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Dec 31, 2021

Otis Q4 2021 Earnings Report

Delivered strong fourth quarter and full year results with organic sales and EPS growth.

Key Takeaways

Otis reported a strong fourth quarter, with net sales up 2.2% and organic sales up 2.8%. GAAP EPS increased by 12.1% and adjusted EPS increased by 9.1%. The company's maintenance portfolio units grew by 3% and new equipment orders increased by 7.3%.

4Q Net sales up 2.2% and organic sales up 2.8% with GAAP EPS up 12.1% and adjusted EPS up 9.1%

4Q New Equipment orders up 7.3%; FY up 13.2%; backlog up 1%, up 3% at constant currency

Maintenance portfolio units up 3%

Announcing 2022 outlook* with organic sales up 2.5 to 4.5%, adjusted earnings per share of $3.20 to $3.30 and free cash flow of ~$1.6 billion

Total Revenue
$3.57B
Previous year: $3.49B
+2.2%
EPS
$0.72
Previous year: $0.66
+9.1%
Organic sales growth
2.8%
Previous year: 1.3%
+115.4%
Gross Profit
$1.04B
Previous year: $1.01B
+2.7%
Cash and Equivalents
$1.57B
Previous year: $1.78B
-12.2%
Total Assets
$12.3B
Previous year: $10.7B
+14.6%

Otis

Otis

Otis Revenue by Segment

Forward Guidance

Otis is announcing its full year outlook:

Positive Outlook

  • Net sales of $14.4 to $14.7 billion, up 1 to 3%
  • Organic sales up 2.5 to 4.5%
  • Organic New Equipment sales up 0.5 to 3.0%
  • Organic Service sales up 4 to 6%
  • Adjusted operating profit of $2.24 to $2.3 billion, up $95 to $165 million at constant currency; up $50 to $120 million at actual currency

Challenges Ahead

  • Adjusted EPS of $3.20 to $3.30, up 6 to 10%; adjusted effective tax rate between 27.5% and 28.0%
  • Free cash flow of approximately $1.6 billion with conversion of 115 to 120% of GAAP net income