Otis Worldwide Corporation ( (OTIS) ) has realeased its Q3 earnings. Here is a breakdown of the information Otis Worldwide Corporation presented to its investors.
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Otis Worldwide Corporation is a leading manufacturer, installer, and servicer of elevators and escalators, operating in the global building technology sector with a substantial maintenance portfolio and a presence in over 200 countries and territories.
In the third quarter of 2024, Otis Worldwide Corporation reported net sales of $3.5 billion, with organic sales growth driven by its Service segment, highlighting a robust performance despite challenges in the New Equipment sector. The company’s GAAP earnings per share (EPS) rose significantly by 47.3%, boosted by non-recurring tax benefits, while adjusted EPS saw a modest increase of 1.1%.
Key financial metrics indicated a 7.2% increase in Service net sales, supported by a 4.2% rise in maintenance portfolio units and a 14% increase in modernization backlog. However, New Equipment net sales experienced an 8.8% decline, primarily due to a significant drop in sales in China. The company maintained strong cash flows with a GAAP cash flow from operations of $394 million and adjusted free cash flow of $381 million.
Looking ahead, Otis has updated its full-year outlook, projecting adjusted EPS of approximately $3.85 and a 6.5% growth in organic Service sales. The company continues to focus on its Service-driven business model and customer-centric strategies, which are expected to support steady global growth and solid EPS performance by the end of 2024.
