ABB Ltd

ABB's $32.9 billion revenue (2024) flows from electrification (data centers, grid modernization) and automation (industrial robotics, process control), but the company is executing strategic autophagy - spinning off its $2.3 billion Robotics division (Q2 2026) to concentrate capital on higher-margin segments. The Robotics unit's 12.1% margin lags core Electrification (18%+ margins), creating resource misallocation. By shedding robotics, ABB redirects investment to surging demand: $120 million in two U.S. manufacturing sites for low-voltage products, $210 million in North American electrification R&D/manufacturing (2025) targeting AI data centers consuming gigawatts. This is controlled calving - deliberately splitting off viable businesses when integration costs exceed specialization gains. Q3 2025 delivered 11% revenue growth and 19.2% operational margin, with Electrification capturing value from power needs of AI infrastructure. The company's 20.2% Q1 2025 margin proves focus works: ABB serves secular growth drivers (electrification, labor shortage automation, decarbonization) but refuses to subsidize underperforming divisions. With 105,000 employees and sustainability progress (78% CO2 reduction vs. 2019, approaching 2030's 80% target), ABB demonstrates that in diversified industrials, portfolio pruning unlocks value when market characteristics diverge - robotics faces cyclical discrete automation weakness while electrification rides structural demand.