Chief Executive Officer, ABB
Morten Wierod, ABB, on the Shift from Energy Transition to Energy Expansion
The energy transition is increasingly becoming an energy expansion, as electrification, industrial growth and AI-driven demand accelerate the need for reliable electricity. In this episode, Morten Wierod, CEO and President of ABB (https://www.ceraweek.com/en/speakers/...) , joins Atul to discuss how rising power demand is reshaping priorities for grids, infrastructure and industrial systems worldwide.
The conversation highlights why grid resilience is emerging as a national security issue, illustrated by the 2025 blackout in Spain and Portugal that left 65 million people without power...
About Morten Wierod
Morten Wierod, CEO of ABB, discussed the company's second-quarter 2026 results during an earnings call on July 16, 2026. He reported that the quarter set new records for both orders and revenues, with good earnings growth, solid margin improvement, and strong cash flow, stating that "things progressed more or less as planned" and that the company delivered on its guidance. Wierod highlighted three recently announced acquisitions, including the Italian company Special Trasfo, which specializes in medium voltage transformers, and noted that combined they would add approximately 3.5% to ABB's 2025 revenues. He clarified that ABB is "not going back into the general power" with the Special Trasfo acquisition. Regarding the data center market segment, Wierod addressed questions about the sustainability of order intake, stating that the company sees a "very strong pipeline" and that large customers have clear capital allocation and investment plans. He noted that ABB does not take orders it cannot commit to executing on schedule. On the topic of acquisition multiples, Wierod said that at a 19.5 times multiple, the company sees synergy opportunities—primarily commercial and growth-related—that would bring the multiple into the mid-teens, and that the acquired business is "a high performing business" that will be accretive to earnings per share in the second year.
Transcript (44 segments)
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Atul Arya0:06
Welcome to the CERAWeek podcast. I'm Atul Arya, chief energy strategist at S&P Global. This episode explores technology, automation, and electrification. Our guest is Morten Wierod, CEO of ABB. Morten, welcome.
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Morten Wierod1:15
Thanks a lot, Atul. Great to be here.
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Atul Arya1:16
I should remind my audience that ABB is a 140-year-old company. How is your business changing because of the power demand for AI data centers?
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Morten Wierod1:31
The demand for power has been increasing. Five years ago it was about the energy transition, now it's energy expansion. The world needs more energy faster. The data center boom is accelerating electricity consumption. This changes ABB's business across generation, transmission, and distribution. We're doing well.
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Atul Arya2:30
Nice to have a strong market behind you. Do you see this growth more in the US or Europe?
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Morten Wierod2:39
Electricity consumption is rising everywhere. The strongest increase is in the US due to industrial electrification and data centers. Decarbonization projects like electric steel are driving demand globally.
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Atul Arya3:23
You mentioned expansion mode. What about resilience? How is energy resilience changing?
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Morten Wierod3:35
The blackout in Spain and Portugal was a wakeup call. 65 million people without power for 8 hours. Grid resilience is now a must-have for national security. Attacks on power grids in Ukraine show it's critical.
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Atul Arya4:36
It's good to have electricity. In Boston we had a snowstorm and lost power for a day. Very important.
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Morten Wierod4:58
Absolutely.
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Atul Arya4:58
Let's talk about electrification of everything. Do you see any limits?
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Morten Wierod5:08
No limits if we build grid resilience. Electric is the cheapest and safest for most applications: buildings, transport, industry. Electric motors are more efficient. Steel production is switching to electric furnaces for competitiveness.
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Atul Arya6:39
Both of us are engineers. Explain why electric motors are more efficient due to no combustion.
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Morten Wierod6:53
Yes, and you can regenerate energy when braking. On trains, this reduces fuel consumption.
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Atul Arya7:18
Engineering lesson. Let's talk about automation. How does it make systems more resilient?
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Morten Wierod7:32
Automation makes industries leaner, cleaner, more productive. It enables load management on the grid, reducing peaks. In industry, it improves process control and reduces waste.
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Atul Arya9:12
And now you're adding AI to automation. How is that going?
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Morten Wierod9:16
AI allows us to create AI agents that make domain knowhow available 24/7, like cloning service engineers for customer sites to improve uptime.
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Atul Arya10:36
You serve multiple industries, not just energy. Everywhere automation is needed.
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Morten Wierod10:51
Any process industries, oil and gas, manufacturing, mining, discrete manufacturing. ABB supports them all to be more productive and competitive.
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Atul Arya11:08
The grid is falling behind. What is needed in the US and Europe compared to China?
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Morten Wierod11:30
Both need massive investment. The grid is aging. China invested heavily in the last 20 years. US and Europe have older infrastructure needing renewal and automation. US is putting lines underground due to extreme weather.
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Atul Arya12:44
In Europe, what is happening on the grid? Are you repowering?
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Morten Wierod12:52
Different challenges. Renewables need synchronous condensers for stability. Germany is replacing nuclear with gas. Massive grid investments everywhere because energy availability drives competitiveness.
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Atul Arya14:41
Engineering lesson: inertia. You provide technology to manage that?
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Morten Wierod15:02
Yes, both software and hardware to bring inertia and prevent blackouts.
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Atul Arya15:16
Are you experiencing supply chain bottlenecks?
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Morten Wierod15:24
We have ramped up capacity well. High demand for medium-voltage switchgear for distribution and data centers. We are investing more capacity.
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Atul Arya16:00
So you're expanding capacity?
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Morten Wierod16:04
Absolutely. Massive expansion in the US and India following a local-for-local strategy to mitigate tariff and currency risks.
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Atul Arya16:46
That's a good strategy for trade and tariffs.
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Morten Wierod16:55
Yes, it's long-term. I worked in China for four years to build self-sufficiency there.
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Atul Arya17:16
Tell us about energy efficiency and optimization.
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Morten Wierod17:34
Energy efficiency is central. Many electric motors are inefficient. Upgrading them could save over 10% of global electricity, with payback in less than a year. We help customers invest in these upgrades.
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Atul Arya19:36
10% is huge. Think of the power plants not needed.
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Morten Wierod19:45
Yes, massive capex reduction. Efficiency helps get more equipment online and supports industrial transitions.
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Atul Arya20:18
How do we ensure developing countries don't fall behind in AI and power equipment?
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Morten Wierod20:36
Strong power grids are essential. Solar and wind offer low-capex opportunities. Solar pumps in agriculture are an example. Technology is the key.
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Atul Arya21:55
Finally, what is your call to action and what conversations are you looking forward to at CERA?
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Morten Wierod22:02
Adopt available technologies faster. We are too slow. Use technology for efficiency, grid stability, and automation. Daring to take the leap of faith can accelerate energy expansion and drive competitiveness.
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Atul Arya23:13
Time for action. Morten, CEO of ABB. Thank you. We look forward to seeing you at CERA Week.
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Morten Wierod23:25
Thanks, Atul. Looking forward to catching up.
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Atul Arya23:29
Thank you for joining us. Subscribe, share, and rate. I'm Atul Arya. Until next time.
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Narrator23:47
The CERAWeek podcast with Atul Arya is brought to you by CERAWeek, the world's premier energy conference. Be part of the conversations moving the world of energy forward. March 23-27, 2026 in Houston. Discover more at ceraweek.com.