Otis Worldwide Corporation

OTIS
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.6B
Q1 2026 · +6.5% YoY
TTM ROIC
22.7%
FY2025 · NOPAT / Tangible Invested Capital (Total Assets less Cash, Goodwill, and Intangibles) · WACC ~8.5% · Moat spread +13.5pp

Financial Snapshot

ticker: OTIS step: 04 generated: 2026-05-12 source: quick-research

Otis Worldwide Corporation (OTIS) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $13.7B $14.2B $14.3B +0.4%
Gross Margin ~29% ~30% ~30% flat
Operating Margin ~14% ~15% ~15% flat
Net Income ~$1.2B ~$1.4B ~$1.5B +7%
Adj. EPS (diluted) $3.17 $3.54 $3.83 +8.2%

Note: GAAP gross margin (~30%) is suppressed by new equipment segment mix. Service segment operating margin is ~24.6%; new equipment is ~3.6–4.7%. Otis has negative GAAP book equity (legacy of UTC spin-off capital structure), which understates economic earnings power.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Adjusted Free Cash Flow $1.6B (record since spin-off)
Cash & Equivalents ~$1.2B
Total Debt ~$7.5B
Net Debt ~$6.3B
Net Debt / EBITDA ~3.0x

Note: Negative GAAP shareholders' equity (~-$3B) reflects the leveraged spin-off structure, not economic impairment.

Key Ratios (approximate)

  • P/E: ~23x (adj. FY2025 EPS $4.05) | FCF Yield: ~4%
  • EV/EBITDA: ~17x | Service Segment Margin: 24.6%
  • Revenue Growth (FY2024): +0.4% organic +1.4% | FCF Conversion: >100%

Growth Profile

Otis's top-line growth is modest (1–4% organically) due to China new equipment headwinds offsetting strong service growth. The real story is quality of earnings: the service segment (65% of revenue, 91% of profit) grows 6–8% organically each year through pricing, portfolio expansion, and modernization demand. Adjusted EPS has compounded at ~8–10% annually since the 2020 spin-off as margin expansion and share buybacks amplify modest revenue growth. The company returned over $1.4B to shareholders in FY2024 through dividends and buybacks.

Forward Estimates

  • FY2025 Actual: Net sales ~$14.4B; adj. EPS $4.05 (+6%); adj. FCF ~$1.6B
  • FY2026 Guidance: Organic sales +low-to-mid single digits; adj. EPS up mid-to-high single digits (~$4.35–$4.55); adj. FCF $1.6–1.7B
  • Service organic growth: +mid-to-high single digits; New Equipment: flat to down slightly on China drag

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $OTIS.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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