CEO hot takes: Elevator manufacturer on robots, AI data centers, and an economic boom

You truly shouldn't beryllium amazed by the marketplace takes of a starring elevator maker, from the AI capex roar to the wellness of the US economy.

At this intersection is wherever we find elevator elephantine Otis Worldwide (OTIS), founded successful 1853.

The institution reported connected Wednesday that 4th fourth income and net per stock roseate 3% and 11% twelvemonth implicit year, respectively. Earnings per stock came successful enactment with expert forecasts.

Consistent to caller quarters, Otis' concern was powered by its higher borderline services conception — deliberation gathering owners calling up to work their elevators. Sales for this part accrued 8% twelvemonth implicit year, portion operating margins expanded to 25.5% from 24.5%.

Shares of Otis fell 4% successful greeting trading, however. A fewer imaginable reasons why:

✅ Sales and operating margins fell successful the caller instrumentality business.

✅ 2026 income guidance: $15 cardinal to $15.3 billion, compared to expert mean estimation of $15.26 billion.

✅ 2026 EPS guidance: up mid to high-single digit percentage. Analyst mean estimate: +9.6%.

At the helm of Otis since its spin-off from United Technologies successful 2020 is Judy Marks. The long-time apical concern enforcement besides sits connected the committee of dump motortruck shaper Caterpillar (CAT), truthful she has a firsthand look into however cardinal economical trends are taking shape.

Here are a fewer blistery takes from Marks successful a telephone chat I had with her this morning.

"It's moving successful an airdrome successful China close now. Overnight, it's inspecting each the doors and everything to marque definite everything is successful alignment. And if it's not [working], the mechanic knows that's wherever I commencement time morning. It's wholly unmanned. I conscionable deliberation the applications are going to beryllium limitless."

Marks added, "It's thing much similar you would spot from Boston Dynamics that looks much similar a dog. I deliberation humanoid, immoderate volition person their day, and I deliberation you're going to spot them extracurricular the mill too, which we deliberation is truly going to assistance the thematic of longevity and helping radical successful their homes. We're moving already to marque definite each robots tin interface with each of our products and thrust the elevators and telephone them without having to interaction the buttons. That's wherefore it's an breathtaking time."

"We enlistee arsenic they're successful their precocious schools. We person an apprenticeship programme with our national passim the United States, we've got astir 6,600 members of our section elevator union. It's a 4 twelvemonth apprenticeship. They enactment for america during the time and get paid arsenic a helper. They spell to schoolhouse astatine night, but they travel retired with a large career, nary debt, and you know, we've been capable to capable each the positions. As a substance of fact, erstwhile these positions unfastened successful immoderate city, they are oversubscribed for radical who privation to get a slot."