Otis Reports Q2 Revenue Below Expectations, Highlights Service Growth and 2025 EPS Projections

Otis (OTIS) Q2 revenue at $3.6 bln, below expectations of $3.71 bln. Despite this, the company highlights strong performance in the Service segment, with organic sales up mid-single digits and operating profit margins expanding. Modernization orders grew over 20%, and backlog increased in the mid-teens. Otis remains confident in maintaining its 2025 EPS projections.

Otis Worldwide Corp (OTIS) reported its second-quarter (Q2) 2025 financial results, with revenue of $3.6 billion, falling short of analyst estimates of $3.71 billion. Despite the revenue miss, the company highlighted robust performance in its Service segment, which saw organic sales grow by mid-single digits and operating profit margins expand. Modernization orders increased by over 20%, and the backlog grew by the mid-teens. Otis remains confident in its 2025 earnings per share (EPS) projections [1].

Otis' Q2 net sales were flat compared to the prior year, driven primarily by a decrease in new equipment sales in China and the Americas. Service sales, however, grew by 6%, with organic sales up by 4%. The Service segment's operating profit margin expanded by 20 basis points to 24.9% [2].

New equipment orders fell by 1% at constant currency, with growth in Asia Pacific and the Americas offset by a decline in China. Modernization orders grew by 22% year-over-year, contributing to a 19% increase in backlog at constant currency [2].

Otis lowered its fiscal 2025 revenue guidance from a range of $14.6 billion to $14.8 billion to a new range of $14.5 billion to $14.6 billion. The company affirmed its 2025 adjusted EPS guidance of $4 to $4.10 per share [1].

At the time of publication, OTIS shares were down 6.15% at $94.78, according to Benzinga Pro [1].

References:
[1] https://www.benzinga.com/markets/earnings/25/07/46569928/otis-worldwide-stock-slides-on-q2-earnings-as-new-equipment-orders-decline
[2] https://finance.yahoo.com/news/otis-reports-second-quarter-2025-101500907.html