OTIS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

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]