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Otis Worldwide Corporation Reports Third Quarter 2026 Results

On October 28, 2026, Otis Worldwide Corporation (NYSE: OTIS) disclosed its financial results for the third quarter of 2026, showcasing robust growth in its Service and New Equipment sectors. The company reported net sales of $3.9 billion, reflecting a 6% increase compared to the same period in the prior year, backed primarily by an 8% boost in Service net sales and a 3% rise in New Equipment sales.

Key Financial Highlights

Otis's quarterly performance can be charted through several key financial metrics:

• - Service Net Sales Growth: The Service segment's sales, which encompass maintenance, repair, and modernization services, increased by 8%, with organic growth reaching 7%.
• - Equipment Sales: The New Equipment segment saw a smaller gain of 3% in net sales, attributed to growth in the Americas and EMEA regions, although partially offset by a decline in the Chinese market.
• - Profit Margins: The Service operating profit margin improved sequentially, climbing by 100 basis points to 24.2%, contributing positively to the overall financial health of the company.
• - Operating Cash Flow: Operating cash flow amounts to $337 million, with adjusted free cash flow pegged at $272 million for the quarter.
• - Shareholder Returns: Year-to-date, Otis returned approximately $1.3 billion to shareholders through share repurchases totaling around $800 million and dividends amounting to nearly $500 million.

The company’s chair and CEO, Judy Marks, highlighted Otis's strong performance across all Service lines and noted that their strategic investments in AI-enabled pricing and service capabilities are paying off. "Our investments in field capability and disciplined execution have fueled strong modernization growth and solid Repair growth," said Marks in a statement.

Year-to-Date Performance

For the nine months ending September 30, 2026, Otis recorded a 7% increase in net sales and a 4% growth in organic sales. The Service segment similarly demonstrated strength with net sales up 10% and organic sales growing by 7%. However, adjusted operating profit saw a slight decline due to unfavorable market conditions impacting New Equipment sales.

Geographic Performance Breakdown

The third quarter results reveal the geographical dynamics of Otis's operations:
- Americas: Continued to show healthy demand for new equipment and services.
- EMEA: Moderate growth reflecting a recovery in European markets.
- Asia Pacific: The region experienced mixed results, with Japan and Australia showing promising trends, while China faced challenges resulting in a significant 20% decline in new orders.

otis remains confident in its strategic direction and is focused on maintaining its trajectory for growth amidst fluctuating market conditions.

Outlook for 2026

Looking ahead, Otis maintains its full-year outlook, projecting net sales between $15.1 billion to $15.3 billion and aiming for overall organic sales growth in the low to mid-single digits. The company aims to enhance its adjusted operating profit to approximately $2.4 billion, further aiming to generate adjusted free cash flow of about $1.5 billion.

The results reaffirm Otis's position as a leader in the elevator and escalator industry, underpinned by its commitment to innovation and high service quality. The quarterly report demonstrates a strategic focus on balancing growth in revenue with enhanced profitability, benefiting shareholders and reinforcing customer relations worldwide.

Otis, headquartered in Connecticut, services approximately 2.5 million units globally and serves 2.5 billion passengers daily. Through ongoing improvements and technological investments, Otis Worldwide Corporation looks to build on these strong results while navigating the complexities of the construction and service sectors.