Otis Worldwide Corporation ( (OTIS) ) has released its Q4 earnings. Here is a breakdown of the information Otis Worldwide Corporation presented to its investors.
Otis Worldwide Corporation is a leading manufacturer and service provider in the elevator and escalator industry, with a global presence in over 200 countries and territories. In its latest earnings report, Otis announced a solid performance for both the fourth quarter and the full year 2024, highlighting continued growth in its Service segment and a positive outlook for 2025.
The company reported a 1.5% increase in net sales for the fourth quarter of 2024, driven primarily by a 7.6% rise in Service sales. Adjusted earnings per share (EPS) grew by 6.9%, supported by margin expansion and a robust increase in modernization orders. For the full year, Otis achieved a 0.4% growth in net sales and an 8.2% rise in adjusted EPS, bolstered by strong performances in Service sales and improvements in operational efficiency.
Key highlights include the company’s maintenance portfolio units growing by 4.2% and a notable 18% rise in modernization orders, leading to a 10% increase in backlog. The Service segment saw a 5.9% increase in net sales for the full year, with organic growth of 6.8%, driven by both maintenance and repair, and modernization activities. Otis also reported a GAAP cash flow from operations of $1.6 billion for the year, with $1.0 billion returned to shareholders through share repurchases.
Looking ahead to 2025, Otis anticipates continued momentum with projected organic sales growth of 2% to 4% and adjusted EPS ranging from $4.00 to $4.10. The company plans further expansion in its Service segment and expects to achieve adjusted free cash flow of approximately $1.6 billion. Otis is also focusing on strategic initiatives, such as the UpLift program and a transformation strategy for its operations in China, aiming to drive efficiency and adapt to market changes.