greeksoup/ stock research
Stock research / United States / OTIS / FY2025

Otis Worldwide (OTIS) FY2025 results: revenue $14.4 billion, up 1.2% on the year

Otis Worldwide Corp. (OTIS) reported revenue of $14.4 billion for fiscal 2025, the year ended 31 December 2025, up 1.2% on the year before. Net income was $1.4 billion, down 15.9%, and diluted earnings per share $3.50. The figures are the company's own, from the 10-K it filed with the SEC on 5 February 2026.

Revenue
$14.4 billion
+1.2% on the year
FY2018FY2025
Operating margin
14.8%
14.1% a year earlier
FY2018FY2025
Net income
$1.4 billion
-15.9% on the year
FY2018FY2025
Diluted EPS
$3.50
-14.0% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 4 new.

  • Fourth-quarter sales rose 3%: Q4 net sales were $3.8 billion, up 3%, with organic sales up 1%. Service grew in all lines of business, partly offsetting a New Equipment decline in China and the Americas.
  • Q4 adjusted margin up 70 basis points: Adjusted operating profit margin reached 16.6% in Q4, up 70 basis points, on segment mix and segment performance. GAAP operating profit margin was 15.5%, up 110 basis points.
  • Q4 Service sales up 8%: Q4 Service net sales were $2.5 billion, up 8% reported and 5% organic.
  • Q4 New Equipment sales fell 5%: Q4 New Equipment net sales were $1.3 billion, down 5%, with low single digit organic growth in Asia Pacific and mid-single digit organic growth in EMEA.
  • Modernization orders rose 43%: Modernization orders rose 43% at constant currency in Q4, which management described as another quarter of exceptional performance.
Read the Q4 FY2025 earnings call summary

From this 10-K

Otis makes, installs, services and modernises elevators and escalators, and it describes itself as the world's largest company doing so. It serves customers in over 200 countries and territories, through more than 1,400 branches and offices, with a direct physical presence in more than 70 countries. There are two segments. New Equipment was 35 percent of net sales in 2025 and Service 65 percent; at segment level those two contributed 9 percent and 91 percent of profit. Business outside the United States was approximately 71 percent of net sales.

Otis Worldwide Corp., the 10-K for 2025

Otis makes, installs, services and modernises elevators and escalators, and it describes itself as the world's largest company doing so. It serves customers in over 200 countries and territories, through more than 1,400 branches and offices, with a direct physical presence in more than 70 countries. There are two segments. New Equipment was 35 percent of net sales in 2025 and Service 65 percent; at segment level those two contributed 9 percent and 91 percent of profit. Business outside the United States was approximately 71 percent of net sales.

New Equipment

This segment designs, makes, sells and installs passenger and freight elevators, escalators and moving walkways for residential, commercial and infrastructure projects. Customers are property developers, building designers and general contractors, plus government agencies buying for airports, railways and metros. Sales are generally direct, with agents and distributors used alongside the sales force in China and some other places. Customers come in early in a construction cycle and the elevator usually goes in midway through the build. Orders are generally delivered within 12 months of booking, longer for big projects and shorter in China. A customer normally pays something up front to cover design and contract engineering, then makes progress payments at milestones such as delivery of materials to site and completion of installation and commissioning. Installation is done by Otis technicians or by subcontractors, in which case Otis usually does the final inspection and commissioning itself.

The platforms

Gen2 has been the main low and mid-rise elevator; over one million units have been sold since it launched in 2000, making it the company's best-selling platform. Gen3 succeeds it, keeping the space-saving, energy-efficient design and adding the Otis ONE connectivity. Gen360 frees up shaft space for bigger cabins and replaces many mechanical parts with electronic ones; a foldable in-ceiling platform lets maintenance be done from inside the car rather than on top of it, and optional cameras in the shaft let service teams diagnose problems without stopping the lift. SkyRise is the platform for high-rise buildings. Escalators and moving walkways sit alongside the elevator range.

Service

The Service segment does maintenance, repair and modernisation. The maintenance portfolio is approximately 2.5 million units worldwide, and it includes equipment made by other manufacturers as well as Otis machines. A basic contract covers inspection to the local regulatory standard, with tiers above it running up to full component replacement cover, and repairs are sold for wear and tear and breakdowns. The portfolio is grown three ways: converting newly installed units onto contracts, taking units already being serviced by somebody else, and acquisitions. Modernisation runs from refreshing interior finishes to replacing the machine, ropes or belts, safety systems and the whole car or escalator.

The connected estate

Approximately 1.1 million units of the global portfolio were connected at the end of 2025, including those still under warranty. Otis ONE is the cloud-based system that watches equipment health in real time and feeds predictive and remote maintenance. Three passenger-facing options are sold, often as an upgrade on a maintenance contract: eView, an in-car display streaming infotainment that can also connect a passenger to OTISLINE, the 24-hour service call centre, in an emergency; Compass 360, which groups passengers by destination and assigns them to a car to cut waiting and riding time; and eCall Plus, a phone app for calling the lift without touching anything.

China, suppliers and people

Joint ventures and partly owned subsidiaries are how the company reaches several international markets, and their results are consolidated. The largest is in China, where until October 2025 Otis operated through two principal joint ventures, Otis Elevator (China) Investment Company Limited and Otis Electric Elevator Company Limited, the first of them established in 1998 to manufacture, install and service. Supply runs through several thousand suppliers, including subcontractors, with approximately 400 of them counted as key to manufacturing; most components can be had from two or more sources, though some specified parts have only one supplier available. The workforce was approximately 72,000 people at the end of 2025, about 45,000 of them field professionals, split 45 percent in Asia, 34 percent in Europe, the Middle East and Africa and 21 percent in the Americas. Approximately 64 percent of the United States workforce is covered by a collective bargaining agreement, and the agreement covering most of those colleagues was renewed in July 2022 and expires in July 2027.

From Otis' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 5 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue14,43114,26114,209+1.2%
Research and development1521521440.0%
Selling, general and administrative1,9791,8611,884+6.3%
Operating income2,1332,0082,186+6.2%
Operating margin14.8%14.1%15.4%
Interest expense217183155+18.6%
Pre-tax income1,9342,0392,031-5.1%
Income tax479305533+57.0%
Effective tax rate24.8%15.0%26.2%
Net income1,3841,6451,406-15.9%
Net margin9.6%11.5%9.9%
Diluted EPS$3.50$4.07$3.39-14.0%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,5961,5631,627+2.1%
Capital expenditure152126138+20.6%
Free cash flow1,4441,4371,489+0.5%
Free cash flow margin10.0%10.1%10.5%
Cash from investing-406-164-183
Cash from financing-2,421-309-1,350
Depreciation and amortisation175181193-3.3%
Share-based compensation80.073.064.0+9.6%
Buybacks8091,007800-19.7%
Dividends paid647606539+6.8%
Dividend per share$1.65$1.51$1.31+9.3%
Diluted shares, weighted395m404m415m-2.3%
Shares outstanding at period endn/a439m437m

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity-5,392-4,848-4,924
Non-controlling interest46.063.069.0-27.0%
Redeemable equity75.057.0135+31.6%
Short-term borrowingsn/an/a32.0
Debt7,9568,3246,866-4.4%
Operating lease liabilities397298292+33.2%
Other liabilities7,5717,4227,647+2.0%
Total liabilities and equity10,65311,31610,117-5.9%
Fixed assets743701727+6.0%
Goodwill1,6951,5481,588+9.5%
Intangible assets343311335+10.3%
Cash and equivalents1,0962,3001,274-52.3%
Receivables3,6883,4283,538+7.6%
Inventory613557612+10.1%
Other assets2,4752,4712,043+0.2%
Total assets10,65311,31610,117-5.9%

10-K for the year ended 31 December 2025, filed 5 February 2026: the filing.