Otis Worldwide Corporation (OTIS) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for joining us. We hope that everyone listening is safe and well. 2025 marked our fifth full year as an independent public company, a milestone that reflects our resilience and leadership in shaping the future of urban mobility. At the heart of this success are our 72,000 colleagues worldwide whose dedication to our purpose has made this possible. Every day we move 2.5 billion people safely and reliably to and maintain approximately 2.5 million units across the globe, earning the trust of customers and passengers alike. That trust remains our highest priority. This year, we achieved multiple important milestones, ending the year with strong momentum heading into 2026. We secured record modernization orders, building an unprecedented backlog, and our new equipment backlog grew. We achieved record adjusted free cash flow of $817 million in the fourth quarter, reflecting our continued focus on working capital efficiencies and collections. We continued to grow the largest maintenance portfolio in the industry. We successfully executed the uplift program and completed our China transformation initiatives, including buying out the minority shareholder of one of our joint ventures in China, Otis Electric, while driving operational excellence across our business. For the year, we generated $1.6 billion of adjusted free cash flow and returned approximately $1.5 billion to shareholders through dividends and share repurchases, while investing approximately $100 million in targeted bolt-on acquisitions to strengthen our service portfolio and expand our presence in key markets. With these results, our strong backlog and the largest maintenance portfolio in the industry We are confident that our strategy will continue to deliver attractive results in 2026 and beyond. Mov...