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Q2 2025 Earnings Call July 23, 2025 © 2025 OTIS WORLDWIDE CORPORATION. Forward-Looking Statements © 2025 OTIS WORLDWIDE CORPORATION. 2 Q2 2025 highlights Solid second quarter performance driven by Service strength... Note: All results and expectations in this presentation reflect continuing operations unless otherwise noted. ...Delivering long-term value to all stakeholders This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward- ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Otis Worldwide (OTIS) despite higher revenues when it reports its results for the quarter ended June 2025 [1] Group 1: Earnings Expectations - The upcoming earnings report is expected to be released on July 23, with a consensus EPS estimate of $1.02, reflecting a year-over-year decrease of 3.8% [3] - Revenues are projected to be $3.68 billion, which is an increase of 2.3% compared to the same quarter last year [3] - The consensus EPS estimate has been revised 1.44% higher in the last 30 days, indicating a reassessment by analysts [4] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Otis Worldwide is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.39% [12] - The stock currently holds a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [12] - Historical performance shows that Otis Worldwide has beaten consensus EPS estimates in two out of the last four quarters [14] Group 3: Market Reactions - A positive earnings surprise could lead to an upward movement in the stock price, while a miss may result in a decline [2] - The sustainability of any immediate price change will largely depend on management's discussion of business conditions during the earnings call [2] - Past earnings surprises can influence future expectations, as seen in the last reported quarter where Otis Worldwide exceeded expectations by delivering earnings of $0.92 per share against an expected $0.91, resulting in a surprise of +1.10% [13]

Core Viewpoint - Otis Worldwide's shares have increased by approximately 4.8% over the past month, which is underperforming compared to the S&P 500 index [1] Group 1: Earnings Report and Market Reaction - The last earnings report for Otis Worldwide was released a month ago, and there is speculation about whether the positive trend will continue or if a pullback is imminent [1] - Recent estimates for Otis Worldwide have trended downward over the past month, indicating a negative sentiment among analysts [2] Group 2: VGM Scores and Investment Strategy - Otis Worldwide currently holds an average Growth Score of C, a Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3] - The overall aggregate VGM Score for Otis Worldwide is D, suggesting a lack of strong performance across multiple investment strategies [3] Group 3: Outlook and Future Expectations - The downward trend in estimates suggests a negative outlook for Otis Worldwide, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4]

Core Viewpoint - Otis Worldwide reported mixed results for Q4 2024, with adjusted earnings missing estimates while net sales exceeded expectations, marking the second consecutive earnings miss after a strong performance in prior quarters [2][5]. Financial Performance - Adjusted earnings were 93 cents per share, missing the Zacks Consensus Estimate of 95 cents by 2.1%, but increased 6.9% year-over-year from 87 cents [5]. - Net sales reached $3.68 billion, slightly above the consensus mark of $3.65 billion, reflecting a 1.5% year-over-year growth, with organic sales increasing by 1.9% [5]. - Adjusted operating margin expanded by 30 basis points to 15.9%, driven by favorable performance in the Service segment [6]. Segment Analysis - **New Equipment Segment**: - Net sales were $1.36 billion, down 7.4% year-over-year, with organic sales declining 6.8% [7]. - Orders decreased by 4% at constant currency, with significant declines in China and EMEA [8]. - Operating margin contracted by 140 basis points to 4.7% due to lower volume and unfavorable mix [9]. - **Service Segment**: - Net sales increased by 7.6% year-over-year to $2.32 billion, supported by a 7.8% rise in organic sales [10]. - Operating margin improved by 50 basis points to 24.5%, aided by higher volume and favorable pricing [11]. Annual Highlights - For 2024, Otis Worldwide reported annual revenues of $14.26 billion, a 0.4% increase from $14.21 billion in 2023, with adjusted EPS rising to $3.83 from $3.54 [12]. - Adjusted operating margin for the year expanded by 50 basis points to 16.5% [12]. Financial Position - As of December 31, 2024, cash and cash equivalents were $2.3 billion, up from $1.27 billion at the end of 2023, while long-term debt increased to $6.97 billion [13]. - Net cash flows from operating activities were $1.56 billion, down from $1.63 billion a year ago, with adjusted free cash flow totaling $1.57 billion [13]. 2025 Outlook - Otis expects net sales between $14.1 billion and $14.4 billion, with organic sales growth projected between 2% and 4% [14]. - Adjusted EPS is anticipated to be between $4 and $4.10, indicating a year-over-year growth of 4-7% [15]. Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 5.23% [16]. VGM Scores - Otis Worldwide has a Growth Score of A but lags in Momentum with an F, resulting in an aggregate VGM Score of C [17].