Core Insights - Otis Worldwide Corporation reported solid fourth quarter and full year results for 2025, with a focus on its Service strategy driving growth and profitability [1][2]. Financial Performance - Full year net sales reached $14.4 billion, reflecting a 1% increase, with flat organic sales [3][8]. - Fourth quarter net sales of $3.8 billion increased by 3% year-over-year, primarily driven by Service sales growth of 8% [4][28]. - GAAP earnings per share (EPS) for the full year decreased by 14% to $3.50, while adjusted EPS increased by 6% to $4.05 [9][32]. Service Segment - Service net sales for the fourth quarter were $2.5 billion, up 8% year-over-year, with organic sales growth of 5% [10][12]. - The Service operating profit margin expanded by 100 basis points to 25.5% in the fourth quarter, driven by higher volume and favorable pricing [11][12]. - Full year Service net sales increased by 6% to $9.4 billion, with a 5% increase in organic sales [12][10]. New Equipment Segment - New Equipment net sales for the fourth quarter decreased by 5% to $1.3 billion, with a significant decline in China impacting overall performance [13][16]. - Full year New Equipment sales decreased by 7% to $5.0 billion, with a notable decline in China and the Americas [16][15]. - New Equipment backlog increased by 6% at actual currency, indicating potential future growth despite current sales challenges [15][37]. Cash Flow and Capital Management - The company generated adjusted free cash flow of $1.6 billion for the full year, with a fourth quarter cash flow from operations of $817 million [17][18]. - Otis executed a balanced capital management strategy, repurchasing approximately $800 million in shares and returning $1.5 billion to shareholders [2][4]. 2026 Outlook - For 2026, Otis expects organic sales growth in the low to mid-single digits, adjusted EPS growth in the mid to high single digits, and adjusted free cash flow of $1.6 to $1.7 billion [1][22].