A Business at a Glance
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Otis Worldwide Corp
OTIS
$28.4B
Mkt Cap
$71.93
+1.64%
Otis Worldwide Corp (OTIS) has a current P/E ratio of 20.6, compared to its historical median P/E of 25.2. The stock is currently considered Cheap based on its historical valuation range.
Otis Worldwide Corp (OTIS) has a 5-year average return on invested capital (ROIC) of 124.5%. This indicates strong capital allocation and a potential competitive advantage.
Otis Worldwide Corp (OTIS) has a market capitalization of $31.6B. It is classified as a large-cap stock.
Yes, Otis Worldwide Corp (OTIS) pays a dividend with a trailing twelve-month yield of 2.07%. The company also returns capital through share buybacks, with a buyback yield of 3.02%.
Based on historical P/E analysis, Otis Worldwide Corp (OTIS) appears cheap. The current P/E of 20.6 is 18% below its historical median of 25.2. The estimated fair value CAGR (P/E method) is 9.2%.
Otis Worldwide Corp (OTIS) operates in the Electronic & Other Electrical Equipment (No Computer Equip) industry, within the Industrials sector.
Otis Worldwide Corp (OTIS) reported annual revenue of $14.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Otis is the world's leading elevator and escalator manufacturer, installer, and service provider, operating in over 200 countries and territories with more than 1,400 branches and offices and direct presence in over 70 countries. The company operates through two segments: New Equipment (35% of 2025 net sales, 9% of segment operating profit), which designs, manufactures, and installs passenger and freight elevators, escalators, and moving walkways for residential, commercial, and infrastructure projects; and Service (65% of net sales, 91% of segment operating profit), which maintains and repairs approximately 2.5 million units globally—both Otis-manufactured equipment and units from other original equipment manufacturers—and provides modernization solutions to upgrade aging equipment. The New Equipment segment sells directly to real estate developers, general contractors, and government agencies, with orders typically delivered within 12 months and revenues recognized on a percentage-of-completion basis following advance and progress payments. The Service segment operates through a global network of 37,000 service mechanics and generates recurring revenue from maintenance contracts, repair services, and modernization projects, with customers including building owners, facility managers, housing associations, and government agencies; the company has no material single-customer concentration in either segment. Otis differentiates through proprietary elevator platforms (Gen2, Gen3, Gen360, and SkyRise), digital capabilities including the Otis ONE IoT platform connecting approximately 1.1 million units for real-time monitoring and predictive maintenance, and a portfolio of approximately 4,600 issued patents and 1,300 pending patent applications. International operations represented approximately 71% of 2025 net sales, with significant joint ventures and non-wholly owned subsidiaries, particularly in China, supporting access to key markets.
【Service-driven growth acceleration】 Management expects low- to mid-single-digit organic sales growth in 2026, driven by accelerating service segment performance with mid- to high-single-digit growth, while new equipment sales are anticipated to decline low single digits to flat as the global market stabilizes. Repair organic sales are expected to grow approximately 10% annually on a sustained basis, supported by the aging global installed base and industrialized service delivery approaches, while modernization orders are projected to grow in the low teens or above, with a record backlog of approximately $20 billion providing multi-year visibility. The company is investing $50 million incrementally in 2026 to improve service retention rates and expand digital capabilities, with expectations to return to post-spin margin levels by year-end as pricing initiatives, cost management programs targeting up to $20 million in run-rate savings, and operational execution offset near-term headwinds from portfolio mix and inflationary pressures. Management anticipates service profit will sequentially improve through the year as retention improvements, pricing realization, repair and modernization execution, and cost optimization initiatives take effect, positioning the company for sustained earnings growth in 2026 and beyond.
| Metric | Target | Period |
|---|---|---|
| Net sales | $15.1 billion–$15.3 billion | FY2026 |
| Adjusted operating profit | approximately $2.5 billion, up $20 million–$60 million at constant currency | FY2026 |
| Adjusted EPS | $4.20–$4.24 | FY2026 |
| Adjusted free cash flow | $1.6 billion–$1.65 billion | FY2026 |
| Repair organic sales growth | approximately 10% | FY2026 and sustained basis |
| Modernization orders growth | low teens or above | FY2026 and sustained basis |
Net sales (FY2026): “We now expect net sales of $15.1 billion-$15.3 billion with organic sales growth up low- to mid-single digits.”
Adjusted operating profit (FY2026): “We now expect adjusted operating profit to be approximately $2.5 billion, up $20 million-$60 million at constant currency and up $60 million-$100 million at actual currency.”
Adjusted EPS (FY2026): “Given the new profit outlook, adjusted EPS is now expected to be $4.20-$4.24, still in the original range of our guide, representing a mid-single-digit increase compared to 2025.”
Adjusted free cash flow (FY2026): “Adjusted free cash flow is anticipated to be between $1.6 billion-$1.65 billion.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.6B | 14.4B | 14.3B | 14.2B | 13.7B | 14.3B |
| Net Income | 1.5B | 1.4B | 1.6B | 1.4B | 1.3B | 1.2B |
| EPS | $3.37 | $3.50 | $4.07 | $3.39 | $2.96 | $2.89 |
| Free Cash Flow | 1.7B | 1.4B | 1.4B | 1.5B | 1.4B | 1.6B |
| ROIC | 129.9% | 100.3% | 148.9% | 177.4% | 91.2% | 104.6% |
| Gross Margin | - | 33.0% | 32.4% | 32.0% | 31.1% | 31.7% |
| Debt/Equity | 0.00 | -1.58 | -1.80 | -1.48 | -1.48 | -2.15 |
| Dividends/Share | $1.49 | $1.65 | $1.51 | $1.31 | $1.11 | $0.92 |
| Operating Income | 2.3B | 2.1B | 2.0B | 2.2B | 2.0B | 2.1B |
| Operating Margin | 15.4% | 14.8% | 14.1% | 15.4% | 14.9% | 14.7% |
| ROE | 0.0% | -27.0% | -33.7% | -28.7% | -29.5% | -33.3% |
| Shares Outstanding | 440M | 395M | 404M | 415M | 423M | 431M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 12.9B | 13.1B | 12.8B | 14.3B | 13.7B | 14.2B | 14.3B | 14.4B | 14.6B |
| Gross Margin | 30.4% | 30.5% | 32.1% | 31.7% | 31.1% | 32.0% | 32.4% | 33.0% | N/A |
| R&D | 181M | 163M | 152M | 159M | 150M | 144M | 152M | 152M | 153M |
| SG&A | 1.7B | 1.8B | 1.9B | 1.9B | 1.8B | 1.9B | 1.9B | 2.0B | 2.0B |
| EBIT | 1.8B | 1.8B | 1.6B | 2.1B | 2.0B | 2.2B | 2.0B | 2.1B | 2.3B |
| Op. Margin | 14.2% | 13.8% | 12.8% | 14.7% | 14.9% | 15.4% | 14.1% | 14.8% | 15.4% |
| Net Income | 1.0B | 1.1B | 906M | 1.2B | 1.3B | 1.4B | 1.6B | 1.4B | 1.5B |
| Net Margin | 8.1% | 8.4% | 7.1% | 8.7% | 9.2% | 9.9% | 11.5% | 9.6% | 10.1% |
| Non-Recurring | 69M | 54M | 148M | 56M | 60M | 67M | 71M | 130M | 94M |
| Returns on Capital | |||||||||
| ROIC | N/A | 163.3% | 127.9% | 104.6% | 91.2% | 177.4% | 148.9% | 100.3% | 129.9% |
| ROE | N/A | 59.4% | -83.8% | -33.3% | -29.5% | -28.7% | -33.7% | -27.0% | 0.0% |
| ROA | N/A | 22.5% | 8.9% | 10.8% | 11.3% | 14.1% | 15.4% | 12.6% | 14.0% |
| Cash Flow | |||||||||
| Op. Cash Flow | 1.6B | 1.5B | 1.5B | 1.8B | 1.6B | 1.6B | 1.6B | 1.6B | 1.8B |
| Free Cash Flow | 1.4B | 1.3B | 1.3B | 1.6B | 1.4B | 1.5B | 1.4B | 1.4B | 1.7B |
| Owner Earnings | 1.3B | 1.3B | 1.2B | 1.5B | 1.3B | 1.4B | 1.3B | 1.3B | 405M |
| CapEx | 172M | 145M | 183M | 156M | 115M | 138M | 126M | 152M | 151M |
| Maint. CapEx | 190M | 180M | 191M | 203M | 191M | 193M | 182M | 175M | 1.3B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 190M | 180M | 191M | 203M | 191M | 193M | 182M | 175M | 1.3B |
| CapEx/OCF | N/A | N/A | 12.4% | 8.9% | 7.4% | 8.5% | 8.1% | 9.5% | 8.3% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 260M | 393M | 465M | 539M | 606M | 647M | 655M |
| Dividend Yield | N/A | N/A | 1.1% | 1.3% | 1.6% | 1.6% | 1.6% | 1.8% | 2.1% |
| Share Buybacks | 0 | 0 | 0 | 725M | 850M | 800M | 1.0B | 809M | 956M |
| Buyback Yield | 0.0% | N/A | N/A | 2.1% | 2.7% | 2.2% | 2.7% | 2.3% | 3.0% |
| Stock-Based Comp | 38M | 37M | 63M | 65M | 67M | 64M | 73M | 80M | 78M |
| Debt Repayment | 0 | 0 | 1.0B | 0 | 500M | 534M | 0 | 1.3B | 1.3B |
| Balance Sheet | |||||||||
| Net Debt | -1.3B | -881M | 4.7B | 6.2B | 6.0B | 6.0B | 6.4B | 7.4B | 7.0B |
| Cash & Equiv. | 1.3B | 1.4B | 1.8B | 1.6B | 1.2B | 1.3B | 2.3B | 1.1B | 834M |
| Long-Term Debt | 0 | 5.0M | 5.3B | 7.2B | 6.1B | 6.9B | 7.0B | 6.9B | 6.9B |
| Debt/Equity | N/A | 0.33 | -1.68 | -2.15 | -1.48 | -1.48 | -1.80 | -1.58 | 0.00 |
| Interest Coverage | 131.1 | N/A | 13.2 | 15.5 | 14.5 | 14.1 | 11.0 | 9.8 | 10.4 |
| Equity | N/A | 1.7B | -3.9B | -3.6B | -4.9B | -4.9B | -4.8B | -5.4B | -5.7B |
| Total Assets | N/A | 9.7B | 10.7B | 12.3B | 9.8B | 10.1B | 11.3B | 10.7B | 10.5B |
| Total Liabilities | 42M | 7.4B | 14.1B | 15.4B | 14.6B | 15.0B | 16.1B | 16.0B | 16.0B |
| Intangibles | N/A | 490M | 484M | 419M | 369M | 335M | 311M | 343M | 333M |
| Retained Earnings | N/A | 0 | -3.1B | -2.3B | -2.9B | -2.0B | -978M | -440M | -378M |
| Working Capital | N/A | 284M | -180M | 2.0B | -700M | -79M | -79M | -1.2B | -1.3B |
| Current Assets | N/A | 5.7B | 6.5B | 8.3B | 6.1B | 6.4B | 7.7B | 6.5B | 6.5B |
| Current Liabilities | N/A | 5.4B | 6.7B | 6.2B | 6.8B | 6.5B | 7.7B | 7.7B | 7.7B |
| Per Share Data | |||||||||
| EPS | 2.42 | 2.55 | 2.08 | 2.89 | 2.96 | 3.39 | 4.07 | 3.50 | 3.37 |
| Owner EPS | 3.05 | 2.89 | 2.81 | 3.44 | 3.08 | 3.30 | 3.24 | 3.39 | 0.92 |
| Book Value | N/A | 3.93 | -8.87 | -8.41 | -11.50 | -11.87 | -11.99 | -13.64 | -12.91 |
| Cash Flow/Share | 3.58 | 3.40 | 3.40 | 4.06 | 3.69 | 3.92 | 3.87 | 4.04 | 6.41 |
| Dividends/Share | 0.00 | 0.00 | 0.60 | 0.92 | 1.11 | 1.31 | 1.51 | 1.65 | 1.49 |
| Shares Out. | 433.5M | 432.5M | 435.6M | 431.1M | 423.3M | 414.7M | 404.2M | 395.4M | 439.8M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | 29.3 | 27.9 | 24.8 | 25.5 | 22.5 | 24.9 | 21.3 |
| P/FCF | N/A | N/A | 20.5 | 21.8 | 21.5 | 24.0 | 25.7 | 23.9 | 19.0 |
| EV/EBIT | N/A | N/A | 17.7 | 18.5 | 17.8 | 18.4 | 20.9 | 19.4 | 17.1 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | N/A | N/A | 1.8 | 2.2 | 2.2 | 2.3 | 2.6 | 2.5 | 2.2 |
| FCF Yield | N/A | N/A | 4.9% | 4.6% | 4.7% | 4.2% | 3.9% | 4.2% | 5.3% |
| Market Cap | 0 | N/A | 26.5B | 34.8B | 31.0B | 35.8B | 37.0B | 34.5B | 31.6B |
| Avg. Price | 0.00 | N/A | 53.73 | 72.80 | 70.78 | 80.04 | 93.26 | 92.29 | 71.93 |
| Year-End Price | 0.00 | N/A | 60.94 | 80.76 | 73.35 | 86.31 | 91.45 | 87.22 | 71.93 |
Otis Worldwide Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Otis Worldwide Corp trades at 20.6x trailing earnings, compared to its 15-year median P/E of 25.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 19.4x vs a median of 22.9x. The company's 5-year average ROIC is 124.5% with a gross margin of 32.0%. Total shareholder yield (dividends + buybacks) is 5.1%. At current prices, the estimated annualized return to fair value is +2.1%.
Otis Worldwide Corp (OTIS) has a net profit margin of 9.6%. This is a modest margin.
Otis Worldwide Corp (OTIS) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Otis Worldwide Corp (OTIS) reported earnings per share (EPS) of $3.50 in its most recent fiscal year.
Otis Worldwide Corp (OTIS) has a return on equity (ROE) of -27.0%. A negative ROE may indicate losses or negative equity.
Otis Worldwide Corp (OTIS) has a 5-year average gross margin of 32.0%. This indicates decent pricing power.
The Ledger Terminal provides 8 years of financial data for Otis Worldwide Corp (OTIS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Otis Worldwide Corp (OTIS) has a book value per share of $-13.64, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects low- to mid-single-digit organic sales growth in 2026, driven by accelerating service segment performance with mid- to high-single-digit growth, while new equipment sales are anticipated to decline low single digits to flat as the global market stabilizes. Repair organic sales are expected to grow approximately 10% annually on a sustained basis, supported by the aging global installed base and industrialized service delivery approaches, while modernization orders are projected to grow in the low teens or above, with a record backlog of approximately $20 billion providing multi-year visibility. The company is investing $50 million incrementally in 2026 to improve service retention rates and expand digital capabilities, with expectations to return to post-spin margin levels by year-end as pricing initiatives, cost management programs targeting up to $20 million in run-rate savings, and operational execution offset near-term headwinds from portfolio mix and inflationary pressures. Management anticipates service profit will sequentially improve through the year as retention improvements, pricing realization, repair and modernization execution, and cost optimization initiatives take effect, positioning the company for sustained earnings growth in 2026 and beyond.
Based on recent SEC filings and earnings calls, Otis Worldwide Corp (OTIS) has provided the following forward guidance: Net sales: $15.1 billion–$15.3 billion (FY2026); Adjusted operating profit: approximately $2.5 billion, up $20 million–$60 million at constant currency (FY2026); Adjusted EPS: $4.20–$4.24 (FY2026); Adjusted free cash flow: $1.6 billion–$1.65 billion (FY2026); Repair organic sales growth: approximately 10% (FY2026 and sustained basis), plus 1 additional metric.
Repair organic sales growth (FY2026 and sustained basis): “Going forward, we expect repair organic sales to grow approximately 10%, while modernization orders are expected to grow in the low teens or above on a sustained basis.”
Modernization orders growth (FY2026 and sustained basis): “Going forward, we expect repair organic sales to grow approximately 10%, while modernization orders are expected to grow in the low teens or above on a sustained basis.”