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Mar 31, 2023

Otis Q1 2023 Earnings Report

Delivered solid first quarter results driven by mid-single digit organic Service growth and strong New Equipment orders performance.

Key Takeaways

Otis Worldwide Corporation reported a decrease in net sales by 2.0% to $3.3 billion, but organic sales increased by 3.6%. GAAP EPS increased by 8.2% to $0.79, and adjusted EPS increased by 5.3% to $0.80. New Equipment orders were up 7.4%, and the maintenance portfolio units increased by 4.2%.

1Q Net sales down 2.0% and organic sales up 3.6%. GAAP EPS up 8.2% and adjusted EPS up 5.3%

1Q New Equipment orders up 7.4%; NE backlog up 3%, adjusted backlog up 10% at constant currency

Maintenance portfolio units increased 4.2%

1Q GAAP cash flow from operations of $278 million; free cash flow of $253 million, or 76% of net income

Total Revenue
$3.35B
Previous year: $3.41B
-2.0%
EPS
$0.8
Previous year: $0.77
+3.9%
Organic sales growth
3.6%
Previous year: 3.1%
+16.1%
Gross Profit
$996M
Previous year: $1.01B
-1.0%
Cash and Equivalents
$1.12B
Previous year: $1.24B
-9.6%
Free Cash Flow
$253M
Previous year: $474M
-46.6%
Total Assets
$9.85B
Previous year: $11.8B
-16.5%

Otis

Otis

Otis Revenue by Segment

Forward Guidance

Otis is revising its full year outlook: Adjusted net sales of $13.9 to $14.2 billion, up 2.5 to 4.5%, Adjusted EPS of $3.40 to $3.50, up 7 to 10%; and reiterating free cash flow of $1.5 to $1.55 billion.

Positive Outlook

  • Adjusted net sales of $13.9 to $14.2 billion, up 2.5 to 4.5%
  • Organic sales up 4 to 6%
  • Organic New Equipment sales up 3 to 5%
  • Organic Service sales up 5 to 7%
  • Adjusted EPS of $3.40 to $3.50, up 7 to 10%

Revenue & Expenses

Visualization of income flow from segment revenue to net income