#USA #Farmington #Otis Worldwide #Service Strategy #Modernization Orders

Otis Worldwide Corporation Reports Strong Financial Performance

On January 28, 2026, Otis Worldwide Corporation revealed its fourth-quarter and full-year financial results for 2025. The report highlighted a solid performance driven primarily by its Service department, reaffirming the company's strategic focus on modernization and service growth.

Fourth Quarter Highlights

In the final quarter of 2025, Otis achieved net sales of $3.8 billion, reflecting a 3% increase compared to the previous year. Notably, organic sales rose by 1%, propelled by a remarkable 8% jump in service net sales, alongside a 7% increase in maintenance and repair services. The company’s strong service operating profit margin improved by 100 basis points, highlighting the efficiency and profitability of its service operations.

Earnings per share (EPS) for the fourth quarter rose by 13%, reaching $0.95, and an adjusted EPS showed an 11% increase, landing at $1.03. Such growth signals robust operational performance complemented by a favorable share count and effective management of foreign exchange impacts. Modernization orders surged by an impressive 43%, and the backlog increased by 34% due to heightened demand for upgrades and new equipment.

Full Year Performance

For the entire year of 2025, Otis reported total net sales amounting to $14.4 billion, with flat organic growth. The firm’s operating profit increased to $2.1 billion, reflecting an increase of $125 million, primarily attributed to favorable operational adjustments prioritized in previous years. The company’s focus on service was evident, seeing a 6% uptick in service net sales and a 5% organic growth rate.

The adjusted EPS for the full year rose by 6%, attaining $4.05, signifying strong profitability despite challenges faced in certain markets. Notably, good operational performance allowed for significant cash flow generation, reported at approximately $1.6 billion for the year, highlighting Otis's operational strength and financial health.

Future Outlook for 2026

As Otis looks to the future, its 2026 outlook appears promising. The company anticipates organic sales growth in the low to mid-single digits, alongside expected adjusted earnings per share growth in the mid to high single digits. The management team anticipates adjusted free cash flow ranging between $1.6 billion to $1.7 billion, leveraging the considerable momentum observed throughout 2025.

Judy Marks, Chair, CEO, and President of Otis, expressed optimism regarding the future, stating, “Our performance was predominantly powered by our Service strategy, resulting in the highest adjusted operating profit margins and EPS growth we aimed for.” She emphasized the effective measures the company took in capital management during the year, including stock buybacks totalling nearly $800 million and a sustained dividend growth initiative that returned $1.5 billion to shareholders.

Otis’s performance showcases the importance of their service focus and strategy in driving future growth, with a keen eye on modernization and customer needs. This emphasis not only sets the stage for continued operational success but also enhances shareholder value through robust fiscal management and strategic planning.

Summary

Otis Worldwide Corporation’s financial results for 2025 signify resilience and strength within the company's operations. As they embark on 2026, the focus remains on expanding their service portfolio, enhancing customer offerings, and ongoing modernization efforts that place the company on a sustainable growth path. This positive outlook, fueled by the company’s initiative and commitment, reassures investors and stakeholders of Otis's capacity to deliver meaningful returns in the years ahead.