Otis Worldwide Corporation Reports Revenue Decline and Strategic Initiatives for Q2 2025

Otis Worldwide Corporation reported its financial results for the second quarter and first half of 2025, revealing a slight decline in overall revenue and profitability compared to the previous year. For the quarter ended June 30, 2025, the company generated net sales of $3.595 billion, a marginal decrease from $3.601 billion in the same period of 2024. The decline was primarily attributed to a 10% drop in the New Equipment segment, which was partially offset by a 6% increase in Service sales. Net income attributable to Otis for the quarter was $393 million, down from $415 million a year earlier, resulting in diluted earnings per share of $0.99 compared to $1.02 in the prior year.

In the first half of 2025, Otis reported total net sales of $6.945 billion, down from $7.038 billion in the first half of 2024. The decrease was driven by a 9% decline in New Equipment sales, while Service sales increased by 4%. The company's net income for the six-month period was $636 million, down from $768 million in the same period last year, reflecting a higher effective tax rate and lower operating profit. The overall operating profit for the first half of 2025 was $958 million, compared to $1.114 billion in the previous year.

Strategically, Otis has been implementing its UpLift program, aimed at transforming its operating model and achieving approximately $200 million in annual run-rate savings by the second half of 2025. The company incurred $43 million in UpLift-related costs during the second quarter, which included $25 million in restructuring costs and $18 million in transformation costs. Additionally, Otis has been involved in a favorable German tax litigation, which is expected to yield refunds and interest income, although the company has also recorded indemnification expenses related to this matter.

Operationally, Otis reported a decrease in its cash and cash equivalents, which fell to $688 million as of June 30, 2025, down from $2.3 billion at the end of 2024. The company’s total debt stood at $7.749 billion, with a net debt of $7.061 billion after accounting for cash on hand. Otis continues to manage its liquidity through cash flows from operations and access to credit facilities, although it noted potential impacts from global macroeconomic conditions, including inflation and supply chain disruptions.

Looking ahead, Otis remains cautious about the economic environment, particularly regarding inflationary pressures and geopolitical conflicts that could affect its operations. The company anticipates that these factors may continue to influence customer demand and operational costs throughout the remainder of 2025. Despite these challenges, Otis is focused on executing its strategic initiatives and maintaining its position as a leader in the elevator and escalator industry.