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.
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| 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?
Research analysts who have asked questions during Otis Worldwide earnings calls.
Jeffrey Sprague
Vertical Research Partners
5 questions for OTIS
Joseph O'Dea
Wells Fargo & Company
5 questions for OTIS
Julian Mitchell
Barclays Investment Bank
5 questions for OTIS
Nigel Coe
Wolfe Research, LLC
5 questions for OTIS
Chris Snyder
Morgan Stanley
3 questions for OTIS
Amit Mehrotra
UBS
2 questions for OTIS
Christopher Snyder
Morgan Stanley
2 questions for OTIS
C. Stephen Tusa
JPMorgan Chase & Co.
2 questions for OTIS
Nicholas Housden
RBC Capital Markets
2 questions for OTIS
Nicole DeBlase
BofA Securities
2 questions for OTIS
Rob Wertheimer
Melius Research LLC
2 questions for OTIS
Steve Tusa
JPMorgan Chase & Co.
2 questions for OTIS
Miguel Borrega
BNP Paribas
1 question for OTIS
Patrick Baumann
JPMorgan Chase & Co.
1 question for OTIS
Robert Wertheimer
Melius Research
1 question for OTIS
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.
- 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.
- 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.
- 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 .
- 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.
- 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.
- Otis reported slightly disappointing results driven by weak new elevator sales, which are deemed the least favorable part of the business.
- The service and maintenance segment is considered recession-proof, as elevators legally require ongoing servicing.
- Market share expansion opportunities exist in the service and maintenance business globally.
- Analyst Josh Brown increased his position, lowering his average cost to the mid $90s and plans to hold for the intermediate term.
- Otis delivered flat net sales of $3.6 B in Q2 with organic sales down 2%, resulting in a 1% decline in adjusted EPS; first-half adjusted EPS was $1.97, up 2% YoY.
- The Service segment drove growth with organic sales +4%, backlog up 8%, and operating margin expanding to 24.9%, a post-spin record.
- New equipment orders fell 1% (–China) while ex-China orders grew 11%; organic sales declined 11% and operating margin was 5.3% amid lower volumes and mix headwinds.
- Updated 2025 guidance for net sales of $14.5–14.6 B, adjusted operating profit of $2.4–2.5 B, adjusted EPS of $4.00–4.10, and free cash flow of $1.4–1.5 B; tariff impact now expected at $25–35 M.
- Returned capital with $300 M of share repurchases in Q2 (YTD $550 M) and a target of $800 M by year-end.
- Otis Worldwide Corp held its 2025 Annual Meeting on May 15, 2025, with a record date of March 17, 2025, where 395,629,196 shares were outstanding and 358,121,969 shares formed the quorum.
- Shareholders voted on key proposals including the election of directors, an advisory vote on executive compensation (which was not approved), and the appointment of PricewaterhouseCoopers LLP as Independent Auditor (which was approved).
- 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.