Slide 1: Q2 2025 Earnings Call
Q2 2025 Earnings Call July 23, 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: Q2 2025 highlights
Q2 2025 highlights YTD 2025 Solid second quarter performance driven by Service strength... • Service organic1 sales up 4% 4% Service organic1 sales growth • Service operating profit margin expanded 20 bps • Maintenance portfolio units up 4% • Modernization orders up 22%; backlog up 16% at constant c
Slide 4: Q2 2025 orders & portfolio
Q2 2025 orders & portfolio Q2 2025 Orders (YOY Changes) Orders1 Otis Total Otis ex-China New Equipment (1%) 11% Modernization 22% 22% Total 4% 14% OneAmerica Tower Damac Bay 2 by Cavalli Indianapolis, USA Dubai, UAE Backlog1 Otis Total Otis ex-China New Equipment (3%) 8% Modernization 16% 16% Total
Slide 5: Q2 2025 results
Q2 2025 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP 570 547 GAAP $1.02 $0.99 Adjusted1 Adjusted1 Adjusted margin1 Adjusted EPS1 drivers Adjusted operating profit down $14M at Organic1 (2%) constant currency1, excluding $13M of FX Operational
Slide 6: Q2 2025 Service segment results
Q2 2025 Service segment results Service 89% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 6% 7% Organic1 Operating profit margin New Equipment 4% +20 bps Organic1 sales up 4% Operating profit up $26M at constant currency1 • Maintenance & repair up 4% + Volume • Modernization u
Slide 7: Q2 2025 New Equipment segment results
Q2 2025 New Equipment segment results New Equipment 11% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y (10%) (38%) Organic1 Operating profit margin (11%) (240) bps Service Organic1 sales down 11% Operating profit down $41M at constant currency1 • Americas down 8% + Productivity
Slide 8: 2025 industry & Otis outlook
2025 industry & Otis outlook1 Industry new equipment unit growth1 Otis Down Up Down Down LSD LSD HSD MSD • Net sales of $14.5B to $14.6B; organic2 up ~1% • Adjusted operating profit2 of $2.4B to $2.5B, up $55M to $105M at actual currency • Adjusted EPS2 $4.00 to $4.10 up 4% to 7% Industry installed
Slide 9: 2025 organic sales outlook
2025 organic1 sales outlook Prior outlook (Apr 23, 2025) Current outlook Outlook drivers New Equipment down 1% to 4% down ~7% • Global trade developments impacting the timing of New Americas down mid-single down high-single Equipment backlog execution in the U.S. EMEA up mid-single up mid-single Asi
Slide 10: Tariff impact and exposure
Tariff impact and exposure Prior outlook (Apr 23, 2025) 50% Current outlook + China reciprocal 2025 in-year $45M - $75M - Section 232 (steel & aluminum) Mitigation $25M - $35M (including mitigation) + • Current outlook updated per the current reciprocal and section 232 tariffs • 2026 impact less tha
Slide 11: 2025 financial outlook
2025 financial outlook Prior outlook (Apr 23, 2025) Current outlook Actual currency adj. op up $55M to $105M up $55M to $105M profit1 with 2025 tariffs Constant currency adj. op up $105M to $135M up $50M to $90M profit1 ex-2025 tariffs Total adjusted operating up ~50bps (ex-2025 tariffs) up ~50bps (
Slide 12: 2025 adjusted EPS growth outlook drivers
2025 adjusted EPS1 growth outlook drivers $0.13 to $0.19 $0.00 to $0.02 ($0.08) ~$0.05 $0.00 to $0.02 $0.21 to $0.27 China & US New Equipment + Shares headwind Tariffs: ($35M) to ($25M) - Interest $3.83 + Volume FX BOY: EUR @ 1.17 $4.00 to $4.10 + Productivity CNY @ 7.17 + Pricing + UpLift & China T
Slide 13: © 2025 OTIS WORLDWIDE CORPORATION.
© 2025 OTIS WORLDWIDE CORPORATION. 13
Slide 14: Appendix
Appendix © 2025 OTIS WORLDWIDE CORPORATION. 14
Slide 15: Multiple initiatives to drive customer centricity and profitability
Appendix Multiple initiatives to drive customer centricity and UpLift profitability1 Targeted savings • Harnessing our scale Cumulative in-year benefits ($ millions) • Optimizing our supply chain China transformation savings • Delivering process improvement UpLift savings and standardization • Targe
Slide 16: Backlog and orders
Appendix Backlog and orders ($ billions, at constant currency1) Modernization orders Remaining performance obligation Q2 2025 Y/Y H1 2025 Y/Y Y/Y Total Otis 22% 17% 18.1 18.5 18.6 3% Otis ex-China 22% 16% Modernization 16% Maintenance New Equipment orders 6% & repair Region Q2 2025 Y/Y H1 2025 Y/Y T
Slide 17: Q2 2025 adjusted operating profit drivers
Appendix Q2 2025 adjusted operating profit1 drivers Actual currency ($42M) +$40M +$1M ($1M) ($14M) at constant currency1 $1M + Productivity + Volume -- Volume Price & Mix + + Pricing Productivity -- Labor costs Mix 1 1 Adjusted operating profit margin1 flat at 17.0% 1 See additional information rega
Slide 18: H1 2025 results
Appendix H1 2025 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP $1,114 $958 GAAP $1.89 $1.60 Adjusted1 Adjusted1 Adjusted margin1 Adjusted operating profit up $1M at constant Adjusted EPS1 drivers Organic1 (1%) currency1, excluding $3M of FX hea
Slide 19: H1 2025 Service segment results
Appendix H1 2025 Service segment results Service 89% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 4% 5% Organic1 Operating profit margin New Equipment 4% 20 bps Organic1 sales up 4% Operating profit up $55M at constant currency1 • • Maintenance & repair up 3% Modernization up
Slide 20: H1 2025 New Equipment segment results
Appendix H1 2025 New Equipment segment results New Equipment 11% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y (10)% (26)% Operating Organic1 profit margin (9%) (120) bps Service Organic1 sales down 9% Operating profit down ($45M) at constant • Americas down 8% currency1 • EME
Slide 21: H1 2025 adjusted operating profit drivers
Appendix H1 2025 adjusted operating profit1 drivers Actual currency ($47M) $54M ($9) ($2M) $1M at constant currency1 + Productivity + Volume -- Volume Price & mix + + Pricing Productivity -- Labor costs Mix 1 1 Adjusted operating profit margin1 expanded 20 basis points to 16.9% 1 See additional info
Slide 22: 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 23: Additional information
Appendix Additional information Actuals FY25 outlook Prior 1Q25 2Q25 1H25 Updated (Apr 23, 2025) UpLift restructuring expense $20M $25M $45M Other restructuring expense $23M $12M $35M ~$250M ~$250M UpLift transformation costs $23M $18M $41M Non-service pension cost (benefit) $0M $0M $0M ~$5M ~$5M Ad
Slide 24: 2025 GAAP to adjusted financials reconciliation
Appendix 2025 GAAP to adjusted financials reconciliation ($ millions) Income 1Q25 2Q25 Net income attributable to Otis 243 393 Noncontrolling interest in subsidiaries’ earnings 13 30 Income tax expense (benefit) 110 98 Net interest expense 45 26 Non-service pension benefit (expense) 0 0 GAAP operati
Slide 25: 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 26: Organic sales reconciliation
Appendix Organic sales reconciliation Maintenance & Q2 2025 Y/Y Total Otis New Equipment Service Modernization repair Organic (2%) (11%) 4% 4% 5% FX 1% 0% 2% 2% 1% Acquisitions / divestitures, net and other 1% 1% 0% 0% 0% Total net sales growth 0% (10%) 6% 6% 6% Maintenance & H1 2025 Y/Y Total Otis
Slide 27: Segment and total adjusted operating profit at constant currency reconciliations
Appendix Segment and total adjusted operating profit at constant currency reconciliations ($ millions) Q2 2024 Q2 2025 Y/Y H1 2024 H1 2025 Y/Y New Equipment Operating profit 110 68 (42) 181 134 (47) Impact of foreign exchange 0 1 1 0 2 2 Operating profit at constant currency 110 69 (41) 181 136 (45)
Slide 28: SG&A reconciliation
Appendix SG&A reconciliation ($ millions) Q2 2024 Q2 2025 H1 2024 H1 2025 Net sales 3,601 3,595 7,038 6,945 SG&A expense 449 499 911 963 UpLift restructuring (4) (27) (5) (38) Other restructuring (1) (6) (15) (14) Adjusted SG&A expense 444 466 891 911 Adjusted SG&A % of sales 12.3% 13.0% 12.7% 13.1%
Slide 29: Diluted EPS and Tax reconciliations
Appendix Diluted EPS and Tax reconciliations Q2 2024 Q2 2025 H1 2024 H1 2025 GAAP diluted earnings per share $1.02 $0.99 $1.89 $1.60 Impact of non-recurring items on diluted earnings per share $0.04 $0.06 $0.05 $0.37 Adjusted earnings per share $1.06 $1.05 $1.94 $1.97 Q2 2024 Q2 2025 H1 2024 H1 2025
Slide 30: Adjusted free cash flow reconciliation
Appendix Adjusted free cash flow reconciliation ($ millions) Q2 2024 Q2 2025 H1 2024 H1 2025 Operating cash flow 308 215 479 405 Capital expenditures (24) (36) (55) (70) Free cash flow 284 179 424 335 UpLift restructuring payments 7 8 14 19 UpLift transformation payments 13 14 21 33 Separation-relat
Slide 31: Other reconciliations
Appendix Other reconciliations Remaining performance obligation (RPO) ($ billions) Q2 2024 Q1 2025 Q2 2025 RPO at actual currency (GAAP measure) 18.2 18.6 19.3 FX (0.1) (0.1) (0.7) RPO at constant currency 18.1 18.5 18.6 Backlog New Maintenance Q2 2025 Y/Y Growth Modernization Equipment & repair Act