Otis Worldwide Corporation
- Open
- 73.28
- Day high
- 73.80
- Day low
- 72.92
- Prev close
- 73.45
- Volume
- 4.6M
- Mkt cap
- $28.2B
- P/E (TTM)
- 19.3
- EPS (TTM)
- $3.80
- P/B
- -5.0
- P/S
- 1.9
- Yield
- 2.31%
- Per share
- $1.70
- ▼Insiders net selling -$125K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Otis Worldwide Corporation (OTIS) is a Industrials company listed on NYSE. The stock is down 26% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Otis Worldwide Corporation (OTIS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
OTIS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 22, 2026 | $0.91 | $0.89 | -2.2% | $3.6B | +1.8% |
| Jan 28, 2026 | $1.04 | $1.03 | -1.0% | $3.8B | -2.3% |
| Oct 29, 2025 | $1.01 | $1.05 | +4.0% | $3.7B | +0.8% |
| Jul 23, 2025 | $1.03 | $1.05 | +1.9% | $3.6B | -2.0% |
| Apr 23, 2025 | $0.90 | $0.92 | +2.7% | $3.4B | -0.8% |
| Jan 29, 2025 | $0.95 | $0.93 | -2.1% | $3.7B | +0.9% |
| Oct 30, 2024 | $0.97 | $0.96 | -1.0% | $3.5B | -1.2% |
| Jul 24, 2024 | $1.03 | $1.06 | +2.9% | $3.6B | -3.6% |
| Jan 31, 2024 | $0.86 | $0.87 | +1.2% | $3.6B | +1.3% |
| Oct 25, 2023 | $0.87 | $0.95 | +9.2% | $3.5B | +0.1% |
| Jul 26, 2023 | $0.86 | $0.92 | +7.0% | $3.7B | +3.8% |
| Feb 1, 2023 | $0.74 | $0.75 | +1.4% | $3.4B | +2.5% |
OTIS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | Armas Joseph Jayofficer: President, Otis Americas | Option | 1,680 | — |
| Jun 3, 2026 | Armas Joseph Jayofficer: President, Otis Americas | Tax | 421 | $70.33 |
| May 29, 2026 | Brannon Jilldirector | Grant | 4,527 | — |
| May 29, 2026 | Black Jeffrey Harrydirector | Grant | 2,800 | — |
| May 29, 2026 | KEARNEY CHRISTOPHER Jdirector | Grant | 2,591 | — |
| May 29, 2026 | PRESTON MARGARET M Vdirector | Grant | 4,597 | — |
| May 29, 2026 | Stewart Shelley JRdirector | Grant | 2,591 | — |
| May 29, 2026 | Bartlett Thomas Adirector | Grant | 2,716 | — |
| May 29, 2026 | Hannan Kathy Hopinkahdirector | Grant | 2,758 | — |
| May 29, 2026 | Connors Nelda Jdirector | Grant | 2,716 | — |
| May 29, 2026 | WALKER JOHN Hdirector | Grant | 4,806 | — |
| May 7, 2026 | Lefebure Thibault Pierre Marieofficer: President, Otis EMEA | Sell | 1,628 | $76.89 |
| Feb 13, 2026 | de Montlivault Stephaneofficer: President, Otis Asia Pacific | Sell | 47,944 | $92.25 |
| Feb 10, 2026 | LaFreniere Nora E.officer: EVP, General Counsel | Option | 1,620 | — |
| Feb 10, 2026 | Lefebure Thibault Pierre Marieofficer: President, Otis EMEA | Tax | 92 | $89.85 |
Source: OTIS SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
See the full OTIS insider & 13F page →Otis Worldwide Corporation company profile
Overview
Otis Worldwide Corporation (NYSE:OTIS) is a leading global manufacturer and servicer of elevators, escalators, and moving walkways. Founded in 1853 by Elisha Otis, who invented the safety elevator brake that made modern skyscrapers possible, the company has been a cornerstone of vertical transportation for over 170 years. Otis became an independent public company in March 2020 following its spin-off from United Technologies Corporation. Headquartered in Farmington, Connecticut, the company operates through approximately 1,400 branches and offices worldwide, maintaining and servicing over 2.3 million units globally through a network of approximately 34,000 service mechanics.
Business
Otis operates in the vertical transportation industry, which encompasses the design, manufacturing, installation, maintenance, and modernization of elevators, escalators, and moving walkways. The company's products are essential infrastructure components that enable the vertical movement of people and goods in residential buildings, commercial complexes, hospitals, airports, shopping centers, and other multi-story structures. The company operates through two primary business segments: 1. New Equipment Segment (approximately 40% of revenue): This division designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways. The products range from basic residential elevators to sophisticated high-speed systems for skyscrapers. This segment also includes the initial installation and commissioning of vertical transportation systems in new construction projects and major renovations. 2. Service Segment (approximately 60% of revenue): This is Otis's higher-margin, recurring revenue business that provides maintenance and repair services for existing elevator and escalator installations. The service portfolio includes routine maintenance contracts, emergency repairs, and modernization services that upgrade older systems with new technology, safety features, and improved efficiency. The modernization sub-segment has been particularly strong, representing a significant growth driver as building owners seek to extend the life of aging equipment rather than complete replacements. The vertical transportation industry is characterized by long equipment lifecycles (typically 20-30 years), creating a substantial installed base that requires ongoing maintenance and eventual modernization. Otis maintains the world's largest service portfolio with over 2.3 million units under maintenance contracts, providing predictable recurring revenue streams.
Revenue model
Otis generates revenue through multiple complementary business models that create both upfront and recurring income streams. The New Equipment segment operates on a project-based sales model, where the company bids on contracts for new installations in construction projects. Revenue is recognized upon installation and commissioning of the equipment. Customers include construction companies, building developers, and property owners who pay for complete elevator or escalator systems. The Service segment operates on a subscription-like model through maintenance contracts, typically spanning multiple years. Building owners and property managers pay recurring fees for routine maintenance, emergency repairs, and compliance services. This creates highly predictable cash flows with strong customer retention rates, as switching service providers involves significant costs and risks. The modernization component within the service segment generates project-based revenue when customers upgrade existing equipment. Several factors influence the company's margins and profitability. Positive margin drivers include the growing global installed base requiring service, urbanization trends increasing demand for vertical transportation, aging building stock creating modernization opportunities, and the company's pricing power in maintenance contracts due to high switching costs. The service business benefits from economies of scale, as technicians can service multiple units in proximity, and from technological advances like predictive maintenance that improve efficiency. Margin pressures come from intense competition in new equipment sales, particularly in price-sensitive markets like China, commodity cost inflation affecting manufacturing, labor cost increases for the large service workforce, and economic downturns that can delay new construction projects. Geographic mix also matters significantly, as margins vary considerably between regions, with China representing a lower-margin but high-volume market, while developed markets typically offer better profitability.
Competitive moat
Otis possesses a substantial economic moat built primarily around its massive installed base and the switching costs inherent in elevator maintenance. With over 2.3 million units under service contracts globally, the company benefits from significant customer stickiness. Building owners are reluctant to switch elevator service providers due to the technical complexity, safety risks, liability concerns, and potential service disruptions involved in transitioning to a new provider. This creates a natural monopoly-like position for each installed unit. The company's moat is further strengthened by its global scale advantages, including the world's largest network of service technicians, extensive parts inventory and supply chain, and deep technical expertise across diverse elevator technologies spanning decades of installations. The regulatory environment also supports the moat, as elevator maintenance requires specialized certifications and compliance with strict safety standards, creating barriers for new entrants. However, the moat faces some challenges. In new equipment sales, competition is intense with multiple global players including Schindler, KONE, and ThyssenKrupp, limiting pricing power and margins. The Chinese market, which represents a significant portion of global demand, has become increasingly commoditized with local competitors offering aggressive pricing. Additionally, technological disruption could potentially weaken the moat if new players develop significantly superior digital maintenance platforms or if building owners increasingly demand integrated smart building solutions that extend beyond traditional elevator services. The modernization business represents a particularly strong moat component, as Otis technicians' intimate knowledge of existing installations creates significant advantages in upgrade projects. Overall, while the service moat remains robust, the company must continuously invest in technology and service quality to maintain its competitive advantages against both traditional competitors and potential new entrants leveraging digital technologies.
Risks & safety
Otis presents a mixed margin of safety profile with some concerning balance sheet characteristics offset by strong cash generation capabilities. Balance Sheet Concerns: - Current ratio of 0.94 indicates potential liquidity challenges with current liabilities exceeding current assets - Negative shareholders' equity of approximately -$5 billion, primarily due to the spin-off structure and accumulated dividends/buybacks - High debt-to-equity ratio reflects the negative equity situation, though absolute debt levels are manageable - Total liabilities of $16.1 billion significantly exceed total assets of $11.3 billion Cash Position and Generation: - Strong cash position of $2.3 billion provides adequate liquidity buffer - Robust free cash flow generation of $1.4 billion annually demonstrates operational strength - Operating cash flow of $1.6 billion indicates healthy underlying business fundamentals - Management targets approximately $1.6 billion in adjusted free cash flow for 2025 Valuation Metrics: - Forward P/E ratio of approximately 23x based on 2025 EPS guidance of $4.00-$4.10 - EV/EBITDA of roughly 20x appears reasonable for a defensive industrial business - Price-to-book ratio is negative due to negative book value, making this metric less meaningful Other Considerations: - Predictable service revenue base provides earnings stability - Strong market position and customer retention support cash flow visibility - The negative equity situation, while concerning optically, is largely an artifact of the spin-off structure rather than operational distress
Recent development
Over the past several years, Otis has executed a strategic transformation focused on shifting toward a service-centric business model while adapting to challenging market conditions, particularly in China. The company launched Project UpLift, a comprehensive cost savings initiative targeting $200 million in annual run-rate savings by mid-2025, aimed at improving operational efficiency and margin expansion across both segments. In response to the significant downturn in China's new equipment market, where demand has declined over 20% in recent periods, Otis has pivoted its China strategy toward service and modernization growth. The company is consolidating its two Chinese brands, rationalizing its product portfolio, and targeting low-teens annual service portfolio growth with over 20% annual modernization order growth in the region. This transformation includes workforce optimization and manufacturing footprint adjustments to align with the new market reality. The company has significantly expanded its service capabilities by adding approximately 2,000 new field mechanics in 2024, representing a substantial investment in customer service capacity. This expansion temporarily impacted productivity metrics but positions Otis for sustained service portfolio growth. The maintenance portfolio has grown consistently at over 4% annually, reaching 2.3 million units globally. Modernization has emerged as a key growth driver, with orders increasing 12-18% annually over recent quarters. The company has industrialized its modernization offerings to improve margins and efficiency, with modernization margins now exceeding new equipment margins. Management targets continued margin expansion in this segment toward mid-to-high single digits. Otis has also invested in digital transformation initiatives, including connected elevator platforms and predictive maintenance technologies, while maintaining its commitment to sustainability through ESG initiatives such as achieving zero waste to landfill certification across manufacturing facilities.
OTIS company profile · for informational purposes only — not investment advice.
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