Otis Worldwide (OTIS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $3.35 billion, down 3% year-over-year, with flat organic sales as 4% service growth and 10% modernization growth offset New Equipment declines.

• Adjusted EPS rose 5% to $0.92, while GAAP EPS declined 29% to $0.61 due to UpLift transformation and separation-related costs.

• Modernization orders increased 12% and backlog grew 13–14% at constant currency; maintenance portfolio units up 4%.

• ~$250 million in shares repurchased and an 8% dividend increase announced, marking the fifth consecutive annual increase.

• Recognized by Fortune and Wall Street Journal for management excellence.

Financial highlights

• Adjusted operating profit was $560 million, margin up 40 bps to 16.7%; GAAP operating profit was $411 million, margin down to 12.3%.

• Net income attributable was $243 million (down 31%); adjusted net income was $368 million (up 2%).

• Adjusted free cash flow reached $186 million, up 20% year-over-year; cash flow from operations was $190 million.

• Total net sales were $3.35 billion, with organic sales flat year-over-year.

• Adjusted SG&A expense was $445 million, 13.3% of sales.

Outlook and guidance

• 2025 net sales expected at $14.6–$14.8 billion, up $450 million at midpoint from prior guidance, with organic growth of 2–4%.

• Adjusted operating profit forecasted at $2.4–$2.5 billion, up $105–$135 million at constant currency.

• Adjusted EPS guidance is $4.00–$4.10, up 4–7% year-over-year.

• Adjusted free cash flow expected at ~$1.6 billion; $800 million in share repurchases planned.

• Organic Service sales projected up 5–7%, modernization up low teens, New Equipment down 1–4%.