Otis Worldwide Corporation · NYSE:OTIS
Otis Worldwide — Q2 2026 Earnings Presentation
30 slides from Otis Worldwide's earnings presentation, Jul 22, 2026
Slide 1: Q2 2026 Earnings Call
Q2 2026 Earnings Call July 22, 2026 © 2026 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 2026 Highlights
Q2 2026 Highlights Hi • Maintenance & repair organic1 sales up 6% Service organic1 sales • Modernization organic1 sales up 24% growth accelerated 9% ◦ Orders up 9% ◦ Backlog up 26% at constant currency1 New Equipment • Sales improved sequentially • Margins stabilized sequentially stabilized • Backlo
Slide 4: Q2 2026 results
Q2 2026 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP 547 575 GAAP $0.99 $1.12 3,859 Adjusted1 612 Adjusted1 $1.05 3,595 587 $1.01 17.0% Adjusted 15.2% margin1 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Organic1 6% Adjusted operating profi
Slide 5: Service Operating Model… next step in our journey
Service Operating Model… next step in our journey 2020 to 2025 2026+ • Accelerated portfolio growth to 4% • Value driven micro pricing initiatives AI and digital assisted tools • Drove product innovation with Gen3, Gen360 • Focus on high value Service segments Growth • Expanded OtisOne and digital p
Slide 6: Service margin improving QoQ… still under pressure
Service margin improving QoQ… still under pressure What we said in Q1 Q2 progress Illustrative example of Service quality • Investments in Investments of $15M as planned index in target operating territories Service +7 pts. Excellence Step change in Service quality metrics • Portfolio mix and retent
Slide 7: Q2 2026 Service segment results
Q2 2026 Service segment results Service 94% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 2,580 11% 4% 2,319 578 599 Organic1 Operating 24.9% profit margin New 23.2% Equipment 9% (170) bps Q2 2025 Q2 2026 Q2 2025 Q2 2026 Organic1 sales up 9% Operating profit up $16M at constan
Slide 8: Q2 2026 New Equipment segment results
Q2 2026 New Equipment segment results New Equipment 6% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 1,276 1,279 0% 68 (41%) Organic1 40 Operating 5.3% profit margin 3.1% (1%) (220) bps Q2 2025 Q2 2026 Q2 2025 Q2 2026 Service Organic1 sales down 1% Operating profit down $30M a
Slide 9: 2026 total and organic sales outlook unchanged
2026 total and organic1 sales outlook unchanged Service sales up mid to high single digits (Organic) New Equipment sales down low single digits to flat (Organic) Total sales up low to mid-single digits (Organic) Total net sales $15.1B to $15.3B 1 See appendix for additional information regarding the
Slide 10: Areas of continued focus
Areas of continued focus On track Update to prior outlook Repair and modernization Repair No change volume ramp up Modernization Micro-pricing Repair Balancing maintenance Retention improvement micro-pricing and retention from investment in Service quality ($20M) Service excellence improvements Prod
Slide 11: 2026 financial outlook
2026 financial outlook Prior outlook Current outlook Actual currency adj. up $60M to $100M down $30M to ~flat operating profit1 Constant currency adj. up $20M to $60M down $45M to $15M operating profit1 Adjusted free cash flow1 $1.6B to $1.65B $1.5B to $1.55B Share repurchases ~$800M ~$800M 1 See ap
Slide 12: 2026 adjusted EPS outlook drivers
2026 adjusted EPS1 outlook drivers ($45M) to ($15M) at constant currency1 ~Flat ($0.09) to ($0.03) ~$0.04 $4.05 $4.01 to $4.05 FX BOY EUR @ 1.14 CNY @ 6.81 2025 adjusted EPS 1 Operational FX Other 2026 adjusted EPS outlook 1 ~Flattish EPS1 1 See appendix for additional information regarding these no
Slide 13: © 2026 OTIS WORLDWIDE CORPORATION.
© 2026 OTIS WORLDWIDE CORPORATION. 13
Slide 14: Appendix
Appendix © 2026 OTIS WORLDWIDE CORPORATION. 14
Slide 15: Backlog and orders
Appendix Backlog and orders ($ billions, at constant currency1) Modernization orders Remaining performance obligation Q2 2026 Y/Y Y/Y Total Otis 9% 19.7 5% 19.5 Otis ex-China (1%) 18.8 Modernization 26% Maintenance New Equipment orders 1% & repair Region Q2 2026 Y/Y Total Otis (5%) New Otis ex-China
Slide 16: Q2 2026 adjusted operating profit drivers
Appendix Q2 2026 adjusted operating profit1 drivers Actual currency ($28M) +$21M ($18M) ($25M) ($32M) at constant currency1 $612M ($30M) $16M ($18M) $7M $587M + -- Productivity Volume Volume + -- Pricing Price & Mix Labor and material costs - Investments and productivity Mix Q2 2025 adjusted New Equ
Slide 17: H1 2026 results
Appendix H1 2026 results ($ millions, except per share amounts) Sales Operating profit Diluted earnings per share GAAP $958 $1,114 GAAP $1.60 $1.99 Adjusted1 1,172 1,137 7,425 Adjusted1 $1.97 6,945 $1.90 16.9% Adjusted 15.3% margin1 H1 2025 H1 2026 H1 2025 H1 2026 H1 2025 H1 2026 Organic1 4% Adjuste
Slide 18: H1 2026 Service segment results
Appendix H1 2026 Service segment results Service 94% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 11% 4% 4,997 1,115 1,155 4,506 Organic1 Operating profit margin New 24.7% Equipment 7% 23.1% (160) bps H1 2025 H1 2026 H1 2025 H1 2026 Organic1 sales up 7% Operating profit up $6
Slide 19: H1 2026 New Equipment segment results
Appendix H1 2026 New Equipment segment results New Equipment 6% ($ millions) Segment Operating Profit Sales Operating Profit Y/Y Y/Y 2,439 2,428 0% 134 (42%) Organic1 5.5% 78 Operating profit margin 3.2% (3%) (230) bps H1 2025 H1 2026 H1 2025 H1 2026 Service Organic1 sales down 3% Operating profit d
Slide 20: H1 2026 adjusted operating profit drivers
Appendix H1 2026 adjusted operating profit1 drivers Actual currency ($56M) $40 ($19M) ($35M) ($70M) at constant currency1 $1,172M ($57M) $6M ($19M) $35M $1,137M + + -- Productivity Volume + -- Volume Pricing Price & mix Labor & material costs - Investments and productivity Mix H1 2025 adjusted 1 New
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 FY26 outlook 1Q26 2Q26 1H26 Prior Current UpLift restructuring expense $0M $0M $0M ~$20M ~$20M Other restructuring expense $7M $11M $18M ~$60M ~$60M Non-service pension cost (benefit) $0M $2M $2M ~$5M ~$5M Adjusted net interest expense $59M $68M $127M ~$265M ~
Slide 23: 2026 GAAP to adjusted financials reconciliation
Appendix 2026 GAAP to adjusted financials reconciliation ($ millions) Income 1Q26 2Q26 Net income attributable to Otis 340 428 Noncontrolling interest in subsidiaries’ earnings 13 21 Income tax expense (benefit) 127 98 Net interest expense 59 26 Non-service pension benefit (expense) 0 2 GAAP operati
Slide 24: 2025 GAAP to adjusted financials reconciliation
Appendix 2025 GAAP to adjusted financials reconciliation ($ millions) Income 1Q25 2Q25 3Q25 4Q25 FY 2025 Net income attributable to Otis 243 393 374 374 1,384 Noncontrolling interest in subsidiaries’ earnings 13 30 18 10 71 Income tax expense (benefit) 110 98 129 142 479 Net interest expense 45 26 6
Slide 25: Organic sales reconciliation
Appendix Organic sales reconciliation Maintenance & Q2 2026 Y/Y Total Otis New Equipment Service Modernization repair Organic 6% (1%) 9% 6% 24% FX 1% 1% 1% 1% 0% Acquisitions / divestitures, net and other1 0% 0% 1% 1% 2% Total net sales growth 7% 0% 11% 8% 26% Maintenance & H1 2026 Y/Y Total Otis Ne
Slide 26: Segment and total adjusted operating profit at constant currency reconciliations
Appendix Segment and total adjusted operating profit at constant currency reconciliations ($ millions) Q2 2025 Q2 2026 Y/Y H1 2025 H1 2026 Y/Y New Equipment Operating profit 68 40 (28) 134 78 (56) Impact of foreign exchange 0 (2) (2) 0 (1) (1) Operating profit at constant currency 68 38 (30) 134 77
Slide 27: SG&A reconciliation
Appendix SG&A reconciliation ($ millions) Q2 2025 Q2 2026 H1 2025 H1 2026 Net sales 3,595 3,859 6,945 7,425 SG&A expense 499 520 963 1,030 UpLift restructuring (27) 0 (38) 0 Other restructuring (6) (8) (14) (12) Adjusted SG&A expense 466 512 911 1,018 Adjusted SG&A % of sales 13.0% 13.3% 13.1% 13.7%
Slide 28: Diluted EPS and Tax reconciliations
Appendix Diluted EPS and Tax reconciliations Q2 2025 Q2 2026 H1 2025 H1 2026 GAAP diluted earnings per share $0.99 $1.12 $1.60 $1.99 Impact of non-recurring items on diluted earnings per share $0.06 ($0.11) $0.37 ($0.09) Adjusted earnings per share $1.05 $1.01 $1.97 $1.90 Q2 2025 Q2 2026 H1 2025 H1
Slide 29: Adjusted free cash flow reconciliation
Appendix Adjusted free cash flow reconciliation ($ millions) Q2 2025 Q2 2026 H1 2025 H1 2026 Operating cash flow 215 267 405 680 Capital expenditures (36) (44) (70) (77) Free cash flow 179 223 335 603 UpLift restructuring payments 8 6 19 14 UpLift transformation payments 14 7 33 11 Separation-relate
Slide 30: Other reconciliations
Appendix Other reconciliations Remaining performance obligation (RPO) ($ billions) Q2 2025 Q1 2026 Q2 2026 RPO at actual currency (GAAP measure) 19.3 19.8 19.7 FX / Other1 (0.5) (0.3) 0.0 RPO at constant currency 18.8 19.5 19.7 Backlog New Maintenance Q2 2026 Y/Y Growth Modernization Equipment & rep