Otis Industries Reports Strong Growth in Fourth Quarter and Full Year 2024 Results

Otis Worldwide Corporation has announced its impressive financial results for the fourth quarter and full year of 2024. The company has demonstrated solid growth in net sales, primarily driven by a significant increase in its service segment. This development reflects the company's ongoing strategic focus on enhancing service capabilities and modernization efforts.

Q4 2024 Highlights

In the fourth quarter, Otis recorded net sales of $3.675 billion, a 1.5% increase compared to the previous year. The organic sales growth stood at 1.9%, largely propelled by a stellar 7.6% growth in service sales and a 7.8% boost in organic service sales. The company reported a GAAP earnings per share (EPS) of $0.84, marking a 6.3% increase, while the adjusted EPS rose by 6.9% to $0.93. Key metrics also include a cash flow from operations reaching $690 million and an adjusted free cash flow of $682 million.

Furthermore, Otis saw a considerable increase in its maintenance portfolio units, which rose by 4.2%. The order backlog for modernization surged by 18%, underpinning the company's commitment to improving existing equipment and enhancing customer experience.

Full Year 2024 Overview

For the entire year, Otis achieved net sales of $14.261 billion, a modest 0.4% year-over-year growth, with organic sales increasing by 1.4%. The service segment again showed strong performance, contributing significantly with a 5.9% rise in service sales and 6.8% in organic service sales. The GAAP EPS for the full year jumped by 20.1% to $4.07, while the adjusted EPS increased by 8.2% to $3.83. Notably, the total share repurchases for the year amounted to $1 billion.

Chair, CEO, and President Judy Marks commented on the results, stating, "Otis finished 2024 with solid fourth quarter results, achieving high single-digit adjusted EPS growth and our highest cash flow since our spin-off. The year was marked by consecutive organic sales growth and strong adjusted margin expansion. The growth in our maintenance portfolio and modernization backlog highlights the effectiveness of our strategic focus going into 2025."

2025 Outlook

Looking ahead, Otis has set a positive outlook for the full year of 2025. The company expects organic sales to grow between 2% to 4%, with adjusted earnings per share projected to be between $4.00 and $4.10. Additionally, the adjusted free cash flow is anticipated to be around $1.6 billion. The company continues to execute its UpLift program, which aims to enhance productivity and generate significant operational savings.

Otis is also initiating a transformation program in China in response to changing market dynamics, aiming for further operational efficiencies. With a strong focus on customer service and modernization, Otis is well-positioned to capitalize on growth opportunities in the evolving global landscape.

In conclusion, Otis Worldwide Corporation's fourth-quarter and full-year results underscore its robust operational framework and successful service execution strategies. The company is poised to deliver sustained financial performance and shareholder value as it moves into 2025.