William Mackie's questions to ABB (ABLZF) leadership • Q4 2024
Question
William Mackie of Kepler Cheuvreux questioned the guidance for 'similar' free cash flow in 2025, asking for the key offsetting factors given expected revenue growth, margin expansion, and improved working capital.
Answer
Executive Morten Wierod explained that the primary reason is an increase in CapEx investments, specifically to expand existing facilities in high-growth markets like North America and India to support the Electrification business. Executive Ann-Sofie Nordh confirmed that higher CapEx is the main factor tempering the free cash flow outlook.