Otis Worldwide (OTIS) Q4 2024 earnings summary

Executive summary

• Q4 and FY 2024 organic sales grew 1.9%, led by Service (up 7.8%) and Modernization (up 17.5–18%), with maintenance portfolio expanding over 4% to 2.4 million units for the third consecutive year.

• Adjusted EPS increased 8.2% to $3.83 for FY 2024; adjusted free cash flow reached $1.6 billion.

• Transformation of China business underway, shifting focus from new equipment to service and modernization, with UpLift run-rate savings target raised to $200 million by H2 2025.

• $1.0–$1.6 billion returned to shareholders in 2024 via dividends and share repurchases; Gold EcoVadis rating earned for the third consecutive year.

• Major project wins in Mexico, India, China, and the UK expanded the maintenance portfolio.

Financial highlights

• Q4 2024 net sales were $3.68–$3.7 billion (+1.5% total, +1.9% organic); adjusted operating profit $583 million (+$22 million at constant currency).

• FY 2024 net sales reached $14.26–$14.3 billion (+0.4% total, +1.4% organic); adjusted operating profit $2.36–$2.4 billion (+$87–$118 million at constant currency).

• Adjusted EPS for Q4 was $0.93 (+6.9%); adjusted operating margin expanded 30–50 bps to 15.9% in Q4 and 16.5% for the year.

• Service operating profit margin expanded 50–60 bps to 24.5% in Q4 and 24.6% for the year.

• Adjusted free cash flow was $682 million in Q4 and $1.57–$1.6 billion for FY 2024.

Outlook and guidance

• 2025 net sales expected at $14.1–$14.4 billion, up 2–4% organically.

• Adjusted operating profit guidance: $2.4–$2.5 billion, up $55–$150 million at actual/constant currency.

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

• Adjusted free cash flow forecasted at ~$1.6 billion; $800 million in share repurchases and increased dividend payout planned.

• Service organic sales expected to grow 6–7% in 2025; new equipment organic sales to decline 1–4%, mainly due to China.