Core Insights - Otis Worldwide Corporation reported solid fourth quarter and full year results for 2024, with a focus on sustained earnings growth driven by service momentum [1][2][6] - The company anticipates organic sales growth of 2 to 4% and adjusted earnings per share (EPS) of $4.00 to $4.10 for the full year 2025 [1][20] Financial Performance - Fourth quarter 2024 net sales reached $3.7 billion, a 1.5% increase year-over-year, primarily driven by service sales [3][8] - Full year 2024 net sales totaled $14.3 billion, reflecting a 0.4% increase, with organic sales growth of 1.4% [1][6] - GAAP EPS for the fourth quarter was $0.84, up 6.3% from the previous year, while adjusted EPS increased 6.9% to $0.93 [5][6] Segment Performance - The service segment saw a 7.6% increase in net sales for the fourth quarter, with organic sales growth of 7.8% [13][14] - The modernization backlog grew in the low teens percentage, indicating strong demand in this area [2][8] - New equipment sales decreased by 7.4% in the fourth quarter, with a notable decline in China impacting overall performance [7][11] Cash Flow and Shareholder Returns - The company generated GAAP cash flow from operations of $690 million in the fourth quarter and $1.6 billion for the full year [16][8] - Otis repurchased $200 million of its shares in the fourth quarter and $1.0 billion for the full year [8][6] 2025 Outlook - Otis expects to achieve adjusted operating profit of $2.4 to $2.5 billion in 2025, reflecting an increase of $120 to $150 million at constant currency [20][18] - The company is implementing a China transformation program aimed at adapting its operating model to changing market conditions, with expected savings of $30 million by year-end 2025 [18][20]

Financial Performance - Full year 2024 net sales reached $14.3 billion, with a 1.4% organic growth[3] - Fourth quarter net sales of $3.7 billion increased by 1.5% year-over-year, driven by a 7.6% increase in Service sales[4] - GAAP EPS for 2024 increased by 20.1% to $4.07, while adjusted EPS rose by 8.2% to $3.83[8] - Net sales for Q4 2024 were $3,675 million, a slight increase from $3,620 million in Q4 2023, while total net sales for the year reached $14,261 million compared to $14,209 million in 2023[29] - Operating profit for Q4 2024 was $531 million, up from $522 million in Q4 2023, with total operating profit for the year at $2,008 million, down from $2,186 million in 2023[29] - Net income attributable to Otis Worldwide Corporation for Q4 2024 was $337 million, compared to $323 million in Q4 2023, with annual net income increasing to $1,645 million from $1,406 million[29] - Diluted earnings per share (EPS) for Q4 2024 was $0.84, up from $0.79 in Q4 2023, while annual diluted EPS increased to $4.07 from $3.39[29] - Adjusted net income attributable to common shareholders for the year ended December 31, 2024, was $1,548 million, up from $1,469 million in 2023[34] Cash Flow and Liquidity - Adjusted free cash flow for 2024 was $1.6 billion, with GAAP cash flow from operations at $1.6 billion[4] - The company maintained a free cash flow that is considered a useful measure of liquidity, although specific figures were not disclosed in the provided content[22] - Free cash flow for the year ended December 31, 2024, was $1,437 million, a decrease of 3.5% from $1,489 million in 2023[45] - Cash and cash equivalents at the end of December 2024 were $2,300 million, an increase of 80.1% from $1,274 million at the end of December 2023[44] - The adjusted free cash flow for the quarter ended December 31, 2024, was $682 million, compared to $573 million in the same quarter of 2023, indicating an increase of 19.1%[45] - The company reported a net cash flow from operating activities of $690 million for the quarter ended December 31, 2024, compared to $597 million for the same quarter in 2023, marking a 15.6% increase[44] Expenses and Profitability - Research and development expenses for Q4 2024 were $37 million, consistent with Q4 2023, and total R&D expenses for the year were $152 million, up from $144 million in 2023[29] - Selling, general and administrative (SG&A) expenses for Q4 2024 were $495 million, slightly down from $498 million in Q4 2023, with total SG&A for the year at $1,861 million compared to $1,884 million in 2023[29] - Service segment operating profit margin expanded by 50 basis points to 24.5% in Q4 2024[15] - Adjusted operating profit for Q4 2024 was $583 million, up from $566 million in Q4 2023, reflecting a year-over-year increase of 3.0%[34] - The operating profit margin for Q4 2024 was 15.9%, compared to 15.6% in Q4 2023, indicating improved profitability[34] - Service segment operating profit increased by $51 million year-over-year to $569 million in Q4 2024, reflecting strong performance in maintenance and repair services[40] Future Outlook - For 2025, Otis expects organic sales growth of 2% to 4% and adjusted EPS between $4.00 and $4.10[19] - The company anticipates adjusted operating profit of $2.4 to $2.5 billion for 2025, reflecting an increase of $120 to $150 million at constant currency[20] - Otis expects to continue focusing on organic sales growth, which excludes the impact of foreign currency translation and acquisitions, as a key performance measure[22] Assets and Liabilities - Total assets increased to $11,316 million in December 2024, up from $10,117 million in December 2023, representing a growth of 11.9%[43] - Total liabilities rose to $16,044 million in December 2024, up from $14,837 million in December 2023, indicating an increase of 8.1%[43] - Long-term debt stood at $6,973 million as of December 31, 2024, compared to $6,866 million a year earlier, reflecting an increase of 1.6%[43] - Total current assets increased to $7,670 million in December 2024, up from $6,400 million in December 2023, a growth of 19.9%[43] Market Performance - New Equipment net sales for Q4 2024 decreased by 7.4% to $1.4 billion, primarily due to a greater than 20% decline in China[10] - New equipment backlog decreased by 7% year-over-year at actual currency as of December 31, 2024[37] - Modernization backlog increased by 10% year-over-year at actual currency as of December 31, 2024, indicating strong demand in this segment[38] - The effective tax rate for Q4 2024 was 26.9%, a decrease from 27.9% in Q4 2023, reflecting improved tax efficiency[34] - The company paid dividends of $156 million on common stock in the quarter ended December 31, 2024, compared to $139 million in the same quarter of 2023, representing a 12.2% increase[44] - The company reported a non-service pension cost benefit of $0 million for Q4 2024, compared to a cost of $4 million in Q4 2023[29]

Otis Worldwide Corporation (NYSE: OTIS ) is an elevator company that has a long-standing history despite their short dividend track record. Their history dates back to the 1800's as their founder, Elisha Graves, sold his first elevatorContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone ...

Otis Worldwide Corporation (OTIS) is scheduled to report fourth-quarter 2024 results on Jan. 29, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings and net sales missed the Zacks Consensus Estimate by 1% and 1.3%, respectively. On a year-over-year basis, the metrics increased 1.1% and 0.7%, respectively.OTIS’ earnings surpassed the consensus mark in three of the trailing four quarters and missed on the ...

FARMINGTON, Conn., Jan. 16, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) today announced that its Board of Directors has authorized the repurchase of $2 Billion of Common Stock under a share repurchase program, effective January 16, 2025. In conjunction with the new authorization, the Board of Directors cancelled the remaining approximately $100 million authorized under the prior program, approved December 1, 2022. Share repurchases may take place from time to time, subject to market conditi ...

FARMINGTON, Conn., Jan. 8, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) will host a conference call on Wednesday, January 29, 2025, at 8:30 a.m. ET. Otis Chair, CEO & President Judy Marks and Executive Vice President & CFO Cristina Mendez will discuss the company's full year and fourth quarter results and 2025 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 ava ...

Otis Worldwide Corporation (OTIS) is benefiting from its innovation investments, which are directly fostering the demand for its services globally, thus boosting its backlog. Furthermore, its strategic approach toward allocating its capital for rewarding shareholders, along with restructuring initiatives, are other noteworthy aspects.Shares of this elevator and escalator manufacturing, installation and service company have lost 8.2% in the past month compared with the Zacks Building Products - Miscellaneous ...

Otis Worldwide Corporation (NYSE: OTIS ) is the world's largest manufacturer, installer, and servicer of elevators and escalators. While not a high-growth, trendy tech stock, Otis offers a different kind of appeal: stable, high-margin, recurring revenue streams underpinned by a strong economic moat. I gravitate towards these types of companiesI am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growi ...

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 September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------|--------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Otis reported net sales of $3.5 billion with organic sales growth of approximately 1% in Q3 2024, while adjusted EPS grew approximately 1% or $0.01 compared to a tough prior year comparison of approximately 19% EPS growth [10][11] - Year-to-date, adjusted EPS growth reached 8.2%, and the company generated $381 million in adjusted free cash flow in Q3, totaling approximately $900 million year-to-date [5][14] Business Line Data and Key Metrics Changes - The Service segment delivered high single-digit growth of 7.7% in Q3, contributing to a year-to-date service organic sales growth of 6.4% [4][11] - New Equipment organic sales were down 8.2%, primarily due to a greater than 20% decline in China, while excluding China, New Equipment sales increased low single digits [11][12] - Modernization organic sales accelerated by about 14% in Q3, bringing year-to-date organic sales to approximately 10% [11][12] Market Data and Key Metrics Changes - New Equipment orders decreased by 3% in Q3, with a significant decline of over 20% in China, while orders in the Americas grew more than 20% [6][10] - Orders in APAC delivered high single-digit growth, driven by strength in Japan and Southeast Asia, while EMEA experienced high single-digit declines due to weakness in Western and Northern Europe [6][10] Company Strategy and Development Direction - The company is focusing on a service-driven business model, with a commitment to expanding its modernization backlog and improving operational efficiency through the Uplift program [20][29] - Otis anticipates a resilient Service market, expecting global install base growth in mid-single digits, while New Equipment markets are expected to face challenges, particularly in China [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the New Equipment market in China remains weak, with expectations of a 15% decline in 2024, while the Americas are showing signs of improvement [15][32] - The company expects adjusted EPS to reach around $3.85 in 2024, driven by strong operational performance and a lower share count [18][24] Other Important Information - Otis achieved ISO 50001 certification for its manufacturing hub in Korea, expanding its commitment to energy management [5] - The company plans to return $1 billion to shareholders through share repurchases and dividends in 2024 [19] Q&A Session All Questions and Answers Question: Can you elaborate on the fundamentals in China and pricing pressures? - Management acknowledged that the New Equipment market in China remains weak, with a significant revenue decline, but emphasized that pricing remains competitive rather than irrational [32][33] Question: What is the outlook for Service margins? - Service margins are performing in line with expectations, with a slight increase due to good volume flow and pricing improvements [36] Question: How do mod margins in China compare to the rest of the world? - Management indicated that mod margins in China are attractive and expected to grow rapidly, with early orders showing promise [40][41] Question: What is the long-term outlook for the New Equipment market in China? - Management suggested that while there is potential for the market to decline, they expect sequential growth improvement in 2025 compared to 2024 [44][51] Question: Can you provide insights on the Americas and EMEA growth? - Management reported strong performance in the Americas, with a significant increase in orders and a solid backlog, while EMEA is performing well despite market challenges [59][60]