Otis Delivers Vertical Mobility for Montreal's REM Light Metro Transit

Rhea-AI Summary

Otis (NYSE: OTIS) completed a landmark installation for Montréal's Réseau Express Métropolitain (REM) light metro on Dec 22, 2025, supplying mobility equipment across the 67 km, 26‑station network.

Otis delivered 57 custom elevators (including Gen2) and 22 escalators, fitted with ReGen drives to feed energy back to the grid, and secured a 5‑year service contract. Systems were customized for SCADA integration, real‑time monitoring and automated evacuation, with accessibility features and bilingual passenger information.

Positive

• Installed 57 custom elevators across REM stations
• Delivered 22 escalators designed for public transport hubs
• Secured a 5-year service contract for maintenance and testing
• Equipped equipment with ReGen drives to return energy to grid
• Integrated Otis systems with SCADA for real-time monitoring
• Designed elevators for accessibility with wide doors and cabins

Negative

• None.

Key Figures

REM network length 67 kilometers Fully electric light metro network in Montréal

REM stations 26 stations Stations served by the REM light metro

Planned daily passages 150,000 daily passages Target capacity of REM network once complete

Escalators installed 22 escalators Otis units installed for Montréal REM project

Elevators installed 57 elevators Custom elevators, including Gen2, for REM stations

Service contract term 5-year service contract Maintenance and testing for REM elevators and escalators

Market Reality Check

$88.01 Last Close

Volume Volume 6,750,701 is 2.34x the 20-day average of 2,890,384, indicating elevated trading interest ahead of this news. high

Technical Shares at $87.06 are trading below the 200-day MA of $93.19, reflecting a weaker medium-term trend pre-announcement.

Peers on Argus

OTIS was down 0.33% while key peers like XYL, IR, ROK, and AME showed small gains (up to 1%), with only SYM modestly negative. This suggests the OTIS move was more stock-specific than sector-driven ahead of the REM announcement.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Project award news	Positive	-0.5%	Incheon airport moving walks project won Elevator World Project of the Year.
Nov 19	Product expansion news	Positive	-1.3%	Expanded Gen3 Core elevator with larger cabs and higher capacity in North America.
Oct 30	Dividend declaration	Positive	+0.3%	Declared quarterly dividend of $0.42 per share with standard timing details.
Oct 29	Quarterly earnings	Positive	+2.3%	Q3 2025 sales growth, stronger service margins, and raised adjusted EPS outlook.
Oct 15	Project win news	Positive	+0.7%	Won supply of 169 high-speed elevators for Hyderabad ultra-luxury projects.

Pattern Detected

Recent positive project and product announcements have sometimes seen muted or negative next-day reactions, while earnings and dividend news have aligned more clearly with price moves.

Recent Company History

Over the last few months, Otis reported Q3 2025 results with net sales of $3.69B and raised EPS guidance, which coincided with a 2.28% gain the next day. A regular quarterly dividend of $0.42 per share and a major Hyderabad luxury project win also saw modest positive reactions. By contrast, two upbeat equipment and project news items in October–December, including an industry award for its Incheon airport project, were followed by small declines. The REM Montréal contract fits this series of infrastructure-focused wins.

Market Pulse Summary

This announcement highlights Otis’s role in Montréal’s REM, supplying 57 custom elevators, 22 escalators and a 5-year service contract for a 67-kilometer, 26-station driverless metro. It reinforces Otis’s capabilities in large, complex transit projects and emphasizes energy efficiency, accessibility and integration with SCADA-based controls. In context of recent project wins and solid service growth, investors may track how such contracts contribute to long-term service revenue and complement the company’s broader infrastructure portfolio.

Key Terms

scada technical

"This included adapting Otis systems to work with SCADA (Supervisory Control and Data Acquisition),"

SCADA (Supervisory Control and Data Acquisition) is a computerized system that monitors and controls industrial equipment and infrastructure—think of it as a remote brain that collects sensor data and sends commands to pumps, valves, power grids, or factory machines. Investors watch SCADA because it affects operational reliability, safety, and cost: failures or cyberattacks can cause outages and fines, while efficient SCADA systems can boost productivity and reduce maintenance and capital expenses.

supervisory control and data acquisition technical

"work with SCADA (Supervisory Control and Data Acquisition), an industrial control system that monitors"

Supervisory control and data acquisition (SCADA) is a system of software and hardware that monitors and controls industrial equipment and processes remotely by collecting real‑time data from sensors and sending commands to devices like pumps, valves and switches. It matters to investors because SCADA affects a company's operational reliability, efficiency, cost of downtime, regulatory compliance and cybersecurity exposure—think of it as the building’s central thermostat and security system that keeps operations running smoothly.

restricted stock units (rsus) financial

"The executive converted 10,102 restricted stock units (RSUs) into common stock"

Restricted stock units (RSUs) are a type of company promise to give employees shares of stock in the future, usually after certain conditions like working for a set time. They are like a gift promised today that you receive later, which can become valuable if the company's stock price goes up. RSUs matter because they are a way companies reward employees and can be a significant part of compensation.

form 4 regulatory

"SVP, CAO & Controller filed a Form 4 for activity on 12/03/2025."

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

form 144 regulatory

"Otis Worldwide (OTIS) filed a Form 144 notice of proposed sale."

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

stock appreciation right (sar) exercise financial

"via a stock appreciation right (SAR) exercise, with payment by wire."

A stock appreciation right (SAR) exercise is when a holder of a SAR chooses to collect the financial gain equal to the increase in a company’s share price from the time the award was granted to the time they cash it in; the payout can be made in cash, shares, or a mix. Investors care because SAR exercises can either dilute the share count if paid in stock or reduce a company’s cash if paid in cash, and they show how much employee compensation depends on stock performance — like receiving the rise in your house’s value as a bonus without selling the house.

schedule 13g/a regulatory

"[SCHEDULE 13G/A] Otis Worldwide Corporation SEC Filing"

A Schedule 13G/A is an amended public filing with the U.S. securities regulator that updates a previous Schedule 13G, disclosing when an individual or group holds a substantial (typically over 5%) stake in a company and is claiming a passive, non‑controlling intent. Investors monitor these updates because rising or falling holdings can signal changing confidence, potential future moves, or shifts in voting power — like watching a public ledger where large shareholders quietly adjust their positions.

AI-generated analysis. Not financial advice.

Customized elevator and escalator solutions designed to deliver safe and reliable access to this one-of-a-kind driverless transit system

MONTREAL, Dec. 22, 2025 /PRNewswire/ -- Otis (NYSE: OTIS), the world's leading elevator and escalator manufacturing, installation and service company, has completed a landmark installation at the Réseau Express Métropolitain (REM) light metro transit in Montréal. This transformative project was designed to connect communities across Greater Montréal and offer safe, reliable and accessible transportation across the city.

What is the REM project?

The REM is a fully electric light metro network spanning 67 kilometers and 26 stations, linking the South Shore, North Shore, West Island, downtown Montréal, and later Montréal-Trudeau International Airport. It is designed to facilitate mobility across the Greater Montréal Region and is the largest mass transit project in Québec Province in the last 50 years. Once complete, the new metro network will accommodate up to 150,000 daily passages, and help create energy savings and greenhouse gas emissions reductions, according to its developers.

How many elevators and escalators did Otis install?

Otis provided 22 escalators and 57 custom elevators, including Gen2® elevators, engineered to meet the unique requirements of each station.

Otis Public Escalators are designed to meet the extreme and varied demands of public spaces such as airports, metros and busy transport hubs.

Otis Gen2 elevators revolutionized the elevator industry with patented steel-coated belts and a space-saving design, quiet ride and energy-efficient operation. The REM elevators feature glass elevator cabs framed in precision-engineered steel, delivering a sleek, modern look while offering durability and safety for high-traffic environments.

Aligned with REM's sustainability goals, energy-saving features include Otis ReGen drives on the elevators and escalators, which feed energy back into the grid.

Otis also secured a 5-year Service contract for the elevators and escalators, with maintenance and testing performed outside regular business hours by resident mechanics and increased support during peak times to maximize performance and limit inconvenience to passengers.

How did Otis customize the elevators and escalators?

For real-time monitoring and automated passenger evacuation during emergencies, Otis engineered a customized solution to integrate seamlessly with REM's centralized command and communications network. This included adapting Otis systems to work with SCADA (Supervisory Control and Data Acquisition), an industrial control system that monitors and manages infrastructure in real time and supports the driverless light metro transit system.

"This project was all about delivering custom solutions that met REM's vision for this ambitious one-of-a-kind transit," said Leo Pizzi, Otis New Equipment Manager in Montréal. "Through close collaboration and unwavering commitment, we ensured every milestone was met with the quality our customers expect."

How does Otis support accessibility and safety?

Otis elevators and escalators are designed for barrier-free access, with wide doors and spacious cabins to accommodate wheelchairs, strollers and passengers with reduced mobility. Bilingual displays and screens provide real-time status updates, enhancing safety, convenience and a smooth journey for French- and English-speaking passengers. The system's advanced logic enables remote supervision, so system administrators can receive alerts and monitor elevator and escalator performance in real time to address potential issues and limit disruption times.

What is the mobility impact of Otis' work on REM?

Beyond accessibility, the project aimed to shorten commute times and improve the overall passenger experience. By integrating these solutions into station design, Otis helped create a seamless and safe environment, moving passengers to their destinations.

To learn more about Otis's solutions for transit infrastructure, visit the Airports, Railways, Metros and Subways page.

About Otis

Otis gives people freedom to connect and thrive in a taller, faster, smarter world. The global leader in the manufacture, installation, and servicing of elevators and escalators, Otis moves 2.4 billion people a day and maintains approximately 2.4 million customer units worldwide. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 44,000 field professionals, all committed to meeting the diverse needs of customers and passengers in more than 200 countries and territories. To learn more, visit www.otis.com and follow us on LinkedIn, YouTube, Instagram and Facebook @OtisElevatorCo.

Media Contact:
Ed Jacovino
Edward.Jacovino@otis.com
+1 860-674-3351

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SOURCE Otis Worldwide Corporation

FAQ

How many elevators did Otis install for REM (OTIS) and what type are they?

Otis installed 57 custom elevators, including energy-efficient Gen2 models.

How many escalators did Otis supply for the REM project (OTIS)?

Otis provided 22 escalators designed for heavy public-transport use.

What service agreement did Otis (OTIS) secure for REM and for how long?

Otis secured a 5-year service contract covering maintenance and testing.

What energy-saving technology did Otis (OTIS) install on REM elevators and escalators?

Otis fitted equipment with ReGen drives that feed energy back into the grid.

How did Otis customize its systems for REM's driverless network (OTIS)?

Otis integrated elevators and escalators with SCADA for real-time monitoring and automated evacuation.

What is the scope of the REM network Otis worked on and passenger capacity?

The REM spans 67 km and 26 stations, designed to accommodate up to 150,000 daily passages.