Otis Worldwide Corp · Q4 2022 earnings

Briefing

Otis delivered MSD fourth quarter organic growth and strong Service operating profit margin expansion.

Otis reported strong Q4 2022 results, with a 6.1% increase in organic sales and growth in both New Equipment and Service segments. The company's maintenance portfolio units increased by 4.1%.

• 4Q Net sales decreased by 3.6%, while organic sales increased by 6.1%. GAAP EPS was up 9.2%, and adjusted EPS increased by 4.2%.
• New Equipment orders were up 4%, and the backlog increased by 3%. Adjusted backlog increased 11% at constant currency.
• Maintenance portfolio units increased by 4.1%.
• The company announces 2023 outlook with organic sales up 4 to 6%, adjusted earnings per share of $3.35 to $3.50 and free cash flow of $1.5 to $1.55 billion.

Headline financials

Revenue & EPS history

Otis is announcing its full year outlook: •Net sales of $13.8 to $14.1 billion, up 1.5 to 4% •Organic sales up 4 to 6% ◦Organic New Equipment sales up 3 to 5% ◦Organic Service sales up 5 to 7% •Adjusted operating profit of $2.20 to $2.25 billion, up $130 to $175 million at constant currency; up $70 to $130 million at actual currency •Adjusted EPS of $3.35 to $3.50, up 6 to 10%; adjusted effective tax rate between 26.0% and 26.5% •Free cash flow of $1.5 to $1.55 billion with conversion of 105 to 115% of GAAP net income