Otis Worldwide Corporation ( (OTIS) ) has released its Q3 earnings. Here is a breakdown of the information Otis Worldwide Corporation presented to its investors.
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Otis Worldwide Corporation is a leading company in the elevator and escalator industry, renowned for its manufacturing, installation, and maintenance services across more than 200 countries. In its third quarter of 2025, Otis reported a 4% increase in net sales, reaching $3.7 billion, with a notable 6% organic growth in Service sales. Despite a 29% drop in GAAP EPS, the company achieved a 9% rise in adjusted EPS, reflecting strong operational performance and favorable foreign exchange rates.
Key highlights from the quarter include a 9% increase in Service net sales and a 70 basis point improvement in Service operating profit margin. The company’s modernization orders surged by 27%, and its maintenance portfolio units grew by 4%. However, New Equipment sales faced challenges, particularly in China and the Americas, resulting in a 4% decline in net sales for this segment.
Otis also reported a robust operating cash flow of $779 million and adjusted free cash flow of $766 million for the year-to-date. The company executed share repurchases worth approximately $800 million, demonstrating its commitment to returning value to shareholders. Looking ahead, Otis has increased the midpoint of its EPS outlook for 2025, driven by confidence in its Service-driven strategy and a strong order book for modernization projects.
In conclusion, Otis Worldwide Corporation remains optimistic about its future performance, bolstered by its Service segment’s growth and strategic initiatives like the UpLift program. The company anticipates continued expansion in its modernization and Service sectors, despite challenges in the New Equipment market, particularly in China.