Otis Worldwide Corporation (NYSE:OTIS) is a leading manufacturer and service provider of elevators, escalators, and moving walkways. The company operates globally, offering installation, maintenance, and modernization services. Otis competes with other industry giants like Schindler, KONE, and Thyssenkrupp. Despite facing stiff competition, Otis continues to demonstrate strong financial performance and growth potential.
On January 29, 2025, Otis reported earnings per share (EPS) of $0.93, slightly below the estimated $0.95. However, the company generated revenue of approximately $3.68 billion, surpassing the estimated $3.64 billion. This revenue growth aligns with the company's fourth-quarter performance, where net sales increased by 1.5%, driven by a 7.6% rise in Service sales.
Otis's financial results for the fourth quarter of 2024 reflect a positive trajectory, with GAAP EPS growing by 6.3% and adjusted EPS increasing by 6.9%. This growth indicates continued margin expansion, supported by a 7.8% rise in Service organic sales. The company's maintenance portfolio units grew by 4.2%, and modernization orders surged by 18%, contributing to a 10% increase in backlog.
For the full year 2024, Otis achieved net sales of $14.3 billion, marking a 0.4% increase, with organic sales up by 1.4%. The company's GAAP EPS rose significantly by 20.1%, reaching $4.07, and adjusted EPS increased by 8.2% to $3.83. Otis generated a GAAP cash flow from operations of $1.6 billion and an adjusted free cash flow of $1.6 billion, alongside share repurchases totaling $1 billion.
Looking ahead to 2025, Otis anticipates organic sales growth of 2% to 4%, with adjusted EPS projected to be between $4.00 and $4.10. The company expects an adjusted free cash flow of approximately $1.6 billion. Chair, CEO, and President Judy Marks highlighted the company's achievements, noting the high single-digit adjusted EPS growth and the highest cash flow since the company's spin-off, alongside a robust increase in modernization orders.
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