Otis Worldwide Corporation's Stock Analysis

Otis Worldwide Issues $500 Million in Unsecured Notes

Otis Worldwide Corporation has successfully issued $500 million in 5.131% Notes due 2035, with net proceeds expected to be approximately $495.2 million after expenses. The funds will primarily be used to repay existing debt, including ¥21.5 billion in 0.370% Notes due March 2026, and to address other general corporate purposes. The interest on the new notes will be payable semi-annually starting March 2026.

The Otis Notes are unsecured obligations that rank equally with the company's other unsecured debts. The indenture governing the notes includes restrictions on incurring additional liens and making significant changes, along with customary events of default. Holders of the notes have specific rights in the event of a change of control, allowing them to require the company to repurchase their notes under certain conditions.

Sep 04, 2025 16:26:40

Board Resignation and Committee Changes at Otis Worldwide

Shailesh Jejurikar, a member of the Board of Directors and Chair of the Compensation Committee at Otis Worldwide, announced his resignation effective September 9, 2025. His decision was not due to any disagreements with the company regarding its operations or policies. Following this resignation, the Board will reduce its size from eleven to ten directors.

In light of Mr. Jejurikar's departure, the Board has made adjustments to its committee assignments. Kathy Hopinkah Hannan has stepped down from the Audit Committee and Nominations and Governance Committee, and she will take over as Chair of the Compensation Committee. All other committee assignments will remain unchanged.

Aug 26, 2025 16:15:42

Otis Worldwide Secures $1.5 Billion Credit Facility Agreement

Otis Worldwide Corporation has entered into a new credit agreement for an unsecured $1.5 billion revolving credit facility, which will mature on August 8, 2030. This agreement replaces the previous credit facility, which was terminated without early termination penalties. The new facility allows Otis to borrow, repay, and re-borrow funds for general corporate purposes and includes provisions to increase the revolving credit commitment by up to $500 million.

The credit agreement includes customary affirmative and negative covenants that restrict Otis and its subsidiaries in certain financial activities, including incurring additional liens and making fundamental changes. Additionally, it requires Otis to maintain a maximum consolidated leverage ratio. A breach of these covenants could lead to an event of default, potentially accelerating payment obligations and terminating lenders' commitments under the agreement.

Aug 08, 2025 17:30:07

Otis Worldwide Reports Second Quarter 2025 Financial Results

Otis Worldwide Corporation reported second quarter 2025 net sales of $3.6 billion, showing flat growth compared to the previous year, primarily due to a decline in New Equipment sales in China and the Americas. Service net sales increased by 6%, driven by a 4% rise in organic sales. However, GAAP earnings per share (EPS) decreased by 3% to $0.99, and adjusted EPS fell by 1% to $1.05. The company experienced growth in its maintenance portfolio, which rose by 4%, and modernization orders increased by 22% at constant currency, contributing to a backlog growth of 19% in the same period.

For the first half of 2025, Otis reported a 4% increase in Service net sales and a GAAP cash flow from operations of $405 million. The company has revised its full-year outlook, projecting net sales between $14.5 to $14.6 billion, with organic sales expected to rise by approximately 1%. Adjusted EPS is anticipated to be between $4.00 and $4.10, reflecting a 4% to 7% increase. Otis continues to execute its UpLift program, with expected run-rate savings of $200 million and increased savings from the China transformation program projected to reach $40 million by the end of 2025.

Jul 23, 2025 06:12:50

Otis Reports Mixed Earnings and Increased Dividend for Shareholders

Otis Worldwide Corporation announced its first quarter 2025 financial results, reporting net sales of $3.3 billion, a decrease of 3% compared to the previous year. The company experienced a 29% drop in GAAP earnings per share (EPS) to $0.61, while adjusted EPS increased by 5% to $0.92. The Service segment showed mid-single digit organic sales growth and a 40 basis point expansion in operating profit margin, although overall GAAP operating profit margin fell by 350 basis points due to various costs related to transformation and separation adjustments.

The company reported a strong performance in its Service segment, with maintenance portfolio units up 4% and modernization orders up 12%, contributing to a backlog growth of 14% at constant currency. Otis also generated GAAP cash flow from operations of $190 million and adjusted free cash flow of $186 million. Additionally, the board announced a dividend increase, marking the fifth consecutive year of dividend growth, reflecting the company’s commitment to returning value to shareholders.

Apr 23, 2025 06:06:30

Otis Reports $14.3 Billion in 2024 Net Sales

Otis Worldwide Corporation announced its fourth quarter and full year 2024 results, highlighting a 1.5% increase in net sales for the quarter and a 0.4% increase for the full year, totaling $14.3 billion. Service sales were a key driver, with a 7.6% rise in the fourth quarter and 5.9% for the year. The company also reported a significant increase in GAAP earnings per share (EPS), up 20.1% for the year, and a cash flow from operations of $1.6 billion. Additionally, modernization orders rose by 18% in the fourth quarter, contributing to a backlog growth of 10%. This reflects positive momentum in Otis's Service segment and overall operational performance.

Conversely, the New Equipment segment faced challenges, with fourth quarter net sales declining by 7.4% and a full year decrease of 7.7%. This decline was primarily attributed to a significant drop in sales from China, which saw a greater than 20% decline. The operating profit margin for the New Equipment segment also contracted, indicating pressure on profitability. Overall, while Otis showed growth in certain areas, the struggles in the New Equipment segment highlight ongoing market challenges.

Jan 29, 2025 06:02:08

Otis Reports Q3 2024 Financial Results and Performance Highlights

Otis Worldwide Corporation reported a positive third quarter in 2024, showcasing a 47.3% increase in GAAP earnings per share (EPS) to $1.34, driven mainly by a non-recurring tax benefit. Service sales grew by 7.2%, with organic sales up 7.7%, and the maintenance portfolio units increased by 4.2%. The company also saw a rise in its backlog by 14%, indicating a solid demand for its services. Cash flow from operations reached $394 million, contributing to share repurchases totaling $200 million for the quarter.

However, the New Equipment segment experienced challenges, with net sales declining by 8.8% year-over-year, primarily due to a significant drop in sales from China. The GAAP operating profit decreased by $208 million, reflecting the impact of separation-related adjustments and a contraction in operating profit margin. Although adjusted operating profit increased slightly, the overall performance in the New Equipment segment raised concerns about future growth, particularly in the face of ongoing economic headwinds.

Oct 30, 2024 06:06:39

Otis Reports Strong Q2 2024 Growth and Positive Outlook

Otis Worldwide Corporation posted a solid second quarter, with GAAP earnings per share rising by 13.3% and adjusted EPS up 15.2%. Service sales grew 3%, and orders increased 14%, indicating strong demand. However, overall net sales fell 3.2% compared to last year, primarily due to a decline in New Equipment sales. The company is optimistic, raising its full-year EPS outlook and expecting continued growth in its Service segment.

Jul 24, 2024 06:03:04

Otis Worldwide Corporation Appoints New CFO

Otis Worldwide Corporation appoints Cristina Méndez as Executive Vice President & Chief Financial Officer, succeeding Anurag Maheshwari. Méndez will report directly to the company's Chair, CEO & President, Judy Marks.

Jul 19, 2024 08:16:43

Otis Reports Strong Q1 Results and Raises Full-Year Outlook

Otis reported a 3.8% organic sales growth in Q1 2024, with a 10% increase in adjusted EPS. Service net sales were up 5.8%, contributing to a 6.5% organic sales growth. Despite a 10% decline in New Equipment orders, the company saw a 13% increase in Mod orders. Otis raised its adjusted EPS outlook to $3.83 to $3.90 and share repurchase target to $1 billion for the year, reflecting confidence in its long-term strategy and commitment to shareholder value.

Apr 24, 2024 06:01:29