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OTIS · Otis Worldwide

21 filings

10-Q

OTIS 10-Q Quarterly Reports

Otis Worldwide - 21 quarterly reports

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

2026-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2026
Otis Worldwide Corporation reported net sales of $3,914 million for the quarter ended September 30, 2026, up from $3,690 million a year earlier, and net income attributable to Otis Worldwide Corporation of $414 million, compared with $374 million. Diluted earnings per share were $1.08, versus $0.95. For the nine months ended September 30, 2026, net sales were $11,339 million (versus $10,635 million), net income attributable to the company was $1,182 million (versus $1,010 million), and diluted earnings per share were $3.07 (versus $2.55). The filing attributes the Service segment's growth to an organic volume increase of 7% for both the quarter and nine months, with modernization growing 20% in the quarter. New Equipment organic volume rose 3% in the quarter but declined (1)% for the nine months, with a greater than (20)% decline in China. Operating margin fell in both segments, with New Equipment at 3.2% for the nine months (5.2% a year earlier) and Service at 23.5% (25.0%). Cash flow from operations was $1,017 million for the nine months, up from $779 million, and cash and cash equivalents ended the period at $866 million. The company repurchased $807 million of common stock in the nine months but none in the third quarter, leaving about $500 million under its $2.0 billion authorization. Cash dividends declared were $1.30 per share for the nine months. Total debt was $8,275 million, and the company reported total shareholders' deficit of $(5,430) million. In May 2026 it issued $700 million of 4.488% notes due 2029, and the proceeds are partly earmarked to repay Euro notes due December 2026. The filing also highlights a German tax litigation win, with refunds of approximately $371 million expected, of which an indemnity payable of $55 million is owed to RTX Corporation under the Tax Matters Agreement. Remaining performance obligations totaled approximately $19.6 billion, with about 75% expected to be recognized over the following 24 months. The filing also discloses that a French subsidiary, Otis France, provided maintenance services to an Iranian bank's Paris branch, that Otis has applied for an OFAC license to wind down the relationship, and that it has filed a voluntary self-disclosure notice.
Oct 29, 2026
2026-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2026
Otis Worldwide Corporation's Form 10-Q for the quarter ended June 30, 2026 shows net sales of $3.86 billion for the quarter, up from $3.60 billion a year earlier, with organic volume up 6% driven by Service (up 9%) and partly offset by New Equipment (down 1%). Quarterly operating profit rose to $575 million from $547 million, and net income attributable to Otis was $428 million, or $1.12 diluted EPS, versus $0.99 a year earlier. Service remained the core growth engine, with Service net sales of $2.58 billion and operating profit of $599 million, while New Equipment operating profit fell to $40 million from $68 million on lower China and EMEA volumes and a 3.1% operating margin. For the six months, net sales were $7.43 billion and net income attributable to Otis was $768 million, or $1.99 diluted EPS. Operating cash flow was $680 million versus $405 million a year earlier, while the company repurchased $807 million of common stock and paid $330 million in dividends. Total debt rose to $8.44 billion at June 30, 2026 from $7.96 billion at December 31, 2025, and cash fell to $813 million. Total equity was a deficit of $5.56 billion, reflecting cumulative treasury stock purchases. The filing also notes a remaining $55 million indemnity payable to RTX related to the German tax litigation, expected German tax refunds of approximately $356 million, and total remaining performance obligations of approximately $19.7 billion, about 75% of which is expected to be recognized over the following 24 months. Tariffs and ongoing Middle East and Russia-Ukraine conflicts are flagged as sources of uncertainty, though management does not currently expect a significant impact on liquidity.
Jul 23, 2026
2026-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2026
Otis Worldwide Corporation reported first-quarter 2026 net sales of $3.57 billion, up from $3.35 billion in the prior-year quarter. Operating profit rose to $539 million from $411 million, and net income attributable to Otis Worldwide Corporation increased to $340 million from $243 million. Diluted earnings per share were $0.87, compared with $0.61. The Service segment drove the growth, with net sales of $2.42 billion versus $2.19 billion and operating profit of $556 million versus $537 million. New Equipment net sales were roughly flat at $1.15 billion versus $1.16 billion, but its operating profit fell to $38 million from $66 million, and its operating profit margin declined to 3.3% from 5.7%. The filing attributes the New Equipment decline partly to a greater than (20)% sales drop in China. Cash generation improved, with operating cash flow of $413 million versus $190 million. The company repurchased $400 million of common stock and paid $163 million in dividends, leaving $834 million of cash and cash equivalents at March 31, 2026, against total debt of $7.82 billion. Total equity was a deficit of $5.51 billion. The filing also records a $114 million out-of-period equity adjustment related to earlier step acquisitions. Otis reports total remaining performance obligations of approximately $19.8 billion, with about 75% expected to be recognized over the following 24 months. Key open items for investors include the German tax litigation, where Otis expects refunds of approximately $358 million, while the amount payable to RTX Corporation under the Tax Matters Agreement has been reduced to $55 million. The filing also flags that new U.S. and other tariffs could have a material impact on 2026 results. In April 2026, Otis acquired a majority stake in a French company for approximately $170 million, funded by cash on hand and commercial paper.
Apr 23, 2026
2025-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2025
Otis Worldwide Corporation reported third-quarter 2025 net sales of $3.69 billion, up from $3.55 billion a year earlier, a 4% increase that the filing attributes to 2% organic volume growth and 2% foreign currency translation. Service sales grew 9% to $2.43 billion, while New Equipment sales fell 4% to $1.26 billion, with organic volume down 5% and a decline of approximately 20% in China. Quarterly operating profit rose to $586 million from $363 million, but net income attributable to Otis fell to $374 million from $540 million, and diluted EPS dropped to $0.95 from $1.34. The year-over-year earnings decline was driven by a higher effective tax rate of 24.8% (versus a benefit in 2024), and higher interest expense, which was $61 million compared with $150 million of interest income in the prior-year quarter. For the nine months, net sales were $10.64 billion versus $10.59 billion, and operating profit was $1.54 billion versus $1.48 billion. Net income attributable to Otis was $1.01 billion, compared with $1.31 billion, and diluted EPS was $2.55 versus $3.23. Cash and cash equivalents declined to $840 million from $2.30 billion at December 31, 2024, as Otis repaid $1.3 billion of notes maturing in 2025, repurchased $809 million of common stock and paid $483 million in dividends. Operating cash flow was $779 million versus $873 million. Total equity remained negative at $(5.35) billion, and total debt was $8.08 billion. The company also disclosed a new $1.5 billion revolving credit facility, a $500 million 5.131% notes offering due 2035, and an October 2025 purchase of the minority stake in Otis Electric Elevator Company Limited for approximately $215 million.
Oct 30, 2025
2025-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2025
Otis Worldwide Corporation's Form 10-Q for the quarter ended June 30, 2025 shows net sales of $3.60 billion for the quarter, essentially flat versus the prior year's $3.60 billion, with organic volume down (2)% overall. The decline reflects New Equipment, where organic volume fell (11)% and operating profit dropped to $68 million from $110 million, while Service grew organic volume 4% and operating profit rose to $578 million from $538 million. Quarterly diluted EPS was $0.99 versus $1.02, and net income attributable to Otis was $393 million versus $415 million. For the six months, net sales were $6.95 billion versus $7.04 billion, and diluted EPS was $1.60 versus $1.89, with results pressured by $58 million of indemnification expense tied to the German tax litigation and $41 million of UpLift transformation costs. Cash and cash equivalents fell to $688 million from $2.30 billion at year-end 2024, largely because the company repaid $1.3 billion of 2.056% notes due 2025 in April. Total debt was $7.75 billion, and total shareholders' deficit was $(5.37) billion, reflecting ongoing share repurchases and dividends. Operating cash flow was $405 million for the six months, down from $479 million. Management flagged that new U.S. and other tariffs could have a material impact on results for the rest of 2025, with an estimated impact of approximately $25 million to $35 million during 2025. The German tax litigation outcome remains a significant item: Otis expects refunds of approximately €307 million net of tax (about $355 million), though the amount payable to RTX under the Tax Matters Agreement was updated to $233 million, and a receivable for the refund process continues through the end of 2025.
Jul 24, 2025
2025-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2025
Otis Worldwide Corporation's 10-Q for the quarter ended March 31, 2025 shows net sales of $3.35 billion, down from $3.44 billion in the prior-year quarter, with the decline attributed to a 3% foreign currency translation impact and flat organic volume. Service sales rose to $2.19 billion while New Equipment sales fell to $1.16 billion. Operating profit declined to $411 million from $544 million, and net income attributable to Otis was $243 million, or $0.61 per diluted share, versus $353 million, or $0.86 per diluted share, a year earlier. The decline was driven largely by $52 million of indemnification expense payable to RTX related to the German tax litigation, $23 million of UpLift transformation costs, $21 million of litigation-related settlement costs, and a $10 million held-for-sale impairment, all recorded in Other income (expense), net, which was a $89 million expense versus $14 million of income a year earlier. Segment results were mixed. Service operating profit rose to $537 million from $523 million, with the segment margin at 24.6%, while New Equipment operating profit fell to $66 million from $71 million, with organic sales down 7%, including a greater than 20% decline in China. Cash flow from operations was $190 million, compared with $171 million a year earlier. Cash and cash equivalents were $1.92 billion at quarter end, and total debt was $8.41 billion. The company repurchased $253 million of common stock and paid $155 million in dividends during the quarter. On April 7, 2025, Otis redeemed its $1.3 billion 2.056% notes due 2025 using cash on hand and commercial paper. The company also disclosed that it expects to receive a German tax refund of approximately €306 million net of tax (about $330 million as of March 31, 2025), to be paid over several quarters beginning in 2025. The filing notes that new U.S. and other tariffs could have a material impact on results for the rest of 2025, with an estimated potential impact of $45 million to $75 million. Management stated it does not expect a significant impact to liquidity, and the company's $1.5 billion revolving credit facility remained undrawn.
Apr 24, 2025
2024-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2024
Otis Worldwide Corporation's Form 10-Q for the quarter ended September 30, 2024 reports third-quarter net sales of $3,548 million, up from $3,523 million a year earlier, and nine-month net sales of $10,586 million versus $10,589 million. Operating profit for the quarter fell to $363 million from $571 million, mainly due to $193 million of separation-related adjustments payable to RTX, which relate to a favorable German tax litigation ruling. Net income attributable to Otis rose to $540 million from $376 million, supported by an income tax benefit of $185 million and $200 million of interest income tied to the same ruling. Diluted EPS was $1.34 for the quarter versus $0.91 a year earlier, and $3.23 for the nine months versus $2.60. The Service segment remained the main driver of performance, with quarterly net sales of $2,239 million and operating profit of $555 million, while New Equipment net sales declined to $1,309 million and operating profit fell to $84 million. The filing attributes the New Equipment decline mainly to a greater than 20% decline in China. Cash and cash equivalents were $827 million at September 30, 2024, while total debt rose to $7,263 million, including $1,667 million of short-term borrowings and current debt. Cash used in financing activities totaled $1,102 million for the nine months, driven by $800 million of share repurchases and $450 million of common stock dividends. Total equity remained negative at $(4,835) million. The company expects to receive a German tax refund of approximately €305 million net of tax (about $335 million), to be paid over several quarters starting in the fourth quarter of 2024 and continuing through the end of 2025. The filing also discloses UpLift cost-reduction costs of $56 million for the nine months and an expectation of approximately $175 million in annual savings by mid-2025.
Oct 31, 2024
2024-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2024
Otis Worldwide Corporation's Form 10-Q for the quarter ended June 30, 2024 reports second-quarter net sales of $3.60 billion, down from $3.72 billion a year earlier, with the filing stating a total percentage change of (3.2)%. Organic volume fell (1.2)% for the quarter, driven by a (9.4)% decline in New Equipment, partially offset by a 5.1% increase in Service. Operating profit was $570 million versus $580 million, and net income attributable to Otis was $415 million, compared with $376 million, with diluted EPS of $1.02 versus $0.90. The filing attributes the earnings improvement to a lower effective tax rate of 17.3% (versus 24.9%) and lower interest expense. For the six months, net sales were $7.04 billion, essentially flat with $7.07 billion, while Service operating profit rose to $1.06 billion from $978 million and New Equipment operating profit declined to $181 million from $188 million. Net cash provided by operating activities fell to $479 million from $724 million, reflecting working capital timing, and the company repurchased $600 million of common stock during the period, with about $600 million remaining under its $2.0 billion authorization. Balance sheet highlights include cash of $942 million against total debt of $7.18 billion, a $1.66 billion current portion of short-term borrowings and current debt, and total shareholders' deficit of $(5.05) billion. The company reported remaining performance obligations of approximately $18.2 billion and disclosed a pending German tax matter in which the Federal Tax Court decision is expected later in 2024, plus an expected Belgian tax assessment that is fully reserved.
Jul 25, 2024
2024-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2024
Otis Worldwide Corporation's first-quarter 2024 Form 10-Q, filed April 25, 2024, reports net sales of $3.44 billion, up from $3.35 billion in the prior-year quarter, with net income attributable to Otis Worldwide Corporation of $353 million versus $331 million. Diluted earnings per share were $0.86 compared with $0.79. Growth was led by the Service segment, where net sales rose to $2.16 billion and segment operating profit to $523 million, while New Equipment net sales declined to $1.28 billion, with operating profit of $71 million. The company reported organic volume growth of 3.8% for the quarter, offset in part by a 1.2% foreign currency translation effect. Operating profit was $544 million versus $513 million, helped by a $15 million separation-related reserve adjustment tied to the reduction of its contractual indemnity obligation payable to RTX. Restructuring costs of $20 million and $12 million of UpLift transformation costs weighed on results. Interest expense rose to $44 million from $33 million, mainly reflecting the $750 million of unsecured debt issued in August 2023. Cash flow from operations was $171 million, down from $278 million, reflecting working capital timing. The company repurchased $300 million of common stock and paid $138 million in dividends. Cash and cash equivalents declined to $884 million, and total equity remained negative at $(4,940) million. Otis reported a $1.5 billion undrawn revolving credit facility and stated it was in compliance with all debt covenants.
Apr 25, 2024
2023-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2023
Otis Worldwide Corporation reported higher third-quarter 2023 results, with net sales of $3,523 million, up from $3,344 million in the prior-year quarter, and net sales growth of 5.4% year over year. Operating profit rose to $571 million from $529 million, and net income attributable to Otis Worldwide Corporation increased to $376 million from $324 million. Diluted earnings per share were $0.91 versus $0.77. For the nine months, net sales were $10,589 million (up 3.3%), and diluted earnings per share were $2.60 versus $2.25. Service drove the growth: Service net sales rose 10.1% in the quarter on 8.4% organic volume growth, and Service operating margin reached 24.3%. New Equipment net sales declined 0.8% in the quarter, with organic volume up 1.0%, and its operating profit fell to $94 million from $100 million. Cash flow and capital returns were the other focus areas. Operating cash flow was $1,030 million for the nine months, compared with $1,096 million a year earlier, reflecting working capital changes. The company repurchased $575 million of Common Stock and paid $400 million in dividends on Common Stock during the nine months. Cash and cash equivalents were $1,636 million at September 30, 2023. In August 2023, Otis issued $750 million of 5.25% notes due 2028, and the proceeds were used to repay commercial paper and will fund the repayment of €500 million of notes due November 12, 2023. Total shareholders' deficit was $(4,788) million. Remaining performance obligations totaled $17.8 billion, with approximately 90% expected to be recognized over the following 24 months. The filing also flags several items for investors. The company announced the UpLift program, which it expects to generate approximately $150 million in annual savings by mid-year 2025, with transformation costs of approximately the same amount. Restructuring actions of approximately $55 million were approved after quarter-end. In the German tax litigation, the local German Tax Court ruled in Otis' favor on July 21, 2023, but German tax authorities appealed to the German Federal Tax Court on September 14, 2023, so the matter remains contested. Management stated it does not currently expect any significant impact to its capital and financial resources from macroeconomic developments.
Oct 26, 2023
2023-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2023
Otis Worldwide Corporation's Form 10-Q for the quarter ended June 30, 2023 reports second-quarter net sales of $3,720 million, up from $3,488 million, and net income attributable to Otis Worldwide Corporation of $376 million, up from $321 million. Diluted EPS was $0.90, compared with $0.76 a year earlier. For the six months, net sales were $7,066 million versus $6,902 million, and net income attributable to the company was $707 million versus $632 million, with diluted EPS of $1.70 versus $1.48. The filing attributes the quarterly sales increase primarily to organic volume growth of 9.5%, partly offset by foreign currency translation of (2.1)%. Service sales were $2,116 million in the quarter, with Service operating profit of $492 million and a 23.3% operating margin; New Equipment sales were $1,604 million with operating profit of $116 million. Balance sheet and cash flow data show cash and cash equivalents of $1,219 million at June 30, 2023, total debt of $6,863 million, and total shareholders' deficit of $(4,852) million. Net cash from operating activities was $724 million for the six months, down from $857 million, mainly due to working capital timing. The company repurchased $350 million of common stock during the six months and paid $261 million in dividends on common stock, and it had $1.7 billion remaining under its $2.0 billion repurchase authorization. In its contingent liabilities note, the company disclosed that the German Tax Court ruled in its favor on July 21, 2023, subject to a possible appeal, and that the Antwerp Appellate Court ruled against it in the Belgian tax matter. The filing states that management currently does not expect significant impact on its capital and financial resources from macroeconomic developments, and it notes that Russia and Ukraine-related impacts did not have a material effect on the financial statements for the periods presented. PricewaterhouseCoopers LLP issued a review report dated July 27, 2023, with no material modifications identified.
Jul 27, 2023
2023-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2023
Otis Worldwide Corporation's Form 10-Q for the quarter ended March 31, 2023 shows net sales of $3.35 billion, down from $3.41 billion in the prior-year quarter. Organic volume grew 3.6%, offset by a 4.4% foreign currency translation headwind and a 1.2% impact from acquisitions and divestitures, net, which reflects the sale of the Russia business in the third quarter of 2022. Service sales rose to $2.04 billion from $1.99 billion, while New Equipment sales fell to $1.31 billion from $1.42 billion. Operating profit was $513 million versus $526 million, and net income attributable to Otis Worldwide Corporation rose to $331 million from $311 million, helped by lower noncontrolling interest in subsidiaries' earnings. Diluted earnings per share were $0.79 compared with $0.73. Segment results diverged. Service operating profit increased to $476 million, with operating margin of 23.3% versus 22.4%, while New Equipment operating profit fell to $67 million, with margin of 5.1% versus 6.5%. Total backlog, measured as remaining performance obligations, was $17.9 billion, of which 90% is expected to be recognized as sales over the following 24 months. Net contract liabilities rose to $2.32 billion from $2.05 billion at year-end 2022. Cash flow from operations was $278 million, down from $504 million, driven mainly by working capital changes including a larger decline in accounts payable. The company repurchased $175 million of common stock and paid $120 million in dividends. Total shareholders' equity remained a deficit of $4.86 billion, and total debt was $6.76 billion against cash of $1.12 billion. On March 10, 2023, Otis entered into a new $1.5 billion unsecured five-year revolving credit facility with no borrowings outstanding. The filing also notes an adverse Antwerp Appellate Court ruling in a Belgian tax matter, which the company is evaluating for appeal, and a pending German tax case with a hearing scheduled for June 12, 2023.
Apr 27, 2023
2022-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2022
Otis Worldwide Corporation reported third-quarter 2022 net sales of $3.34 billion, down from $3.62 billion in the third quarter of 2021, with the filing attributing the year-over-year change of (7.6)% mainly to foreign currency translation of (7.2)%. Organic volume rose 0.8%, driven by Service organic sales growth of 6.2% that offset a 5.4% organic decline in New Equipment. Operating profit was $529 million versus $542 million, and net income attributable to Otis Worldwide Corporation was $324 million, or $0.77 per diluted share, compared with $331 million and $0.77 a year earlier. For the nine months, net sales were $10.25 billion versus $10.73 billion, and diluted earnings per share rose to $2.25 from $2.23 despite lower net income attributable to the company of $956 million versus $965 million. The nine-month period was shaped by the Zardoya Otis tender offer, which raised Otis' ownership to 100% as of June 30, 2022 and was funded with $1.80 billion of cash in financing activities. Net cash from operating activities fell to $1.10 billion from $1.47 billion, mainly because of lower working capital cash flow. Cash and cash equivalents were $1.03 billion at September 30, 2022, and total shareholders' deficit was $(4.91) billion. The company repurchased $700 million of Common Stock during the nine months and had $500 million remaining under its $1 billion program. Total remaining performance obligations were $16.6 billion, with 90% expected to be recognized as sales over the following 24 months. The company sold its Russia business on July 27, 2022, recording a loss on sale and related charges of $6 million in the quarter and $24 million for the nine months. New Equipment operating margin declined to 6.9% from 7.8% in the quarter, while Service operating margin improved to 23.5% from 22.9%. Management stated that it does not expect a significant impact on capital resources or liquidity from COVID-19, and the filing notes that the review report from PricewaterhouseCoopers LLP identified no material modifications.
Oct 27, 2022
2022-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2022
Otis Worldwide Corporation's quarterly report for the period ended June 30, 2022 shows net sales of $3,488 million for the quarter, down from $3,701 million a year earlier, with net income attributable to Otis of $321 million versus $326 million. For the six months, net sales were $6,902 million versus $7,109 million, and net income attributable to Otis was $632 million versus $634 million. Diluted EPS was $0.76 for the quarter, unchanged year over year, and $1.48 for the six months versus $1.47. The filing attributes the sales decline mainly to foreign currency translation and the Russia business, while organic volume rose 0.4% in the quarter, driven by Service growth offset by New Equipment declines. The most significant balance sheet and cash flow developments involve the Zardoya Otis tender offer. Otis acquired the remaining Zardoya Otis shares for cash, including approximately €1.5 billion settled in April 2022 from restricted cash and about €150 million in the second quarter, with the Tender Offer cash settlement recorded as $1,802 million in financing outflows. Cash and cash equivalents fell to $1,218 million from $1,565 million at year-end 2021, and total shareholders' deficit widened to $(4,997) million. Total debt to total capitalization rose to 372% from 176%, reflecting the reclassification of noncontrolling interest to a forward purchase agreement and redeemable noncontrolling interest. Operating cash flow was $857 million for the six months, down from $1,118 million. The company also agreed in June 2022 to sell its Russia business, recording an $18 million impairment, and completed the sale in July 2022. Management reported that Russia represented approximately 2% of 2021 revenue and operating profit. The filing also revised the March 31, 2022 balance sheet to reclassify $409 million of Euro Syns-owned Zardoya Otis shares from redeemable noncontrolling interest to a forward purchase agreement within current liabilities.
Jul 28, 2022
2022-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2022
Otis Worldwide Corporation reported essentially flat first-quarter 2022 results, with net sales of $3,414 million versus $3,408 million in the prior-year quarter. Operating profit rose to $526 million from $509 million, and net income attributable to Otis Worldwide Corporation increased to $311 million from $308 million, or $0.73 per diluted share versus $0.71. Service sales grew to $1,992 million from $1,950 million, with Service operating profit of $447 million, while New Equipment sales declined to $1,422 million and its operating profit fell to $93 million from $104 million. The Service segment's organic sales growth of 5.8% was partially offset by a 3.0% negative impact from foreign currency translation on total net sales. The balance sheet and capital structure changed significantly during the quarter. Total shareholders' deficit widened to $(5,029) million, and total equity was $(4,922) million, largely because the Zardoya Otis tender offer approval led to a reclassification of $1,981 million of redeemable noncontrolling interest. Long-term debt fell to $6,694 million after the company redeemed a $500 million floating rate note, and cash and cash equivalents declined to $1,235 million from $1,565 million. Operating cash flow was $504 million, down from $585 million. The company resumed share repurchases, buying back about $200 million of stock, and authorized a new $1 billion program on March 9, 2022. Subsequent to quarter-end, the Zardoya Otis tender offer results were announced on April 7, 2022, with 45.49% of shares accepted. Settlement on April 12, 2022 was for approximately €1.5 billion from restricted cash held in escrow, raising Otis's ownership of Zardoya Otis to 95.51%. The company also disclosed a remaining order backlog (remaining performance obligations) of $17.5 billion, with 90% expected to be recognized as sales over the following 24 months.
Apr 27, 2022
2021-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2021
Otis Worldwide Corporation's Form 10-Q for the quarter ended September 30, 2021 reports net sales of $3.62 billion for the quarter, up from $3.27 billion a year earlier, and $10.73 billion for the nine months, up from $9.26 billion. Operating profit rose to $542 million in the quarter from $454 million, and net income attributable to common shareholders was $331 million, or $0.77 per diluted share, versus $266 million, or $0.61, in the prior-year quarter. For the nine months, net income attributable to common shareholders was $965 million, or $2.23 per diluted share, compared with $655 million, or $1.51. The Service segment generated the bulk of operating profit, with a quarterly operating profit margin of 22.9% versus 22.2%, while New Equipment's margin improved to 7.8% from 6.7%. Organic volume growth was 8.1% in the quarter and 11.2% for the nine months. Balance sheet and cash flow were shaped by the pending tender offer for the Zardoya Otis shares not already owned, announced September 23, 2021 at €7.00 per share, later adjusted to €6.93 after a dividend. The filing states the remaining shares are valued at €1.63 billion and that the company entered into a €1.65 billion bridge loan facility to fund it. Cash and cash equivalents were $1.55 billion at September 30, 2021, total debt was $5.50 billion, and total shareholders' deficit was $(3.85) billion. Net cash from operating activities was $1.47 billion for the nine months, and the company repurchased $725 million of common stock under its $1 billion program. Management stated it expects to suspend share repurchases through 2022 to focus on deleveraging. The filing also discloses a putative class action over long-term incentive and deferred compensation awards, which management believes is without merit, and a German tax dispute with approximately €215 million of disallowed tax benefits. Total remaining performance obligations were $17.3 billion, with 88% expected to be recognized over the following 24 months.
Oct 26, 2021
2021-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2021
Otis Worldwide Corporation's Form 10-Q for the quarter ended June 30, 2021 reports second-quarter net sales of $3.70 billion, up from $3.03 billion a year earlier, with organic volume contributing 15.4% growth and foreign currency translation 6.5%. Operating profit rose to $561 million from $416 million, and net income attributable to common shareholders was $326 million versus $224 million, or $0.76 diluted EPS compared with $0.52. For the six months, net sales were $7.11 billion, operating profit $1.07 billion, and diluted EPS $1.47 versus $0.90 in the prior-year period. Balance sheet and cash flow results were steady. Cash and cash equivalents were $1.92 billion at June 30, 2021, total debt was $5.80 billion, and net cash from operating activities was $1.12 billion for the six months, versus $823 million a year earlier. The company repurchased $506 million of common stock during the six months, leaving approximately $494 million under its $1 billion authorization, and paid $189 million in common dividends. Total equity was a deficit of $3.32 billion, reflecting the company's post-separation capital structure. The filing also highlights ongoing items investors should monitor: a German tax litigation matter involving approximately €215 million of disputed tax benefits, a putative class action filed in August 2020 related to incentive compensation, and a transition services agreement with RTX expected to wind down in the second half of 2021. Management stated it does not expect a significant impact on liquidity from COVID-19.
Jul 28, 2021
2021-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2021
Otis Worldwide Corporation's first-quarter 2021 Form 10-Q shows net sales of $3.41 billion, up from $2.97 billion in the prior-year quarter, with organic volume growth of 10.3% and foreign currency translation contributing 4.4%. Operating profit rose to $509 million from $329 million, and net income attributable to common shareholders increased to $308 million, or $0.71 per diluted share, versus $165 million, or $0.38 per diluted share, a year earlier. The New Equipment segment drove much of the growth, with organic sales up 25.1% and segment operating profit of $104 million, while the Service segment posted net sales of $1.95 billion and operating profit of $430 million, with an operating profit margin of 22.1%. The prior-year quarter included a $55 million fixed asset impairment and Separation-related costs, which made the comparison easier. Cash flow strengthened, with operating cash flow of $585 million versus $159 million in the prior-year quarter, driven largely by a $328 million net change in current contract assets and liabilities. Management returned capital to shareholders through $300 million of share repurchases (4.7 million shares) and $87 million of dividends paid on Common Stock. Cash and cash equivalents were $1.73 billion at March 31, 2021, while total debt was $5.80 billion, and total shareholders' equity was a deficit of $3.91 billion. Remaining performance obligations totaled approximately $17.3 billion, with about 90% expected to be recognized as sales over the following 24 months. The filing also highlights ongoing contingent exposures, most notably a German tax litigation in which the local German Tax Court ruled against the Company on December 7, 2020, and an appeal to the Federal Tax Court is pending. The Company has also accrued an interest amount of €45 million (approximately $53 million) for the retained portion of that matter. Management reports that the COVID-19 pandemic has had and could continue to affect demand, orders and supply, but does not expect a significant impact on its liquidity position.
Apr 28, 2021
2020-Q3
Otis Worldwide Quarterly Report for Q3 Ended Sep 30, 2020
Otis Worldwide Corporation's Form 10-Q for the quarter ended September 30, 2020 reports net sales of $3.27 billion for the quarter, down from $3.31 billion a year earlier, and $9.26 billion for the nine months versus $9.77 billion. Quarterly operating profit was $454 million compared with $482 million, and net income attributable to common shareholders was $266 million, or $0.61 per diluted share, versus $317 million, or $0.73, in the prior-year quarter. The filing attributes the sales decline to organic volume decreases, with COVID-19 cited as a negative factor expected to affect the business for at least the remainder of 2020. Results also reflect non-recurring Separation-related costs of $29 million in the quarter and $82 million year to date, following the April 3, 2020 spin-off from United Technologies Corporation. The balance sheet reflects the separation. Total debt rose to $6.05 billion from $39 million at December 31, 2019, following $5.3 billion of notes and a $1.0 billion term loan issued in the first quarter, with the net proceeds distributed to UTC. Total shareholders' deficit was $(4.02) billion and total equity was $(3.48) billion, while cash and cash equivalents were $1.73 billion. Operating cash flow for the nine months was $1.17 billion, up from $1.02 billion, and the company paid $173 million in dividends on common stock. Segment results show New Equipment operating profit falling to $95 million in the quarter from $115 million, while Service operating profit rose to $409 million from $407 million. The company reported total remaining performance obligations of approximately $16.9 billion at September 30, 2020, and a pending German tax litigation with a December 7, 2020 court hearing. The filing states the company is in compliance with all debt covenants and that a $1 billion share repurchase program was authorized, though no repurchases are expected in 2020 as the company focuses on deleveraging.
Oct 28, 2020
2020-Q2
Otis Worldwide Quarterly Report for Q2 Ended Jun 30, 2020
Otis Worldwide Corporation filed this Form 10-Q for the quarter ended June 30, 2020, its first quarterly report after becoming an independent public company on April 3, 2020, when United Technologies Corporation (later renamed Raytheon Technologies Corporation) completed the spin-off through a distribution of 0.5 Otis shares for each UTC share. Net sales were $3,029 million for the quarter, down from $3,351 million a year earlier, a decline of 9.6% that the filing attributes mainly to organic volume (down 6.5%). Net income attributable to common shareholders was $224 million, or $0.52 per diluted share, versus $308 million and $0.71 a year earlier. For the six months, net sales were $5,995 million (down 7.1%) and diluted EPS was $0.90, compared with $1.34. The filing cites non-recurring Separation costs of $53 million and a fixed asset impairment of about $55 million in the first half. The company states that COVID-19 has affected results and that it expects a negative impact for the quarter ending September 30, 2020 and at least the rest of 2020. The balance sheet changed substantially. Long-term debt rose to $6,260 million from $5 million, following $5.3 billion of notes and a $1.0 billion term loan issued in the first quarter. The net proceeds of about $6.3 billion were distributed to UTC. Total shareholders' deficit was $(4,242) million, and total deficit equity was $(3,672) million. Cash and cash equivalents were $1,912 million, and net debt was $4,381 million. Operating cash flow for the six months was $823 million, up from $651 million. Remaining performance obligations were approximately $16.4 billion, with about 90% expected to be recognized as sales over the following 24 months. Segment results show lower profitability in New Equipment, with an operating profit margin of 6.1% in the quarter versus 9.2% a year earlier, while the Service segment's margin improved to 22.0% from 21.0%. The board declared a cash dividend of $0.20 per common share and authorized a share repurchase program of up to $1 billion. The company does not currently expect any repurchases under that program in 2020 because it is focused on deleveraging.
Jul 31, 2020
2020-Q1
Otis Worldwide Quarterly Report for Q1 Ended Mar 31, 2020
Otis Worldwide Corporation's Form 10-Q for the quarter ended March 31, 2020 covers the first quarter after its separation from United Technologies Corporation, which completed on April 3, 2020 through a pro-rata distribution of 0.5 Otis shares for each UTC share. Net sales were $2,966 million, down from $3,101 million, and net income attributable to Otis fell to $165 million from $273 million, or $0.38 per share versus $0.63. The decline reflected a $55 million fixed asset impairment, $32 million of Separation costs, and a 38.2% effective tax rate, compared with 29.4% a year earlier. Organic volume fell 2.1%, with New Equipment organic sales down 9.8% and Service organic sales up 3.3%. Operating profit was $329 million, against $415 million a year earlier. The balance sheet changed significantly ahead of the spin-off. In February 2020 Otis issued $5.3 billion of unsecured notes and in March drew $1.0 billion on a term loan, and the roughly $6.3 billion of net proceeds were distributed to UTC. As a result, long-term debt rose to $6,258 million from $5 million, and total equity moved to a deficit of $(4,284) million from $2,231 million. Cash and cash equivalents were $1,207 million, and cash flow from operating activities was $159 million, compared with $297 million a year earlier. The filing states that management expects COVID-19 to negatively affect results for the June 2020 quarter and the rest of 2020, though it does not currently expect a significant impact on liquidity. The company also authorized a $1 billion share repurchase program as of April 3, 2020, but states it does not expect repurchases in 2020 because it is focused on deleveraging. Total remaining performance obligations were approximately $16.3 billion, with about 91% expected to be recognized as sales over the following 24 months.
May 8, 2020