Otis (OTIS) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 10:53 AM CDT 45 min read

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Wednesday, October 29, 2025 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Judith Marks

• Executive Vice President and Chief Financial Officer — Cristina Mendez

Judith Marks: Thank you, Rob. Good morning, day and evening, everyone. Thank you for joining us. We anticipation that everyone listening is harmless and well. Starting with Q3 highlights connected Slide 3. Otis delivered beardown 3rd 4th results and returned to growth, arsenic we executed good connected our service-driven concern model. Organic income successful the 4th were up 2%, driven by Service, which grew 6%. Notably, modernization integrated income grew 14%. Adjusted operating nett borderline expanded by 20 ground points overall, driven by Service borderline enlargement of 70 ground points. This beardown performance, unneurotic with a little stock count, drove a 9% summation successful adjusted net per stock successful the quarter.

Our Maintenance portfolio continued to turn 4%, and we are connected way to attack 2.5 cardinal units successful our work portfolio by year-end. Modernization bid maturation accelerated to 27% and backlog accrued 22%. New instrumentality orders grew 4%, returning to maturation for the archetypal clip since the 4th fourth of 2023, supported by moderating declines successful China and bully momentum crossed the different regions. Adjusted escaped currency travel accrued sequentially arsenic anticipated to $337 million, giving america bully enactment of show to present our adjusted escaped currency travel outlook of astir $1.45 cardinal for the afloat year.

We opportunistically completed astir $250 cardinal successful stock repurchases during the 3rd quarter, bringing the year-to-date full to astir $800 million, fulfilling our afloat twelvemonth outlook. We proceed to innovate some successful our merchandise and go-to-market approaches. For example, we precocious launched Otis Arise MOD packages successful our EMEA region, which represents our largest modernization accidental currently. Otis Arise MOD is simply a caller suite of flexible, phased modernization packages designed to assistance gathering owners upgrade their elevators successful a mode that creates little disruption for passengers and provides customers with options for a phased task and predictable budget. Otis Arise MOD reflects our committedness to customer-centric innovation and positions america to seizure semipermanent modernization request crossed the region.

Also, during the quarter, Otis was named a TIME magazine's database of the world's champion companies for 2025, and again, recognized by Forbes arsenic 1 of the world's champion employers. These recognitions bespeak our committedness to our absolutes, our beardown culture, planetary interaction and committedness to excellence. Turning to our orders show connected Slide 4. Combined New Equipment and Modernization orders grew 9% successful the quarter, with notable spot successful Americas, EMEA and China. Our combined backlog accrued 3% and excluding China accrued 11%. Our full backlog, including attraction and repair, remains adjacent historically precocious levels, which should enactment maturation successful the coming quarters. New Equipment orders accrued 4% successful the quarter.