Few European companies can keep pace with American competition while also withstanding the growing pressure from Chinese industry. Among the exceptions are the Swedish-Swiss group ABB and the German industrial giant Siemens. Both companies have managed to tap into the current growth in demand for data centers, automation, and energy-efficient infrastructure being built around the world.
ABB Benefits from Demand for Data Centers and Infrastructure
ABB, formerly Asea Brown Boveri, is a major Swedish-Swiss multinational engineering and technology company headquartered in Zurich, Switzerland. It was formed in 1988 through the merger of the Swedish company Asea and the Swiss firm Brown, Boveri & Cie. It focuses on electrification, automation, robotics, and drive technologies designed to increase energy efficiency and industrial productivity worldwide.
Today, the company benefits from strong momentum, supported by its strategic position at the intersection of industrial automation and clean energy infrastructure. A comprehensive view of ABB reveals that its financial results and sustainability metrics are closely linked. The company’s main products are designed to help reduce carbon emissions through electrification and automation.
In the first quarter of 2026, ABB reported significant financial growth. Total orders increased by 32% to $11.3 billion, representing a 24% year-over-year increase. Revenue rose 18% year-over-year to $8.7 billion. This growth was driven primarily by the electrification business, where orders rose by 44% due to demand for artificial intelligence data centers and infrastructure.
In terms of profitability, ABB reached an important milestone in the first quarter of 2026. The EBITDA operating margin reached 23.5%, representing a year-over-year increase of 320 basis points. Even after adjusting for one-time real estate sales, core margins remained strong, confirming the company’s strong operational efficiency. Return on capital employed (ROCE) reached 27.2%.
In the second quarter of 2026, ABB expects year-over-year growth in comparable revenue in the high single-digit to low double-digit percentage range. The EBITDA operating margin is expected to improve year-over-year. For the full year 2026, the company expects a positive book-to-bill ratio and year-over-year growth in comparable revenue in the high single-digit to low double-digit percentage range. The EBITDA margin is expected to improve even after excluding the gain from the sale of real estate in the first quarter of 2026.
At the same time, ABB is making significant progress toward meeting its sustainability goals. Compared to the baseline year of 2019, ABB has reduced its Scope 1 greenhouse gas emissions—emissions released directly from sources owned or controlled by the organization—and Scope 2 emissions—emissions generated outside the organization but associated with purchased or procured energy—by 79%.
However, ABB’s greatest contribution to sustainability lies in the impact of its products on customers. Advanced products sold to customers in 2025 alone helped them avoid 80 megatons of CO2 emissions over their lifecycle. ABB is also working toward its long-term ambition to help customers prevent 600 megatons of greenhouse gas emissions between 2022 and 2030. The company has already switched 98% of its operational electricity consumption to renewable sources. By 2030, it aims to send zero waste to landfills; today, only 5.3% of its waste ends up there.
Key Metrics for ABB, Ltd.
| in billions of dollars | Year-over-year change (%) |
Market Capitalization (June 1, 2026) | 192.64 | +80.88 |
Revenue (Q1 2026) | 8.73 | +18.29 |
Net income (Q1 2026) | 1.32 | +20.01 |
Source: ABB’s Q1 2026 Earnings Report
Siemens Maintains Strong Growth and Its Position as a European Giant
Siemens AG is a German multinational corporation focused on industrial automation, building automation, rail transportation, and healthcare technologies. It is the largest engineering company in Europe and a global leader in industrial artificial intelligence, automation, and industrial software.
The company’s roots date back to 1847, when Werner von Siemens and Johann Georg Halske founded the company Telegraphen Bau-Anstalt von Siemens & Halske in Berlin. The current corporation was formed in 1966 through the merger of three companies: Siemens & Halske, Siemens-Schuckert, and Siemens-Reiniger-Werke. Today, Siemens is headquartered in Munich and Berlin and, together with its subsidiaries, employs approximately 320,000 people worldwide.
Following the close of the fiscal year, Siemens reported a strong start to fiscal year 2026. Orders on a comparable basis rose by 10% to 21.4 billion EUR, or 24.9 billion USD. This growth was driven primarily by demand for data centers in the Smart Infrastructure segment.
Industrial profit rose by 15% to 2.9 billion euros, or 3.34 billion USD. The profit margin of the Industrial Division thus rose to 15.6%. At the same time, company management officially raised its target for earnings per share before PPA for fiscal year 2026 to a range of 10.70 to 11.10 EUR. Previously, it had projected a range of 10.40 to 11.00 EUR. In dollar terms, this amounts to approximately 12.45 to 12.90 USD, compared to the previous range of 12.10 to 12.80 USD.
In addition to its financial results, Siemens evaluates, implements, and advances its environmental and social commitments through its comprehensive ESG framework, DEGREE. This framework encompasses decarbonization, ethics, governance, resource efficiency, equality, and employability.
Siemens has reduced its Scope 1 and Scope 2 operational greenhouse gas emissions by 66% compared to the baseline year of 2019. By 2030, it aims to achieve an absolute 90% reduction. Since 2021, the company has reduced the amount of waste sent to landfills by 52% and is moving closer to its goal of zero landfill.
Key Performance Indicators for Siemens AG
| in billions of dollars | Year-over-year change (%) |
Market Capitalization (June 1, 2026) | 249.12 | +27.62 |
Revenue (Q1 2026) | 22.27 | +4.31 |
Net income (Q1 2026) | 2.58 | -42.64 |
Source: Siemens Earnings Report for the First Quarter of 2026
Both companies have a strong outlook, with ABB currently showing better momentum
Both ABB and Siemens are among Europe’s industrial leaders, well-positioned against competition from the United States and China. Both companies are also benefiting from the same wave of demand for electrification, automation, artificial intelligence, and data centers.
However, when comparing current results, ABB had a relatively stronger quarter. Its orders rose by 32%, revenue by 18%, the EBITDA margin reached 23.5%, and return on invested capital stood at 27.2%. ABB also reports more advanced results in operational decarbonization, having reduced Scope 1 and 2 emissions by 79% and sourcing 98% of its electricity from renewable sources.
Siemens remains the larger group in terms of market capitalization, which stands at $249 billion compared to ABB’s $193 billion. It is also larger in terms of revenue. At the same time, it raised its full-year outlook thanks to a 10% increase in orders and a 15% rise in industrial profit. However, its reported net income fell by approximately 43% year-over-year, and it also lags behind ABB in reducing operational emissions.
From an investor’s perspective, ABB currently offers stronger momentum and profitability. Siemens, on the other hand, offers greater scale, a broader industrial base, and a well-structured sustainability framework. In both cases, however, these are value investments that remain attractive even in today’s unstable world.
