Otis Worldwide reported third‑quarter 2025 results with net sales of $3.69 billion, a 4% year‑over‑year increase, and organic sales growth of 2%. GAAP earnings per share fell to $0.95, while adjusted EPS rose to $1.05, up 9% from the prior quarter.
The Service segment drove growth, with sales of $2.43 billion, up 9% YoY, and operating profit of $621 million, a 3% rise. Operating margin expanded to 25.5%, reflecting higher volume, favorable pricing, and productivity gains across maintenance, repair, and modernization activities.
New Equipment sales declined 4% YoY to $1.257 billion, with a margin of 4.7%. Operating profit fell to $59 million, a 25% drop, driven by weaker demand in China and the Americas and a slowdown in commercial construction projects.
Management raised the midpoint of its 2025 adjusted EPS outlook to $4.04–$4.08, a 5–7% increase from 2024, and reaffirmed net sales guidance of $14.5 billion to $14.6 billion. The company highlighted $200 million in annual savings from its UpLift program and $40 million from its China transformation initiative.
Otis’s focus on a high‑margin Service business aligns with industry trends to diversify revenue streams. Modernization orders grew 27% YoY, and maintenance revenue increased 4%, supporting future service revenue. The company repurchased approximately $800 million of shares year‑to‑date, underscoring its commitment to shareholder returns.
Prior‑period comparisons: Q3 2024 net sales were $3.55 billion, GAAP EPS $1.02, adjusted EPS $0.96, Service sales $2.34 billion, Service operating profit $555 million, New Equipment sales $1.31 billion, and New Equipment operating profit $84 million.
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