On this page of StockholderLetter.com we present the latest annual shareholder letter from Otis Worldwide Corp — ticker symbol OTIS. Reading current and past OTIS letters to shareholders can bring important insights into the investment thesis.
Otis Worldwide Corporation Annual Report 2025

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025 Dear Shareholders, 2025 marked five years since Otis returned to our roots as an independent, publicly traded company and our 172nd year since our founding milestones of our enduring legacy and our relentless drive to shape the future of vertical mobility. During the year, we delivered strong results, advanced our Service-driven strategy and continued to innovate for our customers and shareholders. operating margin1 expansion of 40 basis points to 16.9%. This strong operational performance, together with a lower share count, resulted in adjusted earnings per share1 of $4.05, an increase of 6% year-over-year. I am deeply grateful to our more than 72,000 colleagues who are steadfast in their commitment to keep people moving safely and reliably. Today, we maintain approximately 2.5 million units, the industry s largest portfolio, a responsibility that we embrace with pride and purpose. Our teams work every day to enable approximately 2.5 billion passengers to move safely by delivering the highest standards of quality. As a company we continue to bring unmatched expertise and innovation to create exceptional experiences for our customers, while committing our company to growth. Our skills and commitment to The Otis Absolutes of Safety, Ethics and Quality define who we are and drive us to lead and set the standard for our industry. We continued to generate solid adjusted free cash flow,1 totaling $1.6 billion for the year. Reflecting our commitment to returning our cash to our shareholders, we returned approximately $1.5 billion through a combination of $647 million in dividends and $809 million in share repurchases. In April, our Board of Directors approved an 8% increase in our quarterly dividend to $0.42 per share. We invested $109 million in targeted acquisitions, capitalizing on attractive opportunities to strengthen our maintenance portfolio and expand our presence in key markets, including the United States, several countries in Europe and South Korea. These acquisitions reflect our commitment to disciplined growth and our focus on building long-term value through strategic expansion and density enhancements. Taken together, our history, our customer value, our skills and our strategy position Otis for many years of growth. SOLID EXECUTION AND RESULTS Our long-term strategy continues to prove its impact, with disciplined execution and our Service-driven strategy delivering strong financial results in 2025. Net sales reached $14.4 billion, with flat organic sales1 growth. Service organic sales increased 5%, offset by a decline in New Equipment organic sales of 7%. Disciplined cost management, including the successful execution of our UpLift program and China transformation program, combined with ongoing digitalization, enabled Otis to grow adjusted operating profit1 3% to $2.4 billion. Our unwavering focus on operational efficiency and value creation drove adjusted SERVICE GROWTH STRENGTHENED BY PORTFOLIO EXPANSION Service is at the very core of our customer value, driving consistent growth and profitability. We provide service through maintenance and repair offerings, both of which grow as we add units to our maintenance portfolio and increasingly modernize and refurbish existing units. We 1 1 See pages 5-8 for additional information regarding non-GAAP financial measures.
OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025 Equipment orders, as combined modernization and New Equipment orders grew 6%, and our year-end backlog increased 8% at constant currency,1 positioning us well for 2026. are benefitting from many macro trends: investments in infrastructure, continued urbanization, an aging population and installed unit age driving modernization each contributing to attractive top-line growth. Total Service organic sales1 increased 5%, driven by maintenance and repair growth of 4% and modernization growth of 9%. Our continued focus on operational excellence and productivity drove segment margin expansion of 50 basis points to a record 25.1%, reinforcing our leadership position in the sector. Within modernization and refurbishment, orders increased 26%, and our year-end backlog increased 30% at constant currency.1 Demand accelerated as building owners invested in upgrading aging elevator systems in every geographic market Otis serves. To meet this demand with an innovative solution, we introduced Otis Arise MOD packages in our Europe, Middle East and Africa region, where in many countries more than half of the elevators are at least 25 years old. Otis Arise MOD is a suite of flexible phased solutions that help make modernization more efficient and cost-effective for low- to mid-rise buildings. The global installed base2 continues to expand at a mid-single digit pace, reaching 23 million units at the end of 2025. This growing installed base feeds our Service flywheel and contributes to our portfolio expansion. For the fourth consecutive year, we grew our maintenance portfolio 4%, ending 2025 with an industry-leading approximately 2.5 million units under contract. As our maintenance portfolio grows, we are investing to meet the needs of our customers. In 2025, we continued to hire field professionals, adding approximately 1,000 skilled colleagues to our workforce. Together with our expanding portfolio, we have a strong foundation for continued growth in our maintenance and repair business as we enter 2026 and beyond. The global New Equipment market remained challenging in 2025 due to continued weakness in China. Total industry global units declined 6% to 735,000 units,2 driven by a 13% decline in China. Our New Equipment orders were flat overall, but excluding China, orders grew 7% through disciplined execution, strategic product and customer planning, and targeted price gains. Our ending backlog increased 2% at constant currency,1 providing positive momentum heading into 2026. GROWING ORDERS AND BACKLOG The future outlook for modernization remains robust, as the global installed base of aging elevators ready for modernization2 is anticipated to increase from 9 million at year-end to approximately 13 million by 2030. We continued to see strength in our modernization and refurbishment business. New Equipment grew around the world, except in China where it declined. Taken together, the growth in modernization and refurbishment added to the flat New 1 2 CRITICAL INVESTMENTS IN CUSTOMER SERVICE, CUSTOMER CENTRICITY AND PRODUCTIVITY We continue to see strong opportunities for profitable growth through innovation. In 2025, we directed 1.4% of net sales toward research and development, including investments in digital and strategic initiatives. Our AI-powered digital solutions deepen our market reach and enhance customer value. This year, we introduced Otis Compass Infinity, our most advanced intelligent dispatching system that predicts and continually adapts to building traffic patterns to optimize See pages 5-8 for additional information regarding non-GAAP financial measures. Based on Otis internal estimates. 2
OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025 professionals without raising our headcount and provide resources to invest in innovation and digital solutions that enhance our customer and colleague experiences. passenger flow. It is already adding value for our customers and is poised to drive long-term returns as we scale it globally. In China, we recently unveiled the Otis AI Inspection Robot that autonomously detects potential hazards and provides preemptive alerts to mitigate safety risks, as well as the Otis AI Agent, a comprehensive digital elevator manager that interacts with passengers, building managers and maintenance personnel in real-time. These solutions demonstrate our industry leadership and commitment to develop solutions that enhance and differentiate our customer experience and deliver meaningful value. LOOKING AHEAD In many ways, 2025 was a year of milestones, including the grand opening of 270 Park Avenue in New York, JP Morgan s global headquarters, where we installed 89 units, including 72 high-performance SkyRise elevators and 12 escalators. Another milestone we recently reached was when Otis was selected by Transport for London to deliver a comprehensive maintenance and modernization program for 172 escalators across the London Underground network. I am excited about the opportunities ahead for Otis as our Service business has multiple engines of growth across all our regions. We are prepared and poised for this growth, and our leadership team and colleagues are committed to executing our mission as a world-class, customer-centric, serviceoriented, growing business strengthening outcomes for customers and passengers and generating sustainable, long-term value for our shareholders. We ended the year with 1.1 million connected units globally, including units under the warranty period. Otis ONE, our IoT solution that connects elevators to the cloud, currently serves 34 countries and territories. This connectivity solution is improving customer experiences, supporting customer retention and driving productivity. POSITIONED FOR LONG-TERM VALUE CREATION 2025 has been a year of resiliency and adaptability. We successfully completed our two-year UpLift program and established our Global Business Services model with an external partner, allowing our field and sales personnel to focus more time on customers. Within China, our transformation program has reduced our New Equipment cost position and enabled us to accelerate our Service business. This year, Service represented over 40% of net sales from China, up from approximately 30% in 2024, and we continue to see significant opportunity ahead. Our China business is now 11% of our global net sales. Thank you for your continued support. Judy Marks Chair, Chief Executive Officer and President We strengthened customer service, improved efficiency and speed to market, and optimized indirect spend across our operations. With these changes, we have delivered significant cost efficiencies, enabling us to hire more field Cautionary Statement This Otis Annual Report contains forward-looking statements that are inherently subject to uncertainties and risks. Please see the section titled Cautionary Note Concerning Factors That May Affect Future Results included in our 2025 Annual Report on Form 10-K accompanied herewith and other filings with the Securities and Exchange Commission, for a list of factors that could cause our results to differ from those anticipated in any such forward-looking statements. 3
 • shareholder letter icon 4/17/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/6/2023 OTIS Stockholder Letter
 • stockholder letter icon 4/5/2024 OTIS Stockholder Letter
 • stockholder letter icon 4/4/2025 OTIS Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon OTIS Benford's Law Stock Score = 78


OTIS Shareholder/Stockholder Letter Transcript:

Otis Worldwide Corporation
Annual Report 2025


OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025
Dear Shareholders,
2025 marked five years since Otis returned to our roots as an independent, publicly
traded company and our 172nd year since our founding     milestones of our enduring
legacy and our relentless drive to shape the future of vertical mobility. During the year,
we delivered strong results, advanced our Service-driven strategy and continued to
innovate for our customers and shareholders.
operating margin1 expansion of 40 basis points
to 16.9%. This strong operational performance,
together with a lower share count, resulted
in adjusted earnings per share1 of $4.05, an
increase of 6% year-over-year.
I am deeply grateful to our more than
72,000 colleagues who are steadfast in their
commitment to keep people moving safely
and reliably. Today, we maintain approximately
2.5 million units, the industry   s largest
portfolio, a responsibility that we embrace
with pride and purpose. Our teams work
every day to enable approximately 2.5 billion
passengers to move safely by delivering the
highest standards of quality. As a company we
continue to bring unmatched expertise and
innovation to create exceptional experiences
for our customers, while committing
our company to growth. Our skills and
commitment to The Otis Absolutes of Safety,
Ethics and Quality define who we are and
drive us to lead and set the standard for
our industry.
We continued to generate solid adjusted
free cash flow,1 totaling $1.6 billion for
the year. Reflecting our commitment to
returning our cash to our shareholders, we
returned approximately $1.5 billion through a
combination of $647 million in dividends and
$809 million in share repurchases. In April, our
Board of Directors approved an 8% increase in
our quarterly dividend to $0.42 per share.
We invested $109 million in targeted
acquisitions, capitalizing on attractive
opportunities to strengthen our maintenance
portfolio and expand our presence in key
markets, including the United States, several
countries in Europe and South Korea. These
acquisitions reflect our commitment to
disciplined growth and our focus on building
long-term value through strategic expansion
and density enhancements.
Taken together, our history, our customer
value, our skills and our strategy position Otis
for many years of growth.
SOLID EXECUTION AND RESULTS
Our long-term strategy continues to prove
its impact, with disciplined execution and
our Service-driven strategy delivering strong
financial results in 2025. Net sales reached
$14.4 billion, with flat organic sales1 growth.
Service organic sales increased 5%, offset by
a decline in New Equipment organic sales of
7%. Disciplined cost management, including
the successful execution of our UpLift program
and China transformation program, combined
with ongoing digitalization, enabled Otis to
grow adjusted operating profit1 3% to $2.4
billion. Our unwavering focus on operational
efficiency and value creation drove adjusted
SERVICE GROWTH STRENGTHENED BY
PORTFOLIO EXPANSION
Service is at the very core of our customer
value, driving consistent growth and
profitability. We provide service through
maintenance and repair offerings, both
of which grow as we add units to our
maintenance portfolio and increasingly
modernize and refurbish existing units. We
1
1
See pages 5-8 for additional information regarding non-GAAP financial measures.

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025
Equipment orders, as combined modernization
and New Equipment orders grew 6%, and our
year-end backlog increased 8% at constant
currency,1 positioning us well for 2026.
are benefitting from many macro trends:
investments in infrastructure, continued
urbanization, an aging population and
installed unit age driving modernization
    each contributing to attractive top-line
growth. Total Service organic sales1 increased
5%, driven by maintenance and repair growth
of 4% and modernization growth of 9%. Our
continued focus on operational excellence and
productivity drove segment margin expansion
of 50 basis points to a record 25.1%, reinforcing
our leadership position in the sector.
Within modernization and refurbishment,
orders increased 26%, and our year-end
backlog increased 30% at constant currency.1
Demand accelerated as building owners
invested in upgrading aging elevator systems
in every geographic market Otis serves. To
meet this demand with an innovative solution,
we introduced Otis Arise MOD packages in
our Europe, Middle East and Africa region,
where in many countries more than half
of the elevators are at least 25 years old.
Otis Arise MOD is a suite of flexible phased
solutions that help make modernization more
efficient and cost-effective for low- to mid-rise
buildings.
The global installed base2 continues to
expand at a mid-single digit pace, reaching 23
million units at the end of 2025. This growing
installed base feeds our Service flywheel
and contributes to our portfolio expansion.
For the fourth consecutive year, we grew our
maintenance portfolio 4%, ending 2025 with
an industry-leading approximately 2.5 million
units under contract. As our maintenance
portfolio grows, we are investing to meet
the needs of our customers. In 2025, we
continued to hire field professionals, adding
approximately 1,000 skilled colleagues to
our workforce. Together with our expanding
portfolio, we have a strong foundation for
continued growth in our maintenance and
repair business as we enter 2026 and beyond.
The global New Equipment market remained
challenging in 2025 due to continued
weakness in China. Total industry global units
declined 6% to 735,000 units,2 driven by a
13% decline in China. Our New Equipment
orders were flat overall, but excluding China,
orders grew 7% through disciplined execution,
strategic product and customer planning,
and targeted price gains. Our ending backlog
increased 2% at constant currency,1 providing
positive momentum heading into 2026.
GROWING ORDERS AND BACKLOG
The future outlook for modernization
remains robust, as the global installed base
of aging elevators ready for modernization2
is anticipated to increase from 9 million
at year-end to approximately 13 million by
2030. We continued to see strength in our
modernization and refurbishment business.
New Equipment grew around the world,
except in China where it declined. Taken
together, the growth in modernization
and refurbishment added to the flat New
1
2
CRITICAL INVESTMENTS IN CUSTOMER
SERVICE, CUSTOMER CENTRICITY AND
PRODUCTIVITY
We continue to see strong opportunities for
profitable growth through innovation. In 2025,
we directed 1.4% of net sales toward research
and development, including investments in
digital and strategic initiatives.
Our AI-powered digital solutions deepen our
market reach and enhance customer value.
This year, we introduced Otis    Compass Infinity,
our most advanced intelligent dispatching
system that predicts and continually adapts
to building traffic patterns to optimize
See pages 5-8 for additional information regarding non-GAAP financial measures.
Based on Otis internal estimates.
2

OTIS WORLDWIDE CORPORATION ANNUAL REPORT 2025
professionals without raising our headcount
and provide resources to invest in innovation
and digital solutions that enhance our
customer and colleague experiences.
passenger flow. It is already adding value for
our customers and is poised to drive long-term
returns as we scale it globally. In China, we
recently unveiled the Otis AI Inspection Robot
that autonomously detects potential hazards
and provides preemptive alerts to mitigate
safety risks, as well as the Otis AI Agent, a
comprehensive digital elevator manager that
interacts with passengers, building managers
and maintenance personnel in real-time. These
solutions demonstrate our industry leadership
and commitment to develop solutions that
enhance and differentiate our customer
experience and deliver meaningful value.
LOOKING AHEAD
In many ways, 2025 was a year of milestones,
including the grand opening of 270 Park
Avenue in New York, JP Morgan   s global
headquarters, where we installed 89 units,
including 72 high-performance SkyRise
elevators and 12 escalators. Another
milestone we recently reached was when
Otis was selected by Transport for London to
deliver a comprehensive maintenance and
modernization program for 172 escalators
across the London Underground network. I
am excited about the opportunities ahead
for Otis as our Service business has multiple
engines of growth across all our regions.
We are prepared and poised for this growth,
and our leadership team and colleagues
are committed to executing our mission
as a world-class, customer-centric, serviceoriented, growing business     strengthening
outcomes for customers and passengers and
generating sustainable, long-term value for
our shareholders.
We ended the year with 1.1 million connected
units globally, including units under the
warranty period. Otis ONE, our IoT solution
that connects elevators to the cloud, currently
serves 34 countries and territories. This
connectivity solution is improving customer
experiences, supporting customer retention
and driving productivity.
POSITIONED FOR LONG-TERM VALUE
CREATION
2025 has been a year of resiliency and
adaptability. We successfully completed our
two-year UpLift program and established
our Global Business Services model with an
external partner, allowing our field and sales
personnel to focus more time on customers.
Within China, our transformation program has
reduced our New Equipment cost position and
enabled us to accelerate our Service business.
This year, Service represented over 40% of net
sales from China, up from approximately 30%
in 2024, and we continue to see significant
opportunity ahead. Our China business is now
11% of our global net sales.
Thank you for your continued support.
Judy Marks
Chair, Chief Executive Officer and President
We strengthened customer service, improved
efficiency and speed to market, and optimized
indirect spend across our operations. With
these changes, we have delivered significant
cost efficiencies, enabling us to hire more field
Cautionary Statement
This Otis Annual Report contains forward-looking statements that are inherently
subject to uncertainties and risks. Please see the section titled    Cautionary Note
Concerning Factors That May Affect Future Results    included in our 2025 Annual
Report on Form 10-K accompanied herewith and other filings with the Securities
and Exchange Commission, for a list of factors that could cause our results to
differ from those anticipated in any such forward-looking statements.
3


shareholder letter icon 4/17/2026 Letter Continued (Full PDF)
 

OTIS Stockholder/Shareholder Letter (Otis Worldwide Corp) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.