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Jun 30
Otis Q2 2025 Earnings Report
Otis reported solid second quarter 2025 results, driven by strong performance in its Service segment, which saw mid-single digit organic sales growth and operating profit margin expansion, while reconfirming its full-year EPS outlook.
Key Takeaways
Otis Worldwide Corporation delivered a solid second quarter in 2025, with net sales of $3.6 billion, flat compared to the prior year. The Service segment was a key driver of performance, achieving 4% organic sales growth and a 20 basis point expansion in operating profit margin. Despite a decline in New Equipment sales, particularly in China and the Americas, the company reconfirmed its 2025 EPS outlook, supported by strong modernization orders and growth in its maintenance portfolio.
Service net sales increased by 6%, with organic sales growing 4%, demonstrating consistent strength in this segment.
GAAP EPS decreased by 3% to $0.99, and adjusted EPS decreased by 1% to $1.05, primarily due to non-recurring items and operational performance.
Modernization orders surged by 22% at constant currency, and the modernization backlog grew by 16% at constant currency, indicating strong future demand.
The industry-leading maintenance portfolio expanded by 4%, contributing to the steady growth trajectory of the Service segment.
Otis
Otis
Otis Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.comNew Equipment Revenue
CapyFin.com Forward Guidance
Otis reconfirms its 2025 EPS outlook, driven by strong execution of the UpLift program and increased expected run-rate savings from the China transformation program.
Positive Outlook
- Reconfirmation of 2025 EPS outlook, indicating confidence in future performance.
- Expected run-rate savings of $200 million from the UpLift program by year-end 2025.
- Increased expected run-rate savings from the China transformation program to $40 million by year-end 2025.
- Continued strong execution of the UpLift program.
- Anticipated continued growth in the Service segment.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text for the full year outlook.
- Potential for variability, complexity, and low visibility in non-GAAP to GAAP reconciliation.
- Risks from economic conditions, including inflation, interest rates, and foreign currency fluctuations.
- Challenges in global trade policies, sanctions, export controls, and tariffs.
- Impact of geopolitical conflicts on market conditions and commodity costs.