ABB: Morten Wierod to Replace CEO Björn Rosengren

ABB announced Björn Rosengren will be retiring as CEO and will be replaced by company veteran Morten Wierod from July 31. Rosengren lived up to his reputation as a turnaround specialist during his tenure at ABB, playing a pivotal role in improving the group’s EBITA margin from 11% to 17%, through decentralization and portfolio management. We believe the departure of Rosengren confirms our view mentioned in our earnings note on Feb. 1, “ABB Earnings: Margins Reached Record Levels; Slight Improvement in Fiscal 2024 Guidance,” that the major components of the restructuring have largely been completed and therefore, we don’t expect material operating margin improvement in future. We maintain our CHF 36.50 fair value estimate and view shares as fairly valued.