Overview
Elevator maker's Q4 sales rose 3% but missed analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company repurchased approximately $800 mln of shares in 2025
Outlook
Otis expects 2026 organic sales to grow low to mid-single digits
Company anticipates 2026 adjusted EPS to rise mid to high single digits
Otis forecasts 2026 adjusted free cash flow between $1.6 bln and $1.7 bln
Result Drivers
SERVICE SEGMENT - Service net sales rose 8% in Q4, driven by higher volume, favorable pricing, and productivity gains, despite inflationary pressures
MODERNIZATION ORDERS - Modernization orders increased 43% in Q4, boosting backlog and supporting future growth
NEW EQUIPMENT CHALLENGES - New Equipment sales declined 5% in Q4 due to significant decreases in China and the Americas
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $3.80 bln | $3.88 bln (8 Analysts) |
Q4 Adjusted EPS | Miss | $1.03 | $1.04 (9 Analysts) |
Q4 EPS | $0.95 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy."
Wall Street's median 12-month price target for Otis Worldwide Corp is $101.50, about 12.1% above its January 27 closing price of $90.55
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)