Otis Worldwide Corporation · NYSE:OTIS
Otis Worldwide — Q3 2025 Earnings Presentation
30 slides from Otis Worldwide's earnings presentation, Oct 29, 2025
Slide 1: Q3 2025 Earnings Call
Q3 2025 Earnings Call October 29, 2025 © 2025 OTIS WORLDWIDE CORPORATION.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Note: All results and expectations in this presentation reflect continuing operations unless otherwise noted. This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under th
Slide 3: Q3 2025 highlights
Q3 2025 highlights YTD 2025 Strong Service momentum continues to drive third quarter results... 4% • Organic1 sales up 2%… Service up 6% maintenance portfolio growth • Adjusted operating profit margin1 expanded 20 bps… Service expanded 70 bps • Adjusted EPS1 up 9% • Maintenance portfolio units up 4%
Slide 4: Q3 2025 orders & portfolio
Q3 2025 orders & portfolio Q3 2025 Orders (YOY Changes) Orders1 Otis Total Otis ex-China New Equipment 4% 7% Modernization 27% 16% Total 9% 9% 100 McAllister Sunshine Waterfront Residential Community San Francisco, USA Shanghai, China Backlog1 Otis Total Otis ex-China New Equipment (1%) 8% Moderniza
Slide 5: Q3 2025 results
Q3 2025 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP 363 586 GAAP $1.34 $0.95 Adjusted1 Adjusted1 Adjusted margin1 Adjusted operating profit up $16M at Adjusted EPS1 drivers Organic1 2% constant currency1, excluding $17M of FX tailwinds Operat
Slide 6: Q3 2025 Service segment results
Q3 2025 Service segment results Service 91% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 9% 12% Organic1 Operating profit margin New Equipment 6% +70 bps Organic1 sales up 6% Operating profit up $49M at constant currency1 • Maintenance & repair up 4% + Volume • Modernization
Slide 7: Q3 2025 New Equipment segment results
Q3 2025 New Equipment segment results New Equipment 9% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y (4%) (30%) Organic1 Operating profit margin (5%) (170) bps Service Organic1 sales down 5% Operating profit down $24M at constant currency1 + -- • Americas down 7% Productivity
Slide 8: 2025 industry & Otis outlook
2025 industry & Otis outlook1 Industry new equipment unit growth1 Otis Up Up Down Down LSD 2 LSD HSD MSD • Net sales of $14.5B to $14.6B; organic3 up ~1% • Adjusted operating profit3 of $2.4B to $2.5B, up $75M to $95M at actual currency • Adjusted EPS3 $4.04 to $4.08, up 5% to 7% Industry installed
Slide 9: 2025 organic sales outlook
2025 organic1 sales outlook Prior outlook (July 23, 2025) Current outlook Outlook drivers New Equipment down ~7% down ~7% • Sustained maintenance portfolio growth and disciplined pricing Americas down high single down mid-single EMEA up mid-single up mid-single • Robust modernization and repair perf
Slide 10: 2025 financial outlook
2025 financial outlook Prior outlook (Jul 23, 2025) Current outlook Actual currency adj. op up $55M to $105M up $75M to $95M profit1 with 2025 tariffs Constant currency adj. op up $50M to $90M up $65M to $85M profit1 ex-2025 tariffs Total adjusted operating up ~50bps (ex-2025 tariffs) up ~50bps (ex-
Slide 11: 2025 adjusted EPS growth outlook drivers
2025 adjusted EPS1 growth outlook drivers ~$0.05 ~$0.01 + - $0.16 to $0.18 Tariffs ~($30M) Shares FX BOY: Interest + Volume EUR @ 1.17 + Productivity CNY @ 7.17 $4.04 to $4.08 $3.83 + Pricing + UpLift & China Transformation -- Commodities Mix & churn - Annual wage inflation Corporate/other 1 1 Midpo
Slide 12: © 2025 OTIS WORLDWIDE CORPORATION.
© 2025 OTIS WORLDWIDE CORPORATION. 12
Slide 13: Appendix
Appendix © 2025 OTIS WORLDWIDE CORPORATION. 13
Slide 14: Multiple initiatives to drive customer centricity and profitability
Appendix Multiple initiatives to drive customer centricity and UpLift profitability1 Targeted savings • Harnessing our scale Cumulative in-year benefits ($ millions) • Optimizing our supply chain China transformation savings • Delivering process improvement UpLift savings and standardization • Targe
Slide 15: Backlog and orders
Appendix Backlog and orders ($ billions, at constant currency1) Modernization orders Remaining performance obligation Q3 2025 Y/Y YTD 2025 Y/Y Y/Y Total Otis 27% 20% 18.0 18.4 18.3 2% Otis ex-China 16% 16% Modernization 22% Maintenance New Equipment orders 1% & repair Region Q3 2025 Y/Y YTD 2025 Y/Y
Slide 16: Q3 2025 adjusted operating profit drivers
Appendix Q3 2025 adjusted operating profit1 drivers Actual currency ($25M) +$66M ($8M) +$33M +$16M at constant currency1 + + -- Productivity Volume Volume + Pricing + - -- Price & Mix Productivity Tariffs Labor costs Mix 1 1 Adjusted operating profit margin1 expanded 20 basis points to 17.1% 1 See a
Slide 17: YTD 2025 results
Appendix YTD 2025 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP $1,477 $1,544 GAAP $3.23 $2.55 Adjusted1 Adjusted1 Adjusted margin1 Adjusted operating profit up $17M at Adjusted EPS1 drivers Organic1 ~Flat constant currency1, excluding $14M of
Slide 18: YTD 2025 Service segment results
Appendix YTD 2025 Service segment results Service 90% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 6% 7% Organic1 Operating profit margin New Equipment 5% 40 bps Organic1 sales up 5% Operating profit up $104M at constant currency1 • Maintenance & repair up 4% + Volume • Moder
Slide 19: YTD 2025 New Equipment segment results
Appendix YTD 2025 New Equipment segment results New Equipment 10% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y (8%) (27%) Organic1 Operating profit margin (8%) (140) bps Service Organic1 sales down 8% Operating profit down ($69M) at constant • Americas down 8% currency1 + Vol
Slide 20: YTD 2025 adjusted operating profit drivers
Appendix YTD 2025 adjusted operating profit1 drivers Actual currency ($72M) $120M ($17M) $31M $17M at constant currency1 + + -- Productivity Volume Volume + Pricing + - -- Price & mix Productivity Tariffs Labor costs Mix 1 1 Adjusted operating profit margin1 expanded 30 basis points to 17.0% 1 See a
Slide 21: Use and Definitions of Non-GAAP Financial Measures
Appendix Use and Definitions of Non-GAAP Financial Measures Otis Worldwide Corporation ("Otis") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with
Slide 22: Additional information
Appendix Additional information Actuals FY25 outlook Prior 1Q25 2Q25 3Q25 YTD25 Updated (Jul 23, 2025) UpLift restructuring expense $20M $25M $27M $72M Other restructuring expense $23M $12M $6M $41M ~$250M ~$220M UpLift transformation costs $23M $18M $10M $51M Non-service pension cost (benefit) $0M
Slide 23: 2025 GAAP to adjusted financials reconciliation
Appendix 2025 GAAP to adjusted financials reconciliation ($ millions) Income 1Q25 2Q25 3Q25 Net income attributable to Otis 243 393 374 Noncontrolling interest in subsidiaries’ earnings 13 30 18 Income tax expense (benefit) 110 98 129 Net interest expense 45 26 61 Non-service pension benefit (expens
Slide 24: 2024 GAAP to adjusted financials reconciliation
Appendix 2024 GAAP to adjusted financials reconciliation ($ millions) Income 1Q24 2Q24 3Q24 4Q24 FY 2024 Net income attributable to Otis 353 415 540 337 1,645 Noncontrolling interest in subsidiaries’ earnings 21 35 17 16 89 Income tax expense (benefit) 126 94 (45) 130 305 Net interest expense (benef
Slide 25: Organic sales reconciliation
Appendix Organic sales reconciliation Maintenance & Q3 2025 Y/Y Total Otis New Equipment Service Modernization repair Organic 2% (5%) 6% 4% 14% FX 2% 1% 2% 3% 1% Acquisitions / divestitures, net and other —% —% 1% —% 1% Total net sales growth 4% (4%) 9% 7% 16% Maintenance & YTD 2025 Y/Y Total Otis N
Slide 26: Segment and total adjusted operating profit at constant currency reconciliations
Appendix Segment and total adjusted operating profit at constant currency reconciliations ($ millions) Q3 2024 Q3 2025 Y/Y YTD 2024 YTD 2025 Y/Y New Equipment Operating profit 84 59 (25) 265 193 (72) Impact of foreign exchange 0 1 1 0 3 3 Operating profit at constant currency 84 60 (24) 265 196 (69)
Slide 27: SG&A reconciliation
Appendix SG&A reconciliation ($ millions) Q3 2024 Q3 2025 YTD 2024 YTD 2025 Net sales 3,548 3,690 10,586 10,635 SG&A expense 455 504 1,366 1,467 UpLift restructuring (4) (21) (9) (59) Other restructuring (2) (1) (17) (15) Adjusted SG&A expense 449 482 1,340 1,393 Adjusted SG&A % of sales 12.7% 13.1%
Slide 28: Diluted EPS and Tax reconciliations
Appendix Diluted EPS and Tax reconciliations Q3 2024 Q3 2025 YTD 2024 YTD 2025 GAAP diluted earnings per share $1.34 $0.95 $3.23 $2.55 Impact of non-recurring items on diluted earnings per share ($0.38) $0.10 ($0.33) $0.47 Adjusted earnings per share $0.96 $1.05 $2.90 $3.02 Q3 2024 Q3 2025 YTD 2024
Slide 29: Adjusted free cash flow reconciliation
Appendix Adjusted free cash flow reconciliation ($ millions) Q3 2024 Q3 2025 YTD 2024 YTD 2025 Operating cash flow 394 374 873 779 Capital expenditures (32) (37) (87) (107) Free cash flow 362 337 786 672 UpLift restructuring payments 6 9 20 28 UpLift transformation payments 13 16 34 49 Separation-re
Slide 30: Other reconciliations
Appendix Other reconciliations Remaining performance obligation (RPO) ($ billions) Q3 2024 Q2 2025 Q3 2025 RPO at actual currency (GAAP measure) 18.6 19.3 19.0 FX / Other1 (0.6) (0.9) (0.7) RPO at constant currency 18.0 18.4 18.3 Backlog New Maintenance Q3 2025 Y/Y Growth Modernization Equipment & r