Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________________________ FORM 10-Q ____________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-39221 ____________________________________ OTIS ...

However, quarterly net sales missed the consensus mark and declined on a year-over-year basis. Thanks to the continuous strength of its modernization strategy, the company witnessed order growth of more than 10% for eight consecutive quarters, leading to mid-teens backlog growth. Shares of this elevator and escalator manufacturing company lost 3.8% in the pre-market trading session on Jul 24. The company reported quarterly earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 by ...

Financial Data and Key Metrics Changes - The company generated $353 million in free cash flow in Q2 2024, despite lower New Equipment orders, and expects to largely reverse the working capital build by year-end [11] - Adjusted EPS grew approximately 15% or $0.14 in the quarter, driven by strong operational performance and improvement in the tax rate [118] - Overall adjusted operating profit margin expanded by 110 basis points, with a focus on cost control and productivity improvements [10][110] Business Line Data and Key Metrics Changes - Service organic sales grew mid-single digits, with a 4.2% growth in the maintenance portfolio and a 17% increase in modernization backlog [7][26] - New Equipment orders were down 11% in Q2, with a mid-teens decline in the Americas and a double-digit decline in China, offset by high-single digit growth in EMEA and low to mid-single digit growth in Asia-Pacific [8][9] - Service operating profit increased to $538 million, marking a $51 million increase at constant currency, leading to margin expansion of 110 basis points [10] Market Data and Key Metrics Changes - The Americas and EMEA experienced low-single digit growth, while Asia-Pacific grew approximately 10%, driven by strong performances in Southeast Asia and India [9] - The New Equipment backlog at constant currency was down 3% year-over-year, with significant weakness in China impacting overall performance [116] - The company anticipates a decline in New Equipment sales in China of approximately 20% for the year, reflecting ongoing market challenges [31][140] Company Strategy and Development Direction - The company is focused on growing its Service segment, which is seen as the primary growth driver, while also ramping up modernization efforts [7][12] - A strategic imperative was added to enhance modernization efforts, aiming to improve MOD margins to at least double digits [41] - The company is committed to maintaining profitability in a competitive environment, particularly in China, by balancing price and volume [127][148] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate macroeconomic challenges, particularly in China, while focusing on service growth and cost management [13][127] - The company expects to achieve approximately 10% EPS growth for the full year, aligning with medium-term guidance [13][141] - Management noted that while New Equipment markets remain under pressure, the service market continues to show strength, with expectations for mid-single digit growth in 2024 [121] Other Important Information - The company generated $300 million of working capital in the first half of the year, primarily due to the growth in the Service business [2][60] - The company has made significant progress in its Project Uplift initiative, anticipating run rate savings of $175 million by mid-2025 [122] - The company is actively pursuing modernization opportunities, particularly in infrastructure projects, which are expected to yield longer service commitments [53][136] Q&A Session Summary Question: What is the outlook for the New Equipment market in China? - Management indicated that the New Equipment market in China remains challenging, with expectations for a decline of 10% to 15% for the year [146] Question: How is the company managing pricing pressures in China? - The company is experiencing pricing challenges in China, with prices down approximately 10%, but is managing costs effectively in a deflationary environment [102][148] Question: What are the expectations for service growth in China? - Management expressed confidence in continued service growth in China, with a focus on improving conversion rates and capturing non-Otis units [103][127]

Group 1 - Otis Worldwide reported revenue of $3.6 billion for the quarter ended June 2024, which is a year-over-year decline of 3.2% and a surprise of -3.50% compared to the Zacks Consensus Estimate of $3.73 billion [1][3] - The earnings per share (EPS) for the same period was $1.06, showing an increase from $0.92 a year ago, resulting in an EPS surprise of +2.91% against the consensus estimate of $1.03 [1][3] - Net Sales from Service were reported at $2.18 billion, slightly below the average estimate of $2.23 billion, but reflecting a year-over-year increase of +3% [4] Group 2 - Net Sales from New Equipment were reported at $1.42 billion, which is below the average estimate of $1.50 billion and represents a year-over-year decline of -11.4% [4] - Adjusted Operating Profit for New Equipment was $113 million, exceeding the estimated $103.85 million, while Operating Profit for general corporate expenses was reported at -$78 million, worse than the estimated -$33.77 million [4] - Adjusted Operating Profit for Service was $550 million, slightly above the average estimate of $542.39 million [4] Group 3 - Over the past month, shares of Otis Worldwide have returned +2.8%, outperforming the Zacks S&P 500 composite's +1.8% change, indicating a potential for performance in line with the broader market [6]

Company Overview - Otis Worldwide reported quarterly earnings of $1.06 per share, surpassing the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $0.92 per share a year ago [6] - The company has exceeded consensus EPS estimates in all four of the last quarters [3] - For the quarter ended June 2024, Otis Worldwide posted revenues of $3.6 billion, which was 3.50% below the Zacks Consensus Estimate and a decrease from $3.72 billion year-over-year [13] Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $3.67 billion, and for the current fiscal year, it is $3.88 on revenues of $14.71 billion [12] - The earnings surprise for the recent quarter was 2.91%, with a previous quarter's surprise of 1.15% [10] Market Performance - Otis Worldwide shares have increased approximately 10% since the beginning of the year, compared to a 16.5% gain in the S&P 500 [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [2] Industry Context - The Building Products - Miscellaneous industry, to which Otis Worldwide belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [8]

Exhibit 99 OTIS REPORTS SECOND QUARTER 2024 RESULTS Otis delivers continued strong Service performance leading to mid-teens EPS growth FARMINGTON, Conn., July 24, 2024 – Otis Worldwide Corporation (NYSE:OTIS) reported second quarter 2024 net sales of $3.6 billion with organic sales down 1.2%. GAAP earnings per share (EPS) increased 13.3% to $1.02 and adjusted EPS increased 15.2% to $1.06. "Otis delivered solid quarterly performance led by the strength in our Service segment, which delivered portfolio growth ...

Otis Worldwide Corporation (OTIS) is scheduled to report second-quarter 2024 results on Jul 24, before the opening bell. Trend in Estimate Revision The world's leading elevator and escalator company's second-quarter 2024 performance is likely to have benefited from higher volume, favorable pricing and improved productivity. Also, the company's focus on acquisitions, product innovations and the integration of new technologies driven by ongoing research and development efforts is likely to have aided its seco ...

"Cristina has deep expertise in financial management and extensive experience leading transformation within and outside Otis. She understands our long-term strategy and service-driven business model and how to drive growth and shareholder value," said Marks. "As a strategic business partner, she has successfully led our finance teams through change with solid results in our diverse Europe Middle East and Africa (EMEA) region, which is responsible for more than half of our global Service portfolio." "We are ...

Otis Worldwide Corp. (OTIS) , a global leader in elevator and escalator manufacturing, installation, and service, has been awarded a significant contract for the Sydney Metro – Western Sydney Airport project. The company will install 40 520NPE public escalators and 21 Gen3 and Gen2 elevators for the driverless metro railway line. The Sydney Metro – Western Sydney Airport project is an ambitious 23-kilometre driverless metro line featuring six new stations. Once completed, it will serve as a crucial transpor ...

FARMINGTON, Conn., July 10, 2024 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) will host a conference call on Wednesday, July 24, 2024, at 8:30 a.m. ET. Otis Chair, CEO & President Judy Marks and Executive Vice President & CFO Anurag Maheshwari will discuss the company's second quarter results and 2024 outlook. We encourage you to join through our webcast link. A corresponding presentation and news release will be available on www.otis.com prior to the call and a recording will be available on the ...