Otis Worldwide Corp · Q3 2023 earnings

Briefing

Otis delivered strong results driven by organic sales and margin growth, achieving high-teens adjusted EPS growth due to continued Service momentum, and raising the full year outlook.

Otis reported strong Q3 2023 results, with net sales of $3.5 billion, a 5.2% increase in organic sales, and an 18.8% increase in adjusted EPS to $0.95. The company's performance was driven by its Service segment, which experienced organic sales growth and margin expansion. Otis has raised its full-year outlook for organic sales and adjusted EPS.

• Net sales increased by 5.4%, with organic sales up by 5.2%, driven by Service net sales increasing 10.1% and organic sales up 8.4%.
• GAAP EPS increased by 18.2% and adjusted EPS increased by 18.8%, with Service GAAP operating profit margin expansion of 80 basis points and adjusted Service operating profit margin expansion of 90 basis points.
• New Equipment orders decreased by 10%, while backlog increased by 3%, or 2% at constant currency.
• GAAP cash flow from operations was $306 million, and free cash flow was $272 million.

Headline financials

Revenue & EPS history

Otis is revising its full year outlook with adjusted net sales of ~$14.1 billion, organic sales up ~5.5%, adjusted EPS of ~$3.52, and free cash flow of ~$1.5 billion.