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Dec 31, 2024
Otis Q4 2024 Earnings Report
Otis delivered solid fourth quarter results with growth in net sales and adjusted EPS, driven by service sales and margin expansion.
Key Takeaways
Otis reported a 1.5% increase in net sales and a 6.9% increase in adjusted EPS for the fourth quarter of 2024. The company's service segment drove growth, with service sales up 7.6% and service organic sales up 7.8%. Modernization orders also saw a significant increase of 18%.
Net sales increased by 1.5%, with organic sales up by 1.9%, driven by a strong performance in the Service sector.
GAAP EPS rose by 6.3%, and adjusted EPS increased by 6.9%, supported by continued margin expansion.
The maintenance portfolio expanded by 4.2%.
Modernization orders surged by 18%, and the backlog increased by 10% (13% at constant currency).
Revenue by Segment
Forward Guidance
Otis anticipates net sales of $14.1 to $14.4 billion, organic sales growth of 2 to 4%, and adjusted EPS between $4.00 and $4.10 for full year 2025.
Positive Outlook
- Organic sales are expected to increase by 2 to 4%.
- Organic Service sales are projected to grow by 6 to 7%.
- Adjusted operating profit is anticipated to increase by $120 to $150 million at constant currency.
- Adjusted EPS is forecasted to rise by 4 to 7%.
- The company expects adjusted free cash flow of approximately $1.6 billion.
Challenges Ahead
- Net sales are projected to be down 1 to up 1%.
- Organic New Equipment sales are expected to decline by 1 to 4%.
- UpLift program savings may be offset by other factors.
- China transformation program savings might not fully materialize.
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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