Core Insights - Otis Worldwide Corporation reported first quarter 2025 net sales of $3.3 billion, a decrease of 3% year-over-year, primarily due to a decline in New Equipment sales in China [2][4][20] - The company experienced mid-single digit organic sales growth in its Service segment, contributing to a 40 basis points expansion in operating profit margin [3][5] - GAAP earnings per share (EPS) decreased by 29% to $0.61, while adjusted EPS increased by 5% to $0.92, reflecting solid operational performance [6][22] Financial Performance - Net sales for the first quarter of 2025 were $3.3 billion, down from $3.4 billion in the same quarter of 2024 [4][20] - GAAP operating profit was $411 million, a decrease of $133 million from the previous year, while adjusted operating profit was $560 million, a slight decrease of $1 million [5][20] - The operating profit margin contracted to 12.3% from 15.8% year-over-year, while the adjusted operating profit margin improved to 16.7% from 16.3% [5][20] Segment Performance - The Service segment reported net sales of $2.2 billion, up 1% year-over-year, with organic sales growth of 4% [7][9] - The New Equipment segment saw net sales decline by 9% to $1.2 billion, with significant declines in China and the Americas [10][11] - Orders in the Service segment increased by 12%, contributing to a mid-teens growth in backlog [3][8] Cash Flow and Shareholder Returns - Cash flow from operations was $190 million, an increase from $171 million in the prior year, while adjusted free cash flow rose to $186 million from $155 million [13][30] - The company announced a dividend increase for the fifth consecutive year, reflecting confidence in its strategy and commitment to shareholder value [3][8] 2025 Outlook - Otis revised its full-year outlook, projecting net sales between $14.6 billion and $14.8 billion, with organic sales growth expected between 2% and 4% [16]
OTIS REPORTS FIRST QUARTER 2025 RESULTS