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Sep 30, 2024
Otis Q3 2024 Earnings Report
Otis demonstrated strong Service performance, achieving high single-digit Service sales growth, and returned to top-line growth.
Key Takeaways
Otis reported Q3 2024 net sales of $3.5 billion, with organic sales up 1.2%. GAAP EPS increased 47.3% to $1.34, and adjusted EPS increased 1.1% to $0.96. The company's Service-driven business model continued to show strength, with modernization organic sales accelerating and portfolio growth exceeding 4% for the eighth consecutive quarter.
GAAP EPS increased by 47.3%, while adjusted EPS rose by 1.1%.
Service net sales increased by 7.2%, with Service organic sales growing by 7.7%.
Maintenance portfolio units saw a 4.2% increase.
Modernization orders were up 3%, and backlog increased by 14%, or 12% at constant currency.
Otis
Otis
Otis Revenue by Segment
Forward Guidance
Otis is revising its full year outlook:
Positive Outlook
- Net sales of ~$14.2 billion
- Organic sales up ~1.5%
- Organic Service sales up ~6.5%
- Adjusted operating profit of ~$2.375 billion, up ~$140 million at constant currency; up ~$105 million at actual currency
- Adjusted EPS of ~$3.85, up ~9%; adjusted effective tax rate of approximately 25.0%
Challenges Ahead
- Organic New Equipment sales down mid to high single digits
Revenue & Expenses
Visualization of income flow from segment revenue to net income