Will Otis Worldwide Corporation’s Modernization & Repair Boom Unlock Explosive Revenue Growth?

Otis Worldwide Corporation has reported its first quarter 2025 financial results, revealing a mixed performance across its segments. These results reflect the ongoing challenges in the New Equipment segment, but also showcase the resilience of its Service business. Positives from the results include the solid performance of Otis’ Service segment, which saw an organic sales growth of 4% and a maintenance portfolio that expanded by 4%. Modernization orders increased by 12% and the backlog grew by 14% at constant currency, indicative of strong demand in this area. The segment’s operating profit also grew, showing a 40 basis point expansion in margins compared to the previous year, with Service operating margins reaching 24.6%. The adjusted operating profit saw a 3% increase, driven by the Service business, and adjusted EPS grew by 5%. Furthermore, Otis was able to maintain a high level of consistency in its cash flow management, generating $186 million in adjusted free cash flow, and the company continued returning value to shareholders with $250 million in share repurchases and an 8% increase in the dividend.