By Ed Frankl

ABB Ltd. said Thursday that its electric-vehicle charging business, which it intends to list in the second quarter of 2022, was targeting strong 2022 growth as it takes advantage of a ramp up in the pivot to more sustainable transport.

Ahead of a capital markets day, ABB said it is targeting revenue growth in the E-Mobility unit of 40%-45% in 2022, and growth of 25%-30% in the midterm.

The Swiss technology company also guided for operational earnings before interest, taxes, depreciation, and amortization at the unit to break even in 2022, and for a midterm margin of 15%-20%.

ABB said at its fourth-quarter earnings last week that it expects to list the unit in 2Q, a week after beefing up its charging infrastructure offering with an acquisition of U.S.-based InCharge Energy.

To support its growth story, ABB said E-Mobility has a funding need of around $750 million to finance acquisitions and organic growth investments.

The business achieved $323 million in revenue in 2021, after taking a compound annual growth rate of around 60% between 2017 and 2021, driven by accelerating order growth, the Zurich-based company added.

As announced earlier this week, Michael Halbherr has been appointed the new chairman of the E-Mobility business, ABB said.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

February 10, 2022 06:59 ET (11:59 GMT)

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