Financial Data and Key Metrics Changes - Otis reported net sales of $3.6 billion, flat year-over-year, with organic sales down 2% [17] - Adjusted EPS for the first half of the year was $1.97, growing 2% compared to the same period last year [7] - Adjusted operating profit margin remained flat at 17% year-over-year [17] - Adjusted free cash flow was $243 million for the quarter [18] Business Line Data and Key Metrics Changes - The Service segment saw organic sales growth of 4%, driven by maintenance and repair [19] - New equipment organic sales declined by 11%, with EMEA growing 7% but offset by declines in China, Americas, and Asia Pacific [21] - Modernization organic sales grew 5%, with a strong backlog up 16% at constant currency [20] Market Data and Key Metrics Changes - Orders in The Americas increased by 15%, while China saw a decline of over 20% [58][62] - Excluding China, new equipment orders grew by 11% [62] - The global new equipment market is expected to decline mid-single digits in 2025, with China anticipated to decline approximately 10% for the remainder of the year [25][26] Company Strategy and Development Direction - Otis is focused on customer-centric initiatives and cost-saving measures, targeting $200 million in run rate savings by year-end [6] - The company is executing a transformation in China to adapt to market conditions, with a focus on modernization and service growth [80] - The modernization opportunity is driven by an aging installed base of 22 million units, expected to create a multi-year growth cycle [13] Management's Comments on Operating Environment and Future Outlook - Management noted continued economic challenges in China but expressed optimism for future growth in the region [60] - The service business is expected to remain resilient, representing approximately 90% of total operating profit [28] - Adjusted EPS outlook for 2025 remains unchanged at $4 to $4.1 per share, indicating a growth of 4% to 7% compared to 2024 [29] Other Important Information - Otis completed approximately $300 million in share repurchases in the second quarter, totaling $550 million year-to-date [7] - The company received several sustainability awards, highlighting its commitment to environmental performance [9] Q&A Session Summary Question: Can you unpack service growth and retention during this economic period? - Management indicated that service revenue growth is aligned with portfolio growth, with churn and mix affecting overall performance. Retention improved slightly in Q2 compared to Q1 [44][52] Question: What are the growth pockets in The Americas despite multifamily drag? - North America saw a strong performance in infrastructure projects, with new equipment orders up 15%. Multifamily orders were flat year-over-year, which is seen as a positive sign [58][59] Question: What is the outlook for China and its impact on next year's performance? - The new equipment market in China remains weak, but management expects sequential improvement. The focus is on value and retaining service portfolio [60][62] Question: How will free cash flow and operating margins be affected in the second half? - Free cash flow is expected to stabilize, with service growth offsetting declines in new equipment. Operating margins are anticipated to improve due to strong service performance and cost-saving initiatives [82][110]

Q2 2025 Financial Performance - Service organic sales increased by 4%[6, 7] - Modernization orders grew by 22%[7, 8] - Adjusted operating profit margin remained flat at 17%[15, 58] - The company repurchased approximately $300 million of shares in Q2, and about $550 million year-to-date[7] - Adjusted EPS was $1.05[84] Orders and Backlog - New Equipment orders decreased by 1%, but increased by 11% excluding China[7, 8] - Modernization backlog increased by 16% at constant currency[7, 8] - New Equipment backlog decreased by 3%[8, 50] Segment Results - Service segment organic sales increased by 4%[19] and operating profit increased by $26 million at constant currency[20] - New Equipment segment organic sales decreased by 11%[24] and operating profit decreased by $41 million at constant currency[25] Outlook - The company expects organic sales to increase by approximately 1%[30, 33] - Adjusted operating profit is projected to be between $2.4 billion and $2.5 billion[32] - Adjusted EPS is expected to be between $4.00 and $4.10, representing a 4% to 7% increase[32, 41]

智通财经7月23日电，全球最大电梯供应商奥的斯(OTIS)二季度净销售额36亿美元，低于市场预期的 37.1亿美元；调整后每股收益1.05美元，略高于市场预期的1.03美元。奥的斯维持全年业绩指引，预计 调整后每股收益4.00-4.10美元，市场预期4.07美元。 ...

Core Insights - Otis Worldwide Corporation reported second quarter 2025 net sales of $3.6 billion, with organic sales down 2% year-over-year, while GAAP EPS decreased 3% to $0.99 and adjusted EPS decreased 1% to $1.05 [1][3][5] Financial Performance - Net sales for the second quarter were flat compared to the prior year, primarily due to a decrease in New Equipment sales in China and the Americas, offset by growth in Service sales across all lines of business [3][4] - GAAP operating profit for the second quarter was $547 million, a decrease of $23 million, while adjusted operating profit was $612 million, down $1 million at actual currency [4][27] - The operating profit margin contracted by 60 basis points to 15.2%, while the adjusted operating profit margin remained flat at 17.0% [4][24] Service Segment - The Service segment achieved net sales of $2.3 billion, representing a 6% increase, with organic sales growth of 4% [6][8] - The maintenance portfolio units grew by 4%, and modernization orders increased by over 20% [7][8] - Service operating profit margin expanded by 20 basis points to 24.9% due to higher volume and favorable pricing [8][37] New Equipment Segment - New Equipment segment net sales decreased by 10% to $1.3 billion, with a significant decline in China impacting overall performance [9][10] - New Equipment orders were down 1% at constant currency, with a notable decline in China offset by growth in other regions [11][11] Cash Flow and Shareholder Returns - Cash flow from operations was $405 million, with adjusted free cash flow of $429 million, reflecting a decrease from the previous year [12][12] - The company executed share repurchases totaling approximately $550 million [7] 2025 Outlook - Otis reconfirmed its 2025 EPS outlook, supported by the ongoing execution of the UpLift program and expected run-rate savings of $200 million [2][13]

Exhibit 99 OTIS REPORTS SECOND QUARTER 2025 RESULTS Otis delivers mid-single digit organic Service sales growth and continued Service operating profit margin expansion and reconfirms 2025 EPS outlook Second quarter 2025 First half 2025 FARMINGTON, Conn., July 23, 2025 – Otis Worldwide Corporation (NYSE:OTIS) reported second quarter 2025 net sales of $3.6 billion with organic sales down 2% versus the prior year. GAAP earnings per share (EPS) decreased 3% to $0.99 and adjusted EPS decreased 1% to $1.05. 1 • S ...

Core Viewpoint - Otis Worldwide Corporation (OTIS) is set to report its second-quarter 2025 results on July 23, with expectations of mixed performance in earnings and sales compared to the previous year [1][3]. Earnings Performance - In the last reported quarter, adjusted earnings exceeded the Zacks Consensus Estimate by 1.1%, while net sales fell short by 1.7% [1]. - Over the trailing four quarters, OTIS has surpassed earnings estimates in two instances and missed in two, with an average surprise of 0.2% [2]. Estimate Revisions - The Zacks Consensus Estimate for earnings per share (EPS) has increased to $1.02 from $1.01 over the past 30 days, reflecting a 3.8% decline from the year-ago adjusted EPS of $1.06 [3]. - The consensus for net sales is projected at $3.68 billion, indicating a 2.3% growth from the previous year's $3.6 billion [3]. Sales Insights - The Service segment, contributing 65.3% to first-quarter 2025 net sales, is expected to drive year-over-year growth due to increased demand for maintenance and modernization [4]. - The New Equipment segment, which accounted for 34.7% of first-quarter 2025 net sales, is anticipated to face challenges, particularly in China and parts of EMEA, leading to a projected decline in sales [5][8]. Segment Performance - For the second quarter, net sales in the Service segment are expected to rise by 4.7% to $2.28 billion, while New Equipment segment sales are predicted to decrease by 5.2% to $1.35 billion [6]. Margin Analysis - The bottom line is expected to decline due to inflationary pressures, particularly from higher labor and material costs in the Service segment, alongside lower volume in the New Equipment segment [7]. - Despite these challenges, favorable pricing and productivity improvements may partially mitigate the negative impacts on margins [7][8]. SG&A Expenses - Selling, general and administrative (SG&A) expenses are likely to increase due to annual wage hikes and higher restructuring costs, with expectations for SG&A as a percentage of net sales to rise by 50 basis points to 13% [10]. Earnings Prediction - The model predicts an earnings beat for OTIS, supported by a positive Earnings ESP of +0.39% and a Zacks Rank of 2 (Buy) [11][12].

Core Insights - Otis Worldwide (OTIS) is expected to report quarterly earnings of $1.02 per share, a decline of 3.8% year-over-year, with revenues projected at $3.68 billion, reflecting a 2.3% increase compared to the same period last year [1] - The consensus EPS estimate has been revised upward by 1.4% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Financial Metrics - Analysts forecast 'Net Sales- Service' to reach $2.32 billion, indicating a year-over-year increase of 6.4% [5] - 'Net Sales- New Equipment' is projected to be $1.34 billion, suggesting a decline of 5.6% year-over-year [5] - The average prediction for 'Adjusted Operating Profit- New Equipment' is $78.03 million, down from $113.00 million reported in the same quarter last year [5] - 'Adjusted Operating Profit- Service' is expected to be $576.18 million, compared to $550.00 million from the previous year [6] Market Performance - Shares of Otis Worldwide have returned +5.7% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [6] - Otis Worldwide holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [6]

Company Performance - O-I Glass has shown a year-to-date performance increase of approximately 33.2%, significantly outperforming the average gain of 6.2% in the Industrial Products group [4] - The Zacks Consensus Estimate for O-I Glass's full-year earnings has increased by 9.1% over the past quarter, indicating a positive trend in analyst sentiment [3] - O-I Glass holds a Zacks Rank of 1 (Strong Buy), positioning it favorably among its peers [3] Industry Context - O-I Glass is part of the Glass Products industry, which currently ranks 1 in the Zacks Industry Rank, despite the industry experiencing an average loss of 3.7% year-to-date [5] - In comparison, Otis Worldwide, another stock in the Industrial Products sector, has returned 8.4% year-to-date and holds a Zacks Rank of 2 (Buy) [4][5] - The Manufacturing - General Industrial industry, to which Otis Worldwide belongs, is ranked 36 and has seen a year-to-date increase of 5.6% [6]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Otis Worldwide (OTIS) despite higher revenues when it reports its results for the quarter ended June 2025 [1] Group 1: Earnings Expectations - The upcoming earnings report is expected to be released on July 23, with a consensus EPS estimate of $1.02, reflecting a year-over-year decrease of 3.8% [3] - Revenues are projected to be $3.68 billion, which is an increase of 2.3% compared to the same quarter last year [3] - The consensus EPS estimate has been revised 1.44% higher in the last 30 days, indicating a reassessment by analysts [4] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Otis Worldwide is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.39% [12] - The stock currently holds a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [12] - Historical performance shows that Otis Worldwide has beaten consensus EPS estimates in two out of the last four quarters [14] Group 3: Market Reactions - A positive earnings surprise could lead to an upward movement in the stock price, while a miss may result in a decline [2] - The sustainability of any immediate price change will largely depend on management's discussion of business conditions during the earnings call [2] - Past earnings surprises can influence future expectations, as seen in the last reported quarter where Otis Worldwide exceeded expectations by delivering earnings of $0.92 per share against an expected $0.91, resulting in a surprise of +1.10% [13]

Core Insights - The article does not provide specific company or industry insights, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There are no stock, option, or similar derivative positions held by the analyst in any mentioned companies [1] - The article expresses personal opinions and is not compensated beyond Seeking Alpha [1] - The views may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [2]