Otis Worldwide Corp reported solid fourth quarter and full year results, driven by strong performance in its Service segment, which offset declines in New Equipment sales. The company demonstrated improved operating profit margins and delivered on its balanced capital return strategy, while also providing a positive outlook for 2026.
Service net sales increased 8% in Q4 and 6% for the full year, with organic sales up 5% in both periods, demonstrating strong momentum in the Service flywheel.
positiveAdjusted operating profit margin expanded 70 bps in Q4 and 40 bps for the full year, indicating improved profitability.
positiveModernization orders grew significantly, up 43% in Q4 at constant currency, with backlog up 34% at actual currency and 30% at constant currency.
positiveReturned $1.5 billion in cash to shareholders through share repurchases ($800 million) and dividends.
positiveNew Equipment net sales decreased 5% in Q4 and 7% for the full year, with significant declines in China (greater than 20%) and the Americas.
attentionNew Equipment segment operating profit margin contracted 110 bps in Q4 and 130 bps for the full year, indicating pressure in this segment.
attentionGAAP EPS decreased 14% for the full year to $3.50, primarily due to non-recurring tax benefits in the prior year.
negativeFull year net sales growth was flat on an organic basis, indicating a lack of top-line expansion.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Service | N/A | — | — | — | +5.0% |
New Equipment | N/A | — | — | — | -7.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Otis finished the year with solid performance driven by our Service flywheel.
We generated our highest adjusted operating profit margin expansion and EPS growth in 2025, as anticipated, due to strong Service sales growth, up 8% with organic sales up 5% in the quarter.
Modernization orders grew 43% in the quarter, marking another quarter of exceptional performance.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.