Otis 2Q Earnings Reflect Strengths and Challenges

Otis’s 2nd Quarter (2Q) earnings reflect strengths, including a robust and growing service business and challenges such as a weak new installation market, particularly in China. The company’s earnings per share (EPS) exceeded expectations, with EPS of US$1.05 compared to the forecasted US$1.03, but revenue missed the anticipated US$3.7 billion forecast, coming in at US$3.6 billion. Otis’ service business continued to drive growth, contributing 90% of its operating profit. “The company is navigating a tough global market with varying regional performances affecting overall results,” Investing.com noted on July 23. Highlighting growth opportunities in modernization and the expanding global installed base, Otis President and CEO Judy Marks expressed confidence in the company’s long-term outlook. Organic service sales increased 4% across all business lines and in all regions. “Modernization momentum continued as we accelerated orders to 22% and ended the quarter with a backlog up 16%,” Marks said. New equipment orders dropped 1% due to economic challenges in China, she said, while orders in the rest of the world increased 11% compared to 2024. Excluding China, orders grew 14% with notable strength in the Americas and Asia Pacific, particularly Southeast Asia and India. In the Europe, Middle East and Africa region, new equipment orders declined in the single digits, with Middle East strength offsetting weak demand in Europe.