Key Takeaways
- The UK Government has officially brought British Steel into public ownership following the Royal Assent of the Steel Industry (Nationalisation) Act 2026, a move aimed at securing domestic production and national security.
- ABB (ABBN) reported Q2 2026 revenue of $9.48 billion, slightly exceeding analyst estimates of $9.44 billion, driven by a massive 30% surge in orders totaling $12.04 billion.
- ABB's earnings per share (EPS) of $0.68 missed the $0.74 consensus, though the company maintained a strong Operational EBITA margin of 20.2%, beating expectations of $1.87 billion.
- British Steel's nationalization marks the first major industrial re-nationalization in the UK since the 1980s, protecting approximately 2,700 jobs at the Scunthorpe facility.
UK Government Secures British Steel Under Public Ownership
In a historic shift in industrial policy, the UK Government has formally taken British Steel into public ownership as of July 16, 2026. The intervention follows the passage of the Steel Industry (Nationalisation) Act, which received Royal Assent after months of financial instability for the firm under its previous owner, the Chinese Jingye Group.
Ministers concluded that the move was essential to protect the UK’s national interest, citing the vital role steel plays in defense, energy infrastructure, and the country's Modern Industrial Strategy. Prime Minister Keir Starmer emphasized that the decision secures the future of virgin steelmaking at the Scunthorpe site, which is the last plant in Britain capable of making steel from scratch.
The government has already signaled a long-term commitment to the sector, backed by a £2.5 billion investment strategy aimed at ensuring up to 50% of steel used in the UK is produced domestically. This nationalization follows a period of "special measures" initiated in April 2025 to prevent the immediate closure of blast furnaces amid soaring energy costs and stalled commercial negotiations.
ABB Posts Record Orders Despite EPS Miss
Swiss engineering giant ABB (ABBN) delivered a mixed but growth-heavy second-quarter report for 2026. While revenue reached $9.48 billion, topping the $9.44 billion forecast, the company's basic EPS of $0.68 fell short of the $0.74 analysts had anticipated.
The highlight of the report was a 30% year-over-year jump in orders, which reached $12.04 billion. CEO Morten Wierod attributed this performance to high demand across most customer segments, particularly in electrification and automation sectors supporting AI data center expansions.
Looking ahead, ABB raised its outlook, stating it expects the full-year Operational EBITA margin to improve year-over-year, even when excluding a significant real estate gain recorded in the first quarter. The company also confirmed its intent to enhance its automation portfolio through the acquisition of Rotork, funded by proceeds from the divestment of its robotics division.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.