Otis reported solid first-quarter results with net sales growth driven by its Service segment, while also strengthening its order backlog. The company is navigating near-term cost pressures and investments through decisive actions focused on operational execution and pricing, maintaining confidence in future momentum.
Net sales increased 6% to $3.6 billion, with organic sales up 1%.
positiveService net sales increased 11% (5% organic), with all lines of business growing, led by repair sales up 16% (10% organic).
positiveModernization orders up 11% at constant currency, with backlog up 32% (30% at constant currency).
positiveOperating cash flow of $413 million and adjusted free cash flow of $272 million, a significant increase from the prior year.
positiveShare repurchases of approximately $400 million.
positiveAdjusted operating profit decreased $10 million at actual currency and $38 million at constant currency, driven by declines in both segments.
negativeAdjusted operating profit margin declined 130 basis points to 15.4% due to unfavorable segment performance, cost headwinds, and investments.
negativeNew Equipment net sales decreased 1% to $1.1 billion, with declines in China, Asia Pacific, and the Americas.
negativeNew Equipment segment operating profit decreased $28 million at actual currency and $27 million at constant currency due to lower volume, unfavorable price, and mix.
negativeService segment operating profit margin contracted 160 basis points to 23.0% due to higher labor and material costs, investments, and mix.
negativeAdjusted EPS decreased 3% to $0.89, driven by operational performance, higher interest, and higher taxes.
negativeMargin 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 | — | — | — | +6.0% |
New Equipment | N/A | — | — | — | -5.0% |
| 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 delivered a solid quarter, with net sales up 6%.
All Service lines of business grew, led by repair which grew 16% at actual currency and 10% organically.
Orders and backlog strengthened: modernization orders were up 11% and backlog was up 30% at constant currency.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.