The demand for electrical products is growing steadily, but you wouldn't know it from ABB's (ABBN.Y 0.77%) second-quarter 2022 financial results. Revenue was down 3% and net income fell 50%, which seem like indicators that we could be in a recession, even in electrical products.

But a look behind the curtain shows strong demand and headwinds from currencies and supply chains. This could be a theme for energy and industrial stocks this quarter. 

The results

Q2 revenue was down 3% to $7.25 billion, and net income fell 50% to $379 million, or $0.20 per share. But a strong dollar is having a big effect on this highly international business. 

Without currency changes, comparable revenues to a year ago were up 6% and operating EBITDA was up 9% (management didn't give a net income comparison). This could be a theme this earnings season as companies start to show how much a strong dollar has hurt top-line results. 

The future does seem bright for ABB, though. Orders were up 10% on a nominal basis and 20% on a comparable basis, to $8.81 billion. 

Strength is widespread

One of the things that stuck out to me was how widespread the order growth was for ABB. Order growth in Europe, Asia, the Middle East, and Africa was up 15%, and in the Americas orders were up 33%. 

We hear about inflation and the cost of energy and goods and services going up, but for a company like ABB that provides tools for automation and electrification, this could be a multi-year tailwind. 

The China problem

One theme that we may see over and over again this earnings season is China's lockdowns affecting supply chains. ABB's management said they "anticipate further easing of component supply in coming quarters" as lockdowns slow down, but that may not happen. 

China hasn't given up on its zero-COVID policy, which has led to multiple lockdowns affecting tens of millions of people. There often aren't allowances to keep factories that would serve ABB running, so parts are simply shipped late. 

This supply chain problem may not ease, affecting revenue, even if ABB has more than enough demand from its customers. 

A steady stock in a turbulent market

ABB isn't the kind of company that will blow investors out of the water, but it's a stable operator in an industry with major long-term tailwinds. I think electrification and automation of factories are two major trends that will push the company's growth. 

China and a strong dollar will be headwinds, but those are largely out of management's control. With shares trading at 12.2 times earnings and a 3.1% dividend yield, ABB is a great stock for today's market.