# Otis Worldwide Corp (OTIS)

Informational only - not investment advice.

CIK: 0001781335
SIC: 3600 Electronic & Other Electrical Equipment (No Computer Equip)
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3600 Electronic & Other Electrical Equipment (No Computer Equip)](/industry/3600/)
Latest 10-K filed: 2026-02-05
SEC page: https://www.sec.gov/edgar/browse/?CIK=1781335
Filing source: https://www.sec.gov/Archives/edgar/data/1781335/000178133526000011/otis-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0001781335-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001781335.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 14,431,000,000 USD | 2025 | verified |
| Net income | 1,384,000,000 USD | 2025 | verified |
| Assets | 10,653,000,000 USD | 2025 | verified |
| Free cash flow | 1,444,000,000 USD | 2025 | computed |
| Net margin | 9.59% | 2025 | computed |
| Operating margin | 14.78% | 2025 | computed |
| Revenue YoY | +1.19% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-5,392,000,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | OTIS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 9.6% | 4.4% | 66 | 135 |
| Operating margin | 14.8% | 4.4% | 74 | 128 |
| Revenue growth | 1.2% | 10.2% | 24 | 142 |
| FCF margin | 10.0% | 8.0% | 55 | 138 |
| ROA | 13.0% | 2.7% | 85 | 143 |
| Current ratio | 0.85 | 2.59 | 2 | 144 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 14431000000 | USD | 2025 | 2026-02-05 |
| Net income | 1384000000 | USD | 2025 | 2026-02-05 |
| Assets | 10653000000 | USD | 2025 | 2026-02-05 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001781335.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 12,915,000,000 | 13,118,000,000 | 12,756,000,000 | 14,298,000,000 | 13,685,000,000 | 14,209,000,000 | 14,261,000,000 | 14,431,000,000 |
| Net income | 1,049,000,000 | 1,116,000,000 | 906,000,000 | 1,246,000,000 | 1,253,000,000 | 1,406,000,000 | 1,645,000,000 | 1,384,000,000 |
| Operating income | 1,835,000,000 | 1,814,000,000 | 1,639,000,000 | 2,108,000,000 | 2,033,000,000 | 2,186,000,000 | 2,008,000,000 | 2,133,000,000 |
| Diluted EPS | 2.42 | 2.55 | 2.08 | 2.89 | 2.96 | 3.39 | 4.07 | 3.50 |
| Operating cash flow | 1,550,000,000 | 1,469,000,000 | 1,480,000,000 | 1,750,000,000 | 1,560,000,000 | 1,627,000,000 | 1,563,000,000 | 1,596,000,000 |
| Capital expenditures | 172,000,000 | 145,000,000 | 183,000,000 | 156,000,000 | 115,000,000 | 138,000,000 | 126,000,000 | 152,000,000 |
| Dividends paid | 0.00 | 0.00 | 260,000,000 | 393,000,000 | 465,000,000 | 539,000,000 | 606,000,000 | 647,000,000 |
| Share buybacks |  | 0.00 | 0.00 | 725,000,000 | 850,000,000 | 800,000,000 | 1,007,000,000 | 809,000,000 |
| Assets |  | 9,687,000,000 | 10,710,000,000 | 12,279,000,000 | 9,819,000,000 | 10,117,000,000 | 11,316,000,000 | 10,653,000,000 |
| Liabilities |  | 7,361,000,000 | 13,911,000,000 | 15,263,000,000 | 14,483,000,000 | 14,837,000,000 | 16,044,000,000 | 15,924,000,000 |
| Stockholders' equity |  | 1,700,000,000 | -3,862,000,000 | -3,625,000,000 | -4,870,000,000 | -4,924,000,000 | -4,848,000,000 | -5,392,000,000 |
| Cash and cash equivalents | 1,329,000,000 | 1,446,000,000 | 1,782,000,000 | 1,565,000,000 | 1,189,000,000 | 1,274,000,000 | 2,300,000,000 | 1,096,000,000 |
| Free cash flow | 1,378,000,000 | 1,324,000,000 | 1,297,000,000 | 1,594,000,000 | 1,445,000,000 | 1,489,000,000 | 1,437,000,000 | 1,444,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 8.12% | 8.51% | 7.10% | 8.71% | 9.16% | 9.90% | 11.53% | 9.59% |
| Operating margin | 14.21% | 13.83% | 12.85% | 14.74% | 14.86% | 15.38% | 14.08% | 14.78% |
| Return on assets |  | 11.52% | 8.46% | 10.15% | 12.76% | 13.90% | 14.54% | 12.99% |
| Current ratio |  | 1.05 | 0.97 | 1.32 | 0.90 | 0.99 | 0.99 | 0.85 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001781335.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.77 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.79 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.90 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 3,523,000,000 | 376,000,000 | 0.91 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,620,000,000 | 323,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 3,437,000,000 | 353,000,000 | 0.86 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,601,000,000 | 415,000,000 | 1.02 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,548,000,000 | 540,000,000 | 1.34 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 3,675,000,000 | 337,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 3,350,000,000 | 243,000,000 | 0.61 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 3,595,000,000 | 393,000,000 | 0.99 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 3,690,000,000 | 374,000,000 | 0.95 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 3,796,000,000 | 374,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 3,566,000,000 | 340,000,000 | 0.87 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 3,859,000,000 | 428,000,000 | 1.12 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from OTIS's latest 10-K: [/company/OTIS/business/](/company/OTIS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from OTIS's latest 10-K: [/company/OTIS/risk-factors/](/company/OTIS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1781335/000178133526000113/otis-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-23
Report date: 2026-06-30

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

BUSINESS OVERVIEW

Business Summary

We are the world’s leading elevator and escalator manufacturing, installation, service and modernization company. Our Company is organized into two segments, New Equipment and Service. Through our New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings and infrastructure projects. Our New Equipment customers include real-estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity. We sell our New Equipment directly to customers, as well as through agents and distributors.

Through our Service segment, we perform maintenance and repair services for both our own products and those of other manufacturers and provide modernization services to upgrade elevators and escalators. Maintenance services include inspections to ensure code compliance, preventive maintenance offerings and other customized maintenance offerings tailored to meet customer needs, as well as repair services to address equipment and component wear and tear and breakdowns. Modernization services enhance equipment operation and improve building functionality. Modernization offerings can range from relatively simple upgrades of interior finishes and aesthetics to complex upgrades of larger components and sub-systems, including the machine, ropes or belts, safety systems and the entire car or escalator. Our typical Service customers include building owners, facility managers, housing associations and government agencies that operate buildings where elevators and escalators are installed.

We serve our customers through a global network of employees. These include sales personnel, field technicians with separate skills in performing installation and service, as well as engineers driving our continued product development and innovation. We function under a centralized operating model whereby we pursue a global strategy set around New Equipment and Service because we seek to grow our maintenance portfolio, in part, through the conversion of new elevator and escalator installations into service contracts. Accordingly, we benefit from an integrated global strategy, which sets priorities and establishes accountability across the full product lifecycle.

The current status of significant factors affecting our business environment in 2026 is discussed below. For additional discussion, refer to the "Business Overview" section in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Form 10-K.

UpLift

Announced in July 2023, UpLift is a program to transform our operating model. As of December 31, 2025, total restructuring and other incremental costs to complete the transformation ("UpLift transformation costs") were approximately $300 million, including trailing restructuring costs expected in 2026 of $18 million. The Company generated run-rate savings of approximately $200 million.

For further details, refer to the discussion on restructuring costs in the "Results of Operations," as well as Note 11 to the Condensed Consolidated Financial Statements.

31

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German Tax Litigation

In August 2024, we received a favorable ruling regarding a German tax litigation. Pursuant to the Tax Matters Agreement ("TMA") with United Technologies Corporation ("UTC"), our former parent, subsequently renamed RTX Corporation ("RTX"), and based on the facts and contractual provisions, additional information received from RTX and indemnity payments during 2025, the Company estimated the amount payable to RTX as a result of the outcome of the German tax litigation to be $56 million as of December 31, 2025. Based on indemnity payments made to RTX and adjustments to the indemnity payable in the six months ended June 30, 2026, the Company now estimates the remaining amount payable to RTX to be $55 million. The adjustments to the indemnity payable resulted in indemnification expense of $5 million for the six months ended June 30, 2026 compared to $6 million and $58 million for the quarter and six months ended June 30, 2025, respectively. There was no indemnification expense in the quarter ended June 30, 2026. This indemnification expense is included in Other income (expense), net in the Condensed Consolidated Statements of Operations for the quarters and six months ended June 30, 2026 and 2025. This estimate could further change due to the parties' continuing dispute concerning the scope of the final indemnity amount, which will be resolved pursuant to the procedures set forth in the TMA.

For further details, refer to Note 10 and Note 15 to the Condensed Consolidated Financial Statements, as well as our Consolidated Financial Statements in the 2025 Form 10-K.

Impact of Global Macroeconomic Conditions on Our Company

Global macroeconomic conditions have impacted, and continue to impact, aspects of the Company's operations and overall financial performance during the quarters and six months ended June 30, 2026 and 2025. These macroeconomic conditions include, among others, geopolitical conflicts, inflationary pressures, high interest rates, tighter credit conditions and changes in global trade policies including higher tariffs in the U.S. and other countries. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance during the remainder of 2026, as a result of the following, among other things:

•Higher costs of products and services due to tariffs;

•Customer demand impacting our new equipment, maintenance and repair, and modernization businesses;

•Customer liquidity constraints and related credit reserve;

•Cancellations or delays of customer orders; and

•Supplier liquidity, as well as supplier and raw material capacity constraints, delays and related costs.

We currently do not expect any significant impact to our capital and financial resources from these macroeconomic conditions, including to our overall liquidity position based on our available cash and cash equivalents and our access to credit facilities and the capital markets.

See the "Liquidity and Financial Condition" section in this Form 10-Q for further detail and Item 1A. "Risk Factors" in our 2025 Form 10-K for macroeconomic risks related to our business.

Risks Associated with Ongoing Conflicts

The ongoing conflicts in the Middle East, as well as between Russia and Ukraine have resulted in worldwide geopolitical and macroeconomic uncertainty, including volatile commodity markets, foreign exchange fluctuations, supply chain disruptions, increased risk of cybersecurity incidents, reputational risk, increased operating costs (including fuel and other input costs), environmental, health and safety risks related to securing and maintaining facilities, additional sanctions and other regulations (including restrictions on the transfer of funds to and from Russia). We do not have operations in Russia or Iran. Additionally, we do not have operations or material net sales in Israel, Gaza or Lebanon.

Although we have operations in the Middle East and transport products through the Middle East, we currently do not expect the recent conflicts in that region to have a material impact on our business.

To the extent possible, we continue to operate our business in Ukraine. We do not have material revenue or operating profit in Ukraine.

32

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We cannot predict how the events described above will evolve. Depending on the ultimate outcomes of these conflicts, which remain uncertain, they could heighten certain risks disclosed in Item 1A. "Risk Factors" in our 2025 Form 10-K, including, but not limited to, adverse effects on macroeconomic conditions, including increased inflation, constraints on the availability of commodities, supply chain disruption and decreased business spending; cyber-incidents; disruptions to our or our business partners’ global technology infrastructure, including through cyber-attack or cyber-intrusion; adverse changes in international trade policies and relations; claims, litigation and regulatory enforcement; our ability to implement and execute our business strategy; terrorist activities; our exposure to foreign currency fluctuations; reputational risk; and constraints, volatility, or disruption in the capital markets, any of which could have a material adverse effect on our business, results of operations, cash flows and financial condition.

CRITICAL ACCOUNTING ESTIMATES

Preparation of our Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The accounting policies that involve the most significant estimates, assumptions and management judgments used in preparation of the Condensed Consolidated Financial Statements, or are the most sensitive to change due to outside factors, are discussed in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates" included in our 2025 Form 10-K. Except as disclosed in Note 17 to our Condensed Consolidated Financial Statements in this Form 10-Q, pertaining to adoption of new accounting pronouncements, there have been no material changes in these policies.

RESULTS OF OPERATIONS

Net Sales

[[GREPCENT_TABLE]]
[["","","Quarter Ended June 30,","","Six Months Ended June 30,"],["(dollars in millions)","","2026","","2025","","2026","","2025"],["Net sales","","$","3,859","","$","3,595","","$","7,425","","","$","6,945"],["Percentage change year-over-year","","7","%","","","","7","%"]]
[[/GREPCENT_TABLE]]

The factors contributing to the total percentage change year-over-year in total Net sales for the quarter and six months ended June 30, 2026 are as follows:

[[GREPCENT_TABLE]]
[["Components of Net sales change:","","Quarter Ended June 30, 2026","","Six Months Ended June 30, 2026"],["Organic volume","","6","%","","4","%"],["Foreign currency translation","","1","%","","3","%"],["Acquisitions and divestitures, net and other","","\u2014","%","","\u2014","%"],["Total % change","","7","%","","7","%"]]
[[/GREPCENT_TABLE]]

The Organic volume increase of 6% for the quarter ended June 30, 2026 was driven by an increase of 9% in Service, partially offset by a decrease of (1)% in New Equipment. The Organic volume increase of 4% for the six months ended June 30, 2026 was driven by an increase of 7% in Service, partially offset by a decrease of (3)% in New Equipment.

See the "Segment Review" section for a discussion of Net sales by segment.

33

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Cost of Products and Services Sold

[[GREPCENT_TABLE]]
[["","","Quarter Ended June 30,","","Six Months Ended June 30,"],["(dollars in millions)","","2026","","2025","","2026","","2025"],["Total cost of products and services sold","","$","2,723","","$","2,506","","$","5,207","","$","4,855"],["Percentage change year-over-year","","9","%","","","","7","%"]]
[[/GREPCENT_TABLE]]

The factors contributing to the percentage change year-over-year for the quarter and six months ended June 30, 2026 in total cost of products and services sold are as follows:

[[GREPCENT_TABLE]]
[["Components of Cost of Products and Services Sold change:","","Quarter Ended June 30, 2026","","Six Months Ended June 30, 2026"],["Organic volume","","7","%","","4","%"],["Foreign currency translation","","1","%","","3","%"],["Acquisitions and divestitures, net and other","","1","%","","\u2014","%"],["Total % change","","9","%","","7","%"]]
[[/GREPCENT_TABLE]]

The Organic volume for total cost of products and services sold increased 7% and 4% for the quarter and six months ended June 30, 2026, respectively, primarily driven

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1781335/000178133526000011/otis-20251231.htm
Complete FY 2025 MD&A: /company/OTIS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-05
Report date: 2025-12-31

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

BUSINESS OVERVIEW

We are the world’s leading elevator and escalator manufacturing, installation, service and modernization company. Our Company is organized into two segments, New Equipment and Service. Through our New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings and infrastructure projects. Our New Equipment customers include real-estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity. We sell our New Equipment directly to customers, as well as through agents and distributors.

Through our Service segment, we perform maintenance and repair services for both our own products and those of other manufacturers and provide modernization services to upgrade elevators and escalators. Maintenance services include inspections to ensure code compliance, preventive maintenance offerings and other customized maintenance offerings tailored to meet customer needs, as well as repair services to address equipment and component wear and tear and breakdowns. Modernization services enhance equipment operation and improve building functionality. Modernization offerings range from relatively simple upgrades of interior finishes and aesthetics to complex upgrades of larger components and sub-systems, including the machine, ropes or belts, safety systems and the entire car or escalator. Our typical Service customers include building owners, facility managers, housing associations and government agencies that operate buildings where elevators and escalators are installed.

We serve our customers through a global network of colleagues. These include sales personnel, field technicians with separate skills in performing installation and service, as well as engineers driving our continued product development and innovation. We function under a centralized operating model whereby we pursue a global strategy set around New Equipment and Service because we seek to grow our maintenance portfolio, in part, through the conversion of new elevator and escalator installations into service contracts. Accordingly, we benefit from an integrated global strategy, which sets priorities and establishes accountability across the full product lifecycle.

For additional discussion of our business, refer to Item 1 in this Form 10-K.

UpLift

Announced in July 2023, UpLift is a program with the goal of transforming our operating model. UpLift includes the standardization of our processes and improvement of our supply chain procurement, among other aspects of the program, as well as organizational changes which result in restructuring actions. The annual run-rate savings generated by UpLift are approximately $200 million. As of 2025, total restructuring and other incremental costs to complete the transformation ("UpLift transformation costs") are approximately $300 million, including trailing restructuring costs expected in 2026 of $18 million.

The Company generated approximately $70 million of pre-tax savings in each of 2025 and 2024, including run-rate savings of approximately $200 million and $120 million, respectively, driven by our simplified operating structure, optimized organizational spans and layers, and reduced digital technology costs. These savings are primarily reflected in Selling, general and administrative expenses.

UpLift costs incurred are as follows:

[[GREPCENT_TABLE]]
[["(dollars in millions)","","2025","","2024","","2023"],["UpLift restructuring costs","","$","76","","$","31","","$","25"],["UpLift transformation costs","","69","","65","","16"],["Total UpLift costs","","$","145","","$","96","","$","41"]]
[[/GREPCENT_TABLE]]

Total UpLift costs incurred to date are $282 million, including $132 million of restructuring costs and $150 million of transformation costs.

27

Table of Contents

UpLift restructuring costs are primarily severance costs and are recorded primarily in Selling, general and administrative in the Consolidated Statements of Operations. UpLift transformation costs are primarily for consultants, third-party service providers and personnel focused on designing and implementing a centralized service delivery model that supports our new organizational structure, including the standardization of our supply chain and digital technology procurement. These costs are recorded in Other income (expense), net in the Consolidated Statements of Operations.

For further details, refer to the discussion on restructuring costs in the "Results of Operations," as well as "Note 15: Restructuring and Transformation Costs" to the Consolidated Financial Statements in Item 8 in this Form 10-K.

German Tax Litigation

In August 2024, we received a favorable ruling regarding a German tax litigation. As a result, we recorded income tax benefits of approximately $185 million and related interest income of approximately $200 million, which are included in Income tax expense (benefit), net and Interest expense (income), net, respectively, in the Consolidated Statements of Operations for 2024. Additionally, pursuant to the Tax Matters Agreement ("TMA") with RTX Corporation ("RTX", our former parent), the Company recorded indemnification expense of $194 million for amounts due to RTX resulting from the outcome of the German tax litigation. This expense is included in Other income (expense), net in the Consolidated Statements of Operations for 2024.

Based on additional information received from RTX during the year, which resulted in additional indemnification expense of $67 million, offset by indemnity payments made to RTX of $205 million, the Company now estimates the amount payable to RTX to be $56 million. The indemnification expense is included in Other income (expense), net in the Consolidated Statements of Operations in 2025. This estimate could further change due to the parties' continuing dispute concerning the scope of the final indemnity amount, which will be resolved pursuant to the procedures set forth in the TMA.

For further details, refer to "Note 14: Income Taxes" and "Note 20: Contingent Liabilities" to the Consolidated Financial Statements in Item 8 in this Form 10-K.

Impact of Global Macroeconomic Conditions on Our Company

Global macroeconomic conditions have impacted, and continue to impact, aspects of the Company's operations and overall financial performance. These macroeconomic conditions include, among others, inflationary pressures, high interest rates, tighter credit conditions and changes in global trade policies including higher tariffs in the U.S. and other countries. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance in 2026, as a result of the following, among other things:

•Higher costs of products and services due to tariffs;

•Customer demand impacting our new equipment, maintenance and repair, and modernization businesses;

•Customer liquidity constraints and related credit reserve;

•Cancellations or delays of customer orders; and

•Supplier liquidity, as well as supplier and raw material capacity constraints, delays and related costs.

Other than the impact from new tariffs currently in effect of approximately $20 million during 2025 and a similar impact anticipated in 2026, we currently do not expect any significant impact to our capital and financial resources from these macroeconomic conditions, including to our overall liquidity position based on our available cash and cash equivalents and our access to credit facilities and the capital markets.

See the "Liquidity and Financial Condition" section of this item of this Form 10-K for further detail and Item 1A in this Form 10-K for macroeconomic risks related to our business.

Risks Associated with Ongoing Conflicts

The ongoing conflict between Russia and Ukraine has resulted in worldwide geopolitical and macroeconomic uncertainty, including volatile commodity markets, foreign exchange fluctuations, supply chain disruptions, increased risk of cybersecurity incidents, reputational risk, increased operating costs (including fuel and other input costs), environmental, health and safety risks related to securing and maintaining facilities, additional sanctions and other regulations (including restrictions on the transfer of funds to and from Russia). We do not have operations in Russia.

28

Table of Contents

To the extent possible, we continue to operate our business in Ukraine, which represented less than 1% of our 2025, 2024 and 2023 net sales and operating profit.

Additionally, we do not have operations or material net sales in Israel or Gaza. Although we have operations in the Middle East and transport products through the Red Sea, we currently do not expect the recent conflicts in that region to have a material impact on our business.

We cannot predict how the events described above will evolve. Depending on the ultimate outcomes of these conflicts, which remain uncertain, they could heighten certain risks disclosed in Item 1A in this Form 10-K, including but not limited to, adverse effects on macroeconomic conditions, including increased inflation, constraints on the availability of commodities, supply chain disruption and decreased business spending; cyber-incidents; disruptions to our or our business partners’ global technology infrastructure, including through cyberattack or cyber-intrusion; adverse changes in international trade policies and relations; claims, litigation and regulatory enforcement; our ability to implement and execute our business strategy; terrorist activities; our exposure to foreign currency fluctuations; reputational risk; and constraints, volatility, or disruption in the capital markets, any of which could have a material adverse effect on our business, results of operations, cash flows and financial condition.

Sustainability-related matters

There have been no, and we do not expect there to be in the near term, material impacts on our business, financial condition or results of operations as a result of compliance with legislation or regulatory rules regarding climate change, from the known physical effects of climate change or as a result of implementing our sustainability-related initiatives or from transitional risks such as increased regulations or customer shifting preference toward low carbon products, as determined under our climate scenarios. Other climate change concerns, however, could subject us to additional costs and restrictions, and we are not able to predict how such regulations or concerns would affect our business, operations or financial results. For a discussion of risks associated with sustainability-related matters, see Item 1A in this Form 10-K.

For a discussion of Otis’ climate near-term science-based targets, see the discussion under "Sustainability and Responsibility" in Item 1 in this Form 10-K.

29

Table of Contents

RESULTS OF OPERATIONS

Net Sales

[[GREPCENT_TABLE]]
[["(dollars in millions)","","2025","","2024","","2023"],["Net sales","","$","14,431","","","$","14,261","","","$","14,209"],["Percentage change year-over-year","","1","%","","\u2014","%","","4","%"]]
[[/GREPCENT_TABLE]]

The factors contributing to the total percentage change year-over-year in total Net sales are as follows:

[[GREPCENT_TABLE]]
[["","","2025","","2024"],["Organic volume","","\u2014","%","","1","%"],["Foreign currency translation","","1","%","","(1)","%"],["Acquisitions and divestitures, net and Other","","\u2014","%","","\u2014","%"],["Total % change","","1","%","","\u2014","%"]]
[[/GREPCENT_TABLE]]

The Organic volume was flat for 2025 driven by an increase in organic sales of 5% in Service, offset by a decrease of (7)% in New Equipment.

The Organic volume increase of 1% for

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/OTIS/mda/fy2025/
All MD&A years: /company/OTIS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/OTIS/mda/fy2024/): filed 2025-02-04; accession 0001781335-25-000010 (https://www.sec.gov/Archives/edgar/data/1781335/000178133525000010/otis-20241231.htm)
- [FY 2023 MD&A](/company/OTIS/mda/fy2023/): filed 2024-02-02; accession 0001781335-24-000013 (https://www.sec.gov/Archives/edgar/data/1781335/000178133524000013/otis-20231231.htm)
- [FY 2022 MD&A](/company/OTIS/mda/fy2022/): filed 2023-02-03; accession 0001781335-23-000009 (https://www.sec.gov/Archives/edgar/data/1781335/000178133523000009/otis-20221231.htm)
- [FY 2021 MD&A](/company/OTIS/mda/fy2021/): filed 2022-02-04; accession 0001781335-22-000007 (https://www.sec.gov/Archives/edgar/data/1781335/000178133522000007/otis-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3600 Electronic & Other Electrical Equipment (No Computer Equip)) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/OTIS.md · JSON record: /company/OTIS.json · verified financials: /company/OTIS/financials.json / /company/OTIS/financials.csv · machine TOC for the whole site: /llms.txt