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Otis Worldwide Corporation
S&P 500
$28.1B
Market Cap
25.0
P/E
3.14
PEG
48.9%
ROCE
-29.1%
ROE
-1.58
D/E
14.8%
OPM
-22.7%
% from 52W High
25
α RS
🔍 OTIS is showing a high-conviction setup because it matches 4 of 37 tracked screener presets and it's hugging the 21 EMA. Net: Partial signal stack, not a recommendation. ? Conviction Technicals
Sources
Conviction 4/37 · hugging 21 EMA
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🌏 Global Investor Returns
Currency-adjusted total returns for OTIS including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding OTIS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 1.69M $130.4M 0.20% Mar 2026
Steve Cohen Point72 Asset Management 62.7K $4.8M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Mixed quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.9B
+7% YoY (organic +6%)
Operating Income (GAAP)
$575M
+5% YoY
Operating Margin (GAAP)
14.9%
-30 bps YoY
Net Income
$428M
+9% YoY
What Went Right
  • Service organic sales grew 9% YoY, matching the highest level since spin, with repair +12% and modernization +24%.
  • Modernization orders rose 9% and modernization backlog grew 26% at constant currency; new equipment backlog rose 4% at constant currency.
  • Adjusted free cash flow was $290M in Q2, up 19% YoY; Otis returned ~$400M via buybacks in the quarter and over $1.1B to shareholders in H1.
What to Watch
  • Service operating margin fell 170 bps to 23.2%, while adjusted operating margin fell 180 bps to 15.2%.
  • Retention ex-China was down, prompting Otis to temper maintenance AI micro-pricing, a ~$20M full-year hit vs its prior outlook.
  • Productivity and cost headwinds are ~$50M above prior expectations due to labor/material inflation, slower mechanic onboarding and higher rates to execute the repair/modernization backlog.
Management Guidance
  • Full-year net sales unchanged at $15.1B-$15.3B with organic sales growth low-to-mid single digits.
  • Adjusted operating profit now expected down $30M to flat on an actual currency basis; adjusted EPS cut to $4.01-$4.05.
  • Adjusted free cash flow guided to $1.5B-$1.55B; Q3 service organic sales expected mid-single-digit and total adjusted operating profit flattish vs prior year, with profit growth expected in Q4.
Investor Lens
The service-led growth thesis remains intact — top-line momentum is strong and backlog visibility is improving — but near-term earnings power is weaker than expected. Management cut adjusted EPS to $4.01-$4.05 and flagged temporary productivity and retention delays, while maintaining the full-year sales outlook. The multi-year demand story from an aging installed base is intact, and new equipment is returning to growth in the second half, but investors will need to see service margin recovery to validate the investment phase.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Service up 9%, margins down, guidance cut in mixed Q2.
Revenue
Q2 net sales were $3.9B, up 7% YoY with organic sales up 6%. Service net sales rose 11% (organic +9%), while new equipment organic sales declined 1%, the best result in nine quarters.
Profitability
GAAP net income was $428M, up 9% YoY, with GAAP EPS of $1.12 up 13%. Adjusted EPS declined 4% to $1.01, reflecting operational weakness, higher interest/tax and FX, partially offset by buybacks.
Margins
GAAP operating margin contracted 30 bps to 14.9%, and adjusted operating margin fell 180 bps to 15.2%. Service margin dropped 170 bps to 23.2% and new equipment margin fell 220 bps to 3.1%, pressured by labor/material inflation, service quality investments and productivity issues.
Balance Sheet
Operating cash flow was $267M and adjusted free cash flow was $290M in Q2, up 19% YoY; first-half adjusted free cash flow was $562M. Otis also repurchased ~$800M of shares in H1 and returned over $1.1B including dividends. Debt levels were not discussed.
Key Risks
Management flagged that retention improvement is taking longer than expected, with retention ex-China down in the quarter. Productivity and cost headwinds totaling ~$50M versus prior outlook were driven by labor/material inflation and slower mechanic ramp-up; steel/commodity inflation, FX ($0.04 EPS drag), China new equipment weakness (-HSD sales) and Middle East geopolitical uncertainty were also noted.
Outlook
Full-year net sales guidance is unchanged at $15.1B-$15.3B, but adjusted EPS is now expected at $4.01-$4.05 and adjusted FCF at $1.5B-$1.55B. Q3 service organic sales should stay mid-single-digit, new equipment should improve sequentially and overall operating profit should be flattish, before returning to profit growth in Q4.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-22
Q2 2026 saw strong organic sales growth, especially in service and modernization, but margins declined due to cost and productivity headwinds. Guidance was revised down for operating profit and EPS, but service margins are expected to expand by year-end as investments in quality and operational initiatives take hold.
Q1 2026 Q1 2026 2026-04-22
Organic sales rose 1% in Q1 2026, led by 5% service growth and strong modernization demand. Adjusted operating profit and margins declined due to investments and mix, but sequential improvement is expected, with full-year guidance reaffirmed for sales, profit, and EPS.
Q4 2025 Q4 2025 2026-01-28
Record free cash flow and strong service-driven growth marked 2025, with modernization orders and backlog at all-time highs. 2026 guidance calls for continued service acceleration, stable margins, and mid- to high-single-digit EPS growth, despite ongoing China headwinds.
Q3 2025 Q3 2025 2025-10-29
Q3 2025 saw 2% organic sales growth, led by strong service and modernization, with adjusted EPS up 9% and margins expanding. Full-year guidance was reaffirmed, with service strength offsetting new equipment declines, and major projects plus cost savings supporting future growth.
Q2 2025 Q2 2025 2025-07-23
Q2 results were solid, led by service margin expansion and strong modernization orders, while new equipment sales declined due to China weakness. 2025 guidance was reaffirmed for EPS and operating profit, with service expected to drive growth and cost savings initiatives on track.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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