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Dec 31, 2023
Otis Q4 2023 Earnings Report
Delivered strong fourth quarter and full year results; announced 2024 outlook with solid sales and earnings growth with continued Service momentum.
Key Takeaways
Otis delivered excellent fourth quarter results with mid-teens adjusted EPS growth, the third consecutive quarter of high-single digit Service organic sales growth, and a return to New Equipment orders growth. Full year 2023 was marked by mid-single digit organic sales growth, operating profit margin expansion and low teens adjusted EPS growth.
4Q Net sales up 5.3% and organic sales up 3.8%; GAAP EPS up 11.3% and adjusted EPS up 16.0%
4Q New Equipment orders up 3%; backlog up 2%
4Q Mod orders up 11%; backlog up 15%
Maintenance portfolio units up 4.2%
Revenue by Segment
Forward Guidance
Otis is announcing its full year outlook: •Net sales of $14.5 to $14.8 billion, up 2 to 4% •Organic sales up 3 to 5% ◦Organic New Equipment sales approximately flat ◦Organic Service sales up 6 to 7% •Adjusted operating profit of $2.40 to $2.45 billion, up $150 to $190 million at constant currency; up $125 to $175 million at actual currency •Adjusted EPS of $3.80 to $3.90, up 7 to 10%; adjusted effective tax rate of approximately 25.5% •Adjusted free cash flow of approximately $1.6 billion
Positive Outlook
- Net sales of $14.5 to $14.8 billion, up 2 to 4%
- Organic sales up 3 to 5%
- Organic New Equipment sales approximately flat
- Organic Service sales up 6 to 7%
- Adjusted operating profit of $2.40 to $2.45 billion, up $150 to $190 million at constant currency; up $125 to $175 million at actual currency
Challenges Ahead
- Adjusted EPS of $3.80 to $3.90, up 7 to 10%
- Adjusted effective tax rate of approximately 25.5%
- Adjusted free cash flow of approximately $1.6 billion
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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