Added to YB: 2026-04-03
Pitch date: 2026-04-01
OTIS [neutral]
Otis Worldwide Corporation
+1.16%
current return
Author Info
No bio for this author
Company Info
Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally.
Market Cap
$30.0B
Pitch Price
$76.97
Price Target
N/A
Dividend
2.18%
EV/EBITDA
13.60
P/E
22.02
EV/Sales
2.60
Sector
Machinery
Category
turnaround
Otis Q4 2025 & Early 2026: digging below the surface — Reconciling management narrative with the numbers
OTIS (holding update): Q4 strong (EPS +11%, service margin 25.5%, FCF $817M), modernization orders +43% (backlog +30%), NE backlog +2% after 7Qs decline. But Q1 EPS guide cut from flat to -3-5% in 6wks; Middle East/FX only explain ~$7M of ~$15M shortfall. Real concern: service margin expansion slowing from 50bps to 10-20bps annually (modernization mix dilution), China conversion <60% vs 88% ex-China, Americas NE execution miss. 2026 guide: mid-high single digit EPS growth, $1.6-1.7B FCF. Q1 results (late April) critical test. Still long but monitoring closely for further revisions.
Read full article (12 min)