Otis Worldwide : Second Quarter 2026 Earnings Conference Call

About this update from Otis Worldwide Corporation

Q2 2026 Earnings Call July 22, 2026 © 2026 OTIS WORLDWIDE CORPORATION. Q2 2026 Hig H h i lights Service organic 1 sales growth accelerated 9% Maintenance & repair organic 1 sales up 6% Modernization organic 1 sales up 24% Orders up 9% Backlog up 26% at constant currency 1 New Equipment stabilized Sales improved sequentially Margins stabilized sequentially Backlog up 4% at constant currency 1 Strong cash flow +19% Disciplined capital deployment Adjusted free cash flow 1 of $290M WeMaintain acquired ~$400M shares repurchased… ~$800M YTD Dividends increased by 5% Q2 2026 results ($ millions, except per share amounts) Sales 3,595 3,859 Q2 2025 Q2 2026 Organic 1 FX Net acquisitions/other Total net sales 6% 1% ~Flat 7% Operating profit GAAP Adjusted 1 547 612 575 587 17.0% Adjusted margin 1 15.2% Q2 2025 Q2 2026 Adjusted operating profit down $32M at constant currency 1 , excluding $7M of FX tailwinds Adjusted operating profit margin 1 contracted 180 basis points to 15.2% Diluted earnings per share GAAP Adjusted 1 $0.99 $1.12 $1.05 $1.01 Q2 2025 Q2 2026 Adjusted EPS 1 drivers Operational FX Other ($0.07) $0.02 $0.01 1 See appendix for additional information regarding these non-GAAP financial measures. Service Operating Model… next step in our journey 2020 to 2025 2026+ Growth Accelerated portfolio growth to 4% Drove product innovation with Gen3, Gen360 Expanded OtisOne and digital products Industrialized and ramped up modernization Value driven micro pricing initiatives AI and digital assisted tools Focus on high value Service segments Proactive and industrialized approach in repair Operational excellence & customer centricity Optimized supply chain Standardized transactional processes and functional organizations with UpLift Consolidated back office Implemented China transformation Service Excellence Service Operating Model Service margin improving QoQ… still under pressure +7 pts. Aug-25 Dec-25 Mar-26 Jun-26 Investments of $15M as planned Illustrative example of Service quality index in target operating territories Step change in Service quality metrics Retention improvement to follow Macro economic impact broadly offset by pricing Micro-pricing initiatives in repair ramping up Headwinds in productivity and cost What we said in Q1 Q2 progress Investments in Service Excellence Portfolio mix and retention • Cost and price • Service 94% Q2 2026 Service segment results ($ millions) Segment Operating Volume Pricing Labor & material costs Investments and productivity Mix + + - Operating profit up $16M at constant currency 1 Q2 2026 Q2 2025 Operating profit margin (170) bps 23.2% 24.9% 4% 599 578 Y/Y Operating Profit Sales Y/Y 2,580 2,319 11% Organic 1 9% Q2 2025 Q2 2026 Organic 1 sales up 9% Maintenance & repair up 6% Modernization up 24% Profit Q2 2026 New Equipment segment results Sales Y/Y 1,276 1,279 0% Organic 1 (1%) Q2 2025 Q2 2026 Organic 1 sales down 1% Americas up 10% EMEA down 4% Asia down 10% Asia Pacific up LSD China down high teens ($ millions) Productivity Volume Price & mix - Operating profit down $30M at constant currency 1 Q2 2026 Q2 2025 Operating profit margin (220) bps 40 3.1% 5.3% (41%) 68 Y/Y Operating Profit New Equipment 6% Segment Operating Profit 2026 total and organic 1 sales outlook unchanged Service sales (Organic) up mid to high single digits New Equipment sales (Organic) down low single digits to flat Total sales (Organic) up low to mid-single digits Total net sales $15.1B to $15.3B 1 See appendix for additional information regarding these non-GAAP financial measures. Areas of continued focus On track Update to prior outlook Repair and modernization volume ramp up Micro-pricing Retention improvement from investment in Service excellence Cost optimization Repair Modernization Repair Service quality improvements G&A cost reduction No change Balancing maintenance micro-pricing and retention ($20M) Productivity and field cost management ($50M) 2026 financial outlook Prior outlook Current outlook Actual currency adj. operating profit 1 up $60M to $100M down $30M to ~flat Constant currency adj. operating profit 1 up $20M to $60M down $45M to $15M Adjusted free cash flow 1 $1.6B to $1.65B $1.5B to $1.55B Share repurchases ~$800M ~$800M 2026 adjusted EPS 1 outlook drivers ($45M) to ($15M) at constant currency 1 ($0.09) to ($0.03) FX BOY EUR @ 1.14 CNY @ 6.81 $4.01 to $4.05 ~$0.04 ~Flat $4.05 2025 adjusted EPS 1 Operational FX Other 2026 adjusted EPS outlook 1 ~Flattish EPS 1 © 2026 OTIS WORLDWIDE CORPORATION. 13 Appendix © 2026 OTIS WORLDWIDE CORPORATION. 14 Appendix Backlog and orders ($ billions, at constant currency 1 ) Remaining performance obligation Y/Y Modernization orders Q2 2026 Y/Y Otis ex-China (1%) Total Otis 9% Region Q2 2026 Y/Y Total Otis (5%) Otis ex-China (2%) Americas 12% EMEA 3% Asia (21%) Modernization 18.8 19.5 19.7 5% 26% Maintenance & repair New Equipment 1% 4% Q2 2025 Q1 2026 Q2 2026 New Equipment orders Appendix Q2 2026 adjusted operating profit 1 drivers Actual currency ($28M) +$21M ($18M) ($25M) ($32M) at constant currency 1 $7M - Productivity Volume Price & Mix + - + - Volume Pricing Labor and material costs Investments and productivity Mix $587M $612M $16M ($18M) ($30M) Q2 2025 adjusted operating profit 1 New Equipment Service Corporate/Other FX Q2 2026 adjusted operating profit 1 Adjusted operating profit margin 1 of 15.2% Appendix H1 2026 results ($ millions, except per share amounts) Sales 6,945 7,425 H1 2025 H1 2026 Organic 1 FX Net acquisitions/other Total net sales 4% 3% ~Flat 7% Adjusted operating profit down ($70M) at constant currency 1 , excluding $35M of FX tailwinds Adjusted operating profit margin 1 contracted 160 basis points to 15.3% H1 2026 H1 2025 15.3% 16.9% Adjusted margin 1 1,137 1,172 Adjusted 1 $1,114 $958 GAAP Operating profit Diluted earnings per share GAAP $1.60 $1.99 Adjusted 1 $1.97 $1.90 H1 2025 H1 2026 Adjusted EPS 1 drivers Operational FX Interest Shares ($0.14) $0.07 ($0.05) $0.05 1 See appendix for additional information regarding these non-GAAP financial measures. Appendix H1 2026 Service segment results Sales Y/Y 11% 4,997 4,506 Organic 1 7% H1 2025 H1 2026 Organic 1 sales up 7% Maintenance & repair up 5% Modernization up 16% ($ millions) Service 94% Volume Pricing Labor and material costs Investments and productivity Mix + - - + Operating profit up $6M at constant currency 1 H1 2026 H1 2025 Operating profit margin (160) bps 23.1% 24.7% 1,155 1,115 Y/Y 4% Operating Profit Segment Operating Profit Appendix H1 2026 New Equipment segment results Sales Y/Y 2,439 2,428 0% Organic 1 (3%) H1 2025 H1 2026 Organic 1 sales down 3% Americas up 5% EMEA down 2% Asia down 11% Asia Pacific down LSD China down >20% ($ millions) New Equipment 6% Productivity Volume Price & mix - + - Operating profit down ($57M) at constant currency 1 H1 2026 H1 2025 Operating profit margin (230) bps 78 3.2% 5.5% (42%) 134 Y/Y Operating Profit Segment Operating Profit Appendix H1 2026 adjusted operating profit 1 drivers Actual currency ($56M) $40 ($19M) ($35M) ($70M) at constant currency 1 $6M ($19M) $1,137M $1,172M $35M ($57M) - + Productivity Volume Price & mix + Volume - - + Pricing - Labor & material costs Investments and productivity Mix H1 2025 adjusted 1 operating profit New Equipment Service Corporate/Other FX H1 2026 adjusted 1 operating profit Adjusted operating profit margin 1 of 15.3% 1 See additional information regarding these non-GAAP financial measures. © 2026 OTIS WORLDWIDE CORPORATION. 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