OTIS REPORTS SECOND QUARTER 2025 RESULTS

Core Insights - Otis Worldwide Corporation reported second quarter 2025 net sales of $3.6 billion, with organic sales down 2% year-over-year, while GAAP EPS decreased 3% to $0.99 and adjusted EPS decreased 1% to $1.05 [1][3][5] Financial Performance - Net sales for the second quarter were flat compared to the prior year, primarily due to a decrease in New Equipment sales in China and the Americas, offset by growth in Service sales across all lines of business [3][4] - GAAP operating profit for the second quarter was $547 million, a decrease of $23 million, while adjusted operating profit was $612 million, down $1 million at actual currency [4][27] - The operating profit margin contracted by 60 basis points to 15.2%, while the adjusted operating profit margin remained flat at 17.0% [4][24] Service Segment - The Service segment achieved net sales of $2.3 billion, representing a 6% increase, with organic sales growth of 4% [6][8] - The maintenance portfolio units grew by 4%, and modernization orders increased by over 20% [7][8] - Service operating profit margin expanded by 20 basis points to 24.9% due to higher volume and favorable pricing [8][37] New Equipment Segment - New Equipment segment net sales decreased by 10% to $1.3 billion, with a significant decline in China impacting overall performance [9][10] - New Equipment orders were down 1% at constant currency, with a notable decline in China offset by growth in other regions [11][11] Cash Flow and Shareholder Returns - Cash flow from operations was $405 million, with adjusted free cash flow of $429 million, reflecting a decrease from the previous year [12][12] - The company executed share repurchases totaling approximately $550 million [7] 2025 Outlook - Otis reconfirmed its 2025 EPS outlook, supported by the ongoing execution of the UpLift program and expected run-rate savings of $200 million [2][13]