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Mar 31
Otis Q1 2025 Earnings Report
Otis reported flat organic sales, a 29% decline in GAAP EPS, and strong performance in its Service segment in Q1 2025.
Key Takeaways
Otis delivered mixed Q1 results, with GAAP EPS down due to restructuring and separation costs, but adjusted EPS and Service operations showed strength. Modernization orders and backlog growth point to a solid outlook.
GAAP EPS dropped 29% to $0.61 due to one-time charges; adjusted EPS rose 5% to $0.92.
Service segment saw 4% organic growth with margin expansion of 40 bps.
Modernization orders up 12% and backlog grew 14% at constant currency.
Adjusted free cash flow increased to $186M, driven by working capital benefits.
Otis
Otis
Otis Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.comNew Equipment Revenue
CapyFin.com Forward Guidance
Otis forecasts modest top-line growth with strong expectations for Service, despite challenges in New Equipment sales and FX headwinds.
Positive Outlook
- Net sales expected to grow 3–4%, reaching $14.6–$14.8 billion.
- Organic Service sales forecasted to increase 5–7%.
- Adjusted EPS expected to rise to $4.00–$4.10.
- Adjusted operating profit up by $55–$105 million at actual currency.
- Adjusted free cash flow target of approximately $1.6 billion.
Challenges Ahead
- Organic New Equipment sales expected to decline 1–4%.
- Tariff impact forecasted between $45M–$75M on operating profit.
- Foreign exchange expected to continue pressuring earnings.
- Macroeconomic uncertainties remain, especially in China.
- Separation and restructuring costs could persist into future quarters.
Revenue & Expenses
Visualization of income flow from segment revenue to net income