Otis Q3 2023 Earnings Report
Key Takeaways
Otis reported strong Q3 2023 results, with net sales of $3.5 billion, a 5.2% increase in organic sales, and an 18.8% increase in adjusted EPS to $0.95. The company's performance was driven by its Service segment, which experienced organic sales growth and margin expansion. Otis has raised its full-year outlook for organic sales and adjusted EPS.
Net sales increased by 5.4%, with organic sales up by 5.2%, driven by Service net sales increasing 10.1% and organic sales up 8.4%.
GAAP EPS increased by 18.2% and adjusted EPS increased by 18.8%, with Service GAAP operating profit margin expansion of 80 basis points and adjusted Service operating profit margin expansion of 90 basis points.
New Equipment orders decreased by 10%, while backlog increased by 3%, or 2% at constant currency.
GAAP cash flow from operations was $306 million, and free cash flow was $272 million.
Otis
Otis
Otis Revenue by Segment
Forward Guidance
Otis is revising its full year outlook with adjusted net sales of ~$14.1 billion, organic sales up ~5.5%, adjusted EPS of ~$3.52, and free cash flow of ~$1.5 billion.
Positive Outlook
- Adjusted net sales of ~$14.1 billion, up ~4%
- Organic sales up ~5.5%
- Organic New Equipment sales up ~3%
- Organic Service sales up ~7.5%
- Adjusted EPS of ~$3.52, up ~11%; adjusted effective tax rate of ~26.0%
Revenue & Expenses
Visualization of income flow from segment revenue to net income