| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Otis Worldwide Corp. (NYSE:OTIS) shares traded higher on Wednesday after the company announced its third-quarter 2025 results, which topped Wall Street expectations and raised confidence in its earnings outlook, driven by robust growth in its high-margin Service business.
The elevator and escalator maker reported net sales of $3.69 billion, surpassing the analyst estimate of $3.65 billion, with organic sales growth of 2% year over year. Adjusted earnings per share rose 9% to $1.05, topping expectations of $1.00, while GAAP EPS fell 29% to 95 cents.
"Our Service flywheel generated our highest organic sales growth and operating profit margin expansion this year with our industry leading maintenance portfolio growing 4%," Chair, CEO, and president Judy Marks said.
Also Read: Xylem Raises Outlook As CEO Hails Resilient Demand And Record Profit Margins
"These strong results illustrate the strength of our Service-driven strategy. This, coupled with a strong order book for modernization and recovery in New Equipment, gives us confidence to increase the midpoint of our EPS outlook," she added.
The Service segment delivered net sales of $2.43 billion, up 9% with 6% organic growth. Segment operating profit rose $66 million to $621 million, and operating margin expanded 70 basis points to 25.5% on higher volume, favorable pricing, and productivity gains.
Modernization orders climbed 27% at constant currency, and the backlog increased 22%.
New Equipment net sales fell 4% to $1.3 billion, with an organic sales decline of 5%, driven by a roughly 20% drop in China and a high-single-digit decline in the Americas. Segment operating profit fell $25 million to $59 million, and margin contracted 170 basis points to 4.7%.
New Equipment orders rose 4% at constant currency, or 7% excluding China.
Year-to-date operating cash flow totaled $779 million, and adjusted free cash flow was $766 million. Otis repurchased about $800 million of shares year to date and ended the quarter with $840 million in cash and $8.1 billion in total debt.
For full-year 2025, Otis reaffirmed its net sales guidance of $14.5 billion to $14.6 billion, consistent with the $14.514 billion analyst estimate, representing a year-over-year increase of approximately 2%, with organic growth of around 1%.
Organic Service sales are expected to rise roughly 5%, while New Equipment sales are projected to decline about 7%.
The company narrowed its adjusted EPS outlook to $4.04–$4.08, compared with estimates of $4.02, and guided for adjusted free cash flow of approximately $1.45 billion.
Otis said it continues executing its UpLift program, targeting $200 million in run-rate savings and $40 million from its China transformation program by year-end.
Price Action: OTIS shares were trading higher by 2.97% to $94.01 premarket at last check Wednesday.
Read Next:
Photo by ZikG via Shutterstock
Posted In: OTIS
