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Mar 31, 2021

Otis Q1 2021 Earnings Report

Delivered strong first quarter results with sales growth and margin expansion in both segments and double digit New Equipment orders growth; improved 2021 outlook.

Key Takeaways

Otis reported strong first quarter results with a 14.9% increase in net sales and a 10.3% increase in organic sales. GAAP EPS increased 86.8% to $0.71, and adjusted EPS increased 20.0% to $0.72. The company has improved its full-year outlook.

Net sales up 14.9%; organic sales up 10.3%

GAAP operating profit up $180 million with 380 basis points of margin expansion

New Equipment orders up 18.4%; backlog up 8%, 2% at constant currency

GAAP cash flow from operations of $585 million; free cash flow of $541 million

Total Revenue
$3.41B
Previous year: $2.97B
+14.9%
EPS
$0.72
Previous year: $0.38
+89.5%
Organic sales growth
10.3%
Previous year: -2.1%
-590.5%
Gross Profit
$1.02B
Previous year: $897M
+13.6%
Cash and Equivalents
$1.73B
Previous year: $1.21B
+42.9%
Free Cash Flow
$541M
Total Assets
$10.5B
Previous year: $9.52B
+10.3%

Otis

Otis

Otis Revenue by Segment

Forward Guidance

Otis is improving its full year outlook with net sales of $13.6 to $13.9 billion, organic sales up 4 to 6%, adjusted EPS $2.78 to $2.84, and free cash flow of $1.35 to $1.45 billion.

Positive Outlook

  • Net sales of $13.6 to $13.9 billion, up 6.7 to 8.7%
  • Organic sales up 4 to 6%
  • Organic New Equipment sales up 7.5 to 8.5%
  • Organic Service sales up 2 to 4%
  • Adjusted EPS $2.78 to $2.84, up 10 to 13%

Revenue & Expenses

Visualization of income flow from segment revenue to net income