Otis delivered $3.7 billion in Q3 net sales with 2% organic growth, achieved an adjusted operating margin of 17.1%, and saw adjusted EPS increase 9% (up $0.09) year-over-year.
Service segment organic sales grew 6%, service operating profit reached $621 million, and service margins expanded to 25.5%, driven by higher volume and pricing.
New equipment organic sales declined 5%, with new equipment operating profit of $59 million and margins contracting to 4.7% amid lower volumes and mix headwinds.
Total backlog rose 22%, new equipment orders were up 4% (7% ex-China), and modernization orders increased 27%, supported by broad regional strength.
Otis generated $337 million of adjusted free cash flow in Q3 ($766 million YTD) and completed its full-year share repurchase target of ~$800 million.

Oct 29, 2025, 12:30 PM

Transcript

Otis announces Q3 2025 results

OTIS

Earnings

Guidance Update

Share Buyback

Otis reported Q3 net sales of $3.7 billion, with organic sales up 2%—driven by 6% service and 14% modernization growth—and achieved an adjusted operating profit margin of 17.1% (+20 bps); adjusted EPS rose 9% (+$0.09).
Service segment performance: organic service sales grew 6% (maintenance +4%, repair +7%, modernization +14%), service operating profit was $621 million (+$49 million), and margin expanded 70 bps to 25.5%.
New equipment segment saw organic sales decline 5% due to China (–20%) and Americas (–7%); new equipment operating profit was $59 million (–$24 million) with margin at 4.7% (–170 bps).
Backlogs remained robust: Q3 modernization orders +27%, combined new equipment and modernization orders +9%, total backlog +22%, and service portfolio approaching 2.5 million units (+4%).
Guidance reaffirmed: full-year net sales of $14.5–14.6 billion (+1% organic), adjusted operating profit of $2.4–2.5 billion, adjusted EPS of $4.04–4.08 (+5–7%), and adjusted free cash flow of ~$1.45 billion; YTD share repurchases totaled ~$800 million.

Oct 29, 2025, 12:30 PM

Transcript

Otis reports Q3 2025 results

OTIS

Earnings

Guidance Update

Share Buyback

Otis delivered net sales of $3.7 billion, with organic sales up 2%, adjusted operating profit margin of 17.1% (+20 bps), adjusted EPS up 9%, and adjusted free cash flow of $337 million in Q3 2025.
Service segment outperformed: organic service sales grew 6%, driven by maintenance & repair (+4% and +7%, respectively) and modernization up 14%, with service margins expanding 70 bps to 25.5%, the highest since spin.
Order activity remained strong: combined new equipment and modernization orders grew 9%, modernization orders accelerated 27%, and total backlog rose 22% year-over-year.
Reinforcing guidance and capital allocation, full-year net sales are projected at $14.5 – 14.6 billion (organic ~1%), adjusted EPS at $4.04 – 4.08 (+5 – 7%), and adjusted free cash flow of $1.45 billion, while completing $250 million of share repurchases in Q3 ($800 million YTD).

Oct 29, 2025, 12:30 PM

Transcript

Otis reports Q3 2025 results

OTIS

Earnings

Guidance Update

Share Buyback

Third quarter net sales of $3.7 billion (+4% YoY; organic +2%), driven by Service net sales up 9% (organic +6%)
GAAP EPS of $0.95 (-29% YoY) and adjusted EPS of $1.05 (+9% YoY)
Service operating profit margin expanded 70 bps to 25.5%, while modernization orders grew 27% and backlog increased 22% YoY
Year-to-date operating cash flow of $779 million and share repurchases of approximately $800 million
Increased the midpoint of 2025 adjusted EPS outlook to $4.06 (range $4.04–$4.08)

Oct 29, 2025, 10:09 AM

Press Release

Otis reports Q3 2025 results

OTIS

Earnings

Guidance Update

Share Buyback

Otis posted Q3 net sales of $3.69 billion, up 4% YoY (organic +2%), led by Service sales up 9% (organic +6%).
GAAP EPS of $0.95 fell 29% YoY, while adjusted EPS rose 9% to $1.05.
Service segment margin expanded 70 bps to 25.5%, versus New Equipment sales down 4% with margin contracting 170 bps to 4.7%.
Year-to-date operating cash flow was $779 million, adjusted free cash flow $766 million, and share repurchases totaled ~$800 million.
Raised midpoint of 2025 EPS guidance to $4.06 (range $4.04–$4.08), with net sales expected at $14.5–14.6 billion (+2%) and organic Service sales ~+5%.

Oct 29, 2025, 10:05 AM

8-K

Otis Worldwide highlights service resilience and equipment demand at Laguna Conference

OTIS

Guidance Update

Share Buyback

Dividends

Otis’ service portfolio of 2.4 million units is growing at 4% annually (net +100,000 units), and its service operating margin has expanded every quarter since the 2020 spin, reaching 24.9% in Q2.
Service growth softened in H1 due to Q1 repair operationalization (repair up 1% in Q1, 6% in Q2; repair backlog +8%) and lumpiness in modernizations (Q2 mod orders +22%, mod backlog +16%), with mod revenue now guided to >10% growth by year-end.
Excluding China, Q2 new equipment orders were +11% with backlog +8%, led by North America’s four consecutive quarters of teens-percent growth; China new equipment (12% of revenue) is down ~40% over four years but showing sequential improvement and expected to stabilize by YE.
Capital returned includes completing an $800 million share buyback, a 110% dividend increase since spin, and accelerating bolt-on M&A to nearly $100 million in H1 to expand service density.

Sep 12, 2025, 5:00 PM

Transcript

Otis Worldwide outlines service-driven growth, digital strategy and capital returns at Laguna Conference

OTIS

Guidance Update

M&A

Share Buyback

Service business expands portfolio 4% to 2.4 M units, with Q2 service operating margin at 24.9%, supported by +6% repair growth (backlog +8%) and +22% modernization orders (backlog +16%) in Q2.
New equipment ex-China orders rose 11% in Q2 (backlog +8%); China market down ~40% over four years but expected to stabilize by year-end, with revenue recovery in late 2026.
Digital Otis One platform now connects 1 M units, enhancing field mechanic productivity, predictive maintenance and customer retention.
Capital returns include completion of an $800 M share buyback, $100 M in bolt-on M&A YTD and a 110% dividend increase since spin.
Company expresses confidence in its back-half 2025 guidance, expecting accelerating service growth and margin expansion.

Sep 12, 2025, 5:00 PM

Transcript

Otis selected for Singapore’s Cross Island Line Phase 1 and Punggol Extension

OTIS

New Projects/Investments

Otis has been chosen by Singapore’s Land Transport Authority to equip the new underground Cross Island Line Phase 1 and Punggol Extension with vertical mobility solutions, supporting key hubs like Jurong Lake District and Changi .
The award includes 336 heavy-duty escalators and moving walkways and 186 Gen3™ elevators, designed for high-traffic environments and enhanced reliability .
The Gen3™ platform integrates with Otis ONE™ IoT digital services to deliver real-time monitoring, predictive maintenance and reduced downtime .
Otis already supports Singapore’s MRT network, having installed and maintained equipment on the North-South, East-West, North-East, Downtown, Tuas West and Thomson-East Coast lines .

Aug 20, 2025, 11:00 AM

Press Release

Otis enters into new $1.5 billion revolving credit agreement

OTIS

Debt Issuance

Otis Worldwide Corporation entered into an unsecured $1,500 million revolving credit agreement maturing August 8, 2030, with Otis Intercompany Lending DAC as subsidiary borrower and JPMorgan Chase Bank, N.A. as administrative agent.
The new facility replaces the prior agreement (originally set to expire March 10, 2028) with no early termination penalties incurred.
Borrowings can be in US Dollars at Term SOFR or base rate, or in euros at EURIBO or daily simple ESTR, with an initial margin of 1.125% for SOFR/EURIBO/ESTR loans and 0.125% for base rate loans, adjusting based on Otis’s public debt rating.
The agreement allows up to $500 million of incremental commitments and includes customary affirmative/negative covenants plus a maximum consolidated leverage ratio requirement.

Aug 8, 2025, 12:00 AM

8-K

Otis declares quarterly dividend of $0.42 per share

OTIS

Dividends

The Board declared a quarterly dividend of $0.42 per share, payable September 5, 2025, to shareholders of record on August 15, 2025.
Otis maintains a service portfolio of approximately 2.4 million customer units worldwide and moves 2.4 billion people per day, the industry’s largest service footprint.
The company employs 72,000 people, including 44,000 field professionals, across more than 200 countries and territories.

Jul 24, 2025, 8:29 PM

Press Release

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