Loading...
•
Dec 31, 2025
Otis Q4 2025 Earnings Report
Otis reported solid fourth quarter 2025 results, driven by strong Service sales growth and significant modernization order increases.
Key Takeaways
Otis delivered a solid fourth quarter in 2025, with net sales increasing 3% to $3.8 billion, primarily driven by an 8% rise in Service net sales. Adjusted EPS grew 11% to $1.03, reflecting strong operational performance. Modernization orders saw a substantial 43% increase at constant currency, contributing to a healthy backlog for the upcoming year.
Net sales increased 3% to $3.8 billion, with organic sales up 1% in Q4 2025.
Service net sales grew 8% (5% organic) and Maintenance and repair sales grew 7% (4% organic).
Modernization orders surged 43% at constant currency, with backlog up 34% (30% at constant currency).
Adjusted EPS increased 11% to $1.03, driven by operational performance and favorable foreign exchange rates.
Revenue by Segment
Forward Guidance
For the full year 2026, Otis anticipates organic sales to grow low to mid-single digits, adjusted earnings per share to increase mid to high single digits, and adjusted free cash flow to be between $1.6 billion and $1.7 billion.
Positive Outlook
- Organic sales expected to grow low to mid-single digits.
- Adjusted EPS projected to increase mid to high single digits.
- Adjusted free cash flow anticipated to be between $1.6 billion and $1.7 billion.
- Adjusted operating profit expected to increase $60 to $100 million at constant currency.
- Organic Service sales are expected to be up mid to high single digits.
Challenges Ahead
- Organic New Equipment sales are projected to be down low single digits to flat.
- The outlook for organic sales, adjusted operating profit, adjusted EPS, and adjusted free cash flow is provided on a non-GAAP basis, and reconciliation to GAAP measures is not available without unreasonable effort.
- High variability, complexity, and low visibility regarding certain items may impact future GAAP results.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...