05:04 PM EDT, 07/17/2025 (MT Newswires) -- Swedish-Swiss automation company ABB Group's broad-based order growth is a positive signal for the global industrial automation sector and should benefit similar companies, like ATS Corp. ( ATS ) , National Bank of Canada said in a research note Thursday.

Analysts, including Maxim Sytchev, said ABB Group reported strong second-quarter results, with revenue reaching US$8.9 billion, 6% higher year-over-year on a comparable basis, and slightly above Wall Street estimates. Basic earnings per share rose 7% year-over-year to US$0.63, meeting expectations, while operating EBITA hit a record margin of 19.2%.

Even though ABB only slightly exceeded consensus forecasts on headline numbers, its 14% comparable order growth is especially reassuring amid geopolitical uncertainty and sluggish global growth, the analysts added.

Order gains in the US of more than 37% and Germany of over 16% bode well for ATS, since those two markets are expected to make up 41% and 10% of the company's revenue in fiscal year 2025, the analysts said, adding that while ABB's robotics segment showed caution due to tariff-related uncertainties, structural trends toward increased automation remain firm.

National Bank of Canada rates ATS shares outperform, with a US$54 price target.