Otis Worldwide Corp

Earnings Performance and Growth: Otis Worldwide Corporation reported flat organic sales in Q1 2025, driven by a 4% increase in service sales, while new equipment sales declined 7%. Adjusted EPS rose 5% year over year, reflecting solid operational performance despite challenges in equipment sales. The adjusted operating profit margin expanded by 40 basis points to 16.7%.

Market Outlook for New Equipment: The company expects a mid-single-digit decline in global new equipment units for the year, with regional variations. Specifically, the Americas outlook has been reduced to a low single-digit decline due to project delays linked to uncertainty around global trade policies, while EMEA is expected to grow and declines in Asia are anticipated, especially in China.

Service Segment Resilience: The service business, which contributes about 90% of operating income, is projected to grow organic sales by 5% to 7% for the year. The backlog remains strong, with repair sales expected to accelerate later in 2025, driven by improved execution and investments in service excellence.