Core Insights - Otis Worldwide reported a 3% increase in fourth quarter sales and an 11% rise in earnings per share year over year, with EPS meeting analyst forecasts [1] Group 1: Financial Performance - The services segment, which has higher margins, drove Otis' business, with sales increasing by 8% year over year and operating margins expanding to 25.5% from 24.5% [2] - Sales and operating margins in the new equipment business experienced a decline [2] - For 2026, Otis provided sales guidance of $15 billion to $15.3 billion, slightly below the analyst average estimate of $15.26 billion, and EPS guidance indicating a mid to high-single digit percentage increase, with the analyst average estimate at +9.6% [3] Group 2: Technological Innovations - Otis is testing a new robot for elevator inspections in an airport in China, which operates unmanned and can identify issues for mechanics to address [5] - The company is working on ensuring that all robots can interface with their products, enhancing the user experience and operational efficiency [5] Group 3: Workforce Development - Otis has established an apprenticeship program in collaboration with its local elevator union, recruiting high school students and providing them with a four-year program that allows them to work and study simultaneously [6] - The program has been successful in filling positions, with high demand for slots when openings arise [6]

Otis Worldwide (NYSE:OTIS) Q4 2025 Earnings call January 28, 2026 08:30 AM ET Company ParticipantsCristina Méndez - Executive Vice President and CFOJudy Marks - Chair, CEO and PresidentConference Call ParticipantsChris Snyder - AnalystJeff Sprague - AnalystJoe O'Dea - AnalystJulian Mitchell - AnalystNick Housden - AnalystNigel Coe - AnalystPhilip Buller - AnalystRob Quartaro - AnalystRob Wertheimer - AnalystSteve Tusa - AnalystNone - AnalystOperatorGood morning, and welcome to Otis's fourth quarter 2025 ear ...

Otis Worldwide (NYSE:OTIS) Q4 2025 Earnings call January 28, 2026 08:30 AM ET Company ParticipantsCristina Méndez - Executive Vice President and CFOJudy Marks - Chair, CEO and PresidentConference Call ParticipantsChris Snyder - AnalystJeff Sprague - AnalystJoe O'Dea - AnalystJulian Mitchell - AnalystNick Housden - AnalystNigel Coe - AnalystPhilip Buller - AnalystRob Quartaro - AnalystRob Wertheimer - AnalystSteve Tusa - AnalystNone - AnalystOperatorGood morning, and welcome to Otis's fourth quarter 2025 ear ...

Otis Worldwide (NYSE:OTIS) Q4 2025 Earnings call January 28, 2026 08:30 AM ET Speaker2Good morning, and welcome to Otis's fourth quarter 2025 earnings conference call. This call is being carried live on the internet and recorded for replay. Presentation materials are available from download from Otis's website at www.otis.com. I'll now turn it over to Rob Cartero, Vice President of Investor Relations. Please go ahead.Speaker3Thank you, Krista. Welcome to Otis's fourth quarter 2025 earnings conference call. ...

Q4 2025 Earnings Call January 28, 2026 © 2026 OTIS WORLDWIDE CORPORATION. Forward-Looking Statements Note: All results and expectations in this presentation reflect continuing operations unless otherwise noted. This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the ...

分组1 - Otis Worldwide reported quarterly earnings of $1.03 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.93 per share a year ago, with an earnings surprise of -0.38% [1] - The company posted revenues of $3.8 billion for the quarter ended December 2025, which was 2.72% below the Zacks Consensus Estimate, and an increase from $3.68 billion year-over-year [2] - Over the last four quarters, Otis Worldwide has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2] 分组2 - The stock has gained approximately 3.7% since the beginning of the year, outperforming the S&P 500, which has gained 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $3.53 billion, and for the current fiscal year, it is $4.37 on revenues of $15.19 billion [7] 分组3 - The Zacks Industry Rank places Manufacturing - General Industrial in the top 33% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Otis delivers solid fourth quarter and full year results; announces 2026 outlook based on Service strategy momentum Fourth quarter 2025 Full year 2025 Outlook for full year 2026*: Organic sales up low to mid-single digits, adjusted earnings per share up mid to high single digits and adjusted free cash flow of $1.6 to $1.7 billion FARMINGTON, Conn., Jan. 28, 2026 /PRNewswire/ -- Otis Worldwide Corporation (NYSE:OTIS) reported full year net sales of $14.4 billion with flat organic growth. GAAP earnings per sh ...

Financial Performance - Full year 2025 net sales reached $14.4 billion with flat organic growth[2] - Fourth quarter 2025 net sales of $3.8 billion increased 3% year-over-year, driven primarily by Service sales[5] - Service net sales increased 8% in Q4 2025, with organic sales growth of 5%[10] - Adjusted operating profit for 2025 was $2.4 billion, up $78 million year-over-year[8] - Operating cash flow for 2025 was $1.6 billion, reflecting a slight increase from the previous year[17] - Adjusted operating profit for the year ended December 31, 2025 was $2,434 million, up from $2,356 million in 2024, reflecting a year-over-year increase of 3%[31] - Adjusted diluted earnings per share for the year ended December 31, 2025 was $4.05, compared to $3.83 in 2024, marking a 5.7% increase[31] - Basic earnings per share (EPS) for Q4 2025 was $0.96, up from $0.85 in Q4 2024, indicating a growth of 12.9%[28] - GAAP EPS for 2025 decreased 14% to $3.50, while adjusted EPS increased 6% to $4.05[9] Sales and Orders - Modernization orders grew 43% in Q4 2025, with backlogs up 30%[3] - The service segment saw a 6% increase in net sales for the year, totaling $9,442 million compared to $8,894 million in 2024[30] - New equipment backlog increased by 6% at actual currency, while the impact of foreign exchange reduced this growth to 2% at constant currency[34] - Modernization backlog increased by 34% at actual currency, with a constant currency increase of 30% after accounting for foreign exchange impacts[35] Cash Flow and Liquidity - Free cash flow for the year ended December 31, 2025, was $1,444 million, slightly up from $1,437 million in 2024, indicating a growth of 0.5%[41] - Free cash flow is emphasized as a key measure of liquidity, aiding in funding activities such as acquisitions and shareholder distributions[23] - Adjusted free cash flow for 2026 is projected to be between $1.6 to $1.7 billion[20] - Share repurchases totaled approximately $800 million in 2025[4] Expenses and Costs - Total costs and expenses for Q4 2025 were $3,202 million, compared to $3,135 million in Q4 2024, marking an increase of 2.1%[28] - Research and development expenses for the year ended December 31, 2025, were $152 million, consistent with the previous year[28] Assets and Liabilities - Total assets decreased from $11,316 million in 2024 to $10,653 million in 2025, a decline of approximately 5.9%[39] - Total liabilities decreased from $16,044 million in 2024 to $15,924 million in 2025, a reduction of about 0.7%[39] - The company’s total current liabilities remained relatively stable, decreasing slightly from $7,749 million in 2024 to $7,656 million in 2025, a decline of about 1.2%[39] - The company’s goodwill increased from $1,548 million in 2024 to $1,695 million in 2025, reflecting an increase of approximately 9.5%[39] - The company’s total shareholders' equity (deficit) decreased from $(4,785) million in 2024 to $(5,346) million in 2025, a decline of approximately 11.7%[39] Future Outlook - The company plans for 2026 net sales of $15.0 to $15.3 billion, with organic sales expected to grow low to mid-single digits[20] - The company anticipates continued growth in organic sales, adjusted operating profit, and adjusted EPS in the upcoming quarters[24] - Otis is focused on enhancing its operational performance through strategic initiatives and potential acquisitions[25] - The company acknowledges various risks, including economic conditions and geopolitical factors, that may impact future performance[26] Tax and Income - The effective tax rate for the year ended December 31, 2025 was 24.8%, compared to 15.0% in 2024, reflecting an increase due to adjustments[31] - Net income from operations for the year ended December 31, 2025, was $1,455 million, down from $1,734 million in 2024, representing a decrease of about 16.1%[40] - The company paid dividends of $647 million in 2025, compared to $606 million in 2024, marking an increase of about 6.8%[40] Profit Margins - Operating profit for Q4 2025 was $589 million, up from $531 million in Q4 2024, reflecting a 10.9% increase[28] - The total operating profit margin for Q4 2025 was reported at 15.5%, compared to 14.4% in Q4 2024[30] - The service segment's operating profit for the year was $2,374 million, an increase of 8.6% from $2,185 million in 2024[37] - The new equipment segment's operating profit for the year was $240 million, down from $329 million in 2024, a decrease of 27%[37]

Core Insights - Otis Worldwide Corporation (OTIS) is set to report its fourth-quarter 2025 results on January 28, 2026, before market opening [1] - In the previous quarter, adjusted earnings exceeded the Zacks Consensus Estimate by 5%, and net sales surpassed the estimate by 1.2%, with year-over-year growth of 4% in net sales and 9.4% in earnings [1] Earnings Performance - OTIS has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 1.7% [2] - The Zacks Consensus Estimate for adjusted EPS has increased to $1.03 from $1.02 over the past 60 days, reflecting a 10.8% increase from the previous year's adjusted EPS of 93 cents [3] - The consensus for net sales is projected at $3.9 billion, indicating a 6.2% growth from the prior year's figure of $3.68 billion [3] Revenue Breakdown - Fourth-quarter net sales are expected to rise year over year, driven by strong operational growth in the Service segment, which accounted for 65.9% of third-quarter 2025 net sales [4] - Maintenance and repair activities are anticipated to remain robust, with repair growth expected to accelerate to around 10% or higher in the fourth quarter [4] - Modernization revenues are also expected to contribute significantly, although growth may moderate sequentially due to timing issues with bond-funded projects in China [4] - In contrast, New Equipment sales, which contributed 34.1% of third-quarter net sales, are likely to negatively impact overall revenue, particularly due to declines in China [5] Segment Performance - The Service segment's net sales are predicted to increase by 11.6% year over year to $2.59 billion, while New Equipment segment sales are expected to decline by 1.1% to $1.34 billion [6] - Adjusted EBITDA is projected to rise by 10.7% to $698.3 million, with margins expanding by 60 basis points [8][12] Margin Analysis - The Service segment is expected to drive margin expansion due to higher service volumes, favorable pricing, and productivity initiatives [9] - However, New Equipment margins are likely to remain under pressure from lower volumes and unfavorable pricing in China, despite some cost savings from restructuring initiatives [10][11] - The adjusted operating margin for the New Equipment segment is expected to decrease to 3.8% from 4.7%, while the Service segment margin is anticipated to grow to 24.8% [11]

Group 1 - The article emphasizes the importance of patience in investing, highlighting it as a significant lesson learned over time [1] - The author identifies as a buy-and-hold investor focused on quality blue-chip stocks, BDCs, and REITs, aiming to supplement retirement income through dividends in the next 5-7 years [2] - The author aspires to assist lower and middle-class workers in building investment portfolios of high-quality, dividend-paying companies to achieve financial independence [2] Group 2 - The author has a beneficial long position in shares of TMUS, OTIS, and VZ, indicating a personal investment interest in these companies [3] - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [4]