Berenberg Expects Capacity Expansion, 'Record' Backlog to Set Up ABB's Continued Growth

02:00 AM EDT, 10/23/2026 (MT Newswires) -- Berenberg forecasts continued revenue and margin expansion for ABB (ABBN.SW, ABB.ST), bolstered by the engineering and technology company's "record" $32.26 billion backlog and "incremental" capacity going live. "ABB's Q3 2026 results demonstrated its operational strength, led by strong data center order momentum within Electrification that underpinned an order beat with no signs of deceleration. Revenue grew by double digits yoy, driven by higher volumes, while sequential pricing benefits and operating leverage drove 160bp of margin expansion," analysts said Thursday. The research firm added that ABB reported "broadly in line" third-quarter results, including 14% year-over-year revenue growth to $9.70 billion, and expects similar growth in the fourth quarter. Additionally, the company narrowed its full-year 2026 revenue outlook to the top end of the low-teens target range, with operational EBITA margins projected to expand by at least 270 basis points. Berenberg said the implied margin is "broadly" consistent with market expectations, excluding the impact of real estate gains. Analysts added that they view the $500 million joint venture with Mitsubishi Electric targeting Japan's low-voltage sector as "sensible and not overvalued." However, the research firm's hold rating remains unchanged, with a price target of 80 francs, as analysts said that ABB trades at a premium relative to the wider sector.