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Q2 2025 Earnings Call July 23, 2025 © 2025 OTIS WORLDWIDE CORPORATION.
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Forward-Looking Statements Note: All results and expectations in this presentation reflect continuing operations unless otherwise noted. 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 or transformation actions (including UpLift and related reorganization and outsourcing activities and China), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statementsthat relate to climate change and our intent to achieve certain sustainability targets or other corporate responsibility initiatives, 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 aresult 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. and in other countries in which Otis and its businesses operate, including tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions, export controls and tariffs, and currency exchange rates in thenear term and beyond; (3) the effect of geopolitical conflicts, including the effect of the on-going conflict between Russia and Ukraine and conflicts in the Middle East; (4) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (5) future levels of indebtedness, capital spending and research and development spending; (6) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis’ capital structure; (7) 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; (8) fluctuations in prices and delays and disruptions in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (9) cost reduction or containment actions, restructuring or transformation costs and related savings and other consequences thereof, including with respect to UpLift and China and related impacts of reorganization and outsourcing activities and change management, as applicable; (10) new business and investment opportunities; (11) the outcome of legal proceedings, investigations and other contingencies; (12) pension plan assumptions and future contributions; (13) the impact of the negotiation of collective bargaining agreements and labor disputes, labor actions, including strikes or work stoppages, and labor inflation in the markets in which Otis and its businesses operate globally; (14) the effect of changes in tax, environmental, regulatory (including among other things import/export, tariffs, climate change, sustainability or other corporate responsibility related legal and regulatory changes) and other laws and regulations in the U.S., including in connection with the new administration's policies and priorities, and other countries in which Otisand its businesses operate; (15) the ability of Otis to retain and hire key personnel; (16) the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existingbusinesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (17) the determination by the Internal Revenue Service (the "IRS") 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 (18) 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. © 2025 OTIS WORLDWIDE CORPORATION. 2
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© 2025 OTIS WORLDWIDE CORPORATION. • Repurchased ~$300M of shares in Q2, ~$550M year-to-date • Published Connect & Thrive Report; recognized for sustainability leadership by USA Today, Forbes, Newsweek, and Time Magazine Solid second quarter performance driven by Service strength... Q2 2025 highlights 1 See appendix for additional information regarding these non-GAAP financial measures. 2 At constant currency. YTD 2025 3 ...Delivering long-term value to all stakeholders • Service organic1 sales up 4% • Service operating profit margin expanded 20 bps • Maintenance portfolio units up 4% • Modernization orders up 22%; backlog up 16% at constant currency1 • New Equipment orders down 1%, at constant currency1, up 11% excluding China • Raised China transformation annual run-rate savings target to $40M… in addition, UpLift remains on track to deliver $200M in run-rate savings • Reduced tariff impact by 50% 4% Service organic1 sales growth 17% modernization orders growth2 20 bps adjusted operating profit margin expansion1 2% adjusted EPS growth1
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OneAmerica Tower Indianapolis, USA © 2025 OTIS WORLDWIDE CORPORATION. 4 Q2 2025 orders & portfolio Q2 2025 Orders 1 At constant currency. See appendix for additional information regarding these non-GAAP financial measures. The Kross Ho Chi Minh City, Vietnam Orders1 Damac Bay 2 by Cavalli Dubai, UAE Hangzhou, Changchun & Tianjin Metros China Backlog1 Total Otis Otis ex-China New Equipment (3%) 8% Modernization 16% 16% Total 0% 10% Total Otis Otis ex-China New Equipment (1%) 11% Modernization 22% 22% Total 4% 14% Portfolio (YOY Changes) Total Otis Portfolio units growth 4%
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Operating profit Diluted earnings per share Adjusted operating profit down $14M at constant currency1, excluding $13M of FX tailwinds Adjusted operating profit margin1 of 17.0% was flat versus prior year driven by favorable segment mix offset by segment performance © 2025 OTIS WORLDWIDE CORPORATION. Q2 2025 results Sales ($ millions, except per share amounts) Adjusted1 Adjusted margin1 Organic1 (2%) FX 1% Net acquisitions/other 1% Total net sales Flat Adjusted1 Adjusted EPS1 drivers Operational ($0.03) FX $0.03 Taxes ($0.03) Shares $0.02 GAAP 570 547 GAAP $1.02 $0.99 5 1 See appendix for additional information regarding these non-GAAP financial measures.
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Operating Profit Operating profit up $26M at constant currency1 Volume Pricing Productivity Labor costs Mix Sales © 2025 OTIS WORLDWIDE CORPORATION. Q2 2025 Service segment results New Equipment 6 Organic1 sales up 4% • Maintenance & repair up 4% • Modernization up 5% 1 See appendix for additional information regarding these non-GAAP financial measures. + - + 7% +20 bps Y/YY/Y 6% 4% Organic1 Operating profit margin ($ millions) + - Segment Operating Profit Service 89%
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Sales Organic1 sales down 11% • Americas down 8% • EMEA up 7% • Asia down 23% – Asia Pacific down LSD – China down >20% Operating Profit Operating profit down $41M at constant currency1 Productivity Volume Price & mix Q2 2025 New Equipment segment results 7 Y/Y (10%) (11%) (38%) (240) bps Y/Y Operating profit margin 1 See appendix for additional information regarding these non-GAAP financial measures. + - Service © 2025 OTIS WORLDWIDE CORPORATION. ($ millions) Organic1 Segment Operating Profit - New Equipment 11%
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© 2025 OTIS WORLDWIDE CORPORATION. 8 Up MSD Down MSD 2025 industry & Otis outlook1 Industry new equipment unit growth1 Industry installed base unit growth1 Otis • Net sales of $14.5B to $14.6B; organic2 up ~1% • Adjusted operating profit2 of $2.4B to $2.5B, up $55M to $105M at actual currency • Adjusted EPS2 $4.00 to $4.10 up 4% to 7% • Adjusted free cash flow2 of $1.4 - 1.5B • Disciplined capital allocation • Share repurchases of ~$800M Up LSD Up LSD Up MSD Down HSD Down LSD Up LSD 1 Based on Otis internal estimates. LSD: low single digits; MSD: mid single digits; HSD: high single digits. 2 See appendix for additional information regarding these non-GAAP financial measures.
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© 2025 OTIS WORLDWIDE CORPORATION. 2025 organic1 sales outlook 9 Prior outlook (Apr 23, 2025) Current outlook New Equipment down 1% to 4% down ~7% Americas down mid-single down high-single EMEA up mid-single up mid-single Asia down mid-single down low teens Service up 5% to 7% up ~5% Maintenance & repair up mid-single up ~5% Modernization up low teens up ~10% Otis up 2% to 4% up ~1% 1 See appendix for additional information regarding these non-GAAP financial measures. Outlook drivers • Global trade developments impacting the timing of New Equipment backlog execution in the U.S. • New Equipment market challenges in China • Sustained maintenance portfolio growth and disciplined pricing • Robust modernization and repair performance
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Prior outlook (Apr 23, 2025) Current outlook 2025 in-year (including mitigation) $45M - $75M $25M - $35M China reciprocal Section 232 (steel & aluminum) Mitigation • Current outlook updated per the current reciprocal and section 232 tariffs • 2026 impact less than 2025 as we execute the ending 2024 New Equipment backlog • Later in 2026, backlog execution impact neutralized by pricing & contract terms Tariff impact and exposure © 2025 OTIS WORLDWIDE CORPORATION. 10 Tariff impact of ~$30 million in 2025 from current backlog, included in outlook 50% + + -
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2025 financial outlook 1 See appendix for additional information regarding these non-GAAP financial measures. 2 Expected annual tax related toll charge payments are anticipated to conclude in 2026: 2024 $50M, 2025E $50M, 2026E $60M. © 2025 OTIS WORLDWIDE CORPORATION. 11 Current outlookPrior outlook (Apr 23, 2025) Actual currency adj. op profit1 with 2025 tariffs up $55M to $105M up $55M to $105M Total adjusted operating profit1 margin up ~50bps (ex-2025 tariffs) up ~10bps (with 2025 tariffs) Adjusted free cash flow1,2 ~$1.6B Share repurchases up ~50bps (ex-2025 tariffs) up ~30bps (with 2025 tariffs) ~$800 million $1.4B to $1.5B ~$800 million Constant currency adj. op profit1 ex-2025 tariffs up $105M to $135M up $50M to $90M
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© 2025 OTIS WORLDWIDE CORPORATION. 12 2025 adjusted EPS1 growth outlook drivers 1 See appendix for additional information regarding these non-GAAP financial measures. 11 Guide reconfirmed… 4% to 7% adjusted EPS1 growth $0.13 to $0.19 Tariffs: ($35M) to ($25M) FX BOY: EUR @ 1.17 CNY @ 7.17 Volume Productivity Pricing UpLift & China Transformation Commodities Mix & churn Annual wage inflation Corporate/other ++ ++ --- Shares Interest -+ $0.00 to $0.02 $0.21 to $0.27 $0.00 to $0.02 ~$0.05($0.08) China & US New Equipment headwind Operational $3.83 $4.00 to $4.10
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© 2025 OTIS WORLDWIDE CORPORATION. 13
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Appendix © 2025 OTIS WORLDWIDE CORPORATION. 14
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UpLift • Harnessing our scale • Optimizing our supply chain • Delivering process improvement and standardization • Targeting ~$200M in run-rate savings by year end China Transformation • Driving modernization and Service growth • Optimizing organizational structure • Raised target to ~$40M in run rate savings by year end 15 Multiple initiatives to drive customer centricity and profitability1 Cumulative in-year benefits ($ millions) Targeted savings Run-rate savings ~$120 million ~$240 million Total run-rate savings target of $240M by the end of 2025 China transformation savings 1 UpLift is expected to result in approximately $300 million of restructuring and other incremental costs. China Transformation is expected to result in restructuring costs of approximately $40 million. © 2025 OTIS WORLDWIDE CORPORATION. UpLift savings Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 1 See additional information regarding these non-GAAP financial measures. ($ billions, at constant currency1) Remaining performance obligation New Equipment orders New Equipment Maintenance & repair Modernization Y/Y (3%) 6% 16% 3% 16 Modernization orders Q2 2025 Y/Y H1 2025 Y/Y Total Otis 22% 17% Otis ex-China 22% 16% 18.1 18.5 18.6 Backlog and orders Appendix Region Q2 2025 Y/Y H1 2025 Y/Y Total Otis (1%) (1%) Otis ex-China 11% 11% Americas 12% 14% EMEA (1%) (3%) Asia (9%) (10%)
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($14M) at constant currency1 © 2025 OTIS WORLDWIDE CORPORATION. 17 Q2 2025 adjusted operating profit1 drivers 1 See additional information regarding these non-GAAP financial measures. 1 1 Adjusted operating profit margin1 flat at 17.0% Actual currency ($42M) +$40M +$1M ($1M) Appendix Productivity Volume Price & Mix + - - ++ - + Volume Pricing Productivity Labor costs Mix - $1M
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Operating profit Diluted earnings per share $1.89 Sales Organic1 (1%) FX (1%) Net acquisitions/other 1% Total net sales (1%) Adjusted operating profit up $1M at constant currency1, excluding $3M of FX headwinds Adjusted operating profit margin1 expanded 20 bps basis points to 16.9%, driven by favorable segment mix, offset by segment performance and higher corporate expenses. © 2025 OTIS WORLDWIDE CORPORATION. H1 2025 results ($ millions, except per share amounts) Adjusted1 Adjusted margin1 Adjusted1 Adjusted EPS1 drivers Operational $0.00 FX $0.00 Net Interest ($0.02) Taxes ($0.02) NCI $0.03 Shares $0.04 GAAP $1,114 $958 GAAP $1.60 18 1 See appendix for additional information regarding these non-GAAP financial measures. Appendix
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Operating Profit Operating profit up $55M at constant currency1 Volume Pricing Productivity Labor costs Mix Sales © 2025 OTIS WORLDWIDE CORPORATION. H1 2025 Service segment results New Equipment 19 Organic1 sales up 4% • Maintenance & repair up 3% • Modernization up 7% 1 See appendix for additional information regarding these non-GAAP financial measures. + - + Y/YY/Y 4% Organic1 Operating profit margin ($ millions) + Segment Operating Profit - 4% 5% 20 bps Appendix Service 89%
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Sales Organic1 sales down 9% • Americas down 8% • EMEA up 7% • Asia down 19% – Asia Pacific up MSD – China down >20% Operating Profit Operating profit down ($45M) at constant currency1 Productivity Volume Price & mix H1 2025 New Equipment segment results 20 Y/Y (9%) (26)% (120) bps Y/Y Operating profit margin 1 See appendix for additional information regarding these non-GAAP financial measures. +- Service - © 2025 OTIS WORLDWIDE CORPORATION. Segment Operating Profit ($ millions) Organic1 (10)% Appendix New Equipment 11%
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© 2025 OTIS WORLDWIDE CORPORATION. 21 H1 2025 adjusted operating profit1 drivers 1 See additional information regarding these non-GAAP financial measures. Adjusted operating profit margin1 expanded 20 basis points to 16.9% Actual currency $54M ($2M) Appendix + Productivity Volume Price & mix - - ++ - + Volume Pricing Productivity Labor costs Mix - ($47M) ($9) $1M at constant currency1 11
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© 2025 OTIS WORLDWIDE CORPORATION. 22 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 conside red 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 reconcilia tion of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the atta ched 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 measure Definition Adjusted net sales Represents net sales (a GAAP measure), excluding significant items of a non -recurring and/or nonoperational nature (“other signi ficant items”). Organic sales Represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and di vestitures 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") expense Represents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items. Adjusted operating profit Represents 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, i ncluding related tax effects. Adjusted net income Represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other si gnificant 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 c osts and other significant items. Constant currency GAAP 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 th e 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 usef ul 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 t o 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 flow Represents 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 operating profit, adjusted net interest expense, adjusted non controlling interest in earnings, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in p roviding period- to-period comparisons of the results of the Company’s ongoing operational performance. When we provide our expectations for adju sted 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 dilut ed EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) gener ally 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 pendi ng 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 potentia lly unpredictable, impact on our future GAAP results. Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 23 Additional information Currency exposure 2024 sales USD 30% EUR 23% CNY 13% Other 34% Actuals FY25 outlook 1Q25 2Q25 1H25 Prior (Apr 23, 2025) Updated UpLift restructuring expense $20M $25M $45M ~$250M ~$250MOther restructuring expense $23M $12M $35M UpLift transformation costs $23M $18M $41M Non-service pension cost (benefit) $0M $0M $0M ~$5M ~$5M Adjusted net interest expense (a) (b) $46M $57M $103M ~$220M ~$220M Adjusted effective tax rate 25.6% 21.8% 23.6% ~24.8% ~24.8% Adjusted noncontrolling interest expense (b) (c) $15M $18M $33M ~$75M ~$75M Capital expenditures $34M $36M $70M ~$150M ~$150M Diluted shares outstanding 399.1M 395.8M 397.3M ~397M ~396M Appendix (a) In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest income were recorded in 2024. Net interest expense is reflected as adjusted without $1 million and $2 million of interest income for the quarter and six months ended June 30, 2025.. (b) Certain tax reserves were adjusted in the second quarter of 2025. As a result, Net interest expense and Noncontrolling interest are reflected as adjusted without $30 million of interest income and $16 million of the noncontrolling interest share of the reserves adjustments, respectively, for the quarter and six months ended June 30, 2025. (c)Noncontrolling interest is reflected as adjusted without $4 million and $6 million of the noncontrolling interest share of Other restructuring for the quarter and six months ended June 30, 2025.
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(a) Separation-related adjustments in the quarter and six months ended June 30, 2025 represent estimated amounts due to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement, including those amounts related to a favorable ruling received in August 2024 regarding a tax litigation in Germany. (b) Litigation-related settlement costs in the six months ended June 30, 2025 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/or unique facts of these matters. (c) In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest income were recorded in 2024. Net interest expense is reflected as adjusted without $1 million and $2 million of interest income for the quarter and six months ended June 30, 2025. (d) Certain tax reserves were adjusted in the second quarter of 2025. As a result, Net interest expense and Noncontrolling interest are reflected as adjusted without $30 million of interest income and $16 million of the noncontrolling interest share of the reserves adjustments, respectively, for the quarter and six months ended June 30, 2025. (e) The 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. (f)Noncontrolling interest is reflected as adjusted without $4 million and $6 million of the noncontrolling interest share of Other restructuring for the quarter and six months ended June 30, 2025. © 2025 OTIS WORLDWIDE CORPORATION. 24 2025 GAAP to adjusted financials reconciliation Appendix ($ millions) Income 1Q25 2Q25 Net income attributable to Otis 243 393 Noncontrolling interest in subsidiaries’ earnings 13 30 Income tax expense (benefit) 110 98 Net interest expense 45 26 Non-service pension benefit (expense) 0 0 GAAP operating profit 411 547 UpLift restructuring 20 25 Other restructuring 23 12 UpLift transformation costs 23 18 Separation-related adjustments (a) 52 9 Litigation and settlement costs (b) 21 0 Held for sale impairment 10 0 Other, net 0 1 Adjusted operating profit 560 612 Adjusted operating profit margin 16.7% 17.0% Non-service pension (expense) 0 0 Adjusted net interest expense (c) (d) (46) (57) Adjusted pre-tax profit 514 555 Adjusted income tax expense (d) (131) (121) Adjusted effective tax rate (e) 25.6% 21.8% Adjusted noncontrolling interest (d) (f) (15) (18) Adjusted net income 368 416 Adjusted EPS $0.92 $1.05
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© 2025 OTIS WORLDWIDE CORPORATION. 25 2024 GAAP to adjusted financials reconciliation Appendix (a) Separation-related adjustments in the year ended ended December 31, 2024 represent amounts due to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement, including those amounts related to a favorable ruling received in August 2024 regarding a tax litigation in Germany. (b) Litigation-related settlement costs in the year ended December 31, 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. (c) Certain tax reserves were adjusted in 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 for the year ended December 31, 2024. (d) In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest income were recorded in the third and fourth quarter of 2024. Net interest expense is reflected as adjusted without $1 million and $201 million of interest income for the quarter and year ended December 31, 2024, respectively. (e) The 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. (f) Noncontrolling interest is reflected as adjusted without $2 million of the noncontrolling interest share of Other restructuring for the quarter and year ended December Note: effective in the first quarter of 2024, the measure of segment performance used by Otis' Chief Operating Decision Maker changed and, as a result, our measure of segment operating profit was updated to not include restructuring and other unallocated items in the operating segments, which are now presented as part of Corporate and Unallocated. The change to segment operating profit aligns with the update to our measure of segment profitability. ($ millions) Income 1Q24 2Q24 3Q24 4Q24 FY 2024 Net income attributable to Otis 353 415 540 337 1,645 Noncontrolling interest in subsidiaries’ earnings 21 35 17 16 89 Income tax expense (benefit) 126 94 (45) 130 305 Net interest expense (benefit) 44 27 (150) 48 (31) Non-service pension cost (benefit) 0 (1) 1 0 0 GAAP operating profit 544 570 363 531 2,008 UpLift restructuring 1 6 4 20 31 Other restructuring 19 5 5 11 40 UpLift transformation costs 12 15 18 20 65 Separation-related adjustments (a) (15) (1) 193 0 177 Litigation and settlement costs (b) 0 18 0 0 18 Held for sale impairment 0 0 18 0 18 Other, net 0 0 (2) 1 (1) Adjusted operating profit 561 613 599 583 2,356 Adjusted operating profit margin 16.3% 17.0% 16.9% 15.9% 16.5% Non-service pension (expense) 0 1 (1) 0 0 Adjusted net interest expense (c, d) (44) (48) (51) (48) (191) Adjusted pre-tax profit 517 566 547 535 2,165 Adjusted income tax expense (c, d) (135) (114) (145) (143) (537) Adjusted effective tax rate (e) 26.0% 20.1% 26.7% 26.7% 24.8% Adjusted noncontrolling interest (c,f) (21) (24) (17) (18) (80) Adjusted net income 361 428 385 374 1,548 Adjusted EPS $0.88 $1.06 $0.96 $0.93 $3.83
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© 2025 OTIS WORLDWIDE CORPORATION. 26 Organic sales reconciliation Q2 2025 Y/Y Total Otis New Equipment Service Maintenance & repair Modernization Organic (2%) (11%) 4% 4% 5% FX 1% 0% 2% 2% 1% Acquisitions / divestitures, net and other 1% 1% 0% 0% 0% Total net sales growth 0% (10%) 6% 6% 6% Appendix H1 2025 Y/Y Total Otis New Equipment Service Maintenance & repair Modernization Organic (1%) (9%) 4% 3% 7% FX (1%) (1%) (1%) (1%) (1%) Acquisitions / divestitures, net and other 1% 0% 1% 1% 1% Total net sales growth (1%) (10%) 4% 3% 7%
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© 2025 OTIS WORLDWIDE CORPORATION. 27 Segment and total adjusted operating profit at constant currency reconciliations ($ millions) Q2 2024 Q2 2025 Y/Y H1 2024 H1 2025 Y/Y New Equipment Operating profit 110 68 (42) 181 134 (47) Impact of foreign exchange 0 1 1 0 2 2 Operating profit at constant currency 110 69 (41) 181 136 (45) Service Operating profit 538 578 40 1,061 1,115 54 Impact of foreign exchange 0 (14) (14) 0 1 1 Operating profit at constant currency 538 564 26 1,061 1,116 55 Otis Consolidated Adjusted operating profit 613 612 (1) 1,174 1,172 (2) Impact of foreign exchange 0 (13) (13) 0 3 3 Adjusted operating profit at constant currency 613 599 (14) 1,174 1,175 1 Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 28 SG&A reconciliation ($ millions) Q2 2024 Q2 2025 H1 2024 H1 2025 Net sales 3,601 3,595 7,038 6,945 SG&A expense 449 499 911 963 UpLift restructuring (4) (27) (5) (38) Other restructuring (1) (6) (15) (14) Adjusted SG&A expense 444 466 891 911 Adjusted SG&A % of sales 12.3% 13.0% 12.7% 13.1% Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 29 Diluted EPS and Tax reconciliations Q2 2024 Q2 2025 H1 2024 H1 2025 GAAP diluted earnings per share $1.02 $0.99 $1.89 $1.60 Impact of non-recurring items on diluted earnings per share $0.04 $0.06 $0.05 $0.37 Adjusted earnings per share $1.06 $1.05 $1.94 $1.97 Q2 2024 Q2 2025 H1 2024 H1 2025 Effective tax rate 17.3% 18.8% 21.1% 23.4% Impact of adjustments on effective tax rate 2.8% 3.0% 1.8% 0.2% Adjusted effective tax rate 20.1% 21.8% 22.9% 23.6% Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 30 Adjusted free cash flow reconciliation ($ millions) Q2 2024 Q2 2025 H1 2024 H1 2025 Operating cash flow 308 215 479 405 Capital expenditures (24) (36) (55) (70) Free cash flow 284 179 424 335 UpLift restructuring payments 7 8 14 19 UpLift transformation payments 13 14 21 33 Separation-related payments (a) 49 72 49 72 German Tax Litigation refunds (b) 0 (30) 0 (30) Adjusted free cash flow 353 243 508 429 (a) In the second quarter of 2024 and 2025, respectively, we made payments to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement. These payments are anticipated to conclude in 2026. (b) In August 2024, we received a favorable ruling regarding a tax litigation in Germany. The Company has started to receive refunds and anticipates the refund process will continue through the end of 2025. Appendix
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© 2025 OTIS WORLDWIDE CORPORATION. 31 Other reconciliations ($ billions) Q2 2024 Q1 2025 Q2 2025 RPO at actual currency (GAAP measure) 18.2 18.6 19.3 FX (0.1) (0.1) (0.7) RPO at constant currency 18.1 18.5 18.6 Remaining performance obligation (RPO) Q2 2025 Y/Y Growth New Equipment Maintenance & repair Modernization Actual currency (GAAP measure) (1%) 10% 19% FX (2%) (4%) (3%) Backlog at constant currency (3%) 6% 16% Backlog Appendix