# Otis Worldwide Corporation (OTIS) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/OTIS/thesis · /stocks/OTIS/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/OTIS/fundamental

## Navigation

- Overview: /stocks/OTIS
- Financials (this page): /stocks/OTIS/financials
- Thesis: /stocks/OTIS/thesis
- Investment Memo: /stocks/OTIS/memo
- Coverage universe: /stocks