William Mackie's questions to Abb Ltd (ABLZF) leadership • Q4 2024
Question
William Mackie of Kepler Cheuvreux asked for the rationale behind the 'similar' free cash flow guidance for 2025 compared to 2024, given expectations for strong revenue growth and margin expansion.
Answer
CEO Morten Wierod identified increased CapEx as the primary reason, specifying that investments are being directed towards expanding existing facilities in high-growth markets like North America and India, particularly for the Electrification business. Executive Ann-Sofie Nordh confirmed that higher CapEx is the main offsetting factor.