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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________ 
FORM 8-K
____________________________________ 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2024
____________________________________ 
logo_otis (2).jpg
OTIS WORLDWIDE CORPORATION
(Exact name of registrant as specified in its charter)
____________________________________ 
Delaware001-3922183-3789412
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
One Carrier Place
Farmington, Connecticut 06032
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code
(860) 674-3000
N/A
(Former name or former address, if changed since last report)
____________________________________ 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company   ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨





Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)OTISNew York Stock Exchange
0.318% Notes due 2026OTIS/26New York Stock Exchange
0.934% Notes due 2031OTIS/31New York Stock Exchange
Section 2—Financial Information
Item 2.02. Results of Operations and Financial Condition.
On July 24, 2024, Otis Worldwide Corporation (“Otis”) issued a press release announcing its second quarter 2024 results.
The press release issued July 24, 2024 is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by Otis under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Section 9—Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number
Exhibit Description
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

OTIS WORLDWIDE CORPORATION
(Registrant)
Date: July 24, 2024By:
/s/ ANURAG MAHESHWARI
Anurag Maheshwari
Executive Vice President & Chief Financial Officer



Exhibit 99

OTIS REPORTS SECOND QUARTER 2024 RESULTS

Otis delivers continued strong Service performance leading to mid-teens EPS growth

•GAAP EPS up 13.3% and adjusted EPS up 15.2% with continued margin expansion
•Service net sales up 3.0% and Service organic sales up 5.1%
•Mod orders up 14%, backlog up 15%, up 17% at constant currency
•Maintenance portfolio units increased 4.2%
•GAAP cash flow from operations of $308 million; adjusted free cash flow of $353 million
•Share repurchases of $300 million
•1H GAAP EPS up 11.2% and adjusted EPS up 12.8%, GAAP operating profit margin expansion of 30 basis points and adjusted operating profit margin expansion of 100 basis points, share repurchases of $600 million
•Strong execution on UpLift program; increasing expected run rate savings to $175 million by mid-2025
•Updated full-year outlook1; increasing adjusted EPS to $3.85 to $3.90

FARMINGTON, Conn., July 24, 2024 – Otis Worldwide Corporation (NYSE:OTIS) reported second quarter 2024 net sales of $3.6 billion with organic sales down 1.2%. GAAP earnings per share (EPS) increased 13.3% to $1.02 and adjusted EPS increased 15.2% to $1.06.

“Otis delivered solid quarterly performance led by the strength in our Service segment, which delivered portfolio growth of 4.2%, mid-single digit organic sales growth and 110 basis points of margin expansion. Our overall performance delivered mid-teens EPS growth,” said Judy Marks, Chair, CEO, & President. “To drive growth, we continue to execute on our modernization strategy, with orders growth above 10% for the eighth consecutive quarter and backlog up mid-teens. Based on this performance, and with confidence in our Service-driven, customer-centric strategy, we are raising our EPS outlook.”

Key Figures
($ millions, except per share amounts)Quarter Ended June 30,Six Months Ended June 30,
20242023Y/YY/Y (CFX)20242023Y/YY/Y (CFX)
Net sales$3,601$3,720(3.2)%(1.1)%$7,038$7,066(0.4)%1.3 %
Organic sales growth(1.2)%1.2 %
GAAP
Operating profit$570$580$(10)$1,114$1,093$21
Operating profit margin15.8 %15.6 %20 bps15.8 %15.5 %30 bps
Net income$415$37610.4 %$768$7078.6 %
Earnings per share$1.02$0.9013.3 %$1.89$1.7011.2 %
Adjusted non-GAAP comparison
Operating profit$613$590$23$38 $1,174$1,108$66$88 
Operating profit margin17.0 %15.9 %110 bps16.7 %15.7 %100 bps
Net income$428$38311.7 %$789$7189.9 %
Earnings per share$1.06$0.9215.2 %$1.94$1.7212.8 %

Second quarter net sales of $3.6 billion decreased 3.2% versus the prior year, driven by New Equipment.



Second quarter GAAP operating profit of $570 million decreased $10 million and adjusted operating profit of $613 million increased $23 million at actual currency and $38 million at constant currency, driven by Service. GAAP operating profit margin expanded 20 basis points to 15.8% and adjusted operating profit margin expanded 110 basis points to 17.0%, driven by favorable segment performance and mix.

GAAP EPS of $1.02 increased 13.3% compared to prior year and adjusted EPS of $1.06 increased 15.2% due to strong operational performance and improvement in the effective tax rate.


New Equipment
Quarter Ended June 30,Six Months Ended June 30,
($ millions)20242023Y/YY/Y (CFX)20242023Y/YY/Y (CFX)
Net sales$1,421$1,604(11.4)%(9.3)%$2,701$2,911(7.2)%(5.4)%
Organic sales(9.4)%(5.4)%
Segment operating profit$110$119$(9)$(6)$181$188$(7)$—
Segment operating profit margin7.7 %7.4 %30 bps6.7 %6.5 %20 bps

In the second quarter, net sales of $1.4 billion decreased 11.4% versus the prior year, with ~10% organic sales growth in Asia Pacific and low single digit growth in the Americas, more than offset by a low single digit decline in EMEA and a double digit decline in China.

Segment operating profit margin expanded 30 basis points to 7.7% driven by productivity and commodity tailwinds. Segment operating profit of $110 million decreased $9 million at actual currency and decreased $6 million at constant currency from the impacts of lower volume and unfavorable mix.

New Equipment orders were down 11% at constant currency with growth in EMEA and Asia Pacific more than offset by declines in China and the Americas. New Equipment backlog decreased 4% at actual currency and decreased 3% at constant currency.

Service
Quarter Ended June 30,Six Months Ended June 30,
($ millions)20242023Y/YY/Y (CFX)20242023Y/YY/Y (CFX)
Net sales$2,180$2,1163.0 %5.3 %$4,337$4,1554.4 %6.0 %
Organic sales5.1 %5.8 %
Segment operating profit$538$499$39$51$1,061$978$83$98
Segment operating profit margin24.7 %23.6 %110 bps24.5 %23.5 %100 bps

In the second quarter, net sales of $2.2 billion increased 3.0% with a 5.1% increase in organic sales. Organic maintenance and repair sales increased 4.9% and organic modernization sales increased 5.8%.

Segment operating profit of $538 million increased $39 million at actual currency and $51 million at constant currency due to higher volume, favorable pricing and productivity, which were partially offset by annual wage inflation. Segment operating profit margin expanded 110 basis points to 24.7%.



Cash flow

Quarter Ended June 30,Six Months Ended June 30,
($ millions)20242023Y/Y20242023Y/Y
Cash flow from operations$308 $446 $(138)$479 $724 $(245)
Free cash flow$284 $409 $(125)$424 $662 $(238)
Adjusted free cash flow$353 $434 $(81)$508 $687 $(179)

Second quarter cash flow changes were driven by an increase in net income more than offset by changes in working capital.


2024 Outlook1
Otis is revising its full year outlook:
•Net sales of $14.3 billion to $14.5 billion
•Organic sales up 1% to 3%
◦Organic New Equipment sales down mid-single digits
◦Organic Service sales up 6% to 7%
•Adjusted operating profit of $2.40 billion to $2.45 billion, up $160 million to $190 million at constant currency; up $135 million to $175 million at actual currency
•Adjusted EPS of $3.85 to $3.90, up 9% to 10%; adjusted effective tax rate of approximately 25.25%
•Adjusted free cash flow of approximately $1.5 billion to $1.6 billion

1Note: When we provide outlook for organic sales, adjusted operating profit, adjusted effective tax rate and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

About Otis
Otis is the world's leading elevator and escalator manufacturing, installation and service company. We move 2.3 billion people a day and maintain approximately 2.3 million customer units worldwide, the industry's largest maintenance portfolio. Headquartered in Connecticut, USA, Otis is 71,000 people strong, including 42,000 field professionals, all committed to meeting the diverse needs of our customers and passengers in more than 200 countries and territories worldwide. For more information, visit www.otis.com and follow us on LinkedIn, Instagram, and Facebook @OtisElevatorCo.



Use and Definitions of Non-GAAP Financial Measures
Otis Worldwide Corporation (“Otis”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Below are our non-GAAP financial measures:

Non-GAAP measureDefinition
Organic salesRepresents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a non-recurring and/or nonoperational nature ("other significant items"). Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Adjusted selling, general and administrative (“SG&A”) expenseRepresents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items.
Adjusted operating profitRepresents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.
Adjusted net interest expense
Represents net interest expense (a GAAP measure), adjusted for the impacts of non-recurring acquisition related financing costs and related net interest expense pending the completion of a transaction and other significant items.
Adjusted noncontrolling interest in earnings
Represents noncontrolling interest in earnings (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.
Adjusted net income
Represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.
Adjusted earnings per share (“EPS”)
Represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of restructuring and other significant items, including related tax effects.
Adjusted effective tax rate
Represents the effective tax rate (a GAAP measure) adjusted for other significant items and the tax impact of restructuring costs and other significant items.


Constant currencyGAAP financial results include the impact of changes in foreign currency exchange rates ("AFX"). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Free cash flow
Represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis’ ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.
Adjusted free cash flowRepresents cash flow from operations (a GAAP measure) less capital expenditures, adjusted to exclude certain items management believes affect the comparability of operating results. Management believes adjusted free cash flow is a useful measure of liquidity that provides investors additional information regarding the Company’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Management believes that organic sales, adjusted SG&A, adjusted general corporate expenses and other, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

When we provide our expectations for adjusted net sales, organic sales, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted effective tax rate, adjusted EPS, free cash flow and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.


Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for Otis’ future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “medium-term,” “near-term,” “confident,” "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research & development spend, restructuring actions (including UpLift), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain environmental, social and governance targets or goals, including operational impacts and costs associated therewith, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues, natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis’ customers and suppliers; (2) the effect of changes in political conditions in the U.S., including in connection with the results of the 2024 elections or otherwise, and other countries in which Otis and its businesses operate, including the effects of the ongoing conflict between Russia and Ukraine, the war between Israel and Hamas, and tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions and export controls, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis’ capital structure; (6) the timing and scope of future repurchases of Otis’ common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) fluctuations in prices and delays and disruption in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (8) cost reduction or containment actions, restructuring costs and related savings and other consequences thereof, including with respect to UpLift; (9) new business and investment opportunities; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes and labor inflation in the markets in which Otis and its businesses operate globally; (13) the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which Otis and its businesses operate; (14) the ability of Otis to retain and hire key personnel; (15) the scope, nature, impact or timing of acquisition and


divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the “Separation”) of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation (now known as RTX Corporation (“RTX”); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis’ registration statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.



Otis Worldwide Corporation
Condensed Consolidated Statements of Operations

Quarter Ended June 30,
Six Months Ended June 30,
(Unaudited)(Unaudited)
(amounts in millions, except per share amounts)2024202320242023
Net Sales$3,601 $3,720 $7,038 $7,066 
Costs and Expenses:
Cost of products and services sold2,522 2,637 4,931 4,987 
Research and development39 36 75 71 
Selling, general and administrative449 479 911 934 
Total Costs and Expenses3,010 3,152 5,917 5,992 
Other income (expense), net(21)12 (7)19 
Operating profit570 580 1,114 1,093 
Non-service pension cost (benefit)(1)1 (1)1 
Interest expense (income), net27 37 71 70 
Net income before income taxes544 542 1,044 1,022 
Income tax expense94 135 220 263 
Net income450 407 824 759 
Less: Noncontrolling interest in subsidiaries' earnings35 31 56 52 
Net income attributable to Otis Worldwide Corporation$415 $376 $768 $707 
Earnings Per Share of Common Stock:
Basic$1.03 $0.91 $1.90 $1.71 
Diluted$1.02 $0.90 $1.89 $1.70 
Weighted Average Number of Shares Outstanding:
Basic shares402.9 412.7 404.0 413.5 
Diluted Shares405.5 416.0 406.8 416.9 





Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin

Quarter Ended June 30,
Six Months Ended June 30,
(Unaudited)(Unaudited)
(dollars in millions)202420232024
2023
Net Sales
New Equipment$1,421 $1,604 $2,701 $2,911 
Service2,180 2,116 4,337 4,155 
Total Net Sales$3,601 $3,720 $7,038 $7,066 
Operating Profit
New Equipment$110 $119 $181 $188 
Service538 499 1,061 978 
Total segment operating profit648 618 1,242 1,166 
Corporate and Unallocated(78)(38)(128)(73)
Total Otis GAAP Operating Profit570 580 1,114 1,093 
UpLift restructuring6 — 7 — 
Other restructuring5 10 24 15 
UpLift transformation costs15 — 27 — 
Separation-related adjustments(1)— (16)— 
Litigation-related settlement costs 1
18 — 18 — 
Total Otis Adjusted Operating Profit$613 $590 $1,174 $1,108 
Reported Total Operating Profit Margin15.8 %15.6 %15.8 %15.5 %
Adjusted Total Operating Profit Margin17.0 %15.9 %16.7 %15.7 %

Otis discloses segment operating profit as its measure of segment performance, reconciled to total Otis operating profit. Segment operating profit exclude certain expenses and income that are not allocated to segments (as described above as "Corporate and Unallocated").

Effective in the first quarter of 2024, the measure of segment performance used by Otis' Chief Operating Decision Maker ("CODM") changed and, as a result, Otis' disclosed measure of segment performance (segment operating profit) was updated. The change to segment operating profit aligns with the update to how the CODM assesses performance and allocates resources for the Company's segments, and therefore is our measure of segment profitability.

As a result of the change, restructuring costs and other items not allocated to the operating segments are presented as part of Corporate and Unallocated. The financial information presented herein reflects the impact of the measure of segment performance change for all periods presented.

1 Litigation-related settlement costs in the quarter and six months ended June 30, 2024 represent the aggregate amount of settlement costs and increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business due to the size, complexity and unique facts of these matters.



Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate

Quarter Ended June 30,
Six Months Ended June 30,
(Unaudited)(Unaudited)
(dollars in millions, except per share amounts)2024
2023
2024
2023
Adjusted Operating Profit$613$590$1,174$1,108
Non-service pension cost (benefit)(1)1(1)1
Adjusted net interest expense 1
48379270
Adjusted income from operations before income taxes5665521,0831,037
Income tax expense94135220263
Tax impact on restructuring and non-recurring items103194
Non-recurring tax items 1
10—10—
Adjusted net income from operations 452414834770
Adjusted noncontrolling interest 1
24314552
Adjusted net income attributable to common shareholders$428$383$789$718
GAAP net income attributable to common shareholders$415$376$768$707
UpLift restructuring6 — 7 — 
Other restructuring5 10 24 15 
UpLift transformation costs15 — 27 — 
Separation-related adjustments(1)— (16)— 
Litigation-related settlement costs18 — 18 — 
Reserve adjustments related to non-recurring tax items 1
(10)— (10)— 
Tax effects of restructuring, non-recurring items and other adjustments(10)(3)(19)(4)
Non-recurring tax items 1
(10)— (10)— 
Adjusted net income attributable to common shareholders$428$383$789$718
Diluted Earnings Per Share$1.02 $0.90 $1.89 $1.70 
Impact to diluted earnings per share0.04 0.02 0.05 0.02 
Adjusted Earnings Per Share$1.06 $0.92 $1.94 $1.72 
Effective Tax Rate17.3 %24.9 %21.1 %25.7 %
Impact of adjustments on effective tax rate2.8 %0.1 %1.8 %— %
Adjusted Effective Tax Rate20.1 %25.0 %22.9 %25.7 %

1 Certain tax reserves were adjusted in the second quarter of 2024. As a result, Net interest expense and Noncontrolling interest are reflected as adjusted without $21 million of interest income and $11 million of the noncontrolling interest share of the reserves adjustments, respectively, for the quarter and six months ended June 30, 2024.



Otis Worldwide Corporation
Components of Changes in Net Sales

Quarter Ended June 30, 2024 Compared with Quarter Ended June 30, 2023
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net and Other		Total
New Equipment(9.4)%(2.1)%0.1%(11.4)%
Service5.1%(2.3)%0.2%3.0%
Maintenance and Repair4.9%(2.2)%0.2%2.9%
Modernization5.8%(2.5)%0.3%3.6%
Total Net Sales(1.2)%(2.1)%0.1%(3.2)%
Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net and Other		Total
New Equipment(5.4)%(1.8)%—%(7.2)%
Service5.8%(1.6)%0.2%4.4%
Maintenance and Repair5.4%(1.5)%0.2%4.1%
Modernization7.7%(2.1)%0.1%5.7%
Total Net Sales1.2%(1.7)%0.1%(0.4)%


Components of Changes in New Equipment Backlog
June 30, 2024
Y/Y Growth %
New Equipment Backlog increase at actual currency(4)%
Foreign exchange impact to New Equipment Backlog1%
New Equipment Backlog increase at constant currency(3)%


Components of Changes in Modernization Backlog
June 30, 2024
Y/Y Growth %
Modernization Backlog increase at actual currency15%
Foreign exchange impact to Modernization Backlog2%
Modernization Backlog increase at constant currency17%



Otis Worldwide Corporation
Reconciliation of Segment and Total Adjusted Operating Profit at Constant Currency

Quarter Ended June 30, 2024 Compared with Quarter Ended June 30, 2023
(dollars in millions)2024
2023
Y/Y
New Equipment
Segment Operating Profit$110 $119 $(9)
Impact of foreign exchange3 — 3 
Segment Operating Profit at constant currency$113 $119 $(6)
Service
Segment Operating Profit$538 $499 $39 
Impact of foreign exchange12 — 12 
Segment Operating Profit at constant currency$550 $499 $51 
Otis Consolidated
Adjusted Operating Profit$613 $590 $23 
Impact of foreign exchange15 — 15 
Adjusted Operating Profit at constant currency$628 $590 $38 
Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023
(dollars in millions)20242023Y/Y
New Equipment
Segment Operating Profit$181 $188 $(7)
Impact of foreign exchange7 — 7 
Segment Operating Profit at constant currency$188 $188 $— 
Service
Segment Operating Profit$1,061 $978 $83 
Impact of foreign exchange15 — 15 
Segment Operating Profit at constant currency$1,076 $978 $98 
Otis Consolidated
Adjusted Operating Profit$1,174 $1,108 $66 
Impact of foreign exchange22 — 22 
Adjusted Operating Profit at constant currency$1,196 $1,108 $88 



Otis Worldwide Corporation
Condensed Consolidated Balance Sheet

June 30, 2024December 31, 2023
(amounts in millions)(Unaudited)
Assets
Cash and cash equivalents$942 $1,274 
Accounts receivable, net 3,606 3,538 
Contract assets750 717 
Inventories605 612 
Other current assets335 259 
Total Current Assets6,238 6,400 
Future income tax benefits302 323 
Fixed assets, net708 727 
Operating lease right-of-use assets398 416 
Intangible assets, net330 335 
Goodwill1,553 1,588 
Other assets329 328 
Total Assets$9,858 $10,117 
Liabilities and Equity (Deficit)
Short-term borrowings and current portion of long-term debt$1,656 $32 
Accounts payable1,716 1,878 
Accrued liabilities1,719 1,873 
Contract liabilities2,804 2,696 
Total Current Liabilities7,895 6,479 
Long-term debt5,526 6,866 
Future pension and postretirement benefit obligations445 462 
Operating lease liabilities280 292 
Future income tax obligations 206 245 
Other long-term liabilities388 493 
Total Liabilities14,740 14,837 
Redeemable noncontrolling interest52 135 
Shareholders' Equity (Deficit):
Common Stock and additional paid-in capital230 213 
Treasury Stock(2,987)(2,382)
Accumulated deficit(1,538)(2,005)
Accumulated other comprehensive income (loss)(751)(750)
Total Shareholders' Equity (Deficit)(5,046)(4,924)
Noncontrolling interest112 69 
Total Equity (Deficit)(4,934)(4,855)
Total Liabilities and Equity (Deficit)$9,858 $10,117 




Otis Worldwide Corporation
Condensed Consolidated Statement of Cash Flows
Quarter Ended
June 30,
Six Months Ended
June 30,
(Unaudited)(Unaudited)
(dollars in millions)2024202320242023
Operating Activities:
Net income from operations$450 $407 $824 $759 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization41 52 85 99 
Deferred income tax expense (benefit)(41)(14)(25)(16)
Stock compensation cost20 19 36 34 
Change in:
Accounts receivable, net(9)(218)(171)(204)
Contract assets and liabilities, current(168)(109)107 154 
Inventories(19)(1)(10)(21)
Other current assets(36)(26)(60)(38)
Accounts payable88 261 (129)43 
Accrued liabilities15 70 (127)(85)
Pension contributions (12)(10)(24)(24)
Other operating activities, net(21)15 (27)23 
Net cash flows provided by (used in) operating activities308 446 479 724 
Investing Activities:
Capital expenditures(24)(37)(55)(62)
Acquisitions of businesses and intangible assets, net of cash(10)(4)(40)(20)
Other investing activities, net16 (29)(2)(9)
Net cash flows provided by (used in) investing activities(18)(70)(97)(91)
Financing Activities:
Increase (decrease) in short-term borrowings, net320 89 323 57 
Dividends paid on Common Stock(157)(141)(295)(261)
Repurchases of Common Stock(300)(175)(600)(350)
Dividends paid to noncontrolling interest(2)(6)(11)(15)
Acquisition of noncontrolling interest shares(71)— (75)— 
Other financing activities, net(2)(11)(21)(16)
Net cash flows provided by (used in) financing activities(212)(244)(679)(585)
Summary of Activity:
Net cash provided by (used in) operating activities
308 446 479 724 
Net cash provided by (used in) investing activities(18)(70)(97)(91)
Net cash provided by (used in) financing activities(212)(244)(679)(585)
Effect of exchange rate changes on cash and cash equivalents(14)(26)(32)(16)
Net increase (decrease) in cash, cash equivalents and restricted cash64 106 (329)32 
Cash, cash equivalents and restricted cash, beginning of period887 1,121 1,280 1,195 
Cash, cash equivalents and restricted cash, end of period951 1,227 951 1,227 
Less: Restricted cash9 8 9 8 
Cash and cash equivalents, end of period$942 $1,219 $942 $1,219 



Otis Worldwide Corporation
Adjusted Free Cash Flow Reconciliation

Quarter Ended June 30,Six Months Ended June 30,
(Unaudited)(Unaudited)
(dollars in millions)
2024202320242023
Net cash flows provided by operating activities (GAAP)$308$446$479$724
Capital expenditures(24)(37)(55)(62)
Free cash flow (Non-GAAP)284409424662
Adjustments for:
UpLift restructuring payments7—14—
UpLift transformation payments13—21—
Separation-related payments 1
49254925
Adjusted free cash flow (Non-GAAP)$353$434$508$687
1 In April of 2023 and 2024, we made payments to RTX Corporation (our former parent) in accordance with the Separation tax agreement. These annual payments are anticipated to conclude in 2026.




v3.24.2
Cover
Jul. 24, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 24, 2024
Entity Registrant Name OTIS WORLDWIDE CORPORATION
Entity Central Index Key 0001781335
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-39221
Entity Tax Identification Number 83-3789412
Entity Address, Address Line One One Carrier Place
Entity Address, City or Town Farmington
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06032
City Area Code 860
Local Phone Number 674-3000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common Stock ($0.01 par value)
Trading Symbol OTIS
Security Exchange Name NYSE
.0318% Notes Due 2026  
Document Information [Line Items]  
Title of 12(b) Security 0.318% Notes due 2026
Trading Symbol OTIS/26
Security Exchange Name NYSE
0.934% Notes Due 2031  
Document Information [Line Items]  
Title of 12(b) Security 0.934% Notes due 2031
Trading Symbol OTIS/31
Security Exchange Name NYSE
Otis Worldwide (NYSE:OTIS)
過去 株価チャート
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Otis Worldwide (NYSE:OTIS)
過去 株価チャート
から 7 2023 まで 7 2024 Otis Worldwideのチャートをもっと見るにはこちらをクリック