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OTIS · Otis Worldwide

6 filings

10-K

OTIS 10-K Annual Reports

Otis Worldwide - 6 annual reports

Filing record · 2020–202610-K610-Q218-K63

2025
Otis Worldwide Annual Report, Year Ended Dec 31, 2025
Otis Worldwide Corporation's 2025 results show net sales of $14.43 billion, up slightly from $14.26 billion in 2024, with the Service segment growing to $9.44 billion (65% of net sales) while New Equipment declined to $4.99 billion from $5.37 billion. Service generated 91% of segment operating profit, and organic New Equipment sales fell 7%, driven by a greater than 20% decline in China. Consolidated operating profit rose to $2.13 billion from $2.01 billion, but net income attributable to Otis fell to $1.38 billion from $1.65 billion, mainly due to a higher effective tax rate of 24.8% (versus 15.0%) and higher interest expense of $196 million, which included the absence of roughly $200 million of 2024 German tax litigation interest income. Diluted EPS was $3.50 versus $4.07. The balance sheet remains heavily leveraged with total equity of negative $5.35 billion, total debt of $7.96 billion and cash of $1.10 billion, down from $2.30 billion. The company returned capital through $809 million of share repurchases and $647 million of common dividends, and repaid $1.3 billion of 2.056% notes in April 2025, funded partly by new notes issued in September 2025. Approximately $1.3 billion remained authorized under the $2.0 billion repurchase program at year end. The filing also highlights the UpLift transformation program, with total UpLift costs of $145 million in 2025 and run-rate savings of approximately $200 million, and the expected German tax refunds of roughly $362 million, against a remaining indemnity payable to RTX of $56 million. Management notes that new tariffs had an impact of approximately $20 million in 2025 and a similar impact is anticipated in 2026, and it does not currently expect a significant effect on liquidity.
Feb 5, 2026
2024
Otis Worldwide Annual Report, Year Ended Dec 31, 2024
Otis Worldwide Corporation's 2024 Form 10-K reports net sales of $14.26 billion, up slightly from $14.21 billion in 2023, with Service sales of $8.89 billion (62% of net sales) driving results while New Equipment sales declined to $5.37 billion from $5.81 billion. Service operating profit rose to $2.19 billion, with an operating margin of 24.6%, while New Equipment operating profit fell to $329 million. Total operating profit was $2.01 billion, down from $2.19 billion, reflecting $506 million of Corporate and Unallocated charges, including a $177 million Separation-related reserve adjustment and $65 million of UpLift transformation costs. Net income attributable to Otis Worldwide Corporation increased to $1.65 billion from $1.41 billion, helped by a German tax litigation favorable ruling that produced income tax benefits of approximately $185 million and interest income of approximately $200 million, partly offset by a $194 million indemnification expense payable to RTX. Diluted EPS was $4.07 versus $3.39 in 2023. The balance sheet shows cash and cash equivalents of $2.3 billion and total debt of $8.32 billion, with net debt of $6.02 billion and total shareholders' deficit of $4.85 billion. Operating cash flow was $1.56 billion, capital expenditures were $126 million, and the company repurchased $1.0 billion of Common Stock and paid $606 million in Common Stock dividends in 2024. On January 16, 2025, the Board approved a new share repurchase program of up to $2.0 billion. The company also disclosed UpLift, a transformation program expected to generate approximately $200 million in annual run-rate savings by the second half of 2025, with transformation costs of about $300 million. Management notes ongoing macroeconomic pressures, particularly a China New Equipment decline described as greater than 20%, and a planned January 2025 reorganization of China operations with about $40 million of restructuring actions. The auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Feb 4, 2025
2023
Otis Worldwide Annual Report, Year Ended Dec 31, 2023
Otis Worldwide Corporation's 2023 Form 10-K reports net sales of $14.21 billion, up from $13.69 billion in 2022, with organic volume growth of 5.6%. Operating profit rose to $2.19 billion from $2.03 billion, and net income attributable to Otis Worldwide Corporation increased to $1.41 billion from $1.25 billion. Diluted earnings per share were $3.39, compared with $2.96 in 2022. Service remained the larger segment at $8.40 billion of net sales (59%) and $1.97 billion of segment operating profit, while New Equipment net sales were $5.81 billion with flat operating profit of $358 million. Cash flow from operations was $1.63 billion, and capital expenditures were $138 million. The company returned capital through $800 million of share repurchases and $539 million of common stock dividends. Total debt was $6.90 billion and cash and cash equivalents were $1.27 billion at year-end. The company announced its UpLift operating model transformation in July 2023, which it expects to generate approximately $150 million in annual savings by mid-year 2025, with transformation costs of roughly the same amount over that period. In 2023 UpLift costs totaled $41 million. The filing also flags ongoing risks from the Russia-Ukraine and Israel-Hamas conflicts, U.S.-China trade tensions, and a German tax dispute in which the German Federal Tax Court is expected to rule on an appeal in 2024. Remaining performance obligations were approximately $18.0 billion at year-end, with about 90% expected to be recognized as sales over the following 24 months.
Feb 2, 2024
2022
Otis Worldwide Annual Report, Year Ended Dec 31, 2022
Otis Worldwide Corporation's 2022 Form 10-K reports net sales of $13.69 billion, down from $14.30 billion in 2021, with operating profit of $2.03 billion versus $2.11 billion. Net income attributable to Otis was $1.25 billion, roughly flat with $1.25 billion in 2021 (1,246 million). The filing attributes the sales decline mainly to foreign currency translation (-5.9%) and includes organic volume growth of 2.5%. Service was the larger segment at $7.82 billion in sales and $1.79 billion in operating profit (22.9% margin), while New Equipment sales fell to $5.86 billion with operating profit of $358 million (6.1% margin), affected by a 10% decline in China and higher commodity costs of $107 million, primarily steel. The company completed the acquisition of the remaining Zardoya Otis shares in 2022 through a tender offer, which required approximately €1.5 billion for the initial tranche and about €150 million for the remainder, and it sold its Russia business in July 2022 with total losses and conflict-related charges of $28 million. Total debt stood at $6.77 billion at year-end, with cash of $1.19 billion, and shareholders' equity was a deficit of $4.87 billion. Cash flow from operations was $1.56 billion, and the company repurchased $850 million of common stock while paying $465 million in common dividends. A new $2.0 billion share repurchase program was authorized on December 1, 2022. Key risks highlighted include exposure to China (about 35% of New Equipment sales), foreign currency fluctuations (about 72% of net sales from international operations), the Russia-Ukraine conflict, and ongoing German tax litigation involving approximately €215 million of disallowed tax benefits.
Feb 3, 2023
2021
Otis Worldwide Annual Report, Year Ended Dec 31, 2021
Otis Worldwide Corporation's 2021 Form 10-K reports net sales of $14.30 billion, up from $12.76 billion in 2020, with organic volume growth of 8.9%. Net income attributable to Otis Worldwide Corporation was $1.25 billion, or $2.89 diluted earnings per share, compared with $906 million, or $2.08 per share, in 2020. Operating profit rose to $2.11 billion from $1.64 billion, and gross margin was 29.3%. The Service segment generated $7.87 billion of net sales and $1.76 billion of operating profit (22.4% margin), while New Equipment produced $6.43 billion of net sales and $459 million of operating profit (7.1% margin). The balance sheet and capital allocation were dominated by the pending Zardoya Otis tender offer, which the filing describes at €7.07 per share and an implied value of €1.66 billion for shares not already owned. To fund it, the company issued €1.6 billion of Euro notes in November 2021, which are held in escrow and shown as $1.91 billion of restricted cash. Total debt rose to $7.27 billion from $5.96 billion, and net debt to net capitalization increased to 223%. Share repurchases of $725 million were made during 2021 but have been temporarily suspended to focus on deleveraging. Cash from operations was $1.75 billion. The tender offer remained subject to CNMV approval as of February 4, 2022. Key risks highlighted include COVID-19 effects on demand and supply, China concentration (New Equipment sales in China about 35% of global New Equipment net sales), and tax indemnities owed to RTX under the Tax Matters Agreement, including a pending German tax litigation with approximately €215 million of disallowed tax benefits plus about €118 million of interest.
Feb 4, 2022
2020
Otis Worldwide Annual Report, Year Ended Dec 31, 2020
Otis Worldwide Corporation's Form 10-K for the year ended December 31, 2020 reports net sales of $12.8 billion (12,756 million, down from 13,118 million in 2019) and operating profit of $1.6 billion (1,639 million, versus 1,814 million in 2019). The company became an independent public company on April 3, 2020, when United Technologies Corporation (now Raytheon Technologies) distributed its Otis shares to shareholders. Net income attributable to common shareholders was $906 million, or $2.08 diluted EPS, compared with $1.116 billion and $2.58 in 2019. Results were affected by non-recurring Separation-related costs of $119 million, fixed asset impairments of $71 million, and restructuring costs of $77 million, along with COVID-19 pressure on organic volume (down 2.1%). The Service segment, at $7.4 billion in net sales and $1.6 billion in operating profit, generated 84% of segment operating profit, while the New Equipment segment (5.4 billion in sales, 318 million operating profit) was more pressured, with its operating margin falling to 5.9% from 7.0%. Otis ended 2020 with $1.8 billion of cash, total debt of $5.96 billion (up from $39 million in 2019), and a $1.0 billion share repurchase program authorized in April 2020 with no repurchases made in 2020. The company issued $6.3 billion of debt in 2020 and distributed the proceeds to UTC as part of the Separation, which left total shareholders' deficit of $3.83 billion at year end. Quarterly dividends of $0.60 per share were declared in 2020. Investors should weigh the company's large installed Service base (over 2 million maintenance units under contract and approximately 540,000 connected units) and its 17.2 billion of remaining performance obligations, about 90% of which the company expects to recognize as sales over the following 24 months, against the leverage taken on at the Separation, ongoing German tax litigation, and the TMA indemnity obligations owed to RTX and Carrier.
Feb 5, 2021