OTIS · Otis Worldwide

90 filings

OTIS SEC Filings

Otis Worldwide - 90 total filings

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

Showing 1–50 of 90 filings

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 8-K

Otis Worldwide 8-K Report, Financial Results (Oct 28, 2026)

Otis Worldwide Corporation (NYSE: OTIS) reported third quarter 2026 results on October 28, 2026, with net sales of $3.9 billion ($3,914 million), up 6% versus the prior year, and organic sales also up 6%. Service net sales grew 8% to $2.6 billion, with organic Service sales up 7%, while New Equipment net sales rose 3% to $1.3 billion, with organic sales up 3%. GAAP operating profit increased $34 million to $620 million, but adjusted operating profit declined $6 million to $626 million, and the adjusted operating profit margin fell 110 basis points to 16.0%. GAAP diluted EPS rose 14% to $1.08, while adjusted EPS was flat at $1.05. Segment profitability was mixed. Service segment operating profit margin contracted 130 basis points to 24.2% year over year but improved 100 basis points sequentially, while New Equipment segment operating profit fell $17 million to $42 million, with its margin down 150 basis points to 3.2%, driven by unfavorable price and mix and a decline in China. Modernization orders rose 10% at constant currency and backlog rose 20%. Management maintained its full-year 2026 outlook, including net sales of $15.1 to $15.3 billion and adjusted EPS of $4.01 to $4.05. Cash generation and shareholder returns were also highlighted. Third-quarter operating cash flow was $337 million and adjusted free cash flow was $272 million. Year to date, Otis generated $1.0 billion in operating cash flow and $834 million in adjusted free cash flow, and returned approximately $1.3 billion to shareholders through roughly $800 million of share repurchases and approximately $500 million of dividends. The filing furnishes the press release as Exhibit 99 and it is not deemed filed under Section 18 of the Exchange Act.

Oct 28, 2026 8-K

Otis Worldwide 8-K Report, Executive Changes (Sep 15, 2026)

Otis Worldwide Corporation announced on September 15, 2026 that Chair, Chief Executive Officer and President Judith F. Marks will retire as part of a long-planned CEO succession. Under a letter agreement dated September 13, 2026, Ms. Marks will remain in her roles through the Transition Date, which is the earlier of the start date of her successor (currently expected in the first half of 2027) and July 31, 2027. She will also resign from the Board on that date. If the Transition Date occurs before July 31, 2027, she will serve as a non-employee senior advisor through July 31, 2027, receiving no cash compensation, while her outstanding equity awards continue to vest under their terms. The Board has launched a comprehensive search, overseen by a succession committee chaired by Christopher J. Kearney, and has retained Spencer Stuart to consider both internal and external candidates. The press release frames the transition as the execution of a long-standing succession plan and highlights Ms. Marks' tenure, including the April 2020 separation from United Technologies Corporation, roughly 25% growth in the service portfolio to approximately 2.5 million units, and $8.4 billion of capital returned to shareholders since becoming a standalone company, including $3.4 billion in dividends and $5 billion in share buybacks. For investors, the key items are the timing of the leadership change, the advisory arrangement, and the pending selection of a new CEO. The filing does not state any change to financial guidance or operating results.

Sep 15, 2026 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jul 22, 2026)

Otis Worldwide Corporation reported second quarter 2026 results in a press release furnished as Exhibit 99 to this Form 8-K dated July 22, 2026. Net sales were $3.9 billion ($3,859 million), up 7% year over year, or 6% on an organic basis. Service net sales rose 11% to $2.6 billion, with organic Service sales up 9%, while New Equipment net sales were flat at $1.3 billion, with organic sales down (1)%. GAAP operating profit increased $28 million to $575 million, while adjusted operating profit declined $25 million to $587 million, and adjusted operating profit margin fell 180 basis points to 15.2%. GAAP EPS rose 13% to $1.12, while adjusted EPS fell 4% to $1.01. Cash flow from operations was $267 million in the quarter and $680 million in the first half, and adjusted free cash flow was $290 million in the quarter and $562 million for the first half. Otis repurchased approximately $400 million of shares in the quarter and approximately $800 million in the first half. Modernization orders rose 9% at constant currency and modernization backlog rose 24% (26% at constant currency). New Equipment backlog increased 3% at actual currency. Management cited double-digit growth in modernization and repair sales and accelerating maintenance trends. Otis revised its full-year 2026 outlook to net sales of $15.1 to $15.3 billion, organic sales up low to mid-single digits, adjusted operating profit of approximately $2.4 billion, adjusted EPS of $4.01 to $4.05, and adjusted free cash flow of $1.50 to $1.55 billion. Organic Service sales are expected to rise mid to high single digits, while organic New Equipment sales are expected to decline low single digits to flat.

Jul 22, 2026 8-K

Otis Worldwide 8-K Report, Shareholder Vote Results (May 29, 2026)

Otis Worldwide Corporation filed this Current Report on Form 8-K under Item 5.07 to report the voting results of its 2026 Annual Meeting of Shareholders, held May 27, 2026. As of the March 30, 2026 record date, 385,710,610 shares of common stock were issued and outstanding, and a quorum of 345,588,993 shares was represented at the meeting. Shareholders elected all ten director nominees for terms expiring at the 2027 Annual Meeting. Shareholders also approved, on an advisory basis, the compensation of the named executive officers, with 300,604,166 votes for and 19,385,429 against. They ratified PricewaterhouseCoopers LLP as independent auditor for 2026, with 344,841,469 votes for and 450,913 against. A shareholder proposal on reporting political contributions and expenditures was not approved, receiving 145,402,369 votes for and 173,399,850 against. The matters are described in more detail in the company's Definitive Proxy Statement on Schedule 14A filed April 17, 2026.

May 29, 2026 8-K

Otis Worldwide 8-K Report, Corporate Update (May 7, 2026)

Otis Worldwide Corporation issued $700,000,000 aggregate principal amount of 4.488% Notes due 2029 on May 7, 2026, registered under its Form S-3ASR (File No. 333-293482) filed February 13, 2026. The Notes were sold under an Underwriting Agreement dated May 4, 2026 with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SMBC Nikko Securities America, Inc. as representatives of the underwriters. Interest is payable semi-annually on May 7 and November 7, beginning November 7, 2026, and the Notes mature May 7, 2029. The company estimates net proceeds of approximately $695.2 million after the underwriting discount and offering expenses. The primary use is to repay at maturity its 0.318% Notes due December 15, 2026, of which €600 million (approximately $695 million) was outstanding as of March 31, 2026. The remainder will fund repayment of certain commercial paper borrowings and other general corporate purposes. The Notes are unsecured, unsubordinated obligations ranking equally with existing and future unsecured, unsubordinated indebtedness. The Indenture, dated February 27, 2020 with The Bank of New York Mellon Trust Company, N.A. as trustee and supplemented by Supplemental Indenture No. 6, restricts liens, certain fundamental changes and sale and leaseback transactions. Holders may require repurchase at 101% of principal plus accrued interest upon a Change of Control Triggering Event, and the Notes are redeemable at a make-whole premium before April 7, 2029, and at par thereafter.

May 7, 2026 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Apr 22, 2026)

Otis Worldwide Corporation (NYSE: OTIS) reported first quarter 2026 results in a press release dated April 22, 2026, furnished as Exhibit 99 to this Form 8-K. Net sales were $3,566 million, up 6% from $3,350 million a year earlier, with organic sales up 1%. Service net sales rose 11% to $2,417 million, led by repair, which grew 16% at actual currency and approximately 10% organically. New Equipment net sales declined 1% to $1,149 million, with a greater than 20% decline in China, and New Equipment segment operating profit fell to $38 million from $66 million. GAAP operating profit rose to $539 million from $411 million, and GAAP diluted EPS increased 43% to $0.87. Adjusted operating profit decreased $10 million to $550 million, and adjusted EPS decreased 3% to $0.89, which management attributed to operational performance, higher interest, and higher taxes. The company cited tariff impacts, Service investments, and shipment delays tied to the Middle East situation as pressures on margins. Cash flow from operations was $413 million and adjusted free cash flow was $272 million, compared with $190 million and $186 million a year earlier. The company repurchased approximately $400 million of shares during the quarter. Modernization orders rose 11% at constant currency and modernization backlog rose 32% (30% at constant currency), while New Equipment orders rose 1% at constant currency. Management also announced a majority investment in WeMaintain, a digitally native, AI-enabled elevator service provider. Otis revised its full-year 2026 outlook to net sales of $15.1 to $15.3 billion, organic sales up low to mid-single digits, adjusted operating profit of approximately $2.5 billion, adjusted EPS of $4.20 to $4.24, and adjusted free cash flow of $1.60 to $1.65 billion. Management expressed confidence in growing momentum into the second quarter and the remainder of the year, citing backlog growth, pricing actions, and execution.

Apr 22, 2026 10-K

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jan 28, 2026)

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, 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, 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, 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 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.

Jan 28, 2026 8-K

Otis Worldwide 8-K Report, Executive Changes (Jan 20, 2026)

Otis Worldwide Corporation filed this Current Report on Form 8-K to disclose the appointment of Enrique Miñarro Viseras as Chief Operating Officer. The Board of Directors appointed him on January 13, 2026, effective January 16, 2026. Mr. Miñarro Viseras, 48, has been with the Company since October 2023, most recently as President, Otis EMEA, a role he held from May 2025 to December 2025 as President, Otis EMEA & Latin America. Before joining Otis, he held senior roles at Ingersoll Rand, including Senior Vice President and General Manager positions from 2020 to 2023. Under an offer letter dated January 14, 2026, his base salary increases to $820,000 and his annual short-term incentive target rises to 120% of base salary under the Executive Short-Term Incentive Plan. He will be eligible for an annual equity award beginning with fiscal year 2026, with a target value of $3,500,000 under the 2020 Long-Term Incentive Plan, though grant values may vary based on individual and Company performance. He will also receive an annual financial counseling reimbursement of up to $16,000 and an annual executive health exam. The Compensation Committee approved an amendment to his existing employment agreement with a Company subsidiary to reflect these terms. The filing states there are no family relationships with any director, director nominee, or executive officer, and no reportable related-person transactions under Item 404(a) of Regulation S-K. The offer letter is filed as Exhibit 10.1.

Jan 20, 2026 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Oct 29, 2025)

Otis Worldwide Corporation (OTIS) furnished a press release reporting third quarter 2025 results, with net sales of $3.7 billion, up 4% versus the prior year, and organic sales up 2%. Service net sales rose 9% to $2.4 billion with organic sales up 6%, and Service segment operating profit margin expanded 70 basis points to 25.5%. New Equipment net sales decreased 4% to $1.3 billion, and segment operating profit fell to $59 million, with margin contracting 170 basis points to 4.7%, reflecting an approximately 20% decline in China. GAAP EPS decreased 29% to $0.95, primarily due to non-recurring tax benefits and related interest income recorded in the prior year. Adjusted EPS increased 9% to $1.05, driven by operational performance, lower taxes, a lower share count and favorable foreign exchange, partially offset by higher interest. Modernization orders rose 27% at constant currency and backlog increased 22%, while New Equipment orders grew 4% at constant currency. For 2025, Otis raised the midpoint of its adjusted EPS outlook to $4.04 to $4.08, up 5% to 7%, and guided to net sales of $14.5 to $14.6 billion, adjusted free cash flow of approximately $1.45 billion, and an adjusted effective tax rate of approximately 24.8%. Year-to-date, operating cash flow was $779 million and share repurchases were approximately $800 million.

Oct 29, 2025 8-K

Otis Worldwide 8-K Report, Corporate Update (Sep 4, 2025)

Otis Worldwide Corporation issued $500 million aggregate principal amount of 5.131% Notes due September 4, 2035 on September 4, 2025, registered under its Form S-3ASR (File No. 333-270834) and sold under a prospectus supplement dated September 2, 2025. The filing states that net proceeds, after the underwriting discount and offering expenses, are estimated at approximately $495.2 million. The Company intends to use the proceeds to repay at maturity its 0.370% Notes due March 18, 2026 (the 2026 Yen Notes), of which ¥21.5 billion (approximately $147 million as of June 30, 2025) is outstanding, with the remainder used to repay certain commercial paper borrowings and for other general corporate purposes. The notes are unsecured, unsubordinated obligations that rank equally with the Company's existing and future unsecured, unsubordinated indebtedness. Interest is payable semi-annually on March 4 and September 4, beginning March 4, 2026. The Company may redeem the notes before June 4, 2035 at a make-whole premium, and at par plus accrued interest on or after that date. Upon a Change of Control Triggering Event, holders may require repurchase at 101% of principal plus accrued interest, unless the Company exercises its redemption right. The Otis Indenture, dated February 27, 2020, with The Bank of New York Mellon Trust Company, N.A., as trustee, contains customary restrictions limiting additional liens, certain fundamental changes, and sale and leaseback transactions, along with customary events of default. The filing is primarily a financing disclosure and exhibit filing; it reports no other financial results.

Sep 4, 2025 8-K

Otis Worldwide 8-K Report, Executive Changes (Aug 26, 2025)

Otis Worldwide Corporation filed this Form 8-K on August 26, 2025 to report board changes under Item 5.02. Director Shailesh Jejurikar, who serves on the Board of Directors and chairs the Compensation Committee, notified the company on August 24, 2025 that he will resign from the Board effective September 9, 2025. The filing states that his decision was not the result of any disagreement with the company on its operations, policies or practices. On August 26, 2025, the Board reduced its size from eleven directors to ten, effective September 9, 2025, to coincide with his departure. The Board also reshuffled committee assignments. Kathy Hopinkah Hannan rotated off the Audit Committee and the Nominations and Governance Committee and replaced Mr. Jejurikar as Chair of the Compensation Committee. All other committee assignments were unchanged. The filing contains no financial results or financial statements. Its only exhibit is the cover page Interactive Data File, with cover page XBRL tags embedded in the Inline XBRL document. For investors, the main takeaway is a routine governance transition with a stated non-disagreement, plus a new leader for the Compensation Committee.

Aug 26, 2025 8-K

Otis Worldwide 8-K Report, Material Agreement (Aug 8, 2025)

On August 8, 2025, Otis Worldwide Corporation entered into a new unsecured $1,500 million revolving credit agreement that matures on August 8, 2030. The facility was entered into with Otis as borrower, Otis Intercompany Lending Designated Activity Company (an Irish designated activity company) as subsidiary borrower, and JPMorgan Chase Bank, N.A. as administrative agent. On the same date, Otis terminated all commitments under its existing credit agreement, which was scheduled to expire on March 10, 2028, and the filing states that no early termination penalties were incurred. The new facility bears interest at term SOFR, EURIBOR, daily simple ESTR or base rates plus an applicable margin, initially 1.125% for term SOFR, EURIBOR and daily simple ESTR borrowings and 0.125% for base rate borrowings, with the margin adjustable based on Otis's public debt rating. Otis may increase the revolving commitment by up to $500 million. Borrowings are available for general corporate purposes. Otis guarantees the obligations of OIL and any other subsidiary borrowers. The credit agreement contains customary affirmative and negative covenants, including limits on liens and sale and leaseback transactions for Otis and its wholly-owned domestic manufacturing subsidiaries, limits on fundamental changes, and a maximum consolidated leverage ratio financial covenant. Violations or other customary events of default could lead to acceleration of amounts outstanding and termination of lender commitments.

Aug 8, 2025 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jul 23, 2025)

Otis Worldwide Corporation (NYSE: OTIS) furnished a press release announcing its second quarter 2025 results, reporting net sales of $3.6 billion, flat versus the prior year, with organic sales down 2%. GAAP operating profit fell $23 million to $547 million, and GAAP EPS decreased 3% to $0.99. Adjusted EPS decreased 1% to $1.05 and adjusted operating profit was $612 million, down $1 million at actual currency and down $14 million at constant currency. Service was the strength of the quarter: Service net sales rose 6% to $2.3 billion with 4% organic growth, and Service segment operating profit margin expanded 20 basis points to 24.9%. Management cited a Service-driven strategy and continued modernization momentum, with modernization orders up 22% at constant currency and backlog up 19%. New Equipment was the weak spot. Segment net sales fell 10% to $1.3 billion, organic sales fell 11%, and segment operating profit margin contracted 240 basis points to 5.3%. China was a key drag, with New Equipment sales down more than 20% there, while New Equipment orders excluding China rose 11%. Cash generation weakened in the quarter, with cash flow from operations of $215 million, down from $308 million, and adjusted free cash flow of $243 million, down from $353 million. For the first half, GAAP cash flow from operations was $405 million and adjusted free cash flow was $429 million. Share repurchases were approximately $550 million in the first half. Otis revised its full-year 2025 outlook, guiding to net sales of $14.5 to $14.6 billion (up 1 to 2%), adjusted operating profit of $2.4 to $2.5 billion, adjusted EPS of $4.00 to $4.10 (up 4 to 7%), and adjusted free cash flow of $1.4 to $1.5 billion. Management reconfirmed its 2025 EPS outlook and noted expected UpLift run-rate savings of $200 million.

Jul 23, 2025 8-K

Otis Worldwide 8-K Report, Shareholder Vote Results (May 16, 2025)

Otis Worldwide Corporation held its 2025 Annual Meeting of Shareholders on May 15, 2025. Of the 395,629,196 shares of common stock outstanding as of the March 17, 2025 record date, 358,121,969 shares were represented, which constituted a quorum. The filing reports voting results on four proposals described in the Company's Definitive Proxy Statement on Schedule 14A filed April 4, 2025. Shareholders elected all eleven director nominees to terms expiring at the 2026 Annual Meeting. The most significant outcome for investors is that the advisory say-on-pay proposal on executive compensation was not approved, with 131,352,789 votes for, 202,204,629 votes against, and 1,074,705 abstentions. Shareholders also did not approve a proposal on reporting of political contributions and expenditures, with 132,918,428 votes for and 199,404,220 against. Shareholders ratified PricewaterhouseCoopers LLP as the independent auditor for 2025, with 357,214,770 votes for and 631,907 against. Among the director votes, Shailesh G. Jejurikar (310,839,013 for, 23,533,611 against) and Judith F. Marks (311,396,772 for, 18,655,440 against, 4,579,911 abstentions) received the largest numbers of votes against, though both were elected.

May 16, 2025 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Apr 23, 2025)

Otis Worldwide Corporation (NYSE: OTIS) reported first quarter 2025 results in a press release furnished as Exhibit 99 to this Form 8-K. Net sales were $3.35 billion, down 3% from $3.44 billion a year earlier, with organic sales flat; the decline was driven primarily by New Equipment in China. GAAP operating profit fell to $411 million from $544 million, and GAAP diluted EPS decreased 29% to $0.61. Adjusted operating profit was $560 million, roughly flat at actual currency and up $15 million at constant currency, and adjusted EPS rose 5% to $0.92, aided by a lower share count and partially offset by FX. GAAP results were hurt by UpLift transformation costs, separation-related adjustments, and other non-recurring items. The Service segment was the main source of strength, with net sales up 1% (up 4% organic), segment operating profit margin up 40 basis points to 24.6%, and modernization orders up 12% with backlog up 13%. New Equipment net sales fell 9% and organic sales fell 7%, with a greater than 20% decline in China partly offset by growth in Asia Pacific and EMEA. Cash flow from operations was $190 million and adjusted free cash flow was $186 million. The company also reported share repurchases of approximately $250 million. Otis revised its full-year 2025 outlook: net sales of $14.6 to $14.8 billion (up 3 to 4%), organic sales up 2 to 4% (New Equipment down 1 to 4%, Service up 5 to 7%), adjusted operating profit of $2.4 to $2.5 billion including a ($75) to ($45) million tariff impact, adjusted EPS of $4.00 to $4.10, and adjusted free cash flow of approximately $1.6 billion.

Apr 23, 2025 8-K

Otis Worldwide 8-K Report, Bylaw Amendment (Mar 24, 2025)

Otis Worldwide Corporation filed this Current Report on Form 8-K to disclose that its Board of Directors approved an amendment and restatement of the Company's Amended and Restated Bylaws on March 19, 2025, effective as of that date. The filing reports a governance update rather than financial results, and it does not include any financial figures. The amended bylaws revise procedures and disclosure requirements for director nominations and stockholder proposals at stockholder meetings. Among the changes, a stockholder seeking to nominate directors at an annual meeting must now deliver reasonable evidence that it has complied with Rule 14a-19 of the Securities Exchange Act of 1934, the universal proxy rules. The amendments also remove certain limitations on stockholders' ability to act by written consent and eliminate the requirement that a stockholder-nominated director tender an irrevocable resignation in certain circumstances. Other clarifying and conforming changes are also included. For investors, the changes affect shareholder governance rights and the process for challenging or nominating board candidates. The complete bylaws are filed as Exhibit 3.1 to the 8-K, and the filing states that the summary is qualified in its entirety by that full text.

Mar 24, 2025 10-K

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jan 29, 2025)

Otis Worldwide Corporation (NYSE: OTIS) reported fourth quarter and full year 2024 results on January 29, 2025, as furnished in a press release (Exhibit 99). For the full year, net sales were $14.3 billion, up 0.4% (organic sales up 1.4%), with Service sales up 5.9% and Service organic sales up 6.8%. GAAP EPS rose 20.1% to $4.07, primarily driven by a non-recurring tax benefit and related interest income, while adjusted EPS rose 8.2% to $3.83. GAAP operating profit fell $178 million to $2.0 billion, driven mainly by separation-related adjustments tied to non-recurring tax items, while adjusted operating profit increased $87 million to $2.4 billion at actual currency. GAAP operating profit margin contracted 130 basis points to 14.1%, while adjusted margin expanded 50 basis points to 16.5%. Fourth quarter net sales were $3.7 billion, up 1.5%, driven by Service sales of $2.3 billion (up 7.6%), while New Equipment sales fell 7.4% to $1.4 billion, including a greater than 20% decline in China. Modernization orders rose 18% and modernization backlog grew 10% at actual currency (13% at constant currency). Full year cash flow from operations was $1.6 billion, and share repurchases totaled $1.0 billion. For 2025, Otis guided to net sales of $14.1 to $14.4 billion, organic sales growth of 2 to 4% (organic Service sales up 6 to 7%, organic New Equipment sales down 1 to 4%), adjusted EPS of $4.00 to $4.10, and adjusted free cash flow of approximately $1.6 billion. The company is also increasing expected UpLift run-rate savings to $200 million by the second half of 2025 and launching a China transformation program with expected run-rate savings of $30 million by year-end 2025.

Jan 29, 2025 8-K

Otis Worldwide 8-K Report, Corporate Update (Nov 19, 2024)

On November 19, 2024, Otis Worldwide Corporation issued two note offerings. The Company issued $600 million aggregate principal amount of 5.125% Notes due November 19, 2031 (the "Otis Notes"), with estimated net proceeds of approximately $594.5 million. Its subsidiary Highland Holdings S.à r.l., an indirect wholly-owned consolidated subsidiary, issued €850 million aggregate principal amount of 2.875% Notes due November 19, 2027 (the "Highland Notes"), fully and unconditionally guaranteed by the Company. Highland's estimated net proceeds were approximately €842 million, or $902 million, based on the euro/U.S. dollar exchange rate as of November 8, 2024. The Company and Highland intend to use the combined proceeds of both offerings to repay at maturity the Company's 2.056% notes due April 5, 2025, of which $1.3 billion principal amount is currently outstanding. The Company expects to use the remaining proceeds to repay certain commercial paper borrowings and for general corporate purposes. Both series of notes are unsecured, unsubordinated obligations ranking equally with existing and future unsecured, unsubordinated indebtedness. The indentures contain customary restrictions limiting liens, certain fundamental changes, and sale and leaseback transactions, along with customary events of default. Both series carry change of control put rights at 101% of principal plus accrued interest. The notes were registered under the Company's shelf registration statement on Form S-3ASR filed March 24, 2023.

Nov 19, 2024 8-K

Otis Worldwide 8-K Report, Financial Obligation (Nov 14, 2024)

Otis Worldwide Corporation filed this Form 8-K on November 14, 2024 to disclose two debt offerings it priced that week. On November 12, 2024, Otis priced a $600,000,000 aggregate principal amount of 5.125% Notes due 2031 (the "Dollar Offering"), with expected net proceeds of approximately $594.5 million after underwriting discount and offering expenses. The notes are unsecured, unsubordinated obligations that rank equally with Otis's existing and future unsecured, unsubordinated indebtedness, and the closing is expected on November 19, 2024. On November 13, 2024, Highland Holdings S.à r.l., an indirect wholly-owned consolidated subsidiary of Otis, priced a euro offering of €850 million aggregate principal amount of 2.875% Notes due 2027 (the "Euro Offering"), fully and unconditionally guaranteed by Otis. Estimated net proceeds to Highland are approximately €842 million, or approximately $902 million based on the euro/U.S. dollar exchange rate as of November 8, 2024, with closing also expected on November 19, 2024. Otis intends to use the combined proceeds, together with cash on hand, to repay at maturity its 2.056% notes due April 5, 2025, of which $1.3 billion principal amount is currently outstanding. Any remaining Euro Offering proceeds may go to repay certain commercial paper borrowings and for general corporate purposes. The filing shows Otis refinancing near-term maturities with longer-dated debt.

Nov 14, 2024 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Oct 30, 2024)

Otis Worldwide Corporation reported third quarter 2024 results in a press release furnished as Exhibit 99 to this Form 8-K. Net sales were $3,548 million, up 0.7% versus the prior year, with organic sales up 1.2%. Service drove results: Service net sales rose 7.2% and Service organic sales rose 7.7%, while New Equipment net sales fell 8.8%, with a greater than 20% decline in China. GAAP operating profit was $363 million, down $208 million, driven primarily by separation-related adjustments tied to non-recurring tax items. Adjusted operating profit was $599 million, up $4 million at actual currency. GAAP diluted EPS rose 47.3% to $1.34, primarily from a non-recurring tax benefit and related interest income following a favorable German tax litigation ruling in August 2024. Adjusted EPS rose 1.1% to $0.96. Cash flow from operations was $394 million in the quarter and adjusted free cash flow was $381 million. Share repurchases were $200 million in the quarter and $800 million year to date. Maintenance portfolio units increased 4.2% and modernization backlog rose 14% at actual currency. New Equipment backlog declined 1% at actual currency. Otis revised its full-year 2024 outlook to net sales of about $14.2 billion, organic sales growth of about 1.5%, adjusted operating profit of about $2.375 billion, adjusted EPS of about $3.85, and adjusted free cash flow of approximately $1.4 billion to $1.5 billion. Organic Service sales are expected to rise about 6.5%, while organic New Equipment sales are expected to fall in the mid to high single digits.

Oct 30, 2024 8-K

Otis Worldwide 8-K Report, Executive Changes (Sep 20, 2024)

Otis Worldwide Corporation filed this Form 8-K to disclose an amended and restated employment agreement with Cristina Méndez, who was appointed Executive Vice President and Chief Financial Officer effective August 23, 2024. The agreement was entered into by a Swiss-based subsidiary, Otis International Sàrl, and formalizes the offer letter disclosed when her promotion was announced in a July 19, 2024 Form 8-K. Her new annual base salary is $770,000, and her Short-Term Incentive Plan target is 100% of base salary, pro-rated for 2024. On August 23, 2024, Ms. Méndez received a supplemental 2024 long-term incentive award with an aggregate target value of $2,390,000 under the 2020 Long-Term Incentive Plan. Half is delivered as performance share units vesting in early 2027 based on 2024-2026 performance, and the remainder is split evenly between restricted stock units and stock appreciation rights that vest ratably over three years. The award is supplemental to her February 2024 award made when she was Senior Vice President, Finance EMEA & Transformation. Ms. Méndez is also moving on a long-term international assignment from Switzerland to Farmington, Connecticut, where the company is headquartered. The assignment includes relocation benefits, tax equalization to Switzerland, a one-time relocation allowance of 12,792 CHF, and a housing allowance of $5,000 per month plus utilities. She will be covered by the ELG Severance Plan and Change in Control Severance Plan and is subject to a two-year post-employment noncompetition and nonsolicitation of employees covenant.

Sep 20, 2024 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jul 24, 2024)

Otis Worldwide Corporation (NYSE: OTIS) furnished an 8-K on July 24, 2024 attaching its press release reporting second quarter 2024 results. Net sales were $3.6 billion, down 3.2% year over year (down 1.1% at constant currency), with organic sales down 1.2%. The decline was driven by New Equipment, where net sales fell 11.4% and organic sales fell 9.4%. Service net sales rose 3.0% to $2.2 billion, with organic sales up 5.1%, and Service segment operating profit increased $39 million to $538 million, with segment margin expanding 110 basis points to 24.7%. GAAP EPS rose 13.3% to $1.02 and adjusted EPS rose 15.2% to $1.06, supported by margin expansion and an improved effective tax rate. Cash flow from operations was $308 million for the quarter, down from $446 million a year earlier, and adjusted free cash flow was $353 million. The company repurchased $300 million of common stock in the quarter and $600 million in the first half. Net interest expense and the balance sheet show short-term borrowings and current portion of long-term debt rising to $1.66 billion at June 30, 2024 from $32 million at December 31, 2023, while cash and cash equivalents fell to $942 million from $1.27 billion. Management raised its adjusted EPS outlook to $3.85 to $3.90 (up 9% to 10%) and now expects net sales of $14.3 billion to $14.5 billion, organic sales growth of 1% to 3%, and adjusted free cash flow of approximately $1.5 billion to $1.6 billion. The company also highlighted its UpLift program, which it expects to reach a run-rate savings of $175 million by mid-2025.

Jul 24, 2024 8-K

Otis Worldwide 8-K Report, Executive Changes (Jul 19, 2024)

Otis Worldwide Corporation filed this Form 8-K to report a leadership change in its finance function. Anurag Maheshwari, Executive Vice President and Chief Financial Officer, has given notice that he will resign effective August 23, 2024, to pursue external opportunities. The filing states that his resignation was not the result of any dispute or disagreement with the Company. The Board has appointed Cristina Méndez as Executive Vice President and Chief Financial Officer, effective August 23, 2024. Ms. Méndez, 44, has been with the Company since February 2022, most recently as Senior Vice President, Finance EMEA & Transformation, and previously served as Senior Vice President, Director Controlling, at Telefonica Deutschland from 2018 to 2022. The compensation terms for Ms. Méndez are significant for investors to note. Her base salary will increase to $770,000, her annual short-term incentive target will be 100% of base salary, and she will receive a supplemental 2024 annual long-term incentive award with an aggregate target value of $2,390,000. Half of that award will be performance share units vesting in early 2027 based on 2024-2026 performance, and the remainder will be split between restricted stock units and stock appreciation rights, each vesting ratably over three years. She will also relocate to the United States on an expatriate assignment with customary benefits, including tax equalization to Switzerland. In a related press release, Otis stated that it plans to release second-quarter earnings on July 24, and that both Mr. Maheshwari and Ms. Méndez will join CEO Judy Marks on the earnings call. Mr. Maheshwari will work with Ms. Méndez on a transition through late August.

Jul 19, 2024 8-K

Otis Worldwide 8-K Report, Shareholder Vote Results (May 20, 2024)

Otis Worldwide Corporation filed this Form 8-K to report the results of its 2024 Annual Meeting of Shareholders, held on May 16, 2024. As of the March 18, 2024 record date, 404,180,723 shares of common stock were issued and outstanding, and 359,019,252 shares were represented at the meeting, which constituted a quorum. The filing states that shareholders voted on four matters, which are described in the Company's Definitive Proxy Statement on Schedule 14A filed April 5, 2024. Shareholders elected all eleven director nominees to terms expiring at the 2025 Annual Meeting. Each nominee received more votes for than against. Judith F. Marks had the most opposition, with 18,395,045 votes against and 3,799,613 abstentions. Shareholders also approved, on an advisory basis, the compensation of the named executive officers, with 295,869,858 votes for and 36,552,568 against. They ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2024, with 358,111,417 votes for and 567,055 against. A proposal to adopt a revised policy on majority voting in director elections was not approved, receiving 39,695,754 votes for and 293,386,557 against, with 792,543 abstentions. Broker non-votes totaled 25,144,398 for the director, compensation, and majority voting proposals.

May 20, 2024 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Apr 24, 2024)

Otis Worldwide Corporation (NYSE: OTIS) reported first quarter 2024 results on April 24, 2024, with net sales of $3.4 billion ($3,437 million), up 2.7% year over year, and organic sales growth of 3.8%. GAAP operating profit rose $31 million to $544 million, with GAAP operating profit margin expanding 50 basis points to 15.8%. GAAP EPS increased 8.9% to $0.86, and adjusted EPS increased 10.0% to $0.88. Service was the main driver: Service net sales rose 5.8% (organic up 6.5%), while New Equipment net sales fell 2.1% (organic roughly flat, at (0.5)%). New Equipment orders were down 10% at constant currency, while Modernization orders were up 13% and Modernization backlog was up 14%. Cash flow was weaker than the prior year. Cash flow from operations was $171 million, down $107 million, and adjusted free cash flow was $155 million, down $98 million, driven by changes in working capital. The company repurchased $300 million of common stock in the quarter and, as of the filing, had raised its full-year share repurchase target to $1 billion. Otis updated its 2024 outlook, raising adjusted EPS to $3.83 to $3.90 (up 8 to 10%) and guiding to net sales of $14.5 to $14.8 billion, organic sales growth of 3 to 5%, and adjusted free cash flow of approximately $1.6 billion. Management also raised the quarterly dividend by 14.7%.

Apr 24, 2024 10-K

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jan 31, 2024)

Otis Worldwide Corporation (NYSE: OTIS) reported fourth quarter and full year 2023 results on January 31, 2024, as furnished in Exhibit 99, a press release. For the full year, net sales were $14.2 billion, up 3.8% reported and 5.6% organic. GAAP EPS rose 14.5% to $3.39 and adjusted EPS rose 11.7% to $3.54. GAAP operating profit was $2,186 million, and GAAP operating profit margin expanded 50 basis points to 15.4%. Full-year GAAP cash flow from operations was $1.6 billion, free cash flow was $1.49 billion, and adjusted free cash flow was $1.53 billion. Fourth quarter net sales were $3.62 billion, up 5.3%, with organic sales up 3.8%. Service organic sales grew 6.8% and New Equipment organic sales were roughly flat. New Equipment orders rose 3% at constant currency, and Modernization backlog grew 15%. Otis distributed approximately $1.35 billion to shareholders in 2023, including $800 million through share repurchases. For 2024, Otis expects net sales of $14.5 to $14.8 billion, organic sales growth of 3 to 5% (Service up 6 to 7%, New Equipment approximately flat), adjusted EPS of $3.80 to $3.90, and adjusted free cash flow of approximately $1.6 billion.

Jan 31, 2024 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Oct 25, 2023)

Otis Worldwide Corporation (NYSE: OTIS) furnished a press release reporting third quarter 2023 results. Third quarter net sales were $3.5 billion ($3,523 million), up 5.4% year over year, with organic sales up 5.2%. GAAP diluted EPS was $0.91, up 18.2%, and adjusted EPS was $0.95, up 18.8%. GAAP operating profit was $571 million and adjusted operating profit was $595 million, with adjusted operating profit margin up 60 basis points to 16.9%. Service drove the quarter: Service net sales rose 10.1% with organic sales up 8.4%, and Maintenance portfolio units increased 4.2%. New Equipment was weaker, with net sales down 0.8% (organic up 1.0%) and new equipment orders down 10% at constant currency. Modernization orders rose 13% in total and modernization backlog grew 17%, or 15% at constant currency. Cash flow from operations was $306 million and free cash flow was $272 million for the quarter. For the nine months, free cash flow was $934 million. Otis raised its full-year outlook: organic sales growth of approximately 5.5%, adjusted EPS of approximately $3.52 (up approximately 11%), adjusted operating profit of approximately $2.265 billion, and free cash flow of approximately $1.5 billion. The company also plans $800 million in share repurchases for the year.

Oct 25, 2023 8-K

Otis Worldwide 8-K Report, Executive Changes (Oct 24, 2023)

Otis Worldwide Corporation (NYSE: OTIS) filed a Current Report on Form 8-K dated October 24, 2023, reporting changes to its Board of Directors. The Board appointed Thomas Bartlett and Jill Brannon as directors, effective October 27, 2023, with terms expiring at the 2024 Annual Meeting of Shareholders. The Board determined that both qualify as independent directors under the New York Stock Exchange listing standards and the company's Director Independence Policy. Harold W. McGraw III announced on October 19, 2023 that he will retire from the Board effective December 7, 2023. With the two additions and McGraw's retirement, the Board will have 11 members. Bartlett was appointed to the Audit and Compensation Committees, and Brannon to the Audit and Nominations and Governance Committees, each effective October 27, 2023. The filing states that the new directors will participate in the company's non-employee director compensation program, as described in exhibits to the company's Form 10-K for the fiscal year ended December 31, 2022. The filing also states that neither appointee was selected under any arrangement with a third party and that neither has a reportable related-person transaction. The announcement is detailed in Exhibit 99.1, a press release dated October 24, 2023.

Oct 24, 2023 8-K

Otis Worldwide 8-K Report, Corporate Update (Aug 16, 2023)

On August 16, 2023, Otis Worldwide Corporation issued $750,000,000 aggregate principal amount of 5.250% Notes due August 16, 2028. The notes were registered under the company's Form S-3ASR (File No. 333-270834) filed March 24, 2023, and were sold under an Underwriting Agreement dated August 14, 2023 with BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC as representatives of the underwriters. Interest is payable semi-annually on February 16 and August 16, beginning February 16, 2024. The company intends to use the net proceeds to repay at maturity the 0.000% notes due November 12, 2023 issued by its subsidiary Highland Holdings S.à r.l. and guaranteed by Otis, of which €500,000,000 (approximately $546 million as of June 30, 2023) is outstanding. The remainder is expected to be used to repay certain commercial paper borrowings and for other general corporate purposes. The notes are unsecured, unsubordinated obligations ranking equally with existing and future unsecured, unsubordinated indebtedness. They may be redeemed before July 16, 2028 at a make-whole premium, and on or after that date at 100% of principal plus accrued interest. Upon a Change of Control Triggering Event, holders may require repurchase at 101% of principal plus accrued interest. The indenture contains customary restrictions limiting liens, certain fundamental changes and sale and leaseback transactions, along with customary events of default.

Aug 16, 2023 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Jul 26, 2023)

Otis Worldwide Corporation (OTIS) furnished a press release under Item 2.02 reporting second quarter 2023 results. Net sales were $3.72 billion, up 6.7% year over year (9.5% organic growth, partially offset by a 2.1% foreign exchange headwind). GAAP diluted EPS was $0.90, up 18.4%, and adjusted EPS was $0.92, up 7.0%. GAAP operating profit was $580 million and adjusted operating profit was $590 million, with the adjusted operating profit margin expanding 20 basis points to 15.9%. Service net sales grew 8.3% to $2.12 billion, while New Equipment net sales rose 4.6% to $1.60 billion, although New Equipment orders were down 12% at constant currency. Cash flow from operations was $446 million and free cash flow was $409 million, equal to 109% of net income attributable to common shareholders. The company launched UpLift, a program with expected cost savings of $150 million within two years. Otis revised its full-year 2023 outlook to adjusted net sales of $14.0 to $14.3 billion, adjusted EPS of $3.45 to $3.50, and free cash flow of $1.5 to $1.55 billion, and it raised its share repurchase target to $800 million. The company reported a balance sheet with total shareholders' deficit of $(4,852) million at June 30, 2023, and cash and cash equivalents of $1,219 million. Net income attributable to Otis for the six months was $707 million, and diluted EPS for the six months was $1.70.

Jul 26, 2023 8-K

Otis Worldwide 8-K Report, Shareholder Vote Results (May 22, 2023)

Otis Worldwide Corporation filed this Form 8-K to report the results of its 2023 Annual Meeting of Shareholders, held on May 18, 2023, under Item 5.07 (Submission of Matters to a Vote of Security Holders). As of the March 20, 2023 record date, 413,242,757 shares of common stock were outstanding, and a quorum of 365,284,291 shares was represented at the meeting. Shareholders re-elected all ten director nominees, each for a term expiring at the 2024 Annual Meeting. Judith F. Marks received the lowest support, with 319,242,998 votes for, 16,048,113 against, and 3,590,780 abstentions. Shareholders also approved, on an advisory basis, the compensation of the named executive officers, with 293,808,739 votes for and 43,745,146 against. PricewaterhouseCoopers LLP was ratified as independent auditor for 2023, with 363,036,184 votes for. A shareholder proposal for an Independent Board Chairman was not approved, receiving 131,695,929 votes for and 206,510,599 against. For investors, the filing shows broad shareholder support for the board slate, the executive pay program, and the auditor, with the governance proposal failing.

May 22, 2023 10-Q

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 8-K

Otis Worldwide 8-K Report, Financial Results (Apr 26, 2023)

Otis Worldwide Corporation (NYSE: OTIS) reported first quarter 2023 net sales of $3.3 billion, down 2.0% year over year, with organic sales growth of 3.6% and a 4.4% headwind from foreign exchange. GAAP diluted EPS was $0.79, up 8.2% from $0.73, and adjusted EPS was $0.80, up 5.3% from $0.76. Service net sales of $2.04 billion rose 2.4% (6.3% organic), with GAAP Service operating profit of $476 million and margin of 23.3%. New Equipment net sales of $1.31 billion fell 8.1% (flat organically), and New Equipment operating margin contracted to 5.1% on a GAAP basis, reflecting lower margins from regional and product mix. New Equipment orders rose 7% at constant currency, and New Equipment backlog grew 3% at actual currency and 10% on an adjusted, constant-currency basis. Maintenance portfolio units increased 4.2%. First quarter free cash flow was $253 million, or 76% of net income, down from $474 million a year earlier because of working capital increases from payment timing. Otis revised its full-year 2023 outlook, guiding to adjusted net sales of $13.9 to $14.2 billion (up 2.5% to 4.5%), organic sales growth of 4% to 6%, adjusted EPS of $3.40 to $3.50, and free cash flow of $1.5 to $1.55 billion. The company raised its full-year share repurchase target to $700 to $800 million.

Apr 26, 2023 8-K

Otis Worldwide 8-K Report, Material Agreement (Mar 10, 2023)

On March 10, 2023, Otis Worldwide Corporation entered into a new unsecured $1,500 million revolving credit agreement that matures on March 10, 2028. The Credit Agreement names Otis as borrower, Otis Intercompany Lending Designated Activity Company as subsidiary borrower, and JPMorgan Chase Bank, N.A. as administrative agent, and Otis guarantees the subsidiary borrower's obligations. On the same date, Otis terminated all commitments under its existing credit agreement, which was scheduled to expire on April 3, 2025, and the filing states no early termination penalties were incurred. The new facility carries interest at term SOFR plus a 0.10% credit spread adjustment or a base rate for U.S. dollar borrowings, and EURIBOR or daily simple ESTR for euro borrowings, in each case plus an applicable margin. The margin is initially 1.25% for term SOFR, EURIBOR and daily simple ESTR borrowings and 0.25% for base rate borrowings, and it can fluctuate based on Otis' public debt rating. The facility may be increased by up to $500 million, and proceeds are available for general corporate purposes. The agreement includes customary covenants that limit certain liens, sale and leaseback transactions and fundamental changes, along with a maximum consolidated leverage ratio. A covenant breach could trigger an event of default, allowing lenders to accelerate amounts outstanding and terminate their commitments.

Mar 10, 2023 8-K

Otis Worldwide 8-K Report, Executive Changes (Feb 27, 2023)

Otis Worldwide Corporation (OTIS) filed this Current Report on Form 8-K on February 27, 2023 to disclose two executive leadership changes for its China business, both effective March 1, 2023. The filing is limited to personnel matters and reports no financial results, guidance, or other financial metrics. Under Item 5.02, Peiming (Perry) Zheng, a named executive officer, will cease serving as President, Otis China. He will continue as the Company's Executive Vice President, Chief Product, Delivery and Customer Officer and will remain an executive officer. Under Item 8.01, Sally Loh will be appointed President, Otis China. She previously served as Chief Operating Officer, China, and has 22 years of service with the Company. She has been appointed an executive officer of the Company.

Feb 27, 2023 10-K

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