| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 3.6K | 6.5% |
| Total Income | 3.6K | 6.5% |
| Expenditure | 3.0K | 6.4% |
| PBT | 480.00 | 31.1% |
| Net Profit | 340.00 | 39.9% |
| OPM | 15.12% | 2.85pp |
| NPM | 9.53% | 2.28pp |
| EPS | 0.88 | 44.3% |
Otis Reports Q1 2026 Results: Net Sales Up 6%
22 Apr 2026 · 22 Apr, 3:39 pm
Summary
Otis Worldwide Corporation reported a 6% increase in net sales for the first quarter of 2026, reaching $3.6 billion, with organic sales up 1%. GAAP earnings per share increased 43% to $0.87, while adjusted EPS decreased 3% to $0.89. The company saw strong growth in service and repair segments, with modernization orders and backlog also showing significant increases. Management is taking actions focused on operational execution, pricing, and cost efficiency to address near-term pressures and drive long-term shareholder value.
Key Highlights
- 1
Otis' net sales increased by 6% in the first quarter of 2026, with organic sales up 1% compared to the prior year.
- 2
Service net sales grew by 11%, with organic sales up 5%, driven by growth in all lines of business.
- 3
Repair net sales increased by 16%, with organic sales up approximately 10%.
- 4
Modernization orders increased by 11% at constant currency, and backlog increased by 32%, or 30% at constant currency.
- 5
New Equipment orders increased by 1% at constant currency, and backlog increased by 6%, or 3% at constant currency.
- 6
Operating cash flow reached $413 million, and adjusted free cash flow was $272 million for the quarter.
- 7
The company repurchased approximately $400 million of shares during the first quarter.
Management Comments
Judy Marks
Otis delivered a solid quarter, with net sales up 6%. All Service lines of business grew, led by repair which grew 16% at actual currency and 10% organically. Orders and backlog strengthened: modernization orders were up 11% and backlog was up 30% at constant currency. New Equipment orders grew 1% and backlog grew 3% at constant currency. Otis delivered operating cash flow of $413 million and adjusted free cash flow of $272 million, up significantly from a year ago. This performance allowed Otis to repurchase approximately $400 million of shares while also announcing an exciting majority investment in WeMaintain, a digitally native and AI enabled elevator service provider.
Judy Marks
While underlying demand remains solid as reflected in our order activity, we faced near‑term pressures, reflected in our Service margins, from cost headwinds and investments in growth. We are taking decisive actions focused on operational execution, pricing, and cost efficiency to address these pressures, while continuing our disciplined capital allocation to drive long‑term shareholder value. The combination of our increasing backlog, pricing actions, and disciplined execution give us confidence in growing momentum into the second quarter and remainder of the year.”
Informational and educational content only. Not investment advice.