Key Highlights:

  • Net Sales came in at USD 3.9 billion, representing 6% organic growth driven by service volume and sequential improvements.
  • Adjusted EPS totaled USD 1.01, a 4% decline compared to the prior year due to operational performance impacts, higher interest.
  • Full-Year Revenue Guidance stood at USD 15.1 billion to USD 15.3 billion, with organic sales expected to grow.
  • Service Organic Sales was reported at 9% growth, matching the highest level since the company's separation.

Otis Worldwide Corporation (NYSE:OTIS) is scheduled to report third quarter results on Wednesday, Oct. 28, before the market open. Consensus estimates call for adjusted earnings per share of USD 1.01 on revenue of USD 3.85 billion, against a market capitalization of USD 28.65 billion.

In the most recently reported quarter, Net Sales came in at USD 3.9 billion, representing 6% organic growth driven by service volume and sequential improvements in new equipment trends. Adjusted EPS totaled USD 1.01, a 4% decline compared to the prior year due to operational performance impacts, higher interest, and a higher tax rate.

Modernization Organic Sales and Other Business Trends

Modernization Organic Sales came in at 24% growth, reflecting the highest rate since separation, driven by strong customer demand and backlog execution. Service Operating Profit totaled USD 599 million, up USD 16 million at constant currency, as higher volume and pricing were partially offset by labor and material cost inflation. Service Operating Margin stood at 23.2%, a 170-basis point contraction primarily due to modernization mix, productivity headwinds, and strategic service quality investments. New Equipment Organic Sales was reported at 1% decline, showing sequential improvement from prior quarters with 10% growth in the Americas offset by declines in China and EMEA.

What Management Guided

Full-Year Adjusted EPS Guidance came in at USD 4.01 to USD 4.05, representing a revision from previous outlooks due to foreign exchange and operational headwinds. Full-Year Adjusted Free Cash Flow Guidance totaled USD 1.5 billion to USD 1.55 billion, revised in alignment with the adjusted operating profit outlook.

New Equipment Operating Profit and Capital Position

New Equipment Operating Profit came in at USD 40 million, down USD 30 million at constant currency due to lower volume, unfavorable price, and segment mix. New Equipment Backlog totaled 4% increase at constant currency, or 9% growth when excluding the China market. Maintenance Organic Sales stood at 3% growth, supported by a 3% increase in the unit portfolio and 3% pricing gains. Repair Organic Sales was reported at 12% growth, the strongest performance in 10 quarters, with micro-pricing initiatives contributing to top-line momentum. Free Cash Flow came in at USD 290 million in adjusted free cash flow for the quarter, up 19% year over year.

Productivity and Cost Headwinds and Additional Detail

Productivity and Cost Headwinds came in at USD 50 million incremental full-year impact anticipated, driven by workforce onboarding delays and higher labor rates required for backlog execution. Pricing Headwinds totaled USD 20 million full-year impact expected from tempering AI micro-pricing in the maintenance business to balance customer retention. Modernization Backlog stood at 26% increase at constant currency, supported by order growth in China and low-single-digit growth in EMEA and Asia Pacific. Capital Returns was reported at USD 800 million in share repurchases and USD 1.1 billion returned to shareholders total in the first half of 2026. Service Excellence Investment came in at USD 15 million invested during the quarter out of a planned USD 50 million annual commitment to improve service quality and retention.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Full-Year Revenue Guidance came in at USD 15.1 billion to USD 15.3 billion, with organic sales expected to grow at a low to mid-single-digit rate.