- Otis Worldwide Corporation (OTIS, Financial) reported Q1 2025 net sales of $3.3 billion, a 3% decline driven by a significant drop in New Equipment sales, particularly in China.
- The Service segment showed resilience with 4% organic sales growth and a 40 basis points increase in operating profit margin to 24.6%.
- Otis revised its 2025 outlook, expecting net sales growth between 3-4% and adjusted EPS growth of 4-7%.
Otis Worldwide Corporation (OTIS) announced its financial results for the first quarter of 2025, revealing net sales of $3.3 billion, which reflects a year-over-year decrease of 3%. This decline was primarily attributed to a 9% reduction in New Equipment sales, significantly impacted by a more than 20% decrease in China. Despite these challenges, the company experienced strength in its Service segment.
The Service segment delivered a robust performance with a 4% organic sales growth, boosting net Service sales to $2.2 billion. The operating profit margin for this segment expanded by 40 basis points to 24.6%, highlighting the effectiveness of Otis's service-centric strategy. Additionally, Otis reported a 12% increase in modernization orders, alongside a 4% growth in its maintenance portfolio.
Otis revealed mixed results in its earnings per share (EPS) for the quarter. The GAAP EPS saw a decline of 29% to $0.61, a downturn partly caused by UpLift transformation costs and other one-time adjustments. Conversely, adjusted EPS rose by 5% to $0.92, supported by stronger operational performance and a reduced share count.
The company reinforced its commitment to shareholder returns by executing approximately $250 million in share repurchases and announcing a dividend increase for the fifth consecutive year. Otis's updated 2025 outlook projects net sales in the range of $14.6 to $14.8 billion, up 3-4%, with adjusted EPS expected to grow between 4-7%.
