ABB Secures Major US Ferry Contract for Hybrid Propulsion Systems

ABB secures a major US ferry contract for sustainable propulsion, as it accelerates share buybacks. Key financial and margin details will be revealed in the upcoming April 22 earnings report.

ABB has landed another significant contract as part of the ongoing modernization of American ferry fleets. The technology group will supply the complete propulsion system for a new vessel destined for one of the busiest routes on the US East Coast. This development coincides with the company's accelerated efforts to reduce its share count through a buyback initiative.

Financial Strategy and Upcoming Report

The company's ongoing share repurchase program is actively reshaping its capital structure. Between late March and early April, ABB purchased an additional 476,000 of its own shares. Since the program's launch in February, total buybacks have now reached approximately 2.7 million shares.

The financial impact of ABB's expanding maritime business will be a key focus in the upcoming earnings season. The firm is scheduled to release its quarterly figures on April 22, which will provide detailed insights into margin progression and current order intake.

A Strategic Order for Sustainable Shipping

The new order, placed by the shipyard Senesco Marine, covers the propulsion and automation technology for a new 75-car ferry. This vessel is set to replace the 45-year-old "Cape Henlopen" on its route between Delaware and New Jersey starting in 2029. For this project, ABB will integrate a highly redundant energy management system.

The system's initial configuration will be diesel-electric. However, the design is already prepared for a future retrofit with a 7,000 kWh battery pack to enable fully electric operation. Even in this first phase, fuel costs are projected to drop by about 35 percent compared to the older fleet.

Confirming a North American Trend

This latest contract reinforces a clear market direction in North America. US operators are increasingly adopting a phased electrification strategy for fleet upgrades. ABB previously secured a similar contract at the end of 2025 to integrate hybrid-electric propulsion systems for two ferries in the state of Washington.