Otis Worldwide Corporation (NYSE:OTIS) reported fourth-quarter results on Wednesday that came in just under market expectations, prompting a modest pullback in its share price after revenue missed forecasts.
The elevator and escalator maker posted adjusted earnings of $1.03 per share, narrowly below the consensus estimate of $1.04. Quarterly revenue totaled $3.8 billion, short of the $3.89 billion analysts had expected, though still representing a 3% increase from the same period a year earlier.
Organic sales rose 1% in the quarter, supported mainly by strength in the Service division.
Service revenue — which includes maintenance, repairs and modernization — was the standout performer, climbing 8% with organic growth of 5%. In contrast, New Equipment revenue fell 5%, with organic sales down 6%, reflecting softer demand in China and the Americas.
“Otis finished the year with solid performance driven by our Service flywheel,” said Chair, CEO & President Judy Marks. “We generated our highest adjusted operating profit margin expansion and EPS growth in 2025, as anticipated, due to strong Service sales growth, up 8% with organic sales up 5% in the quarter.”
Order activity showed resilience in modernization, with orders jumping 43% at constant exchange rates during the quarter and the modernization backlog rising 34% year on year. The New Equipment backlog increased 6% at actual exchange rates and 2% on a constant-currency basis.
Looking ahead to 2026, Otis forecast net sales in the range of $15.0 billion to $15.3 billion, with organic growth expected in the low- to mid-single-digit range. The company also anticipates adjusted earnings per share growth in the mid- to high-single digits.
During 2025, Otis returned significant capital to shareholders, repurchasing roughly $800 million of shares and distributing a total of $1.5 billion through dividends and buybacks.