1. OTIS reported 6% growth in Service net sales and profit margin expansion. 2. GAAP EPS decreased by 3%, while adjusted EPS only fell 1%. 3. Modernization orders surged over 20%, boosting backlog growth. 4. New Equipment orders saw a slight decline of 1%, heavily impacted by China. 5. OTIS reaffirmed its adjusted EPS outlook for 2025 despite challenges.
The solid growth in the Service segment and reaffirmation of EPS outlook may positively influence investor sentiment. Historically, strong Service performance has correlated with share price increases for OTIS.
The combination of EPS adjustments along with Service and modernization strength indicates a stable future, warranting attention from investors looking for consistent growth.
Positive EPS outlook and robust Service growth are likely to impact stock price in the upcoming quarters. Previous quarterly performances have shown immediate effects post-reports.
Second quarter 2025
First half 2025
FARMINGTON, Conn., July 23, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE:OTIS) reported second quarter 2025 net sales of $3.6 billion with organic sales down 2% versus the prior year. GAAP earnings per share (EPS) decreased 3% to $0.99 and adjusted EPS decreased 1% to $1.05.
"Otis delivered solid performance led by the strength of our Service segment that continues our steady growth trajectory, and contributed mid-single digit organic sales growth and both year over year and sequential operating profit margin expansion. Our industry leading maintenance portfolio grew 4% again this quarter," said Chair, CEO & President Judy Marks. "Modernization acceleration continues with orders growing greater than 20% and backlog growing mid-teens. Along with strong performance in our repair business this quarter and the continued execution of our Service driven strategy, we have the confidence to reconfirm our 2025 EPS outlook."
(dollars in millions, except per share amounts)
Organic sales growth: (2) % (1) %
Adjusted non-GAAP comparison
Second quarter net sales of $3.6 billion were flat versus the prior year, driven primarily by a decrease in New Equipment sales in China and the Americas, offset by Service sales with growth in all lines of business.
Second quarter GAAP operating profit of $547 million decreased $23 million driven by non-recurring items. Adjusted operating profit of $612 million decreased $1 million at actual currency and decreased $14 million at constant currency, driven by a decline in New Equipment mostly offset by growth in Service. GAAP operating profit margin contracted 60 basis points to 15.2% and adjusted operating profit margin of 17.0% was flat versus the prior year driven by favorable segment mix offset by segment performance.
GAAP EPS of $0.99 decreased 3% compared to the prior year driven by non-recurring items. Adjusted EPS of $1.05 decreased 1% driven by operational performance, taxes and interest expense partially offset by favorable foreign exchange rates, a lower share count, and favorable minority interest.
Otis is the world's leading elevator and escalator manufacturing, installation, and service company. We move 2.4 billion people a day and maintain approximately 2.4 million customer units worldwide, the industry's largest Service portfolio. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 44,000 field professionals, all committed to manufacturing, installing, and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and territories worldwide.
For more information, visit www.otis.com and follow us on LinkedIn, Instagram, and Facebook @OtisElevatorCo.