PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, including key results like a 2.7% increase in net sales to $3.44 billion and a rise in diluted EPS to $0.86 from $0.79 year-over-year [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For the first quarter of 2024, the company reported net sales of $3,437 million and net income attributable to Otis of $353 million, with diluted earnings per share increasing to $0.86 from $0.79 | Metric (dollars in millions, except per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $3,437 | $3,346 | | **Operating Profit** | $544 | $513 | | **Net Income Attributable to Otis** | $353 | $331 | | **Diluted EPS** | $0.86 | $0.79 | | Metric (dollars in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $9,791 | $10,117 | | **Total Liabilities** | $14,607 | $14,837 | | **Total Equity (Deficit)** | $(4,940) | $(4,855) | | Metric (dollars in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $171 | $278 | | **Net Cash from Investing Activities** | $(79) | $(21) | | **Net Cash from Financing Activities** | $(467) | $(341) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial statement line items, including a total Remaining Performance Obligation (RPO) of $18.3 billion and ongoing German tax litigation - Total Remaining Performance Obligations (RPO) were approximately **$18.3 billion** as of March 31, 2024, with about **90%** expected to be recognized as sales over the following 24 months[36](index=36&type=chunk) - The company repurchased **3.4 million shares** for **$300 million** in Q1 2024, with approximately **$900 million** remaining under its **$2.0 billion** share repurchase authorization[55](index=55&type=chunk)[56](index=56&type=chunk) - Restructuring costs totaled **$20 million** in Q1 2024, a significant increase from **$5 million** in Q1 2023, driven by new and ongoing actions, including the "UpLift" program[64](index=64&type=chunk) - The company is involved in German tax litigation concerning approximately **€215 million ($233 million)** in tax benefits plus **€118 million ($128 million)** in interest, with German tax authorities appealing a favorable court decision[88](index=88&type=chunk)[90](index=90&type=chunk) [Report of Independent Registered Public Accounting Firm](index=26&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP reviewed the interim financial information and found no material modifications necessary for conformity with U.S. GAAP, noting the review's limited scope compared to a full audit - The independent auditors, PricewaterhouseCoopers LLP, performed a review, not a full audit, of the Q1 2024 financial statements and found no material modifications necessary for conformity with U.S. GAAP[116](index=116&type=chunk)[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results for Q1 2024, highlighting the "UpLift" transformation program, segment performance, liquidity, and share repurchase activities [Business Overview](index=27&type=section&id=Business%20Overview) Otis operates through New Equipment and Service segments, implementing its "UpLift" program for $150 million in annual savings by mid-2025, while managing global macroeconomic impacts - The "UpLift" program, announced in July 2023, aims to generate approximately **$150 million** in annual savings by mid-2025, with **$13 million** in related costs incurred in Q1 2024[125](index=125&type=chunk)[126](index=126&type=chunk) - The company does not have operations in Russia, and business in Ukraine, Israel, and Gaza is not material, representing less than **1%** of revenue and operating profit[130](index=130&type=chunk)[131](index=131&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For Q1 2024, net sales increased 2.7% to $3.44 billion, driven by 3.8% organic growth, with operating profit rising to $544 million and a decreased effective tax rate | Component | Percentage Change | | :--- | :--- | | Organic Volume | 3.8% | | Foreign Currency Translation | (1.2)% | | Acquisitions and Divestitures, net | 0.1% | | **Total % Change** | **2.7%** | - Restructuring costs increased significantly to **$20 million** in Q1 2024 from **$5 million** in Q1 2023[148](index=148&type=chunk) - The effective tax rate for Q1 2024 decreased to **25.2%** from **26.7%** in Q1 2023, primarily due to the tax impact of a reduction in a contractual indemnity obligation and excess tax benefits from stock option exercises[157](index=157&type=chunk) [Segment Review](index=34&type=section&id=Segment%20Review) The Service segment drove Q1 2024 performance with 6.5% organic growth and margin expansion, while the New Equipment segment saw a slight organic decline due to China market weakness | Segment | Net Sales (in millions) | Operating Profit (in millions) | Operating Margin | | :--- | :--- | :--- | :--- | | **New Equipment** | | | | | Q1 2024 | $1,280 | $71 | 5.5% | | Q1 2023 | $1,307 | $69 | 5.3% | | **Service** | | | | | Q1 2024 | $2,157 | $523 | 24.2% | | Q1 2023 | $2,039 | $479 | 23.5% | - New Equipment organic sales decreased by **0.5%**, driven by a decline in China, which was partially offset by mid-teens organic sales growth in the Americas[165](index=165&type=chunk)[166](index=166&type=chunk) - Service organic sales grew **6.5%**, with maintenance and repair up **5.8%** and modernization up **9.7%** organically[171](index=171&type=chunk)[172](index=172&type=chunk) [Liquidity and Financial Condition](index=37&type=section&id=Liquidity%20and%20Financial%20Condition) As of March 31, 2024, Otis had $884 million in cash and $6.88 billion in total debt, with net cash from operating activities decreasing to $171 million, and capital returned through share repurchases and dividends | Metric (in millions) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $884 | $1,274 | | Total debt | $6,881 | $6,898 | | Net debt | $5,997 | $5,624 | - Net cash from operating activities decreased to **$171 million** in Q1 2024 from **$278 million** in Q1 2023, primarily due to working capital changes, including an increase in accounts receivable[185](index=185&type=chunk)[187](index=187&type=chunk) - In Q1 2024, the company used **$467 million** in financing activities, which included **$300 million** for share repurchases and **$138 million** for dividends[195](index=195&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states there have been no material changes to its market risk during the quarter ended March 31, 2024, referring to its 2023 Form 10-K for full discussion - There were no material changes to the company's market risk exposure during Q1 2024[206](index=206&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of March 31, 2024[207](index=207&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended March 31, 2024[208](index=208&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 16 of the financial statements for information on material legal proceedings, including German tax litigation and asbestos matters, with no other material developments since the 2023 Form 10-K - For details on legal proceedings, the report refers to Note 16 of the Condensed Consolidated Financial Statements; no material developments occurred during the quarter[214](index=214&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to its risk factors from those disclosed in its 2023 Form 10-K, directing readers to the MD&A section for recent developments - No material changes to the company's risk factors were reported for the quarter[215](index=215&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for the quarter, with 3.35 million shares repurchased for approximately $300 million, and $900 million remaining under authorization | Period | Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 1,895 | $87.65 | | Feb 2024 | 1,282 | $91.59 | | Mar 2024 | 173 | $95.57 | | **Total Q1 2024** | **3,350** | **$89.57** | - As of March 31, 2024, approximately **$900 million** remained authorized for future share repurchases under the current program[217](index=217&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company reports that there is no other information to disclose under this item for the reporting period - No information was reported under this item[218](index=218&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amended incentive plans, equity award schedules, auditor's letter, officer certifications, and XBRL data files - The exhibits filed with this report include amended incentive plans, terms for new equity awards, and required officer certifications under Sarbanes-Oxley[219](index=219&type=chunk)

Otis Worldwide (OTIS) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.15%. A quarter ago, it was expected that this company would post earnings of $0.85 per share when it actually produced earnings of $0.87, delivering a surprise of 2.35%.Over the last four quarters, the company has ...

Exhibit 99 OTIS REPORTS FIRST QUARTER 2024 RESULTS Otis continues to deliver mid-single digit organic Service growth and strong margin expansion New Equipment | | | | | Quarter Ended March 31, | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ millions) | 2024 | | 2023 | | Y/Y | | Y/Y (CFX) | | | Net sales | $ | 1,280 | $ | 1,307 | | (2.1)% | | (0.5)% | | Organic sales | | | | | | | | (0.5)% | | Segment operating profit | $ | 71 | $ | 69 | $ | 2 $ | | 6 | | Segment operating profit margi ...

FARMINGTON, Conn., April 23, 2024 /PRNewswire/ -- The Otis Worldwide Corporation (NYSE: OTIS) Board of Directors today declared a quarterly dividend of $0.39 per share of Otis' common stock, representing a 14.7% increase. The dividend will be payable on June 7, 2024, to shareholders of record at the close of business on May 17, 2024. "We are pleased to announce this dividend increase, demonstrating our confidence in future cash flow generation driven by our Service-driven, customer centric business model," ...

Otis Worldwide Corporation (OTIS) is scheduled to report first-quarter 2024 results on Apr 24, before the opening bell.In the last reported quarter, OTIS’ earnings beat the Zacks Consensus Estimate by 2.4% and rose 16% year over year. Net sales beat the consensus mark by 1.3% and gained 5.3% year over year.Otis’ earnings topped the consensus mark in each of the last 16 quarters.Trend in Estimate RevisionFor the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been stable at 87 ...

FARMINGTON, Conn., April 22, 2024 /PRNewswire/ -- Otis (NYSE: OTIS), the world's leading elevator and escalator manufacturing, installation and service company, announced that the Science Based Targets initiative (SBTi) has approved its near-term science-based greenhouse gas (GHG) emissions reduction targets. Otis' SBTi-approved targets are: Reduce absolute scope 1 and 2 GHG emissions 55% by 2033 from a 2021 base year.1 Reduce absolute scope 3 GHG emissions from purchased goods and services, business trave ...

FARMINGTON, Conn., April 10, 2024 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) will host a conference call on Wednesday, April 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 first 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 th ...

Otis Worldwide Corporation (OTIS) is benefiting from strategic investments in research and development, and digital initiatives, which are fostering its innovation capabilities. Higher backlog levels, across its New Equipment segment and Modernization (under the Service segment) unit also indicate solid top-line prospects for the company.The Zacks Consensus Estimate for this currently Zacks Rank #3 (Hold) company's 2024 earnings has risen to $3.87 per share from $3.82 in the past 30 days, indicating growth ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are th ...

Higher interest rates were supposed to crush the housing market. However, despite mortgage rates remaining elevated, there isn’t much sign of a serious slowdown in the housing sector. And government stimulus has helped elevate building activity in the infrastructure and renewable energy sectors among others.All this adds up to a more optimistic outlook for construction stocks. In fact, quite a few companies across the infrastructure, building materials, and architecture and engineering space are at or near ...