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Otis is the world's leading elevator and escalator manufacturing, installation, and service company, organized into two main segments: New Equipment and Service. The company designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways for various projects, while also providing maintenance, repair, and modernization services for these products . Otis operates globally, with a significant portion of its revenue coming from international operations, and focuses on converting new equipment installations into long-term service contracts to ensure a stable revenue stream .
- Service - Provides maintenance and repair services for both Otis products and those of other manufacturers, as well as modernization services to upgrade elevators and escalators. Maintenance and repair services represent about 80% of Service sales revenue, with the modernization subsegment having high growth potential.
- New Equipment - Involves designing, manufacturing, selling, and installing passenger and freight elevators, escalators, and moving walkways for residential, commercial, and infrastructure projects.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Judith F. Marks ExecutiveBoard | Chair, President, and CEO | Board Member at Caterpillar Inc.; Member of Business Roundtable; U.S.-India CEO Forum; AdvanceCT | Leads Otis since 2017, became CEO in 2019, and Chair in 2022. Delivered strong financial performance and expanded Otis's maintenance portfolio. | View Report → |
Abbe Luersman Executive | Executive Vice President and Chief People Officer | None | Joined Otis in July 2021. Previously CHRO at Ahold Delhaize. | |
Cristina Méndez Executive | Executive Vice President and CFO | None | Joined Otis in 2022 as SVP, Finance EMEA & Transformation. Became CFO in August 2024. Focused on financial planning, M&A, and transformation. | |
Enrique Miñarro Viseras Executive | President, Otis EMEA | None | Serving as President of Otis EMEA since October 2023. Previously held leadership roles at Ingersoll Rand and Gardner Denver. | |
Michael P. Ryan Executive | Senior Vice President and Chief Accounting Officer | None | Joined Otis in April 2020. Previously served as VP and Assistant Controller at UTC. | |
Neil Green Executive | Executive Vice President and Chief Digital Officer | None | Serving as EVP and Chief Digital Officer since April 2020. Previously VP, Transformation and Chief Digital Officer. | |
Nora E. LaFreniere Executive | Executive Vice President and General Counsel | None | Joined Otis in July 2021. Oversees legal, compliance, and corporate governance functions. | |
Peiming Zheng (Perry) Executive | Executive Vice President, Chief Product, Delivery and Customer Officer | None | Serving as EVP, Chief Product, Delivery and Customer Officer since March 2023. Previously President of Otis China. | |
Sally A. Loh Executive | President, Otis China | None | Serving as President of Otis China since March 2023. Previously COO and CFO of Otis China. | |
Stéphane de Montlivault Executive | President, Otis Asia Pacific | None | Serving as President of Otis Asia Pacific since April 2020. Previously President of Otis Northeast Asia and Nippon Otis Elevator Company. | |
Tracy A. Embree Executive | President, Otis Americas | None | Joined Otis in October 2023. Previously held leadership roles at Cummins, including VP and President of Distribution and Components. | |
Christopher J. Kearney Board | Non-Independent Director | Lead Director at Nucor Corporation; Managing Partner at Eagle Marsh Holdings; Advisor at Warburg Pincus | Joined Otis Board in April 2020. Former Executive Chair of Otis and CEO of SPX Corporation. | |
Jeffrey H. Black Board | Director | Board Member at Carter’s Inc. | Independent director since April 2020. Former Senior Partner and Vice Chairman at Deloitte LLP. | |
Jill C. Brannon Board | Director | Advisory Board Member at European Transport Solutions SARL | Joined Otis Board in October 2023. Former EVP and Chief Sales Officer at FedEx Corporation. | |
John H. Walker Board | Independent Lead Director | Non-Executive Chair at O-I Glass | Independent director since April 2020. Former Non-Executive Chair at Nucor Corporation. | |
Kathy Hopinkah Hannan Board | Director | Director at Annaly Capital Management and Ginkgo Bioworks; Trustee at Tribal Abatement Fund Trust and The Conference Board | Independent director since April 2020. Former National Managing Partner at KPMG LLP. | |
Margaret M. V. Preston Board | Director | Director at McCormick & Company | Independent director since April 2020. Former executive at Bank of America and Lehman Brothers. | |
Nelda J. Connors Board | Director | CEO of Pine Grove Holdings; Board Member at Boston Scientific, Baker Hughes, and Zebra Technologies | Joined Otis Board in October 2022. Founder and CEO of Pine Grove Holdings. | |
Shailesh G. Jejurikar Board | Director | COO at Procter & Gamble; Chairperson of Cincinnati Center City Development Corporation | Independent director since April 2020. Currently COO at Procter & Gamble. | |
Shelley Stewart, Jr. Board | Director | Director at Kontoor Brands and Clean Harbors; Managing Partner at Bottom Line Advisory; Chairman of Billion Dollar Roundtable | Independent director since April 2020. Former CPO at DuPont and Tyco. | |
Thomas A. Bartlett Board | Director | Member of Business Roundtable; Advisor at ECS; Board of Governors at NAREIT and WEF ICT; Board of Advisors at Rutgers Business School | Joined Otis Board in October 2023. Former CEO of American Tower Corporation. |
- Given the significant decline in China's new equipment market to approximately 415,000 units and expectations of further declines, how does Otis plan to adapt its cost structure and strategy in China to maintain profitability in the face of prolonged market weakness?
- With service margins remaining flat year-over-year despite high single-digit growth in service sales, what specific measures is Otis taking to improve service profitability amid wage inflation and increased repair and modernization activities?
- Considering the competitive pricing environment and economic softness in China, is Otis contemplating any strategic shifts to protect margins, such as prioritizing service and modernization over new equipment sales, and how sustainable is this approach long-term?
- Orders in EMEA declined by high single digits due to continued weakness in Western and Northern Europe; what challenges are you encountering in these markets, and what strategies are in place to reverse the declining trend in orders?
- Despite generating $381 million in adjusted free cash flow and returning $800 million to shareholders, how does Otis justify significant share buybacks amid the need for investment in growth regions to offset the downturn in China and potential weaknesses in Europe?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
KONE Oyj | A major global competitor in both the New Equipment and Service segments of the elevator and escalator industry. Competitive dynamics vary significantly by segment and geography. |
Schindler Group | A significant global competitor in the elevator and escalator industry, competing in both the New Equipment and Service segments. |
TK Elevator | Another key global competitor in the elevator and escalator industry, active in both the New Equipment and Service segments. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Subsidiary in Japan Noncontrolling Shareholders | 2024 | Otis Worldwide exercised its call option to acquire all outstanding shares from its Japan subsidiary's noncontrolling shareholders at an approximate value of $70 million; the acquisition was announced in April 2024 and completed in the second quarter of 2024, with the purchase value recorded as redeemable noncontrolling interest on the balance sheet. |
Zardoya Otis | 2022 | Otis conducted a tender offer for Zardoya Otis, acquiring additional shares to increase its ownership to 100%, with key steps including regulatory approval and cash settlements amounting to a total transaction value of about €1.66 billion, culminating in a delisting from the Spanish stock exchange. |
Service Segment Businesses and Intangible Assets | 2022 | In its Service segment acquisitions, Otis invested in various businesses and intangible assets with incremental investments of $8 million, $28 million, and $38 million over the quarters ending March, June, and September 2022 respectively, with minimal transaction costs involved. |
Recent press releases and 8-K filings for OTIS.
- Q1 2025 Earnings: Net sales of $3.3B and Adjusted EPS of $0.92 (up 5%), with GAAP EPS of $0.61 (down 29%) and flat organic sales overall.
- Service segment delivered robust performance with 4% organic growth, 12% higher modernization orders, and a 14% increased backlog, underscoring its service-driven model.
- Enhanced cost management boosted the adjusted operating profit margin to 16.7% with an additional 40 bps improvement.
- Tariff challenges were largely mitigated through supply chain adjustments and revised pricing, limiting potential headwinds of $45–75M.
- The company executed share repurchases of approximately $250M and announced its fifth consecutive dividend increase (up 8%).
- Revised 2025 full-year guidance targets net sales of $14.6–14.8B, adjusted operating profit of $2.4–2.5B, and adjusted EPS of $4–4.10 per share.
- Organic sales were impacted by a 3% decline in New Equipment in China despite the overall flat performance.