726 Electrification 521 547 Motion 310 352 Process Automation

11、 264 229 Robotics&Discrete Automation 65 95 Corporate and Other (incl.intersegment eliminations)(476)(497)5 Q1 2025 FINANCIAL INFORMATION Operational EBITA Process Robotics&Discrete ABB Electrification Motion Automation Automation ($in millions,unless otherwise indicated)Q1 25 Q1 24 Q1 25 Q1 24 Q1 2

12、5 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Revenues 7,935 7,870 3,825 3,680 1,840 1,829 1,633 1,601 744 864 Foreign exchange/commodity timing differences in total revenues(21)65(5)13(3)29(19)25 6(5)Operational revenues 7,914 7,935 3,820 3,693 1,837 1,858 1,614 1,626 750 859 Income from operations 1,567 1,217 9

13、22 769 361 301 263 234 56 91 Acquisition-related amortization 45 56 26 23 9 9 4 1 7 21 Restructuring,related and implementation costs(1)16 26 6 10 2 8 2 7 5 Changes in obligations related to divested businesses(1)Gains and losses from sale of businesses(11)2(11)Acquisition-and divestment-related exp

14、enses and integration costs 9 19 10 10 1 1 2 2 Certain other non-operational items 21 63(31)3 6 3(2)1 Foreign exchange/commodity timing differences in income from operations(49)34(36)11(19)22(13)11 4(2)Operational EBITA 1,597 1,417 886 826 360 343 255 253 74 113 Operational EBITA margin(%)20.2%17.9%

15、23.2%22.4%19.6%18.5%15.8%15.6%9.9%13.2%(1)Includes impairment of certain assets.Depreciation and Amortization Process Robotics&Discrete ABB Electrification Motion Automation Automation ($in millions)Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Depreciation 139 133 71 66 31 28 12 12 14

16、 15 Amortization 57 68 32 28 11 10 5 2 8 22 including total acquisition-related amortization of:45 56 26 23 9 9 4 1 7 21 Orders received and revenues by region Orders received CHANGE Revenues CHANGE ($in millions,unless otherwise indicated)Com-Com-Q1 25 Q1 24 US$Local parable Q1 25 Q1 24 US$Local pa

17、rable Europe 3,234 3,298-2%1%1%2,773 2,748 1%4%4%The Americas 3,139 2,904 8%10%11%2,918 2,789 5%7%8%of which United States 2,321 2,139 9%9%9%2,257 2,110 7%7%8%Asia,Middle East and Africa 2,840 2,772 2%5%4%2,244 2,333-4%-1%-2%of which China 1,191 1,050 13%15%13%958 998-4%-3%-4%ABB Group 9,213 8,974 3

18、%5%5%7,935 7,870 1%3%3%6 Q1 2025 FINANCIAL INFORMATION Consolidated Financial Information ABB Ltd Consolidated Income Statements(unaudited)Three months ended ($in millions,except per share data in$)Mar.31,2025 Mar.31,2024 Sales of products 6,567 6,503 Sales of services and other 1,368 1,367 Total re

19、venues 7,935 7,870 Cost of sales of products (3,883)(4,041)Cost of services and other (741)(765)Total cost of sales (4,624)(4,806)Gross profit 3,311 3,064 Selling,general and administrative expenses (1,604)(1,528)Non-order related research and development expenses (329)(345)Other income(expense),net

20、 189 26 Income from operations 1,567 1,217 Interest and dividend income 54 57 Interest and other finance expense (47)(37)Non-operational pension(cost)credit 14 16 Income from continuing operations before taxes 1,588 1,253 Income tax expense (469)(339)Income from continuing operations,net of tax 1,11

21、9 914 Loss from discontinued operations,net of tax (1)(1)Net income 1,118 913 Net income attributable to noncontrolling interests and redeemable noncontrolling interests (16)(8)Net income attributable to ABB 1,102 905 Amounts attributable to ABB shareholders:Income from continuing operations,net of

22、tax 1,103 906 Loss from discontinued operations,net of tax (1)(1)Net income 1,102 905 Basic earnings per share attributable to ABB shareholders:Income from continuing operations,net of tax 0.60 0.49 Loss from discontinued operations,net of tax Net income 0.60 0.49 Diluted earnings per share attribut

23、able to ABB shareholders:Income from continuing operations,net of tax 0.60 0.49 Loss from discontinued operations,net of tax Net income 0.60 0.49 Weighted-average number of shares outstanding(in millions)used to compute:Basic earnings per share attributable to ABB shareholders 1,836 1,839 Diluted ea

24、rnings per share attributable to ABB shareholders 1,841 1,852 Due to rounding,numbers presented may not add to the totals provided.See Notes to the Consolidated Financial Information 7 Q1 2025 FINANCIAL INFORMATION ABB Ltd Condensed Consolidated Statements of Comprehensive Income(unaudited)Three mon

25、ths ended ($in millions)Mar.31,2025 Mar.31,2024 Total comprehensive income,net of tax 1,293 1,063 Total comprehensive(income)loss attributable to noncontrolling interests and redeemable noncontrolling interests,net of tax(22)8 Total comprehensive income attributable to ABB shareholders,net of tax 1,

26、271 1,071 Due to rounding,numbers presented may not add to the totals provided.See Notes to the Consolidated Financial Information 8 Q1 2025 FINANCIAL INFORMATION ABB Ltd Consolidated Balance Sheets(unaudited)($in millions)Mar.31,2025 Dec.31,2024 Cash and equivalents 4,494 4,326 Marketable securitie

27、s and short-term investments 1,866 1,334 Receivables,net 7,560 7,388 Contract assets 1,210 1,115 Inventories,net 6,070 5,768 Prepaid expenses 354 287 Other current assets 521 541 Total current assets 22,075 20,759 Property,plant and equipment,net 4,301 4,177 Operating lease right-of-use assets 861 8

28、40 Investments in equity-accounted companies 377 368 Prepaid pension and other employee benefits 735 689 Intangible assets,net 1,183 1,048 Goodwill 11,088 10,555 Deferred taxes 1,364 1,363 Other non-current assets 480 489 Total assets 42,464 40,288 Accounts payable,trade 5,032 5,036 Contract liabili

29、ties 3,248 2,969 Short-term debt and current maturities of long-term debt 805 293 Current operating leases 260 235 Provisions 1,536 1,539 Dividends payable to shareholders 1,872 Other current liabilities 4,495 4,582 Total current liabilities 17,248 14,654 Long-term debt 7,015 6,652 Non-current opera

30、ting leases 625 631 Pension and other employee benefits 579 569 Deferred taxes 727 675 Other non-current liabilities 2,159 2,116 Total liabilities 28,353 25,297 Commitments and contingencies Stockholders equity:Common stock,CHF 0.12 par value (1,861 million shares issued at March 31,2025,and Decembe

31、r 31,2024)162 162 Additional paid-in capital 38 50 Retained earnings 19,883 20,648 Accumulated other comprehensive loss(5,181)(5,350)Treasury stock,at cost (28 million and 22 million shares at March 31,2025,and December 31,2024,respectively)(1,387)(1,091)Total ABB stockholders equity 13,515 14,419 N

32、oncontrolling interests 596 572 Total stockholders equity 14,111 14,991 Total liabilities and stockholders equity 42,464 40,288 Due to rounding,numbers presented may not add to the totals provided.See Notes to the Consolidated Financial Information 9 Q1 2025 FINANCIAL INFORMATION ABB Ltd Consolidate

33、d Statements of Cash Flows(unaudited)Three months ended ($in millions)Mar.31,2025 Mar.31,2024 Operating activities:Net income 1,118 913 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 196 201 Changes in fair values of investments(12)(13)

34、Pension and other employee benefits(21)(13)Deferred taxes 27(6)Net gain from derivatives and foreign exchange(59)(8)Net gain from sale of property,plant and equipment(133)(5)Net loss(gain)from sale of businesses(11)2 Other(7)32 Changes in operating assets and liabilities:Trade receivables,net 4(33)C

35、ontract assets and liabilities 141 38 Inventories,net(103)(205)Accounts payable,trade(112)82 Accrued liabilities(511)(473)Provisions,net(55)37 Income taxes payable and receivable 212 122 Other assets and liabilities,net 10 55 Net cash provided by operating activities 684 726 Investing activities:Pur

36、chases of investments(846)(877)Purchases of property,plant and equipment and intangible assets(195)(181)Acquisition of businesses(net of cash acquired)and increases in cost-and equity-accounted companies(552)(30)Proceeds from sales of investments 329 727 Proceeds from sales of property,plant and equ

37、ipment 163 6 Proceeds from sales of businesses(net of transaction costs and cash disposed)and cost-and equity-accounted companies 43(8)Net cash from settlement of foreign currency derivatives 110 31 Other investing activities 2 1 Net cash used in investing activities(946)(331)Financing activities:Ne

38、t changes in debt with original maturities of 90 days or less 400(20)Increase in debt 295 1,358 Repayment of debt(7)(565)Delivery of shares 390 Purchase of treasury stock(289)(291)Dividends paid (919)Other financing activities 1(3)Net cash provided by(used in)financing activities 400(50)Effects of e

39、xchange rate changes on cash and equivalents 30(134)Net change in cash and equivalents 168 211 Cash and equivalents,beginning of period 4,326 3,909 Cash and equivalents,end of period 4,494 4,120 Supplementary disclosure of cash flow information:Interest paid 118 94 Income taxes paid 258 228 Due to r

40、ounding,numbers presented may not add to the totals provided.See Notes to the Consolidated Financial Information 10 Q1 2025 FINANCIAL INFORMATION ABB Ltd Consolidated Statements of Changes in Stockholders Equity(unaudited)($in millions)Common stock Additional paid-in capital Retained earnings Accumu

41、lated other comprehensive loss Treasury stock Total ABB stockholders equity Non-controlling interests Total stockholders equity Balance at January 1,2024 163 7 19,655(5,070)(1,414)13,341 647 13,988 Net income(1)905 905 9 914 Foreign currency translation adjustments,net of tax of$3 131 131(16)115 Eff

42、ect of change in fair value of available-for-sale securities,net of tax of$0 (1)(1)(1)Unrecognized income(expense)related to pensions and other postretirement plans,net of tax of$16 33 33 33 Change in derivative instruments and hedges,net of tax of$0 3 3 3 Changes in noncontrolling interests (1)(30)

43、(31)1(30)Dividends to noncontrolling shareholders (1)(1)Dividends to shareholders (1,804)(1,804)(1,804)Share-based payment arrangements 20 20 1 21 Purchase of treasury stock (314)(314)(314)Delivery of shares (14)(174)578 390 390 Other (3)(3)2(1)Balance at March 31,2024 163 9 18,553(4,904)(1,150)12,6

44、71 642 13,313 Balance at January 1,2025 162 50 20,648(5,350)(1,091)14,419 572 14,991 Net income 1,102 1,102 16 1,118 Foreign currency translation adjustments,net of tax of$0 182 182 6 188 Effect of change in fair value of available-for-sale securities,net of tax of$0 3 3 3 Unrecognized income(expens

45、e)related to pensions and other postretirement plans,net of tax of$(8)(18)(18)(18)Change in derivative instruments and hedges,net of tax of$0 2 2 2 Changes in noncontrolling interests 1 1 Dividends to shareholders (1,867)(1,867)(1,867)Share-based payment arrangements 17 17 1 18 Purchase of treasury

46、stock (326)(326)(326)Delivery of shares (31)31 Balance at March 31,2025 162 38 19,883(5,181)(1,387)13,515 596 14,111 (1)Amount attributable to noncontrolling interests for the three months ended March 31,2024,excludes the net loss of$1 million,related to redeemable noncontrolling interests.Due to ro

47、unding,numbers presented may not add to the totals provided.See Notes to the Consolidated Financial Information 11 Q1 2025 FINANCIAL INFORMATION Notes to the Consolidated Financial Information(unaudited)Note 1 The Company and basis of presentation ABB Ltd and its subsidiaries(collectively,the Compan

48、y)together form a global technology leader in electrification and automation,enabling a more sustainable and resource-efficient future.By connecting its engineering and digitalization expertise,ABB helps industries run at high performance,while becoming more efficient,productive and sustainable so t

49、hey outperform.The Companys Consolidated Financial Information is prepared in accordance with United States of America generally accepted accounting principles(U.S.GAAP)for interim financial reporting.As such,the Consolidated Financial Information does not include all the information and notes requi

50、red under U.S.GAAP for annual consolidated financial statements.Therefore,such financial information should be read in conjunction with the audited consolidated financial statements in the Companys Annual Report for the year ended December 31,2024.The preparation of financial information in conformi

51、ty with U.S.GAAP requires management to make assumptions and estimates that directly affect the amounts reported in the Consolidated Financial Information.These accounting assumptions and estimates include:estimates to determine valuation allowances for deferred tax assets and amounts recorded for u

52、nrecognized tax benefits,estimates related to credit losses expected to occur over the remaining life of financial assets such as trade and other receivables,loans and other instruments,estimates of loss contingencies associated with litigation or threatened litigation and other claims and inquiries

53、,environmental damages,product warranties,self-insurance reserves,regulatory and other proceedings,assumptions and projections,principally related to future material,labor and project-related overhead costs,used in determining the percentage-of-completion on projects where revenue is recognized over

54、 time,as well as the amount of variable consideration the Company expects to be entitled to,assumptions used in the calculation of pension and postretirement benefits and the fair value of pension plan assets,estimates used to record expected costs for employee severance in connection with restructu

55、ring programs,assumptions used in determining inventory obsolescence and net realizable value,growth rates,discount rates and other assumptions used to determine impairment of long-lived assets and in testing goodwill for impairment,estimates and assumptions used in determining the fair values of as

56、sets and liabilities assumed in business combinations,and estimates and assumptions used in determining the initial fair value of retained noncontrolling interests and certain obligations in connection with divestments.The actual results and outcomes may differ from the Companys estimates and assump

57、tions.For classification of certain current assets and liabilities,the Company has elected to use the duration of individual contracts as its operating cycle.Accordingly,there are contract assets and liabilities,accounts receivable,inventories and provisions related to these contracts which will not

58、 be realized within one year that have been classified as current.Long-term system integration activities comprise the majority of the Companys activities which have an operating cycle in excess of one year that have been classified as current.Basis of presentation In the opinion of management,the u

59、naudited Consolidated Financial Information contains all necessary adjustments to present fairly the financial position,results of operations and cash flows for the reported periods.Management considers all such adjustments to be of a normal recurring nature.The Consolidated Financial Information is

60、 presented in United States dollars($)unless otherwise stated.Due to rounding,numbers presented in the Consolidated Financial Information may not add to the totals provided.Certain amounts reported in the Consolidated Financial Information for prior periods have been reclassified to conform to the c

61、urrent years presentation,as mentioned below in this Note.Change in accounting policy Effective January 1,2025,the Company changed its accounting policy related to the functional classification of information system expenses in the income statement.Previously,the Company allocated information system

62、 expenses in the income statement to the functional area based on a headcount approach while,in connection with this change,information systems expenses are allocated to the relevant income statement caption based on the nature of the underlying system.The Companys consolidated financial statements

63、have been retroactively restated to reflect this accounting policy change.In connection with this change,the Company recorded a cumulative-effect reduction of$69 million to the balance of Retained earnings on January 1,2023,representing the impact of the policy change on Inventories and the related

64、deferred tax balance.The effect on Net income for the years 2023 and 2024 was not considered significant and therefore no changes have been recorded.As a result,the Companys Consolidated Balance Sheet amounts at December 31,2024,for Inventories,Deferred taxes(asset),and Retained earnings have change

65、d from$5,859 million,$1,341 million and$20,717 million,respectively,to$5,768 million,$1,363 million and$20,648 million,respectively.12 Q1 2025 FINANCIAL INFORMATION The following table details the reclassification of information systems expenses within the Consolidated Income Statement:Three months

66、ended March 31,2024 ($in millions)Before After Cost of sales of products 4,145 4,041 Cost of services and other 790 765 Selling,general and administrative expenses 1,381 1,528 Non-order related research and development expenses 363 345 Warranty provision split In 2025,the Company split the amount pr

67、eviously reported in Provision for warranties into current and non-current components and retroactively recast the amounts for all periods presented.The balance at December 31,2024,which was previously recorded on a combined basis,of$1,248 million has been reclassified into Provisions($686 million)a

68、nd Other non-current liabilities($562 million).See Note 10-Commitments and contingencies for additional information.Note 2 Recent accounting pronouncements Applicable for current periods Improvements to Income tax disclosures In January 2025,the Company adopted an accounting standard update which re

69、quires the Company to disclose additional information related to income taxes.Under the update,the Company is required to annually disclose by jurisdiction(i)additional disaggregated information within the tax rate reconciliation and(ii)income taxes paid.The Company is currently evaluating the impac

70、t of adopting this update prospectively or retrospectively on its consolidated financial statements.Apart from the additional disclosure requirements,this update does not have a significant impact on the Companys consolidated financial statements.Applicable for future periods Disaggregation of Incom

71、e Statement Expenses In November 2024,an accounting standard update was issued which requires the Company to disclose additional information for certain types of expenses,including purchases of inventory,employee compensation,depreciation,and amortization,presented in each relevant income statement

72、expense caption(such as cost of sales,selling,general and administrative expenses).This update is effective for the Company prospectively,with retrospective adoption permitted,for annual periods beginning January 1,2027,and interim periods beginning January 1,2028.The Company is currently evaluating

73、 the impact of adopting this update on its consolidated financial statements.Note 3 Acquisitions and divestments Acquisition of controlling interests Acquisitions of controlling interests were as follows:Three months ended March 31,($in millions,except number of acquired businesses)2025 2024 Purchas

74、e price for acquisitions(net of cash acquired)(1)546 29 Aggregate excess of purchase price over fair value of net assets acquired(2)426 29 Number of acquired businesses 3 2(1)Excluding changes in cost-and equity-accounted companies.(2)Recorded as goodwill.In the table above,the“Purchase price for ac

75、quisitions”and“Aggregate excess of purchase price over fair value of net assets acquired”in the three months ended March 31,2025,relate primarily to the acquisitions of Sensorfact BV and the Siemens Wiring Accessories Business in China.Acquisitions of controlling interests have been accounted for un

76、der the acquisition method and have been included in the Companys consolidated financial statements since the date of acquisition.On February 3,2025,the Company acquired all of the shares of Sensorfact BV.Sensorfact BV,headquartered in Utrecht,Netherlands,offers a scalable software as a service(SaaS

77、)solution that helps small and medium sized enterprises use AI in their operations and energy management to lower costs and increase efficiency.The cash outflows to complete the transaction amounted to$148 million(net of cash acquired).This acquisition will expand the Companys portfolio of energy ma

78、nagement solutions that use big data and AI within its Electrification segment.On March 3,2025,the Company acquired through numerous share and asset purchases all of the assets,liabilities and business activities of the Siemens Wiring Accessories Business in China.The Siemens Wiring Accessories Busi

79、ness offering,which distributes throughout China,includes wiring accessories,smart home systems,smart door locks and further peripheral home automation products.The cash outflows to complete the transaction amounted to$380 million(net of cash acquired).This acquisition will broaden the market reach

80、of the Companys Electrification segment and complement the segments regional customer offering within smart buildings.While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date,th

81、e purchase price allocation for acquisitions is preliminary for up to 12 months after the acquisition date and is subject to refinement as more detailed analyses are completed and additional information about the fair values of the assets and liabilities becomes available.13 Q1 2025 FINANCIAL INFORM

82、ATION Note 4 Cash and equivalents,marketable securities and short-term investments Cash and equivalents,marketable securities and short-term investments consisted of the following:March 31,2025 Marketable Gross Gross securities unrealized unrealized Cash and and short-term ($in millions)Cost basis g

83、ains losses Fair value equivalents investments Changes in fair value recorded in net income Cash 1,329 1,329 1,329 Time deposits 3,686 3,686 3,165 521 Equity securities 1,300 34(1)1,333 1,333 6,315 34(1)6,348 4,494 1,854 Changes in fair value recorded in other comprehensive income Debt securities av

84、ailable-for-sale:Other government obligations 12 12 12 12 12 12 Total 6,327 34(1)6,360 4,494 1,866 December 31,2024 Marketable Gross Gross securities unrealized unrealized Cash and and short-term ($in millions)Cost basis gains losses Fair value equivalents investments Changes in fair value recorded

85、in net income Cash 1,328 1,328 1,328 Time deposits 3,518 3,518 2,998 520 Equity securities 794 22(2)814 814 Total 5,640 22(2)5,660 4,326 1,334 14 Q1 2025 FINANCIAL INFORMATION Note 5 Derivative financial instruments The Company is exposed to certain currency,commodity and interest rate risks arising

86、 from its global operating,financing and investing activities.The Company uses derivative instruments to reduce and manage the economic impact of these exposures.Currency risk Due to the global nature of the Companys operations,many of its subsidiaries are exposed to currency risk in their operating

87、 activities from entering into transactions in currencies other than their functional currency.To manage such currency risks,the Companys policies require its subsidiaries to hedge their foreign currency exposures from binding sales and purchase contracts denominated in foreign currencies.For foreca

88、sted foreign currency denominated sales of standard products and the related foreign currency denominated purchases,the Companys policy is to hedge up to a maximum of 100 percent of the forecasted foreign currency denominated exposures,depending on the length of the forecasted exposures.Forecasted e

89、xposures greater than 12 months are not hedged.Forward foreign exchange contracts are the main instrument used to protect the Company against the volatility of future cash flows(caused by changes in exchange rates)of contracted and forecasted sales and purchases denominated in foreign currencies.In

90、addition,within its treasury operations,the Company primarily uses foreign exchange swaps and forward foreign exchange contracts to manage the currency and timing mismatches arising in its liquidity management activities.Commodity risk Various commodity products are used in the Companys manufacturin

91、g activities.Consequently,it is exposed to volatility in future cash flows arising from changes in commodity prices.To manage the price risk of commodities,the Companys policies require that its subsidiaries hedge the commodity price risk exposures from binding contracts,as well as at least 50 perce

92、nt(up to a maximum of 100 percent)of the forecasted commodity exposure over the next 12 months or longer(up to a maximum of 18 months).Primarily swap contracts are used to manage the associated price risks of commodities.Interest rate risk The Company has issued bonds at fixed rates.Interest rate sw

93、aps and cross-currency interest rate swaps are used to manage the interest rate and foreign currency risk associated with certain debt and generally such swaps are designated as fair value hedges.In addition,from time to time,the Company uses instruments such as interest rate swaps,interest rate fut

94、ures,bond futures or forward rate agreements to manage interest rate risk arising from the Companys balance sheet structure but does not designate such instruments as hedges.Volume of derivative activity In general,while the Companys primary objective in its use of derivatives is to minimize exposur

95、es arising from its business,certain derivatives are designated and qualify for hedge accounting treatment while others either are not designated or do not qualify for hedge accounting.Foreign exchange and interest rate derivatives The gross notional amounts of outstanding foreign exchange and inter

96、est rate derivatives(whether designated as hedges or not)were as follows:Type of derivative Total notional amounts at ($in millions)March 31,2025 December 31,2024 March 31,2024 Foreign exchange contracts 14,970 12,800 14,331 Embedded foreign exchange derivatives 1,409 1,159 1,106 Cross-currency inte

97、rest rate swaps 865 833 863 Interest rate contracts 1,625 1,510 3,075 Derivative commodity contracts The Company uses derivatives to hedge its direct or indirect exposure to the movement in the prices of commodities which are primarily copper,silver,steel and aluminum.The following table shows the n

98、otional amounts of outstanding derivatives(whether designated as hedges or not),on a net basis,to reflect the Companys requirements for these commodities:Type of derivative Unit Total notional amounts at March 31,2025 December 31,2024 March 31,2024 Copper swaps metric tonnes 37,364 40,699 38,116 Sil

99、ver swaps ounces 2,138,318 2,648,681 2,689,981 Steel swaps metric tonnes 18,144 20,185 10,251 Aluminum swaps metric tonnes 4,300 4,525 5,875 Cash flow hedges As noted above,the Company mainly uses forward foreign exchange contracts to manage the foreign exchange risk of its operations and commodity

100、swaps to manage its commodity risks.The Company applies cash flow hedge accounting in only limited cases.In these cases,the effective portion of the changes in their fair value is recorded in Accumulated other comprehensive loss and subsequently reclassified into earnings in the same line item and i

101、n the same period as the underlying hedged transaction affects earnings.For the three months ended March 31,2025 and 2024,there were no significant amounts recorded for cash flow hedge accounting activities.Fair value hedges To reduce its interest rate exposure arising primarily from its debt issuan

102、ce activities,the Company uses interest rate swaps and cross-currency interest rate swaps.Where such instruments are designated as fair value hedges,the changes in the fair value of these instruments,as well as the changes in the fair value of the risk component of the underlying debt being hedged,a

103、re recorded as offsetting gains and losses in Interest and other finance expense.15 Q1 2025 FINANCIAL INFORMATION The effect of derivative instruments,designated and qualifying as fair value hedges,on the Consolidated Income Statements was as follows:Three months ended March 31,($in millions)2025 20

104、24 Gains(losses)recognized in Interest and other finance expense:Interest rate contracts Designated as fair value hedges (5)13 Hedged item 5(14)Cross-currency interest rate swaps Designated as fair value hedges (1)(3)Hedged item 2 3 Derivatives not designated in hedge relationships Derivative instru

105、ments that are not designated as hedges or do not qualify as either cash flow or fair value hedges are economic hedges used for risk management purposes.Gains and losses from changes in the fair values of such derivatives are recognized in the same line in the income statement as the economically he

106、dged transaction.Furthermore,under certain circumstances,the Company is required to split and account separately for foreign currency derivatives that are embedded within certain binding sales or purchase contracts denominated in a currency other than the functional currency of the subsidiary and th

107、e counterparty.The gains(losses)recognized in the Consolidated Income Statements on derivatives not designated in hedging relationships were as follows:Type of derivative not Gains(losses)recognized in income designated as a hedge Three months ended March 31,($in millions)Location 2025 2024 Foreign

108、exchange contracts Total revenues 80(168)Total cost of sales(17)47 SG&A expenses(1)(19)13 Non-order related research and development (2)Interest and other finance expense 50 247 Embedded foreign exchange contracts Total revenues(2)18 Total cost of sales 3(4)Commodity contracts Total cost of sales 41

109、 9 Other Interest and other finance expense (2)Total 136 158(1)SG&A expenses represent“Selling,general and administrative expenses”.The fair values of derivatives included in the Consolidated Balance Sheets were as follows:March 31,2025 Derivative assets Derivative liabilities Current in Non-current

110、 in Current in Non-current in “Other current“Other non-current “Other current“Other non-current ($in millions)assets”assets”liabilities”liabilities”Derivatives designated as hedging instruments:Foreign exchange contracts Interest rate contracts 3 Cross-currency interest rate swaps 223 Other 3 Total

111、3 3 223 Derivatives not designated as hedging instruments:Foreign exchange contracts 102 19 103 8 Commodity contracts 25 3 Embedded foreign exchange derivatives 18 7 12 3 Other 1 1 1 Total 146 27 119 11 Total fair value 149 30 119 234 16 Q1 2025 FINANCIAL INFORMATION December 31,2024 Derivative asse

112、ts Derivative liabilities Current in Non-current in Current in Non-current in “Other current“Other non-current “Other current“Other non-current ($in millions)assets”assets”liabilities”liabilities”Derivatives designated as hedging instruments:Foreign exchange contracts 1 Interest rate contracts 7 Cro

113、ss-currency interest rate swaps 256 Other 4 Total 4 7 1 256 Derivatives not designated as hedging instruments:Foreign exchange contracts 151 17 111 15 Commodity contracts 4 20 Embedded foreign exchange derivatives 22 6 11 5 Other 5 Total 177 28 142 20 Total fair value 181 35 143 276 Close-out nettin

114、g agreements provide for the termination,valuation and net settlement of some or all outstanding transactions between two counterparties on the occurrence of one or more pre-defined trigger events.Although the Company is party to close-out netting agreements with most derivative counterparties,the f

115、air values in the tables above and in the Consolidated Balance Sheets at March 31,2025,and December 31,2024,have been presented on a gross basis.The Companys netting agreements and other similar arrangements allow net settlements under certain conditions.At March 31,2025,and December 31,2024,informa

116、tion related to these offsetting arrangements was as follows:($in millions)March 31,2025 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net asset similar arrangement assets in case of default received received exposure

117、Derivatives 154(80)74 Total 154(80)74 ($in millions)March 31,2025 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net liability similar arrangement liabilities in case of default pledged pledged exposure Derivatives 338(

118、80)258 Total 338(80)258 ($in millions)December 31,2024 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net asset similar arrangement assets in case of default received received exposure Derivatives 188(90)98 Total 188(90

119、)98 ($in millions)December 31,2024 Gross amount Derivative liabilities Cash Non-cash Type of agreement or of recognized eligible for set-off collateral collateral Net liability similar arrangement liabilities in case of default pledged pledged exposure Derivatives 403(90)313 Total 403(90)313 17 Q1 2

120、025 FINANCIAL INFORMATION Note 6 Fair values The Company uses fair value measurement principles to record certain financial assets and liabilities on a recurring basis and,when necessary,to record certain non-financial assets at fair value on a non-recurring basis,as well as to determine fair value

121、disclosures for certain financial instruments carried at amortized cost in the financial statements.Financial assets and liabilities recorded at fair value on a recurring basis include foreign currency,commodity and interest rate derivatives,as well as available-for-sale securities.Non-financial ass

122、ets recorded at fair value on a non-recurring basis include long-lived assets that are reduced to their estimated fair value due to impairments.Fair value is the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants a

123、t the measurement date.In determining fair value,the Company uses various valuation techniques including the market approach(using observable market data for identical or similar assets and liabilities),the income approach(discounted cash flow models)and the cost approach(using costs a market partic

124、ipant would incur to develop a comparable asset).Inputs used to determine the fair value of assets and liabilities are defined by a three-level hierarchy,depending on the nature of those inputs.The Company has categorized its financial assets and liabilities and non-financial assets measured at fair

125、 value within this hierarchy based on whether the inputs to the valuation technique are observable or unobservable.An observable input is based on market data obtained from independent sources,while an unobservable input reflects the Companys assumptions about market data.The levels of the fair valu

126、e hierarchy are as follows:Level 1:Valuation inputs consist of quoted prices in an active market for identical assets or liabilities(observable quoted prices).Assets and liabilities valued using Level 1 inputs include exchangetraded equity securities,listed derivatives which are actively traded such

127、 as commodity futures,interest rate futures and certain actively traded debt securities.Level 2:Valuation inputs consist of observable inputs(other than Level 1 inputs)such as actively quoted prices for similar assets,quoted prices in inactive markets and inputs other than quoted prices such as inte

128、rest rate yield curves,credit spreads,or inputs derived from other observable data by interpolation,correlation,regression or other means.The adjustments applied to quoted prices or the inputs used in valuation models may be both observable and unobservable.In these cases,the fair value measurement

129、is classified as Level 2 unless the unobservable portion of the adjustment or the unobservable input to the valuation model is significant,in which case the fair value measurement would be classified as Level 3.Assets and liabilities valued or disclosed using Level 2 inputs include investments in ce

130、rtain funds,certain debt securities that are not actively traded,interest rate swaps,cross-currency interest rate swaps,commodity swaps,forward foreign exchange contracts,foreign exchange swaps and forward rate agreements,time deposits,as well as financing receivables and debt.Level 3:Valuation inpu

131、ts are based on the Companys assumptions of relevant market data(unobservable input).Whenever quoted prices involve bid-ask spreads,the Company ordinarily determines fair values based on mid-market quotes.When determining fair values based on quoted prices in an active market,the Company considers i

132、f the level of transaction activity for the financial instrument has significantly decreased or would not be considered orderly.In such cases,the resulting changes in valuation techniques would be disclosed.If the market is considered disorderly or if quoted prices are not available,the Company is r

133、equired to use another valuation technique,such as an income approach.Recurring fair value measures The fair values of financial assets and liabilities measured at fair value on a recurring basis were as follows:March 31,2025 ($in millions)Level 1 Level 2 Level 3 Total fair value Assets Securities i

134、n“Marketable securities and short-term investments”:Equity securities 1,333 1,333 Debt securitiesOther government obligations 12 12 Derivative assetscurrent in“Other current assets”149 149 Derivative assetsnon-current in“Other non-current assets”30 30 Total 12 1,512 1,524 Liabilities Derivative liab

135、ilitiescurrent in“Other current liabilities”119 119 Derivative liabilitiesnon-current in“Other non-current liabilities”234 234 Total 353 353 December 31,2024 ($in millions)Level 1 Level 2 Level 3 Total fair value Assets Securities in“Marketable securities and short-term investments”:Equity securitie

136、s 814 814 Derivative assetscurrent in“Other current assets”181 181 Derivative assetsnon-current in“Other non-current assets”35 35 Total 1,030 1,030 Liabilities Derivative liabilitiescurrent in“Other current liabilities”143 143 Derivative liabilitiesnon-current in“Other non-current liabilities”276 27

137、6 Total 419 419 18 Q1 2025 FINANCIAL INFORMATION The Company uses the following methods and assumptions in estimating fair values of financial assets and liabilities measured at fair value on a recurring basis:Securities in“Marketable securities and short-term investments”:If quoted market prices in

138、 active markets for identical assets are available,these are considered Level 1 inputs;however,when markets are not active,these inputs are considered Level 2.If such quoted market prices are not available,fair value is determined using market prices for similar assets or present value techniques,ap

139、plying an appropriate risk-free interest rate adjusted for non-performance risk.The inputs used in present value techniques are observable and fall into the Level 2 category.Derivatives:The fair values of derivative instruments are determined using quoted prices of identical instruments from an acti

140、ve market,if available(Level 1 inputs).If quoted prices are not available,price quotes for similar instruments,appropriately adjusted,or present value techniques,based on available market data,or option pricing models are used.The fair values obtained using price quotes for similar instruments or va

141、luation techniques represent a Level 2 input unless significant unobservable inputs are used.Non-recurring fair value measures There were no significant non-recurring fair value measurements during the three months ended March 31,2025 and 2024.Disclosure about financial instruments carried on a cost

142、 basis The fair values of financial instruments carried on a cost basis were as follows:March 31,2025 ($in millions)Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents(excluding securities with original maturities up to 3 months):Cash 1,329 1,329 1,329 Time deposits 3

143、,165 3,165 3,165 Marketable securities and short-term investments (excluding securities):Time deposits 521 521 521 Liabilities Short-term debt and current maturities of long-term debt (excluding finance lease obligations)780 199 581 780 Long-term debt(excluding finance lease obligations)6,843 6,155

144、734 6,889 December 31,2024 ($in millions)Carrying value Level 1 Level 2 Level 3 Total fair value Assets Cash and equivalents(excluding securities with original maturities up to 3 months):Cash 1,328 1,328 1,328 Time deposits 2,998 2,998 2,998 Marketable securities and short-term investments (excludin

145、g securities):Time deposits 520 520 520 Liabilities Short-term debt and current maturities of long-term debt (excluding finance lease obligations)265 188 77 265 Long-term debt(excluding finance lease obligations)6,486 6,012 551 6,563 The Company uses the following methods and assumptions in estimati

146、ng fair values of financial instruments carried on a cost basis:Cash and equivalents(excluding securities with original maturities up to 3 months)and Marketable securities and short-term investments(excluding securities):The carrying amounts approximate the fair values as the items are short-term in

147、 nature or,for cash held in banks,are equal to the deposit amount.Short-term debt and current maturities of long-term debt(excluding finance lease obligations):Short-term debt includes commercial paper,bank borrowings and overdrafts.The carrying amounts of short-term debt and current maturities of l

148、ong-term debt,excluding finance lease obligations,approximate their fair values.Long-term debt(excluding finance lease obligations):Fair values of bonds are determined using quoted market prices(Level 1 inputs),if available.For bonds without available quoted market prices and other long-term debt,th

149、e fair values are determined using a discounted cash flow methodology based upon borrowing rates of similar debt instruments and reflecting appropriate adjustments for non-performance risk(Level 2 inputs).19 Q1 2025 FINANCIAL INFORMATION Note 7 Contract assets and liabilities The following table pro

150、vides information about Contract assets and Contract liabilities:($in millions)March 31,2025 December 31,2024 March 31,2024 Contract assets 1,210 1,115 1,135 Contract liabilities 3,248 2,969 2,866 Contract assets primarily relate to the Companys right to receive consideration for work completed but

151、for which no invoice has been issued at the reporting date.Contract assets are transferred to receivables when rights to receive payment become unconditional.Management expects that the majority of the amounts will be collected within one year of the respective balance sheet date.Contract liabilitie

152、s primarily relate to up-front advances received on orders from customers as well as amounts invoiced to customers in excess of revenues recognized predominantly on long-term projects.Contract liabilities are reduced as work is performed and as revenues are recognized.The significant changes in the

153、Contract assets and Contract liabilities balances were as follows:Three months ended March 31,2025 2024 Contract Contract Contract Contract ($in millions)assets liabilities assets liabilities Revenue recognized,which was included in the Contract liabilities balance at Jan 1,2025/2024 (673)(724)Addit

154、ions to Contract liabilities-excluding amounts recognized as revenue during the period 877 819 Receivables recognized that were included in the Contract assets balance at Jan 1,2025/2024(392)(408)The Company considers its order backlog to represent its unsatisfied performance obligations.At March 31

155、,2025,the Company had unsatisfied performance obligations totaling$23,036 million and,of this amount,the Company expects to fulfill approximately 60 percent of the obligations in 2025,approximately 24 percent of the obligations in 2026 and the balance thereafter.Note 8 Supplier finance programs The

156、Company has several supplier finance programs,all with similar characteristics,with various financial institutions acting as paying agent.These programs allow qualifying suppliers access to bank facilities which permit earlier payment at a cost to the supplier.The Companys payment terms related to s

157、uppliers finance programs are not impacted by the suppliers decisions to sell amounts under the arrangements and are typically consistent with local market practices.Outstanding supplier finance obligations are included in Accounts payable,trade in the Consolidated Balance Sheets and are reported as

158、 operating or investing(if capitalized)activities in the Consolidated Statement of Cash Flows when paid.At March 31,2025,and December 31,2024,the total obligation outstanding under supplier finance programs amounted to$439 million and$435 million,respectively.Note 9 Debt The Companys total debt at M

159、arch 31,2025,and December 31,2024,amounted to$7,820 million and$6,945 million,respectively.Short-term debt and current maturities of long-term debt The Companys“Short-term debt and current maturities of long-term debt”consisted of the following:($in millions)March 31,2025 December 31,2024 Short-term

160、 debt 588 83 Current maturities of long-term debt 217 210 Total 805 293 Short-term debt primarily represented issued commercial paper and short-term bank borrowings from various banks.At March 31,2025,$508 million was outstanding under the$2 billion Euro-commercial paper program,no amount was outsta

161、nding under this program at December 31,2024.20 Q1 2025 FINANCIAL INFORMATION Long-term debt The Companys long-term debt at March 31,2025,and December 31,2024,amounted to$7,015 million and$6,652 million,respectively.Significant long-term borrowings(including maturities within the next 12 months)were

162、 as follows:March 31,2025 December 31,2024 (in millions)Nominal outstanding Carrying value(1)Nominal outstanding Carrying value(1)Bonds:2.1%CHF Bonds,due 2025 CHF 150$170 CHF 150$166 1.965%CHF Bonds,due 2026 CHF 325$368 CHF 325$359 3.25%EUR Instruments,due 2027 EUR 500$539 EUR 500$518 0.75%CHF Bonds

163、,due 2027 CHF 425$481 CHF 425$468 3.8%USD Notes,due 2028(2)USD 383$382 USD 383$382 1.9775%CHF Bonds,due 2028 CHF 150$170 CHF 150$165 3.125%EUR Instruments,due 2029 EUR 500$543 EUR 500$523 1.0%CHF Bonds,due 2029 CHF 170$192 CHF 170$188 0%EUR Instruments,due 2030 EUR 800$759 EUR 800$727 2.375%CHF Bond

164、s,due 2030 CHF 150$170 CHF 150$165 3.375%EUR Instruments,due 2031 EUR 750$801 EUR 750$770 Floating rate EIB R&D Loan,due 2031 USD 539$539 USD 539$539 2.1125%CHF Bonds,due 2033 CHF 275$311 CHF 275$303 3.375%EUR Instruments,due 2034 EUR 750$807 EUR 750$780 4.375%USD Notes,due 2042(2)USD 609$591 USD 60

165、9$591 Total$6,823$6,644(1)USD carrying values include unamortized debt issuance costs,bond discounts or premiums,as well as adjustments for fair value hedge accounting,where appropriate.(2)Prior to completing a cash tender offer in November 2020,the original principal amount outstanding,on each of t

166、he 3.8%USD Notes,due 2028,and the 4.375%USD Notes,due 2042,was USD 750 million.Note 10 Commitments and contingencies ContingenciesRegulatory,Compliance and Legal General The Company is subject to proceedings,litigation or threatened litigation and other claims and inquiries related to various regula

167、tory,commercial and other matters.The Company assesses the likelihood of any adverse judgments or outcomes to these matters,as well as potential ranges of probable losses.A determination of the provision required,if any,for these contingencies is made after analysis of each individual issue,with ass

168、istance,when necessary,from internal and external legal counsel and technical experts.At March 31,2025,and December 31,2024,the Company had aggregate liabilities of$45 million and$83 million,respectively,included in Provisions and Other noncurrent liabilities,for the regulatory,compliance and legal

169、contingencies,and none of the individual liabilities recognized was significant.As it is not possible to make an informed judgment on,or reasonably predict,the outcome of certain matters and as it is not possible,based on information currently available to management,to estimate the maximum potentia

170、l liability on other matters,there could be adverse outcomes beyond the amounts accrued.Guarantees General The following table provides quantitative data regarding the Companys third-party guarantees.The maximum potential payments represent a“worst-case scenario”,and do not reflect managements expec

171、ted outcomes.Maximum potential payments($in millions)March 31,2025 December 31,2024 Performance guarantees 2,043 2,299 Financial guarantees 20 22 Total(1)2,063 2,321(1)Maximum potential payments include amounts in both continuing and discontinued operations.The carrying amount of liabilities recorde

172、d in the Consolidated Balance Sheets reflects the Companys best estimate of future payments,which it may incur as part of fulfilling its guarantee obligations.In respect of the above guarantees,the carrying amounts of liabilities at March 31,2025,and December 31,2024,were not significant.The Company

173、 is party to various guarantees providing financial or performance assurances to certain third parties.These guarantees,which have various maturities up to 2034,mainly consist of performance guarantees whereby(i)the Company guarantees the performance of a third partys product or service according to

174、 the terms of a contract and(ii)as member of a consortium/joint-venture that includes third parties,the Company guarantees not only its own performance but also the work of third parties.Such guarantees may include guarantees that a project will be completed within a specified time.If the third part

175、y does not fulfill the obligation,the Company will compensate the guaranteed party in cash or in kind.The original maturity dates for the majority of these performance guarantees range from one to ten years.In conjunction with the divestment of the high-voltage cable and cables accessories businesse

176、s in 2017,the Company has entered into various performance guarantees with other parties with respect to certain liabilities of the divested business.At March 31,2025,and December 31,2024,the maximum potential payable under these guarantees amounts to$784 million and$747 million,respectively,and the

177、se guarantees have various original maturities up to ten years.21 Q1 2025 FINANCIAL INFORMATION The Company retained obligations for financial and performance guarantees related to its former Power Grids business(reported as discontinued operations prior to its sale to Hitachi Ltd in 2020),which at

178、both March 31,2025,and December 31,2024,have been fully indemnified by Hitachi Ltd.These guarantees,having various maturities up to 2034,primarily consist of bank guarantees,standby letters of credit,business performance guarantees and other trade-related guarantees,the majority of which have origin

179、al maturity dates ranging from one to ten years.The maximum amount payable under these guarantees at March 31,2025,and December 31,2024,is approximately$0.9 billion and$1.1 billion,respectively.Commercial commitments In addition,in the normal course of bidding for and executing certain projects,the

180、Company has entered into standby letters of credit,bid/performance bonds and surety bonds(collectively“performance bonds”)with various financial institutions.Customers can draw on such performance bonds in the event that the Company does not fulfill its contractual obligations.The Company would then

181、 have an obligation to reimburse the financial institution for amounts paid under the performance bonds.At March 31,2025,and December 31,2024,the total outstanding performance bonds aggregated to$3.3 billion and$3.2 billion,respectively.There have been no significant amounts reimbursed to financial

182、institutions under these types of arrangements in the three months ended March 31,2025 and 2024.Product and order-related contingencies The Company calculates its provision for product warranties based on historical claims experience and specific review of certain contracts.The reconciliation of the

183、 Provisions for warranties,including guarantees of product performance,was as follows:($in millions)2025 2024 Balance at January 1,1,248 1,210 Claims paid in cash or in kind(43)(37)Net increase in provision for changes in estimates,warranties issued and warranties expired 59 55 Exchange rate differe

184、nces 29(37)Balance at March 31,1,293 1,191 Included in:”Provisions”current liabilities 693 621 ”Other non-current liabilities”non-current liabilities 600 570 Provisions for warranties-Total 1,293 1,191 Note 11 Employee benefits The Company operates defined benefit pension plans,defined contribution

185、pension plans,and termination indemnity plans,in accordance with local regulations and practices.At March 31,2025,the Companys most significant defined benefit pension plans are in Switzerland as well as in Germany,the United Kingdom,and the United States.These plans cover a large portion of the Com

186、panys employees and provide benefits to employees in the event of death,disability,retirement,or termination of employment.Certain of these plans are multi-employer plans.The Company also operates other postretirement benefit plans including postretirement health care benefits and other employee-rel

187、ated benefits for active employees including long-service award plans.The postretirement benefit plans are not significant.The measurement date used for the Companys employee benefit plans is December 31.The funding policies of the Companys plans are consistent with the local government and tax requ

188、irements.Net periodic benefit cost of the Companys defined benefit pension plans consists of the following:($in millions)Defined pension benefits Switzerland International Three months ended March 31,2025 2024 2025 2024 Operational pension cost:Service cost 13 11 6 8 Operational pension cost 13 11 6

189、 8 Non-operational pension cost(credit):Interest cost 5 9 38 39 Expected return on plan assets(27)(31)(41)(43)Amortization of prior service cost(credit)(2)(1)(1)Amortization of net actuarial loss 12 13 Non-operational pension cost(credit)(22)(24)8 8 Net periodic benefit cost(credit)(9)(13)14 16 The

190、components of net periodic benefit cost other than the service cost component are included in the line Non-operational pension cost(credit)in the Consolidated Income Statements.Employer contributions were as follows:($in millions)Defined pension benefits Switzerland International Three months ended

191、March 31,2025 2024 2025 2024 Total contributions to defined benefit pension plans 15 13 9 11 The Company expects to make contributions totaling approximately$87 million to its defined benefit pension plans for the full year 2025.22 Q1 2025 FINANCIAL INFORMATION Note 12 Stockholders equity At the Ann

192、ual General Meeting of Shareholders on March 27,2025,shareholders approved the proposal of the Board of Directors to distribute 0.90 Swiss francs per share to shareholders.The declared dividend,scheduled for payment in the second quarter of 2025,amounted to$1,867 million.In February 2025,the Company

193、 announced the completion of its$1 billion share buyback program that was launched in April 2024.This program was executed on a second trading line on the SIX Swiss Exchange.Also in February 2025,the Company launched a new share buyback program of up to$1.5 billion,as announced in late January 2025.

194、This program,which is being executed on a second trading line on the SIX Swiss Exchange,is planned to run until January 2026.Under these buyback programs,the Company purchased approximately 6 million shares in the three months ended March 31,2025,resulting in an increase in Treasury stock of$314 mil

195、lion.Note 13 Earnings per share Basic earnings per share is calculated by dividing income by the weighted-average number of shares outstanding during the period.Diluted earnings per share is calculated by dividing income by the weighted-average number of shares outstanding during the period,assuming

196、 that all potentially dilutive securities were exercised,if dilutive.Potentially dilutive securities comprise outstanding written call options,and outstanding options and shares granted subject to certain conditions under the Companys share-based payment arrangements.Basic earnings per share Three m

197、onths ended March 31,($in millions,except per share data in$)2025 2024 Amounts attributable to ABB shareholders:Income from continuing operations,net of tax 1,103 906 Loss from discontinued operations,net of tax (1)(1)Net income 1,102 905 Weighted-average number of shares outstanding(in millions)1,8

198、36 1,839 Basic earnings per share attributable to ABB shareholders:Income from continuing operations,net of tax 0.60 0.49 Loss from discontinued operations,net of tax Net income 0.60 0.49 Diluted earnings per share Three months ended March 31,($in millions,except per share data in$)2025 2024 Amounts

199、 attributable to ABB shareholders:Income from continuing operations,net of tax 1,103 906 Loss from discontinued operations,net of tax (1)(1)Net income 1,102 905 Weighted-average number of shares outstanding(in millions)1,836 1,839 Effect of dilutive securities:Call options and shares 5 13 Adjusted w

200、eighted-average number of shares outstanding(in millions)1,841 1,852 Diluted earnings per share attributable to ABB shareholders:Income from continuing operations,net of tax 0.60 0.49 Loss from discontinued operations,net of tax Net income 0.60 0.49 23 Q1 2025 FINANCIAL INFORMATION Note 14 Reclassif

201、ications out of accumulated other comprehensive loss The following table shows changes in“Accumulated other comprehensive loss”(OCI)attributable to ABB,by component,net of tax:Unrealized gains Pension and Foreign currency(losses)on other Derivative translation available-for-sale postretirement instr

202、uments ($in millions)adjustments securities plan adjustments and hedges Total OCI Balance at January 1,2024(3,977)(8)(1,075)(10)(5,070)Other comprehensive(loss)income:Other comprehensive(loss)income before reclassifications 115(1)27 141 Amounts reclassified from OCI 6 3 9 Total other comprehensive(l

203、oss)income 115(1)33 3 150 Less:Amounts attributable to noncontrolling interests and redeemable noncontrolling interests(16)(16)Balance at March 31,2024(3,846)(9)(1,042)(7)(4,904)Unrealized gains Pension and Foreign currency(losses)on other Derivative translation available-for-sale postretirement ins

204、truments ($in millions)adjustments securities plan adjustments and hedges Total OCI Balance at January 1,2025(4,248)(3)(1,091)(8)(5,350)Other comprehensive(loss)income:Other comprehensive(loss)income before reclassifications 188 3(26)(1)164 Amounts reclassified from OCI 8 3 11 Total other comprehens

205、ive(loss)income 188 3(18)2 175 Less:Amounts attributable to noncontrolling interests and redeemable noncontrolling interests 6 6 Balance at March 31,2025(4,066)(1,109)(6)(5,181)The amounts reclassified out of OCI for the three months ended March 31,2025 and 2024,were not significant.Note 15 Operatin

206、g segment data The Chief Operating Decision Maker(CODM)is the Chief Executive Officer.The CODM allocates resources to and assesses the performance of each operating segment using the information outlined below.The Company is organized into the following segments,based on products and services:Electr

207、ification,Motion,Process Automation and Robotics&Discrete Automation.The remaining operations of the Company are included in Corporate and Other.Effective January 1,2025,the Company changed its accounting policy related to the functional classification of information system expenses in the income st

208、atement.Under the new policy,information systems expenses are now allocated to the relevant income statement caption based on the nature of the underlying system and the Total segment assets of each individual operating segment have been retroactively restated for the impact of the policy change on

209、Inventories and the related deferred tax balance(see Note 1).The segment information for the three months ended March 31,2024,and at December 31,2024,has been recast to reflect this change.A description of the types of products and services provided by each reportable segment is as follows:Electrifi

210、cation:manufactures and sells electrical products and solutions which are designed to provide the efficient and reliable distribution of electricity from source to socket.The portfolio of increasingly digital and connected solutions includes renewable power solutions,modular substation packages,dist

211、ribution automation products,switchboards and panelboards,switchgear,UPS solutions,circuit breakers,measuring and sensing devices,control products,wiring accessories,enclosures and cabling systems and intelligent home and building solutions,designed to integrate and automate lighting,heating,ventila

212、tion,security and data communication networks.The products and services are delivered through five operating Divisions:Distribution Solutions,Smart Power,Smart Buildings,Installation Products and Service.24 Q1 2025 FINANCIAL INFORMATION Motion:designs,manufactures,and sells drives,motors,generators

213、and traction converters that are driving the low-carbon future for industries,cities,infrastructure and transportation.These products,digital technology and related services enable industrial customers to increase energy efficiency,improve safety and reliability,and achieve precise control of their

214、processes.Building on over 140 years of cumulative experience in electric powertrains,Motion combines domain expertise and technology to deliver the optimum solution for a wide range of applications in all industrial segments.In addition,Motion,along with its partners,has a leading global service pr

215、esence.These products and services are delivered through seven operating Divisions:Large Motors and Generators,IEC LV Motors,NEMA Motors,Drive Products,System Drives,Service and Traction.Process Automation:offers a broad range of industry-specific,integrated automation,electrification and digital so

216、lutions,as well as lifecycle services for the process,hybrid and marine industries.The product portfolio includes control technologies,industrial software,advanced analytics,sensing and measurement technology,and marine propulsion systems.In addition,Process Automation offers a comprehensive range o

217、f services,from repair to advanced digital capabilities such as remote monitoring,preventive maintenance,asset performance management,emission monitoring and cybersecurity.The products,systems and services are delivered through four operating Divisions:Energy Industries,Process Industries,Marine&Por

218、ts and Measurement&Analytics.Robotics&Discrete Automation:delivers its products,solutions and services through two operating Divisions.Robotics provides industrial and collaborative robots,autonomous mobile robotics,mapping and navigation solutions,robotic solutions,field services,spare parts and di

219、gital services.Machine Automation specializes in automation solutions based on its programmable logic controllers(PLC),industrial PCs(IPC),servo motion,transport systems and machine vision.Both divisions offer software across the entire life cycle,including engineering and simulation software as wel

220、l as a comprehensive range of digital solutions.Corporate and Other:Corporate includes headquarter costs,the Companys corporate real estate activities and Corporate Treasury while Other includes the E-mobility operating segment and other non-core operating activities as well as the operating activit

221、ies of certain divested businesses.The primary measure of profitability on which the operating segments are evaluated is Operational EBITA,which represents income from operations excluding:amortization expense on intangibles arising upon acquisition(acquisition-related amortization),restructuring,re

222、lated and implementation costs,changes in the amount recorded for obligations related to divested businesses occurring after the divestment date(changes in obligations related to divested businesses),gains and losses from sale of businesses(including fair value adjustment on assets and liabilities h

223、eld for sale,if any),acquisition-and divestment-related expenses and integration costs,certain other non-operational items,as well as foreign exchange/commodity timing differences in income from operations consisting of:(a)unrealized gains and losses on derivatives(foreign exchange,commodities,embed

224、ded derivatives),(b)realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized,and(c)unrealized foreign exchange movements on receivables/payables(and related assets/liabilities).Certain other non-operational items generally includes certain regulatory

225、,compliance and legal costs,certain asset write downs/impairments and certain other fair value changes,as well as other items which are determined by management on a case-by-case basis.For all operating segments,the primary performance measure the CODM uses to allocate resources(including capital ex

226、penditure and financial resources)and assess performance as part of the monthly business review process is Operational EBITA.As part of this review process,current year-to-date budget-to-actual variances are provided(inclusive of key deviations)along with forecasted annual expectations and plans to

227、address any negative variances.Operational EBITA is also used to assess segment performance against targets set in the annual incentive plans as part of the compensation of the Companys employees.The CODM primarily reviews the results of each segment on a basis that is before the elimination of prof

228、its made on inventory sales between segments.Segment results below are presented before these eliminations,with a total deduction for intersegment profits to arrive at the Companys consolidated Operational EBITA.Intersegment sales and transfers are accounted for as if the sales and transfers were to

229、 third parties,at current market prices.For a category of expense to be classified as a significant segment expense,it must be significant to the segment,regularly provided to or easily computed from information regularly provided to the CODM and included in the primary measure of profitability.Sign

230、ificant segment expenses include Operational cost of sales,Operational selling,general and administrative expenses,and Operational non-order related research and development costs,which respectively are comprised of Cost of sales,Selling,general and administrative expenses(excluding bad debt expense

231、),and Non-order related research and development costs,with each of these expense categories being adjusted to exclude any costs incurred on behalf of other segments and any relevant non-operational items(as defined above).Other segment items represent Other income(expense)excluding its respective c

232、omponents of non-operational items(as defined above),bad debt expense,and foreign exchange/commodity timing differences in total revenues.25 Q1 2025 FINANCIAL INFORMATION The following tables present disaggregated segment revenues from contracts with customers,significant segment expenses,and Operat

233、ional EBITA for the three months ended March 31,2025 and 2024.Three months ended March 31,2025 Robotics&Process Discrete Corporate ($in millions)Electrification Motion Automation Automation and Other Total Geographical markets Europe 1,154 540 684 356 39 2,773 The Americas 1,692 635 437 124 30 2,918

234、 of which:United States 1,357 524 284 72 20 2,257 Asia,Middle East and Africa 935 536 502 259 12 2,244 of which:China 408 243 131 172 4 958 3,781 1,711 1,623 739 81 7,935 Product type Products 3,522 1,456 922 597 70 6,567 Services and other 259 255 701 142 11 1,368 3,781 1,711 1,623 739 81 7,935 Thi

235、rd-party revenues 3,781 1,711 1,623 739 81 7,935 Intersegment revenues 44 129 10 5(188)Total revenues(1)3,825 1,840 1,633 744(107)7,935 Operational cost of sales(2,189)(1,113)(975)(480)Operational selling,general and administrative expenses(650)(289)(306)(149)Operational non-order related research a

236、nd development expenses(105)(73)(78)(46)Other segment items 5(5)(19)5 Operational EBITA 886 360 255 74 Three months ended March 31,2024 Robotics&Process Discrete Corporate ($in millions)Electrification Motion Automation Automation and Other Total Geographical markets Europe 1,154 488 555 490 61 2,74

237、8 The Americas 1,529 630 447 140 43 2,789 of which:United States 1,186 516 285 85 38 2,110 Asia,Middle East and Africa 936 558 593 231 15 2,333 of which:China 415 256 165 157 5 998 3,619 1,676 1,595 861 119 7,870 Product type Products 3,380 1,395 911 711 106 6,503 Services and other 239 281 684 150

238、13 1,367 3,619 1,676 1,595 861 119 7,870 Third-party revenues 3,619 1,676 1,595 861 119 7,870 Intersegment revenues 61 153 6 3(223)Total revenues(1)3,680 1,829 1,601 864(104)7,870 Operational cost of sales(2,163)(1,179)(1,013)(527)Operational selling,general and administrative expenses(600)(263)(281

239、)(166)Operational non-order related research and development expenses(106)(79)(75)(56)Other segment items 15 35 21(2)Operational EBITA 826 343 253 113 26 Q1 2025 FINANCIAL INFORMATION The following tables present Operational EBITA,the reconciliations of consolidated Operational EBITA to Income from

240、continuing operations before taxes,as well as Depreciation and amortization,and Capital expenditures for the three months ended March 31,2025 and 2024,and Total assets at March 31,2025,and December 31,2024:Three months ended March 31,($in millions)2025 2024 Operational EBITA:Electrification 886 826

241、Motion 360 343 Process Automation 255 253 Robotics&Discrete Automation 74 113 Corporate and Other E-mobility(47)(54)Corporate costs,intersegment eliminations and other 69(64)Total 1,597 1,417 Acquisition-related amortization(45)(56)Restructuring,related and implementation costs(1)(16)(26)Changes in

242、obligations related to divested businesses 1 Gains and losses from sale of businesses 11(2)Acquisition-and divestment-related expenses and integration costs(9)(19)Foreign exchange/commodity timing differences in income from operations:Unrealized gains and losses on derivatives(foreign exchange,commo

243、dities,embedded derivatives)78(77)Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized 1 Unrealized foreign exchange movements on receivables/payables(and related assets/liabilities)(29)42 Certain other non-operational items:Other income/expense

244、relating to the Power Grids joint venture 3 8 Business transformation costs(2)(44)(50)Certain other fair value changes,including asset impairments 16(14)Other non-operational items 4(7)Income from operations 1,567 1,217 Interest and dividend income 54 57 Interest and other finance expense(47)(37)Non

245、-operational pension(cost)credit 14 16 Income from continuing operations before taxes 1,588 1,253(1)Includes impairment of certain assets.(2)Amount includes ABB Way process transformation costs of$43 million and$46 million for the three months ended March 31,2025 and 2024,respectively.($in millions)

246、Depreciation and amortization Capital expenditures(1)Three months ended March 31,2025 2024 2025 2024 Electrification 103 94 79 84 Motion 42 38 46 44 Process Automation 17 14 14 15 Robotics&Discrete Automation 22 37 19 21 Corporate and Other 12 18 37 17 Consolidated 196 201 195 181(1)Capital expendit

247、ures are after intersegment eliminations and therefore reflect third-party assets only.Total assets(1)($in millions)March 31,2025 December 31,2024 Electrification 14,387 13,089 Motion 6,960 6,870 Process Automation 5,383 5,308 Robotics&Discrete Automation 4,777 4,753 Corporate and Other 10,957 10,26

248、8 Consolidated 42,464 40,288(1)Total assets are after intersegment eliminations and therefore reflect third-party assets only.27 Q1 2025 FINANCIAL INFORMATION 28 Q1 2025 FINANCIAL INFORMATION Supplemental Reconciliations and Definitions The following reconciliations and definitions include alternati

249、ve performance measures which ABB uses to supplement its Consolidated Financial Information(unaudited)which is prepared in accordance with United States generally accepted accounting principles(U.S.GAAP).Certain of these financial measures are not defined under U.S.GAAP.While ABBs management believe

250、s that the measures herein are useful in evaluating ABBs operating results,this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S.GAAP.Therefore these measures should not be viewed in isolation but

251、 considered together with the Consolidated Financial Information(unaudited)prepared in accordance with U.S.GAAP as of and for the three months ended March 31,2025.Effective January 1,2025,ABB changed its accounting policy related to the functional classification of its information system expenses in

252、 the income statement.As a result,the consolidated financial statements for 2024 and 2023 have been retroactively restated to reflect this accounting policy change.See Note 1-The Company and basis of presentation for details.Comparable growth rates Growth rates for certain key figures may be present

253、ed and discussed on a“comparable”basis.The comparable growth rate measures growth on a constant currency basis.Since we are a global company,the comparability of our operating results reported in U.S.dollars is affected by foreign currency exchange rate fluctuations.We calculate the impacts from for

254、eign currency fluctuations by translating the current-year periods reported key figures into U.S.dollar amounts using the exchange rates in effect for the comparable periods in the previous year.Comparable growth rates are also adjusted for changes in our business portfolio.Adjustments to our busine

255、ss portfolio occur due to acquisitions,divestments,or by exiting specific business activities or customer markets.The adjustment for portfolio changes is calculated as follows:where the results of any business acquired or divested have not been consolidated and reported for the entire duration of bo

256、th the current and comparable periods,the reported key figures of such business are adjusted to exclude the relevant key figures of any corresponding quarters which are not comparable when computing the comparable growth rate.Certain portfolio changes which do not qualify as divestments under U.S.GA

257、AP have been treated in a similar manner to divestments.Changes in our portfolio where we have exited certain business activities or customer markets are adjusted as if the relevant business was divested in the period when the decision to cease business activities was taken.We do not adjust for port

258、folio changes where the relevant business has annualized revenues of less than$50 million.The following tables provide reconciliations of reported growth rates of certain key figures to their respective comparable growth rate.Comparable growth rate reconciliation by Business Area Q1 2025 compared to

259、 Q1 2024 Order growth rate Revenue growth rate US$Foreign US$Foreign (as exchange Portfolio (as exchange Portfolio Business Area reported)impact changes Comparable reported)impact changes Comparable Electrification 0%3%-1%2%4%2%0%6%Motion-6%2%0%-4%1%2%0%3%Process Automation 19%4%0%23%2%3%0%5%Robotic

260、s&Discrete Automation 14%3%0%17%-14%3%0%-11%ABB Group 3%2%0%5%1%2%0%3%29 Q1 2025 FINANCIAL INFORMATION Regional comparable growth rate reconciliation Regional comparable growth rate reconciliation for ABB Group-Quarter Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$Foreign US$F

261、oreign (as exchange Portfolio (as exchange Portfolio Region reported)impact changes Comparable reported)impact changes Comparable Europe-2%3%0%1%1%3%0%4%The Americas 8%2%1%11%5%2%1%8%of which:United States 9%0%0%9%7%0%1%8%Asia,Middle East and Africa 2%3%-1%4%-4%3%-1%-2%of which:China 13%2%-2%13%-4%1

262、%-1%-4%ABB Group 3%2%0%5%1%2%0%3%Regional comparable growth rate reconciliation by Business Area-Quarter Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$Foreign US$Foreign (as exchange Portfolio (as exchange Portfolio Region reported)impact changes Comparable reported)impact cha

263、nges Comparable Europe-7%3%0%-4%0%3%0%3%The Americas 4%2%0%6%11%2%0%13%of which:United States 7%1%-2%6%14%1%-1%14%Asia,Middle East and Africa 3%2%-1%4%-2%3%-1%0%of which:China 8%1%-3%6%-2%1%-2%-3%Electrification 0%3%-1%2%4%2%0%6%Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$Fo

264、reign US$Foreign (as exchange Portfolio (as exchange Portfolio Region reported)impact changes Comparable reported)impact changes Comparable Europe-3%3%0%0%9%3%0%12%The Americas 6%2%0%8%0%2%0%2%of which:United States 9%1%0%10%1%0%0%1%Asia,Middle East and Africa-19%1%0%-18%-7%3%0%-4%of which:China 7%2

265、%0%9%-6%2%0%-4%Motion-6%2%0%-4%1%2%0%3%Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$Foreign US$Foreign (as exchange Portfolio (as exchange Portfolio Region reported)impact changes Comparable reported)impact changes Comparable Europe 6%4%0%10%24%4%0%28%The Americas 22%5%0%27%-

266、2%2%0%0%of which:United States 14%0%0%14%-1%1%0%0%Asia,Middle East and Africa 36%2%0%38%-16%2%0%-14%of which:China 56%0%0%56%-20%0%0%-20%Process Automation 19%4%0%23%2%3%0%5%Q1 2025 compared to Q1 2024 Order growth rate Revenue growth rate US$Foreign US$Foreign (as exchange Portfolio (as exchange Po

267、rtfolio Region reported)impact changes Comparable reported)impact changes Comparable Europe 10%3%0%13%-27%3%0%-24%The Americas 21%7%0%28%-11%4%0%-7%of which:United States 1%0%0%1%-15%0%0%-15%Asia,Middle East and Africa 16%3%0%19%12%2%0%14%of which:China 4%2%0%6%10%1%0%11%Robotics&Discrete Automation

268、 14%3%0%17%-14%3%0%-11%30 Q1 2025 FINANCIAL INFORMATION Order backlog growth rate reconciliation March 31,2025 compared to March 31,2024 US$Foreign (as exchange Portfolio Business Area reported)impact changes Comparable Electrification 11%0%0%11%Motion 2%0%0%2%Process Automation 10%0%0%10%Robotics&D

269、iscrete Automation-21%0%0%-21%ABB Group 5%0%0%5%Other growth rate reconciliations Q1 2025 compared to Q1 2024 Service orders growth rate Services revenues growth rate US$Foreign US$Foreign (as exchange Portfolio (as exchange Portfolio Business Area reported)impact changes Comparable reported)impact

270、changes Comparable Electrification 19%3%-8%14%8%3%-6%5%Motion 13%4%0%17%-9%3%0%-6%Process Automation 5%3%0%8%3%2%0%5%Robotics&Discrete Automation-5%3%0%-2%-5%2%0%-3%ABB Group 9%4%-2%11%0%3%-1%2%31 Q1 2025 FINANCIAL INFORMATION Operational EBITA as%of operational revenues(Operational EBITA margin)Def

271、inition Operational EBITA margin Operational EBITA margin is Operational EBITA as a percentage of operational revenues.Operational EBITA Operational earnings before interest,taxes and acquisition-related amortization(Operational EBITA)represents Income from operations excluding:acquisition-related a

272、mortization(as defined below),restructuring,related and implementation costs,changes in the amount recorded for obligations related to divested businesses occurring after the divestment date(changes in obligations related to divested businesses),gains and losses from sale of businesses(including fai

273、r value adjustment on assets and liabilities held for sale,if any),acquisition-and divestment-related expenses and integration costs,certain other non-operational items,as well as foreign exchange/commodity timing differences in income from operations consisting of:(a)unrealized gains and losses on

274、derivatives(foreign exchange,commodities,embedded derivatives),(b)realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized,and(c)unrealized foreign exchange movements on receivables/payables(and related assets/liabilities).Certain other non-operation

275、al items generally includes certain regulatory,compliance and legal costs,certain asset write downs/impairments and certain other fair value changes,as well as other items which are determined by management on a case-by-case basis.Operational EBITA is our measure of segment profit but is also used b

276、y management to evaluate the profitability of the Company as a whole.Acquisition-related amortization Amortization expense on intangibles arising upon acquisitions.Restructuring,related and implementation costs Restructuring,related and implementation costs consists of restructuring and other relate

277、d expenses,as well as internal and external costs relating to the implementation of group-wide restructuring programs.Operational revenues The Company presents operational revenues solely for the purpose of allowing the computation of Operational EBITA margin.Operational revenues are Total revenues

278、adjusted for foreign exchange/commodity timing differences in total revenues of:(i)unrealized gains and losses on derivatives,(ii)realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized,and(iii)unrealized foreign exchange movements on receivables(an

279、d related assets).Operational revenues are not intended to be an alternative measure to Total revenues,which represent our revenues measured in accordance with U.S.GAAP.Reconciliation The following tables provide reconciliations of consolidated Operational EBITA to Net Income and Operational EBITA m

280、argin by business.Reconciliation of consolidated Operational EBITA to Net Income Three months ended March 31,($in millions)2025 2024 Operational EBITA 1,597 1,417 Acquisition-related amortization(45)(56)Restructuring,related and implementation costs(1)(16)(26)Changes in obligations related to divest

281、ed businesses 1 Gains and losses from sale of businesses 11(2)Acquisition-and divestment-related expenses and integration costs(9)(19)Certain other non-operational items(21)(63)Foreign exchange/commodity timing differences in income from operations 49(34)Income from operations 1,567 1,217 Interest a

282、nd dividend income 54 57 Interest and other finance expense(47)(37)Non-operational pension(cost)credit 14 16 Income from continuing operations before taxes 1,588 1,253 Income tax expense(469)(339)Income from continuing operations,net of tax 1,119 914 Loss from discontinued operations,net of tax(1)(1

283、)Net income 1,118 913(1)Includes impairment of certain assets.32 Q1 2025 FINANCIAL INFORMATION Reconciliation of Operational EBITA margin by business Three months ended March 31,2025 Corporate and Robotics&Other and Process Discrete Intersegment ($in millions,unless otherwise indicated)Electrificati

284、on Motion Automation Automation elimination Consolidated Total revenues 3,825 1,840 1,633 744(107)7,935 Foreign exchange/commodity timing differences in total revenues:Unrealized gains and losses on derivatives(34)(9)(23)(2)(3)(71)Realized gains and losses on derivatives where the underlying hedged

285、transaction has not yet been realized(1)1(5)(5)Unrealized foreign exchange movements on receivables(and related assets)30 5 9 8 3 55 Operational revenues 3,820 1,837 1,614 750(107)7,914 Income(loss)from operations 922 361 263 56(35)1,567 Acquisition-related amortization 26 9 4 7(1)45 Restructuring,r

286、elated and implementation costs(1)6 2 2 5 1 16 Changes in obligations related to divested businesses (1)(1)Gains and losses from sale of businesses(11)(11)Acquisition-and divestment-related expenses and integration costs 10 1 1 2(5)9 Certain other non-operational items(31)6(2)48 21 Foreign exchange/

287、commodity timing differences in income from operations:Unrealized gains and losses on derivatives (foreign exchange,commodities,embedded derivatives)(57)(23)(19)21(78)Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized 1 1(2)Unrealized foreign e

288、xchange movements on receivables/payables (and related assets/liabilities)20 3 8 4(6)29 Operational EBITA 886 360 255 74 22 1,597 Operational EBITA margin(%)23.2%19.6%15.8%9.9%n.a.20.2%(1)Includes impairment of certain assets.In the three months ended March 31,2025,Certain other non-operational item

289、s in the table above includes the following:Three months ended March 31,2025 Robotics&Process Discrete Corporate ($in millions,unless otherwise indicated)Electrification Motion Automation Automation and Other Consolidated Certain other non-operational items:Other income/expense relating to the Power

290、 Grids joint venture (3)(3)Business transformation costs(1)1 2 41 44 Certain other fair values changes,including asset impairments(25)3(2)8(16)Other non-operational items(7)1 2(4)Total(31)6(2)48 21(1)Amounts include ABB Way process transformation costs of$43 million for the three months ended March

291、31,2025.33 Q1 2025 FINANCIAL INFORMATION Three months ended March 31,2024 Corporate and Robotics&Other and Process Discrete Intersegment ($in millions,unless otherwise indicated)Electrification Motion Automation Automation elimination Consolidated Total revenues 3,680 1,829 1,601 864(104)7,870 Forei

292、gn exchange/commodity timing differences in total revenues:Unrealized gains and losses on derivatives 47 46 44 6 5 148 Realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized(3)2 (1)Unrealized foreign exchange movements on receivables(and related as

293、sets)(31)(17)(21)(11)(2)(82)Operational revenues 3,693 1,858 1,626 859(101)7,935 Income(loss)from operations 769 301 234 91(178)1,217 Acquisition-related amortization 23 9 1 21 2 56 Restructuring,related and implementation costs(1)10 8 7 1 26 Gains and losses from sale of businesses 2 2 Acquisition-

294、and divestment-related expenses and integration costs 10 2 7 19 Certain other non-operational items 3 3 1 56 63 Foreign exchange/commodity timing differences in income from operations:Unrealized gains and losses on derivatives (foreign exchange,commodities,embedded derivatives)22 33 22 4(4)77 Realiz

295、ed gains and losses on derivatives where the underlying hedged transaction has not yet been realized(1)1 (1)(1)Unrealized foreign exchange movements on receivables/payables (and related assets/liabilities)(10)(11)(12)(6)(3)(42)Operational EBITA 826 343 253 113(118)1,417 Operational EBITA margin(%)22

296、.4%18.5%15.6%13.2%n.a.17.9%(1)Includes impairment of certain assets.In the three months ended March 31,2024,Certain other non-operational items in the table above includes the following:Three months ended March 31,2024 Robotics&Process Discrete Corporate ($in millions,unless otherwise indicated)Elec

297、trification Motion Automation Automation and Other Consolidated Certain other non-operational items:Other income/expense relating to the Power Grids joint venture (8)(8)Business transformation costs(1)2 1 1 46 50 Certain other fair values changes,including asset impairments 1 2 11 14 Other non-opera

298、tional items 7 7 Total 3 3 1 56 63(1)Amounts include ABB Way process transformation costs of$46 million for the three months ended March 31,2024.34 Q1 2025 FINANCIAL INFORMATION Net debt Definition Net debt Net debt is defined as Total debt less Cash and marketable securities.Total debt Total debt i

299、s the sum of Short-term debt and current maturities of long-term debt,and Long-term debt.Cash and marketable securities Cash and marketable securities is the sum of Cash and equivalents and Marketable securities and short-term investments.Reconciliation ($in millions)March 31,2025 December 31,2024 S

300、hort-term debt and current maturities of long-term debt 805 293 Long-term debt 7,015 6,652 Total debt 7,820 6,945 Cash and equivalents 4,494 4,326 Marketable securities and short-term investments 1,866 1,334 Cash and marketable securities 6,360 5,660 Net debt 1,460 1,285 Net debt/Equity ratio Defini

301、tion Net debt/Equity ratio Net debt/Equity ratio is defined as Net debt divided by Equity.Equity Equity is defined as Total stockholders equity.Reconciliation ($in millions,unless otherwise indicated)March 31,2025 December 31,2024 Total stockholders equity 14,111 15,060 Net debt(as defined above)1,4

302、60 1,285 Net debt/Equity ratio 0.10 0.09 Net debt/EBITDA ratio Definition Net debt/EBITDA ratio Net debt/EBITDA ratio is defined as Net debt divided by EBITDA.EBITDA EBITDA is defined as Income from operations for the trailing twelve months preceding the balance sheet date before depreciation and am

303、ortization for the same trailing twelve-month period.Reconciliation ($in millions,unless otherwise indicated)March 31,2025 March 31,2024 Income from operations for the three months ended:June 30,2024/2023 1,376 1,298 September 30,2024/2023 1,309 1,259 December 31,2024/2023 1,169 1,116 March 31,2025/

304、2024 1,567 1,217 Depreciation and Amortization for the three months ended:June 30,2024/2023 202 196 September 30,2024/2023 194 194 December 31,2024/2023 205 199 March 31,2025/2024 196 201 EBITDA 6,218 5,680 Net debt(as defined above)1,460 2,086 Net debt/EBITDA 0.2 0.4 35 Q1 2025 FINANCIAL INFORMATIO

305、N Net working capital Definition Net working capital Net working capital is the sum of(i)receivables,net,(ii)contract assets,(iii)inventories,net,and(iv)prepaid expenses;less(v)accounts payable,trade,(vi)contract liabilities and(vii)other current liabilities(excluding primarily:(a)income taxes payab

306、le,(b)current derivative liabilities,(c)pension and other employee benefits,(d)payables under the share buyback program and(e)liabilities related to certain other restructuring-related activities);and including the amounts related to these accounts which have been presented as either assets or liabi

307、lities held for sale.Reconciliation ($in millions,unless otherwise indicated)March 31,2025 March 31,2024 Net working capital:Receivables,net 7,560 7,385 Contract assets 1,210 1,135 Inventories,net 6,070 6,079 Prepaid expenses 354 314 Accounts payable,trade(5,032)(5,018)Contract liabilities(3,248)(2,

308、866)Other current liabilities(1)(3,543)(3,532)Net working capital 3,371 3,497(1)Amounts exclude$952 million and$1,063 million at March 31,2025 and 2024,respectively,related primarily to(a)income taxes payable,(b)current derivative liabilities,(c)pension and other employee benefits,(d)payables under

309、the share buyback program and(e)liabilities related to certain restructuring-related activities.36 Q1 2025 FINANCIAL INFORMATION Average trade net working capital as a percentage of revenues Definition Average trade net working capital as a percentage of revenues Average trade net working capital as

310、 a percentage of revenues is calculated as Average trade net working capital divided by Total revenues for the trailing twelve months(being the total revenues recorded by ABB in the twelve months preceding the relevant balance sheet date).Average trade net working capital Average trade net working c

311、apital is calculated as the average of the opening and closing Trade net working capital for each of the four quarters during the trailing twelve-month period(4-quarter average)Trade net working capital Trade net working capital is the sum of(i)trade receivables(comprised of trade accounts receivabl

312、e net of related allowance,presented within Receivables,net,on the Consolidated Balance Sheets),(ii)contract assets,and(iii)inventories,net;less(iv)accounts payable,trade,(v)contract liabilities and(vi)accrued expenses,operating(comprised of accruals related to customer rebates,unpaid interest and o

313、ther general operating expenses;all of which are presented within Other current liabilities on the Consolidated Balance Sheets);and including the amounts related to these accounts which have been presented as either assets or liabilities held for sale.Reconciliation March 31,December 31,September 30

314、,June 30,March 31,($in millions,unless otherwise indicated)2025 2024 2024 2024 2024 Trade net working capital:Trade receivables 6,887 6,816 6,821 6,898 6,790 Contract assets 1,210 1,115 1,236 1,118 1,135 Inventories,net 6,070 5,768 6,465 6,166 6,079 Accounts payable,trade(5,032)(5,036)(5,167)(5,118)

315、(5,018)Contract liabilities(3,248)(2,969)(3,081)(2,973)(2,866)Accrued expenses,operating(1,223)(1,266)(1,363)(1,266)(1,302)Trade net working capital in assets and liabilities held for sale 20 Trade net working capital 4,664 4,428 4,931 4,825 4,818 Average of opening and closing Trade net working cap

316、ital 4,546 4,680 4,878 4,822 Average trade net working capital 4,732 Total revenues for the three months ended:June 30,2024 8,239 September 30,2024 8,151 December 31,2024 8,590 March 31,2025 7,935 Total revenues for the trailing twelve months 32,915 Average trade net working capital as a percentage

317、of revenues(%)14.4%March 31,December 31,September 30,June 30,March 31,($in millions,unless otherwise indicated)2024 2023 2023 2023 2023 Trade net working capital:Trade receivables 6,790 6,822 6,863 6,786 6,532 Contract assets 1,135 1,090 1,073 1,010 1,009 Inventories,net 6,079 6,058 6,241 6,357 6,17

318、8 Accounts payable,trade(5,018)(4,847)(4,777)(4,881)(4,945)Contract liabilities(2,866)(2,844)(2,610)(2,394)(2,339)Accrued expenses,operating(1,302)(1,445)(1,524)(1,341)(1,354)Trade net working capital in assets and liabilities held for sale 143 138 Trade net working capital 4,818 4,834 5,266 5,680 5

319、,219 Average of opening and closing Trade net working capital 4,826 5,050 5,473 5,450 Average trade net working capital 5,200 Total revenues for the three months ended:June 30,2023 8,163 September 30,2023 7,968 December 31,2023 8,245 March 31,2024 7,870 Total revenues for the trailing twelve months

320、32,246 Average trade net working capital as a percentage of revenues(%)16.1%37 Q1 2025 FINANCIAL INFORMATION Return on Capital employed(ROCE)In the first quarter of 2025,the Company modified its definition of Return on Capital employed(ROCE)to utilize a four-quarter average of Capital employed in pl

321、ace of a simple average of the annual periods opening and closing Capital employed.The change in averaging method allows a comparable ratio that can be presented quarterly compared to our previous annual disclosure.In addition,a fixed notional tax rate(subject to review for significant changes)is us

322、ed.The new definition is provided below.Definition Return on Capital employed(ROCE)Return on Capital employed(ROCE)is calculated as Operational EBITA after tax for the trailing twelve months divided by the average of the opening and closing Capital employed for each of the four quarters during the t

323、railing twelve-month period(4-quarter average).Capital employed Capital employed is calculated as the sum of Adjusted total fixed assets and Net working capital(as defined above).Adjusted total fixed assets Adjusted total fixed assets is the sum of(i)property,plant and equipment,net,(ii)goodwill,(ii

324、i)other intangible assets,net,(iv)investments in equity-accounted companies,(v)operating lease right-of-use assets,and(vi)fixed assets included in assets held for sale,less(vii)deferred tax liabilities recognized in certain acquisitions.Notional tax on Operational EBITA The Notional tax on Operation

325、al EBITA is computed using a consistent notional tax rate,approximately representative of the Companys weighted-average global tax rate,multiplied by Operational EBITA.The notional tax rate is subject to adjustment for significant changes in the Companys weighted-average global tax rate.Reconciliati

326、on March 31,December 31,September 30,June 30,March 31,($in millions,unless otherwise indicated)2025 2024 2024 2024 2024 Adjusted total fixed assets:Property,plant and equipment,net 4,301 4,177 4,248 4,095 4,047 Goodwill 11,088 10,555 10,582 10,525 10,494 Other intangible assets,net 1,183 1,048 1,036

327、 1,089 1,128 Investments in equity-accounted companies 377 368 185 189 178 Operating lease right-of-use assets 861 840 873 861 863 Fixed assets included in assets held for sale 176 Total fixed assets 17,810 16,988 17,100 16,759 16,710 Less:Deferred taxes recognized in certain acquisitions(1)(231)(24

328、2)(253)(265)(281)Adjusted total fixed assets 17,579 16,746 16,847 16,494 16,429 Net working capital-(as defined above)3,371 2,739 3,512 3,516 3,497 Capital employed 20,950 19,485 20,359 20,010 19,926 Average of opening and closing Capital employed 20,218 19,922 20,185 19,968 Operational EBITA for th

329、e three months ended 1,597 1,434 1,553 1,564 Operational EBITA for the trailing twelve months 6,148 Notional tax on Operational EBITA(1,537)Operational EBITA after tax for the trailing twelve months 4,611 Average Capital employed(4 quarters)20,073 Return on Capital Employed(ROCE)23.0%(1)Amount relat

330、es to GEIS acquired in 2018,B&R acquired in 2017,Thomas&Betts acquired in 2012 and Baldor acquired in 2011.38 Q1 2025 FINANCIAL INFORMATION March 31,December 31,September 30,June 30,March 31,($in millions,unless otherwise indicated)2024 2023 2023 2023 2023 Adjusted total fixed assets:Property,plant

331、and equipment,net 4,047 4,142 3,891 3,923 3,888 Goodwill 10,494 10,561 10,356 10,420 10,381 Other intangible assets,net 1,128 1,223 1,181 1,257 1,285 Investments in equity-accounted companies 178 187 186 154 153 Operating lease right-of-use assets 863 893 850 852 870 Fixed assets included in assets

332、held for sale 293 290 Total fixed assets 16,710 17,006 16,464 16,899 16,867 Less:Deferred taxes recognized in certain acquisitions(1)(281)(297)(312)(328)(343)Adjusted total fixed assets 16,429 16,709 16,152 16,571 16,524 Net working capital-(as defined above)3,497 3,166 3,950 4,494 4,073 Capital emp

333、loyed 19,926 19,875 20,102 21,065 20,597 Average of opening and closing Capital employed 19,901 19,989 20,584 20,831 Operational EBITA for the three months ended 1,417 1,333 1,392 1,425 Operational EBITA for the trailing twelve months 5,567 Notional tax on Operational EBITA(1,392)Operational EBITA after tax for the trailing twelve months 4,175 Average Capital employed(4 quarters)20,326 Return on C