Financial Data and Key Metrics Changes - Otis Worldwide Corporation reported net sales of $3.3 billion with organic sales flat year over year [24] - Adjusted operating profit increased by 3% excluding a $16 million foreign exchange headwind, with adjusted operating profit margin expanding by 40 basis points to 16.7% [24][11] - Adjusted EPS grew by 5% or $0.04 in the quarter, driven by solid operational performance and a lower share count [25] Business Line Data and Key Metrics Changes - Service organic sales grew by 4%, with maintenance and repair services increasing by 3% and modernization orders rising by 12% [10][26] - New equipment organic sales declined by 7%, with EMEA sales growing mid-single digits and APAC growing approximately 10% [29][30] - Service operating profit increased to $537 million, with operating profit margins expanding to 24.6% [28] Market Data and Key Metrics Changes - Americas saw strong orders performance, growing mid-teens, while Asia Pacific orders grew greater than 20%, primarily driven by India and Southeast Asia [15][16] - New equipment orders in China declined greater than 20%, aligning with expectations, while EMEA experienced mid-single digit declines [15][16] - The total backlog, including maintenance and repair, remains at historically high levels, positioning the company well for future quarters [14] Company Strategy and Development Direction - The company is focused on service-driven business models and modernization opportunities, with a projected multiyear growth cycle in modernizations due to an aging installed base [17][19] - Otis is implementing transformation initiatives, including Uplift and a China transformation program, to drive process efficiencies and capture service and modernization opportunities [50][52] - The company anticipates adjusted free cash flow of approximately $1.6 billion, primarily returning capital to shareholders through dividends and share repurchases [44] Management's Comments on Operating Environment and Future Outlook - Management expects the global new equipment market to stabilize later in 2025, with a projected decline in new equipment units of mid-single digits for the year [35][36] - The service business, representing approximately 90% of segment operating income, is largely insulated from tariff impacts, with expectations for continued growth [39][40] - Management remains optimistic about the service flywheel model and anticipates stronger growth in the second half of the year due to backlog execution and cost savings realization [57][60] Other Important Information - The company announced an 8% increase in its dividend, bringing cumulative dividend increases since the spin-off to approximately 110% [12][44] - Otis was recognized by Fortune as one of the world's most admired companies and named to the Wall Street Journal's best-managed companies list [12] Q&A Session Summary Question: Can you provide clarity on the gross headwind from tariffs? - Management indicated that the annualized impact of China tariffs is around $90 million, with mitigation efforts expected to offset half of this amount [66][68] Question: Are you seeing any impact at the local level in China regarding US companies? - Management stated that there is no overt targeting of Otis Worldwide Corporation in China, and they continue to develop relationships at all levels of government [78] Question: What is the pricing strategy in response to tariffs? - Management confirmed that they have increased prices across new equipment and maintenance services, with a focus on passing inflation costs to customers [80] Question: What is the outlook for new equipment orders in China? - Management expects the China market to be down 15% in the second quarter, with a gradual improvement anticipated in the second half of the year [84] Question: Can you elaborate on the project delays in the Americas? - Management noted that project delays are primarily due to uncertainty around global trade policies, but they remain optimistic about backlog execution and future orders [122][126]

Otis Worldwide (OTIS) reported $3.35 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.5%. EPS of $0.92 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.41 billion, representing a surprise of -1.66%. The company delivered an EPS surprise of +1.10%, with the consensus EPS estimate being $0.91.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Q1 2025 Earnings Call April 23, 2025 © 2025 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 p ...

Key Figures | ($ millions, except per share amounts) | | | Quarter Ended March 31, | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | | Y/Y | | | Y/Y (CFX) | | | Net sales | $ | | 3,350 | $ | 3,437 | (3) % | | — | % | | | Organic sales growth | | | | | | | | — | % | | | GAAP | | | | | | | | | | | | Operating profit | $ | | 411 | $ | 544 | $ | (133) | | | | | Operating profit margin | 12.3 | % | | 15.8 % | | (350) bps | | | | | | Net income | $ | | 243 | ...

About Otis Otis is the world's leading elevator and escalator manufacturing, installation and service company. We move 2.4 billion people a day and maintain approximately 2.4 million customer units worldwide, the industry's largest Service portfolio. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 44,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and t ...

Otis Worldwide Corporation (OTIS) is scheduled to report first-quarter 2025 results on April 23, before the opening bell.In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate by 2.1%, while net sales beat the same by 0.7%. On a year-over-year basis, earnings and revenues increased 6.9% and 1.5%, respectively.OTIS’ earnings surpassed the consensus mark in two of the trailing four quarters and missed on the remaining two occasions, with an average surprise of 0.2%. ...

Wall Street analysts expect Otis Worldwide (OTIS) to post quarterly earnings of $0.91 per share in its upcoming report, which indicates a year-over-year increase of 3.4%. Revenues are expected to be $3.4 billion, down 0.9% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Ahead o ...

Core Viewpoint - Otis Worldwide Corporation will host a conference call to discuss its first quarter results and outlook for 2025 on April 23, 2025 [1] Company Overview - Otis is the world's leading elevator and escalator manufacturing, installation, and service company, moving 2.4 billion people daily and maintaining approximately 2.4 million customer units globally [3] - The company is headquartered in Connecticut, USA, and employs 72,000 people, including 44,000 field professionals [3] - Otis operates in over 200 countries and territories, providing a diverse range of products and services to meet customer needs [3]

Core Viewpoint - The analysis of Otis Worldwide (NYSE: OTIS) indicates a Hold rating due to its premium valuation and weak momentum, despite the strength of its business model [1] Company Analysis - Otis Worldwide has a strong business model that is central to its operations, which is a positive aspect noted in the analysis [1] - The analyst has a beneficial long position in Otis shares, indicating confidence in the company's potential [1] Investment Strategy - The focus is on identifying long-only opportunities that provide safe and growing dividends, aiming to outperform the broader market on a risk-adjusted return basis [1] - The analyst's background includes extensive experience in real estate investment, having sourced over $100 million in commercial real estate investments [1]

Core Insights - Otis Worldwide Corporation (OTIS) is experiencing positive international demand trends and is gaining market share through innovation and efficient service offerings [1][6] - The company has secured a project in Taiwan to supply 50 escalators and 15 Gen2 elevators for the Kaohsiung MRT Red Line RLC01, which will enhance the city's transportation network [2][3] Innovation as a Growth Driver - Otis Worldwide is focusing on organic growth through innovation, investing $152 million in research and development (R&D) in 2024, with $53 million allocated to digital and strategic initiatives [4][5] - The company operates 11 R&D centers and 17 factories globally, with advancements in its Gen3 and Gen360 digital elevators that emphasize energy efficiency and connectivity through the Otis ONE IoT platform [5] Market Performance - Otis shares have increased by 12.4% year to date, outperforming the Zacks Building Products - Miscellaneous industry's decline of 6.9% [6] - The company aims to continue expanding its digital ecosystem and solutions for both existing customers and new equipment shipments [6]