Overview

* Otis Q3 net sales up 4% to $3.7 bln, beating analyst expectations

* Adjusted EPS for Q3 rises 9%, beating consensus

* GAAP EPS down 29% due to prior year's non-recurring tax benefits

Outlook

* Otis raises midpoint of 2025 EPS outlook due to strong Service performance

* Company highlights strong order book for modernization and recovery in New Equipment

Result Drivers

* SERVICE SALES GROWTH - Service net sales increased 9% with organic sales up 6%, driven by maintenance and repair sales growth

* MODERNIZATION ORDERS - Modernization orders increased 27% at constant currency, contributing to organic modernization sales growth of 14%

* OPERATING PROFIT MARGIN EXPANSION - Service segment operating profit margin increased by 70 bps due to higher volume, favorable pricing, and productivity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $3.70 $3.64

bln bln (7

Analysts

)

Q3 Beat $1.05 $0.99 (8

Adjusted Analysts

EPS )

Q3 EPS $0.95

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the heavy electrical equipment peer group is "buy."

* Wall Street's median 12-month price target for Otis Worldwide Corp ( OTIS ) is $100.00, about 8.7% above its October 28 closing price of $91.30

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)