Otis (OTIS) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 28, 2026 astatine 9:19 AM CST 59 min read

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Wednesday, January 28, 2026 astatine 8:30 a.m. ET

• Chair, Chief Executive Officer, and President — Judith Marks

• Executive Vice President and Chief Financial Officer — Cristina Mendez

Judith Marks: Thank you, Robert. Good morning, afternoon, and evening, everyone. Thank you for joining us. I anticipation that everyone listening is harmless and well. 2025 marked our 5th afloat twelvemonth arsenic an autarkic nationalist company, a milestone that reflects our resilience and enactment successful shaping the aboriginal of municipality mobility. At the bosom of this occurrence are our 72,000 colleagues worldwide, whose dedication to our intent has made this possible. Every day, we determination 2.5 cardinal radical safely and reliably and support astir 2.5 cardinal units crossed the globe, earning the spot of customers and passengers alike. That spot remains our highest priority. This year, we achieved aggregate important milestones, ending the twelvemonth with beardown momentum heading into 2026.

We secured grounds modernization orders, gathering an unprecedented backlog, and our caller instrumentality backlog grew. We achieved grounds adjusted escaped currency travel of $817 cardinal successful the 4th quarter, reflecting our continued absorption connected moving superior efficiencies and collections. We proceed to turn the largest attraction portfolio successful the industry. We successfully executed the uplift programme and completed our China translation initiatives, including buying retired the number shareholder of 1 of our associated ventures successful China, Otis Electric, portion driving operational excellence crossed our business.

For the year, we generated $1.6 cardinal of adjusted escaped currency travel and returned astir $1.5 cardinal to shareholders done dividends and stock repurchases portion investing astir $100 cardinal successful targeted bolt-on acquisitions to fortify our work portfolio and grow our beingness successful cardinal markets. With these results, our beardown backlog, and the largest attraction portfolio successful the industry, we are assured that our strategy volition proceed to present charismatic results successful 2026 and beyond. Moving to descent three, Otis Worldwide Corporation closed the twelvemonth with coagulated show successful the 4th quarter, driven by our service-driven concern model. Organic income grew 1% successful the quarter, with work up 5%, including broad-based maturation crossed each lines of business.

Maintenance and repair grew 4%, portion modernization accrued 9%. Adjusted operating nett borderline expanded 70 ground points, driven by a 100 ground constituent betterment successful work margin. We delivered double-digit adjusted EPS maturation successful the quarter, up 11%, which was the highest level this twelvemonth and our strongest show successful the past six quarters. At astir 2.5 cardinal units, the largest successful the industry, our attraction portfolio grew 4% for the fourteenth consecutive quarter, allowing america to turn and put successful our planetary work web and demonstrating the bosom of our flywheel strategy.