A Business at a Glance
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Item 1. Business Our Company Otis is the world’s leading elevator and escalator manufacturing, installation, service and modernization company. We serve customers in over 200 countries and territories around the world. Otis has global scale and local focus, with more than 1,400 branches and offices, and a direct physical presence in more than 70 countries. The following description of our business should be read in conjunction with Item 7 in this Form 10-K, including the information contained therein under the heading "Business Overview." Description of Business by Segment Our Company is organized into two segments, New Equipment and Service, which, for 2025, contributed 35% and 65% of our net sales, and 9% and 91% of our segment operating profit, respectively. Our international operations represented approximately 71% of our net sales for 2025.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.4B | 14.4B | 14.3B | 14.2B | 13.7B | 14.3B |
| Net Income | 1.4B | 1.4B | 1.6B | 1.4B | 1.3B | 1.2B |
| EPS | $3.50 | $3.50 | $4.07 | $3.39 | $2.96 | $2.89 |
| Free Cash Flow | 1.4B | 1.4B | 1.4B | 1.5B | 1.4B | 1.6B |
| ROIC | 54.2% | 156.4% | 322.7% | 15.9% | 284.7% | 173.9% |
| Gross Margin | 59.3% | 59.3% | 61.1% | 63.6% | 63.8% | 63.0% |
| Debt/Equity | 0.00 | -1.74 | -2.06 | -1.47 | -1.59 | -2.11 |
| Dividends/Share | $1.64 | $1.65 | $1.51 | $1.31 | $1.11 | $0.92 |
| Operating Income | 2.1B | 2.1B | 2.0B | 2.2B | 2.0B | 2.1B |
| Operating Margin | 14.8% | 14.8% | 14.1% | 15.4% | 14.9% | 14.7% |
| ROE | 0.0% | -27.0% | -33.9% | -28.6% | -25.7% | -34.4% |
| Shares Outstanding | 395M | 395M | 404M | 415M | 423M | 431M |
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 12.9B | 13.1B | 12.8B | 14.3B | 13.7B | 14.2B | 14.3B | 14.4B | 14.4B |
| Gross Margin | N/A | 64.5% | 64.4% | 63.0% | 63.8% | 63.6% | 61.1% | 59.3% | 59.3% |
| R&D | 181M | 163M | 152M | 159M | 150M | 144M | 152M | 152M | 152M |
| 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 | 2.1B |
| Op. Margin | 14.2% | 13.8% | 12.8% | 14.7% | 14.9% | 15.4% | 14.1% | 14.8% | 14.8% |
| Net Income | 1.0B | 1.1B | 906M | 1.2B | 1.3B | 1.4B | 1.6B | 1.4B | 1.4B |
| Net Margin | 8.1% | 8.5% | 7.1% | 8.7% | 9.2% | 9.9% | 11.5% | 9.6% | 9.6% |
| Non-Recurring | 69M | 0 | 148M | 56M | 60M | 67M | 71M | 130M | 130M |
| Returns on Capital | |||||||||
| ROIC | N/A | 72.6% | 10.7% | 173.9% | N/M | 15.9% | N/M | 156.4% | 54.2% |
| ROE | N/A | 65.6% | -23.5% | -34.4% | -25.7% | -28.6% | -33.9% | -27.0% | 0.0% |
| ROA | N/A | 11.5% | 8.5% | 10.1% | 12.8% | 13.9% | 14.5% | 12.6% | 13.0% |
| Cash Flow | |||||||||
| Op. Cash Flow | 1.6B | 1.5B | 1.5B | 1.8B | 1.6B | 1.6B | 1.6B | 1.6B | 1.6B |
| Free Cash Flow | 1.4B | 1.3B | 1.3B | 1.6B | 1.4B | 1.5B | 1.4B | 1.4B | 1.4B |
| Owner Earnings | 1.4B | 1.3B | 1.2B | 1.5B | 1.3B | 1.4B | 1.3B | 1.3B | 1.3B |
| CapEx | 172M | 145M | 183M | 156M | 115M | 138M | 126M | 152M | 152M |
| Maint. CapEx | 86M | 180M | 191M | 203M | 191M | 193M | 181M | 175M | 175M |
| Growth CapEx | 86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 86M | 180M | 191M | 203M | 191M | 193M | 181M | 175M | 175M |
| CapEx/OCF | N/A | N/A | 12.4% | 8.9% | 7.4% | 8.5% | 8.1% | 9.5% | 9.5% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 260M | 393M | 465M | 539M | 606M | 647M | 647M |
| Dividend Yield | N/A | N/A | 1.1% | 1.3% | 1.6% | 1.6% | 1.6% | 1.8% | 2.0% |
| Share Buybacks | 0 | 0 | 0 | 725M | 850M | 800M | 1.0B | 809M | 809M |
| Buyback Yield | 0.0% | N/A | N/A | 2.1% | 2.7% | 2.2% | 2.7% | 2.3% | 2.5% |
| Stock-Based Comp | 38M | 37M | 63M | 65M | 67M | 64M | 73M | 80M | 80M |
| Debt Repayment | 0 | 0 | 1.0B | 0 | 500M | 534M | 0 | 1.3B | 1.3B |
| Balance Sheet | |||||||||
| Net Debt | -1.3B | -2.5B | 2.8B | 4.5B | 5.4B | 4.7B | 5.4B | 7.2B | 8.3B |
| Cash & Equiv. | 1.3B | 1.4B | 1.8B | 1.6B | 1.2B | 1.3B | 2.3B | 1.1B | 1.1B |
| Long-Term Debt | 0 | 5.0M | 5.3B | 7.2B | 6.1B | 6.9B | 7.0B | 6.9B | 6.9B |
| Debt/Equity | N/A | 0.25 | -1.64 | -2.11 | -1.59 | -1.47 | -2.06 | -1.74 | 0.00 |
| Interest Coverage | 91.8 | 129.6 | 13.4 | 15.5 | 14.2 | 14.6 | 11.0 | 10.9 | 10.9 |
| Equity | N/A | 1.7B | -3.9B | -3.6B | -4.9B | -4.9B | -4.8B | -5.4B | -5.4B |
| Total Assets | N/A | 9.7B | 10.7B | 12.3B | 9.8B | 10.1B | 11.3B | 10.7B | 10.7B |
| 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 | 343M |
| Retained Earnings | N/A | 0 | -3.1B | -2.3B | -2.9B | -2.0B | -978M | -440M | -440M |
| Working Capital | N/A | 284M | -180M | 2.0B | -700M | -79M | -79M | -1.2B | -1.2B |
| 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 | 2.58 | 2.08 | 2.89 | 2.96 | 3.39 | 4.07 | 3.50 | 3.50 |
| Owner EPS | 3.29 | 2.89 | 2.81 | 3.44 | 3.08 | 3.30 | 3.24 | 3.39 | 3.39 |
| Book Value | N/A | 3.93 | -8.87 | -8.41 | -11.50 | -11.87 | -11.99 | -13.64 | -13.64 |
| Cash Flow/Share | 3.58 | 3.40 | 3.40 | 4.06 | 3.69 | 3.92 | 3.87 | 4.04 | 3.94 |
| Dividends/Share | 0.00 | 0.00 | 0.60 | 0.92 | 1.11 | 1.31 | 1.51 | 1.65 | 1.64 |
| Shares Out. | 433.5M | 432.6M | 435.6M | 431.1M | 423.3M | 414.7M | 404.2M | 395.4M | 395.4M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | 29.3 | 27.9 | 24.8 | 25.5 | 22.5 | 24.9 | 23.4 |
| P/FCF | N/A | N/A | 20.5 | 21.8 | 21.5 | 24.0 | 25.7 | 23.9 | 22.4 |
| EV/EBIT | N/A | N/A | 17.7 | 18.5 | 17.8 | 18.4 | 20.9 | 19.4 | 19.1 |
| 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% | 4.5% |
| Market Cap | 0 | N/A | 26.5B | 34.8B | 31.0B | 35.8B | 37.0B | 34.5B | 32.3B |
| Avg. Price | 0.00 | N/A | 53.73 | 72.80 | 70.78 | 80.04 | 93.26 | 92.29 | 81.77 |
| Year-End Price | 0.00 | N/A | 60.94 | 80.76 | 73.35 | 86.31 | 91.45 | 87.22 | 81.77 |
Otis Worldwide Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Otis Worldwide Corp trades at 23.4x trailing earnings, compared to its 15-year median P/E of 25.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 22.0x vs a median of 22.9x. The company's 5-year average ROIC is 115.4% with a gross margin of 62.2%. Total shareholder yield (dividends + buybacks) is 4.5%. At current prices, the estimated annualized return to fair value is +2.5%.
Otis Worldwide Corp (OTIS) has a current P/E ratio of 23.4, compared to its historical median P/E of 25.2. The stock is currently considered Fair based on its historical valuation range.
Otis Worldwide Corp (OTIS) has a 5-year average return on invested capital (ROIC) of 115.4%. This indicates strong capital allocation and a potential competitive advantage.
Otis Worldwide Corp (OTIS) has a market capitalization of $32.3B. It is classified as a large-cap stock.
Yes, Otis Worldwide Corp (OTIS) pays a dividend with a trailing twelve-month yield of 2.00%. The company also returns capital through share buybacks, with a buyback yield of 2.50%.
Based on historical P/E analysis, Otis Worldwide Corp (OTIS) appears fair. The current P/E of 23.4 is 7% below its historical median of 25.2. The estimated fair value CAGR (P/E method) is 9.5%.
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 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 62.2%. This high margin suggests strong pricing power and a potential competitive moat.
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.