Otis Worldwide Corporation (OTIS)

Otis reported third-quarter 2026 net sales of $3.9 billion on 28 October, with organic sales up 6 percent 1. GAAP earnings per share were $1.08, against $0.95 a year earlier, while adjusted earnings per share of $1.05 was flat 1.

Service, the maintenance, repair and upgrade side, grew net sales 8 percent to $2.6 billion 1. Its operating profit margin was 24.2 percent, up 100 basis points from the second quarter 1. New Equipment, which sells new elevators and escalators, grew 3 percent, but its margin fell to 3.2 percent 1.

China remains the drag 1. New Equipment sales there fell by more than 20 percent in the quarter, and orders there fell by a low teens percentage 1.

The company is also searching for a new chief executive 3. On 15 September 2026 it announced that Judith Marks, its chair and chief executive, has agreed to retire by 31 July 2027 at the latest 3.

Otis became an independent company on 3 April 2020, when United Technologies, later renamed RTX, spun it off to its shareholders 2.

Sales were nearly flat across three years, at $14.2 billion in 2023, $14.3 billion in 2024 and $14.4 billion in 2025 2.

Underneath, the two businesses moved in opposite directions 2. Service sales grew from $8.4 billion to $9.4 billion, while New Equipment sales shrank from $5.8 billion to $5.0 billion 2.

China explains most of the New Equipment slide 2. Organic sales of the segment fell 6 percent in 2024 and 7 percent in 2025, and the company said a drop of more than 20 percent in China drove each fall 2.

Service kept getting more profitable 2. Its operating margin was 24.0 percent in 2023, 24.6 percent in 2024 and 25.1 percent in 2025 2.

In July 2023 Otis announced UpLift, a program to change how it runs, with standard processes and better buying of supplies 2. The company says it saves about $200 million a year at its run rate 2. UpLift costs so far total $282 million 2.

Otis also bought out partners 2. In the second quarter of 2024 it acquired the minority shares of its Japanese subsidiary 2. In October 2025 it bought all the shares of the minority owner of Otis Electric, a China joint venture 2.

Net income fell in 2025 on a higher tax rate and higher interest expense, partly offset by higher operating profit 2.

New Equipment

New Equipment designs, makes, sells and installs passenger and freight elevators, escalators and moving walkways for homes, offices, shops and transit projects 2. It made 35 percent of 2025 net sales and 9 percent of segment operating profit 2.

The main elevator platforms are Gen2, Gen3, Gen360 and SkyRise 2. Gen2, launched in 2000, is the best seller, with over one million units sold 2. SkyRise serves taller buildings 2.

Otis ONE connects elevators to the cloud for remote monitoring and predictive maintenance 2. Orders are generally delivered within 12 months of booking 2.

Service

Service maintains and repairs elevators and escalators, including those made by other companies, and modernizes old ones 2. The portfolio is approximately 2.5 million units, looked after by 37,000 mechanics working from more than 1,400 branches and offices 2.

In 2025 maintenance and repair brought in $7,584 million and modernization $1,858 million 2. In the third quarter, organic modernization sales rose 20 percent and organic maintenance and repair sales rose 4 percent 1.

Plants, people and places

Otis has a direct physical presence in more than 70 countries, with about 2,300 facilities, 16 manufacturing facilities and 11 R&D centers 2. The company describes itself as 72,000 people strong, including 45,000 field professionals 1.

Judith Marks is chair, chief executive and president 1. The board's succession committee, chaired by Christopher J Kearney, has hired the search firm Spencer Stuart 3.

Rivals and problems

The 10-K names KONE, Schindler Group and TK Elevator as the major global rivals 2. Independent service providers hold about 50 percent of service units, though less of the value 2.

Claims for overcharges on elevators and escalators in certain European countries, tied to civil cartel cases, are accrued for, and past settlements have not been material 2. Tariffs and price weighed on 2025 New Equipment profit 2.

The umbrella, in words

The Otis brand sells elevators, escalators and service; Gen2, Gen3, Gen360, SkyRise, Otis ONE and the OTISLINE support line are its named offerings 2.

Exhibit 21 lists subsidiaries including Nippon Otis Elevator Company in Japan, Otis Elevator Company in New Jersey and Otis Canada, and says other subsidiaries are omitted 4. It is not a complete list 4.

Otis owns a majority of Otis China, with Tianjin Tai Kang Investment Co. Ltd. as its joint venture partner, and Otis Electric is now 100 percent owned by Otis China and one of its subsidiaries 2.

Its property portfolio is approximately 13 million square feet, and 13 of its principal manufacturing facilities are owned 2. The common stock lists on the New York Stock Exchange and had approximately 16,800 registered shareholders on 22 January 2026 2.

For full-year 2026, the company is maintaining its outlook for net sales of $15.1 to $15.3 billion 1. It expects organic New Equipment sales down low single digits to flat, and organic Service sales up mid to high single digits 1.

It also expects adjusted earnings per share of $4.01 to $4.05 and adjusted free cash flow of about $1.5 billion 1.

The company reported modernization backlog up 20 percent and New Equipment backlog up 4 percent, which is work booked and not yet delivered 1. It also reported that modernization orders rose 10 percent at constant currency 1.

On leadership, the company said the successor to Judith Marks is currently expected to start in the first half of 2027 3. The board's search considers both internal and external candidates 3.

On UpLift, the 10-K says trailing restructuring costs of $18 million are expected in 2026 2. It also lists $108 million of cash payments still expected to complete announced restructuring actions 2.