Net Sales (Q1 2024)

+2.7% " " " "

Organic growth in the Service segment (up 6.5%, with maintenance and repair up 5.8% and modernization up 9.7%) drove overall net sales higher, while a -1.2% impact from foreign currency and a 0.5% decline in the New Equipment segment partially offset these gains. " " " "

Net Sales (Q1 2025)

-3% " "

A 3% decline was driven by a -3% impact from foreign currency translation coupled with a steep 9% drop in the New Equipment segment—exacerbated by a >20% decline in China and a high single-digit decline in the Americas—despite a modest 1% (4% organically) increase in the Service segment. " " " " "

Operating Cash Flow (Q1 2024)

Decrease from $278M to $171M (-$107M) " "

Operating cash flow dropped by $107M due to adverse working capital movements—increased accounts receivable and reduced accounts payable and accrued liabilities—which more than offset an improvement in net income (from $352M to $374M). " "

Operating Cash Flow (Q1 2025)

Increase in net cash provided despite a net income drop " "

Despite a fall in net income from $374M to $256M, favorable working capital changes—such as increased accrued liabilities and a smaller rise in accounts receivable—boosted operating cash flow, even as larger decreases in accounts payable and higher UpLift-related payments influenced the overall cash flow dynamics. " "

Balance Sheet Items (Q1 2024)

Multiple changes across items " " " "

Key balance sheet shifts include a significant drop in cash (from $1,274M to $884M) driven by financing outflows (repurchases and dividends), an increase in accounts receivable due to billing timing, a decrease in accounts payable and accrued liabilities, and a rise in contract liabilities from customer advances, along with increased treasury stock from share repurchases. " " " "

Balance Sheet Items (Q1 2025)

Multiple changes across items "

In Q1 2025, cash decreased from $2,300M to $1,918M—again reflecting repurchase and dividend-related outflows—with modest increases in accounts receivable and contract liabilities, further declines in accounts payable, and adjustments in goodwill and treasury stock tied to acquisitions and foreign exchange impacts, while accumulated deficit improved slightly. "

Net Sales

FY 2025

$14.6B to $14.8B "

$14.5B to $14.6B " "

lowered

Organic Sales Growth

FY 2025

2% to 4% "

≈1% " "

lowered

Adjusted Operating Profit

FY 2025

$2.4B to $2.5B "

$2.4B to $2.5B " "

no change

Adjusted Free Cash Flow

FY 2025

≈$1.6B "

$1.4B to $1.5B " "

lowered

Share Repurchase Target

FY 2025

$800M "

$800M " "

no change

Tariff Impact

FY 2025

–$45M to –$75M "

–$25M to –$35M " "

raised

Service Organic Sales Growth

FY 2025

5% to 7% "

≈5% "

lowered

New Equipment Organic Sales Growth

FY 2025

Decline 1% to 4% "

Decline ≈7% " "

lowered

Modernization Organic Sales Growth

FY 2025

Low teens "

≈10% "

lowered

Adjusted EPS

FY 2025

$4 to $4.10 "

$4.00 to $4.10 " "

no change

Adjusted Operating Margin

FY 2025

50 bps (excl. tariffs) "

30 bps "

lowered

Service Segment Growth and Performance

Q1 2025: Emphasized steady 4% organic growth, margin expansion, and renewed focus on service excellence. " " Q4 2024: Reported strong organic sales (7.8%), robust maintenance/repair growth, and accelerating modernization. " " Q3 2024: Continued emphasis on high organic growth (7.7%) and robust repair/moderization performance. " "

Q2 2025: Highlighted solid performance with 4% organic service sales growth, 22% acceleration in modernization orders, and continued portfolio expansion across regions. " " "

Recurring emphasis: Consistent focus on service strength and margin expansion, though Q2’s growth percentages are more moderate compared to peak growth in previous periods.

New Equipment Orders Trends and Regional Disparities

Q1 2025: Discussed regional disparities with Americas and APAC (excluding China) growing while China declined over 20%. " Q4 2024: Noted global order decline (–4% globally, improvement outside China) with Americas and Asia Pacific showing positive gains. " " Q3 2024: Emphasized lower orders overall with strong growth in the Americas and mixed performance in EMEA and APAC. " "

Q2 2025: Reported an overall 1% decline in new equipment orders driven by China’s weakness; Americas and Asia Pacific (excluding China) continued to show robust regional performance with North America up in the mid-teens. " " "

Persistent theme: Ongoing challenges in China with strength in other regions; overall, a mixed picture with regional disparities continuing to drive performance.

China Market Challenges, Transformation, and Restructuring

Q1 2025: Highlighted a 15% decline in China, pricing pressures, and a strategic shift toward service with a comprehensive transformation program. " " " " Q4 2024: Detailed a 35% decline from historical peaks, consolidation of operations, and targeted cost savings with restructuring. " " " Q3 2024: Noted market weakness with significant volume declines and competitive pricing pressures. " "

Q2 2025: Reiterated persistent challenges with a 15% decline in the new equipment market, ongoing liquidity and pricing pressures, and an increased cost savings target (raised to $40 million run rate) as part of China transformation initiatives. " " "

Consistent challenge: Persistent Chinese market headwinds continue to drive transformation efforts with incremental increases in cost-saving targets and restructuring.

Order Backlog Strength and Future Revenue Pipeline

Q1 2025: Reported a relatively flat combined backlog with healthy modernization growth (+12%) and strong service backlog conversion. " " Q4 2024: Emphasized a decline in new equipment backlog (–4%) but a healthy 13% increase in modernization backlog and service portfolio growth. " " Q3 2024: Highlighted solid modernization backlog gains and strong regional contributions outside China. " "

Q2 2025: Noted that while the combined new equipment and modernization backlog remained nearly flat, modernization orders surged 22% and service portfolio grew across regions, indicating a robust future revenue pipeline. " "

Optimistic continuity: The modernization segment and service pipeline remain strong, offsetting softness in new equipment backlog, suggesting a positive outlook overall.

Tariff Headwinds and Mitigation Strategies

Q1 2025: Detailed significant tariff impacts ($100M annualized) affecting margins, with mitigation via supply chain shifts, contract adjustments, and price increases. " " " (Q3 and Q4 2024: No information provided.)

Q2 2025: Revised tariff exposure downward to $25–35 million (with minimal current impact), with mitigation via adjusted contract terms, cost-savings initiatives (uplift and China transformation), and lower expected margin pressure in H2. " " "

Evolving narrative: While tariffs remained a concern in Q1, revised guidance and active mitigation strategies in Q2 reflect a more managed and lower impact scenario.

Operational and Execution Risks

Q1 2025: Indirect mentions through challenges with tariff impacts, project delays, China transformation execution, and repair backlog issues. " " " " " " Q3 2024: Acknowledged headwinds from volume/mix effects, particularly in China, impacting margins and execution. " " " Q4 2024: Related operational challenges noted in transformation and backlog conversion. " "

Q2 2025: No explicit discussion of operational and execution risks, with the focus primarily on financial performance and strategic initiatives [N/A].

Less emphasized: Previously noted execution risks are less explicitly mentioned in Q2, suggesting either improved confidence or a shift in focus.

Workforce Investments and Transformation Initiatives

Q1 2025: Emphasized investments in service excellence, adding field professionals, and robust China transformation with significant cost savings targets (e.g., $90M in–year savings). " " " Q4 2024: Focused on expanding the field workforce with 2,000 new hires (a 5% increase) and comprehensive China restructuring and the global uplift program. " " " Q3 2024: No specific mention provided.

Q2 2025: Continued efforts in China transformation with consolidation of operations and an increased cost savings target ($40M run rate) coupled with progress on the global uplift program and targeted workforce adjustments (temporary furloughs). " " " " " "

Steady focus: Workforce investments and transformation initiatives remain central, with continual enhancements in China and cost-savings efforts evolving over time.

Margin Pressure and Pricing Challenges

Q1 2025: Noted margin pressure from tariff impacts and soft new equipment prices in China along with a disciplined pricing strategy; overall, margins were expected to expand less due to these headwinds. " " " Q4 2024: Addressed mixed margin pressure—service margins under short‐term pressure from workforce investments but overall expansion, while new equipment margins suffered from lower volumes and regional mix issues. " " " " Q3 2024: Cited severe pricing pressure in China (approx. 10% decline) and efforts to offset this with productivity and uplift programs. " " "

Q2 2025: Reported continued margin pressure in new equipment with a decline of 240 basis points to 5.3%, balanced partly by favorable service pricing gains; pricing challenges persist with cost pressures and regional mix effects. " " " " "

Persistent concern: Price and margin pressures remain a recurring challenge, particularly in new equipment, though service pricing shows resilience.

Regional Mix Shifts in New Equipment Sales

Q1 2025: Discussed varied regional performance—with Americas declining due to backlog processing, APAC growing around 10%, EMEA up modestly, and China down >20%. " " Q4 2024: Highlighted a >20% decline in China with overall new equipment sales down 6.8%, leaving other regions to partially offset the decline. " " Q3 2024: Emphasized a significant shift with China contributing only about 13% of total revenue while the rest of the world accounted for over 75%. " "

Q2 2025: Reported an overall 11% decline in new equipment organic sales; EMEA grew by 7% (primarily driven by the Middle East), while declines in China (>20%), Americas, and low-single-digit decline in Asia Pacific underscore an ongoing regional shift. "

Continuing shift: Persistent weakness in China drives a heavier reliance on other regions; the trend of shifting regional revenue mix remains central.