How did Otis's Service business perform in 2025?

Service net sales grew 6% to $9,442 million for the full year, with organic sales up 5%. Segment operating profit rose $189 million to $2,374 million, and segment operating profit margin expanded 50 basis points to 25.1%, driven by higher volume, pricing and productivity, and gains on asset sales, partly offset by labor inflation and mix.

Why did New Equipment results weaken?

New Equipment net sales fell 7% for the full year to $4,989 million, with a greater than 20% decline in China and a high single digit decline in the Americas. Segment operating profit fell $89 million to $240 million due to lower volume, unfavorable pricing, tariff headwinds, and mix, partly offset by productivity and restructuring benefits.

Why did GAAP EPS decline while adjusted EPS grew?

Full year GAAP EPS decreased 14% to $3.50, primarily because the prior year included non-recurring tax benefits and related interest income from a favorable German tax litigation ruling. Adjusted EPS increased 6% to $4.05, reflecting solid operating profit growth, a lower share count, lower noncontrolling interest, and favorable foreign exchange rates.

What is the 2026 outlook?

Otis expects 2026 net sales of $15.0 to $15.3 billion and organic sales growth of low to mid-single digits. New Equipment organic sales are expected to be down low single digits to flat, while Service organic sales are expected to rise mid to high single digits. Adjusted operating profit is expected at $2.5 to $2.6 billion, adjusted EPS is expected to grow mid to high single digits, and adjusted free cash flow is expected at $1.6 to $1.7 billion.

How did the company return capital to shareholders?

In 2025 Otis repurchased approximately $800 million of shares, raised its dividend, and returned $1.5 billion in cash to shareholders in total. Cash flow statement figures show $809 million of common stock repurchases and $647 million of dividends paid on common stock for the full year.

OTIS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Otis Worldwide Corporation reported fourth quarter and full year 2025 results in a press release furnished as Exhibit 99 to this Form 8-K, dated January 28, 2026.

For the fourth quarter, net sales were $3,796 million^a, up 3% from $3,675 million, with organic sales up 1%. Service net sales rose 8% to $2,503 million (organic up 5%), while New Equipment net sales fell 5% to $1,293 million. GAAP EPS increased 13% to $0.95, and adjusted EPS increased 11% to $1.03.

Modernization orders grew 43% at constant currency and modernization backlog rose 30% at constant currency. For the full year 2025, net sales were $14,431 million^b, up 1%, with flat organic sales. Service net sales grew 6% to $9,442 million, while New Equipment net sales declined 7% to $4,989 million, with a greater than 20% decline in China.

GAAP EPS decreased 14% to $3.50^c, while adjusted EPS increased 6% to $4.05. Operating cash flow was $1,596 million and adjusted free cash flow was $1,583 million.

Share repurchases totaled $809 million^d in cash flow terms, and the company returned $1.5 billion to shareholders including dividends. For 2026, Otis guided to net sales of $15.0 to $15.3 billion, organic sales up low to mid-single digits (New Equipment down low single digits to flat; Service up mid to high single digits), adjusted operating profit of $2.5 to $2.6 billion, adjusted EPS up mid to high single digits, and adjusted free cash flow of $1.6 to $1.7 billion.

02—Key points

Key Highlights

Q4 2025 Service net sales rose 8% to $2,503 million, with organic growth of 5%, and segment operating profit margin expanded 100 basis points to 25.5%.
Q4 2025 New Equipment net sales declined 5% to $1,293 million, with a greater than 20% decline in China and segment operating profit margin contracting 110 basis points to 3.6%.
Modernization orders rose 43% at constant currency in Q4 2025, and modernization backlog increased 30% at constant currency.
Full year 2025 GAAP EPS fell 14% to $3.50 mainly due to a non-recurring tax benefit and related interest income recorded in the prior year, while adjusted EPS rose 6% to $4.05.
Full year 2025 operating cash flow was $1,596 million and adjusted free cash flow was $1,583 million; the company repurchased approximately $800 million of shares and returned $1.5 billion to shareholders.
2026 outlook calls for net sales of $15.0 to $15.3 billion, adjusted operating profit of $2.5 to $2.6 billion, adjusted EPS up mid to high single digits, and adjusted free cash flow of $1.6 to $1.7 billion.
Cash and cash equivalents declined to $1,096 million at December 31, 2025 from $2,300 million, and shareholders' deficit widened to $(5,392) million, reflecting the 2025 capital return and debt repayment of $1,300 million.

03—Questions

Frequently Asked Questions

How did Otis's Service business perform in 2025?
Service net sales grew 6% to $9,442 million for the full year, with organic sales up 5%. Segment operating profit rose $189 million to $2,374 million, and segment operating profit margin expanded 50 basis points to 25.1%, driven by higher volume, pricing and productivity, and gains on asset sales, partly offset by labor inflation and mix.
Why did New Equipment results weaken?
New Equipment net sales fell 7% for the full year to $4,989 million, with a greater than 20% decline in China and a high single digit decline in the Americas. Segment operating profit fell $89 million to $240 million due to lower volume, unfavorable pricing, tariff headwinds, and mix, partly offset by productivity and restructuring benefits.
Why did GAAP EPS decline while adjusted EPS grew?
Full year GAAP EPS decreased 14% to $3.50, primarily because the prior year included non-recurring tax benefits and related interest income from a favorable German tax litigation ruling. Adjusted EPS increased 6% to $4.05, reflecting solid operating profit growth, a lower share count, lower noncontrolling interest, and favorable foreign exchange rates.
What is the 2026 outlook?
Otis expects 2026 net sales of $15.0 to $15.3 billion and organic sales growth of low to mid-single digits. New Equipment organic sales are expected to be down low single digits to flat, while Service organic sales are expected to rise mid to high single digits. Adjusted operating profit is expected at $2.5 to $2.6 billion, adjusted EPS is expected to grow mid to high single digits, and adjusted free cash flow is expected at $1.6 to $1.7 billion.
How did the company return capital to shareholders?
In 2025 Otis repurchased approximately $800 million of shares, raised its dividend, and returned $1.5 billion in cash to shareholders in total. Cash flow statement figures show $809 million of common stock repurchases and $647 million of dividends paid on common stock for the full year.

04—Continue

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