Otis Worldwide reported second-quarter 2026 net sales of $3.859 billion, up 7% year‑over‑year with organic sales up 6%, and GAAP diluted EPS of $1.12 versus $0.99 a year earlier. Adjusted diluted EPS was $1.01 (down 4% Y/Y) and adjusted operating profit was $587 million. Management highlighted strong Service performance — led by double‑digit modernization and repair growth — and raised visibility from backlog gains while revising full‑year guidance.

Financial Highlights

  • Net sales: $3,859 million for Q2 2026, up 7% versus Q2 2025; six‑month net sales $7,425 million, up 7% Y/Y.
  • GAAP operating profit: $575 million in Q2 2026 (operating margin 14.9%); GAAP operating profit for six months $1,114 million.
  • Adjusted operating profit (non‑GAAP): $587 million in Q2 2026 (adjusted margin 15.2%), down $25 million versus prior year quarter.
  • Net income attributable to Otis: $428 million in Q2 2026; GAAP diluted EPS $1.12 (up 13% Y/Y). Adjusted diluted EPS: $1.01 (down 4% Y/Y).
  • Cash flow and capital allocation: operating cash flow $267 million in the quarter, adjusted free cash flow $290 million; share repurchases ~ $400 million in the quarter (~$800 million year‑to‑date).

Business Highlights

  • Service momentum: Service net sales of $2,580 million in Q2, up 11% Y/Y with organic Service sales up 9%; maintenance and repair organic sales up 6%, modernization organic sales up 24%.
  • Segment profitability: Service segment operating profit $599 million in Q2; margin contracted 170 bps to 23.2% due to investments, labor and material headwinds partially offset by pricing and volume.
  • New Equipment trends: New Equipment net sales flat at $1,279 million in Q2 with organic decline of 1%; segment operating profit down to $40 million with margin contracting 220 bps to 3.1% driven by lower volume, price and mix.
  • Backlog strength: Modernization orders up 9% at constant currency and modernization backlog increased 24% (26% at constant currency); New Equipment backlog increased ~3–4% (4% at constant currency).
  • Strategic investments: Company continuing investments in Service quality, pricing initiatives and digital technology to support front‑line execution and capitalize on aging installed base and demand for reliability and modernization.

Original SEC Filing:

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