Otis Worldwide Corp SEC 10-Q Report

Otis Worldwide Corp, a leading manufacturer and service provider of elevators, escalators, and moving walkways, has released its Form 10-Q report for the quarter ended June 30, 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and opportunities faced in the current economic landscape.

Financial Highlights

• Net Sales: $3,595 million for the quarter ended June 30, 2025, compared to $3,601 million for the same period in 2024, reflecting a slight decrease.
• Gross Profit: $1,094 million for the quarter ended June 30, 2025, calculated as Net Sales minus Costs and Expenses ($3,595 million - $2,501 million).
• Operating Profit: $547 million for the quarter ended June 30, 2025, compared to $570 million for the same period in 2024, indicating a decrease in operating efficiency.
• Net Income: $423 million for the quarter ended June 30, 2025, compared to $450 million for the same period in 2024, showing a decline in profitability.
• Net Income Attributable to Otis Worldwide Corporation: $393 million for the quarter ended June 30, 2025, compared to $415 million for the same period in 2024.
• Basic Earnings Per Share: $1.00 for the quarter ended June 30, 2025, compared to $1.03 for the same period in 2024, reflecting a slight decrease.
• Diluted Earnings Per Share: $0.99 for the quarter ended June 30, 2025, compared to $1.02 for the same period in 2024, indicating a decrease in earnings per share.

Business Highlights

• Revenue Segments: The New Equipment segment focuses on designing, manufacturing, selling, and installing a wide range of passenger and freight elevators, as well as escalators and moving walkways. The Service segment provides maintenance and repair services for both Otis products and those of other manufacturers, along with modernization services to upgrade elevators and escalators.
• Geographical Performance: The ongoing conflict between Russia and Ukraine has created geopolitical and macroeconomic uncertainty, impacting global operations. However, Otis continues to operate in Ukraine, which represents less than 1% of its revenue and operating profit. The company does not have operations in Russia, Israel, or Gaza, and does not expect recent conflicts in the Middle East to materially impact its business.
• Sales Units: The Service segment, which includes maintenance, repair, and modernization services, continues to be a significant part of Otis's operations, with a focus on converting new installations into service contracts.
• Future Outlook: The UpLift program, announced in July 2023, aims to transform Otis's operating model, including process standardization and supply chain improvements. The program is expected to generate approximately $200 million in annual run-rate savings by the second half of 2025, with total restructuring and transformation costs estimated at $300 million.
• Impact of Global Macroeconomic Conditions: Otis is experiencing impacts from global macroeconomic conditions, including inflationary pressures, high interest rates, and changes in global trade policies. These factors could affect product and service costs, customer demand, and supplier capacity. The company anticipates potential impacts from new tariffs to be approximately $25 million to $35 million during 2025.

SEC Filing: Otis Worldwide Corp [ OTIS ] - 10-Q - Jul. 24, 2025