Otis Worldwide Corporation (OTIS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

from Otis' website at www.otis.com. I'll now turn the call over to Rob Cortaro, Vice President of Investor Relations. Thank you, Tina. Welcome to Otis' second quarter 2025 earnings conference call. On the call with me today are Judy Marks, Chair, CEO, and President, and Christina Mendez, Executive Vice President and CFO. Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding restructuring and significant non-recurring items. A reconciliation of these measures can be found in the appendix of the webcast. We also remind listeners that the presentation contains forward-looking statements, which are subject to risks and uncertainties. OTIS's SEC filings, including our Form 10-K and quarterly reports on Form 10-Q, provide details on important factors that could cause actual results to differ materially. Now, I'll turn it over to Judy. Thank you, Rob. Good morning, afternoon, and evening, everyone. Thank you for joining us. We hope everyone listening is safe and well. Starting with Q2 highlights on slide three, OTIS delivered solid second quarter and first half results as the service segment continued to drive strong performance with both a year-over-year and a sequential operating profit margin improvement. Organic service sales in the second quarter were up 4%, with growth across all business lines and in all regions. Our maintenance portfolio grew 4% again in the quarter, adding to our industry-leading 2.4 million unit portfolio under service. Modernization momentum continued as we accelerated orders to 22%, and ended the quarter with the backlog up 16% at constant currency. New equipment orders decreased by 1% due to continued economic challenges in China, while orders in the rest of the world increased 11% ve...