OTIS REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Otis (NYSE:OTIS) reported Q1 2026 net sales of $3.6 billion, up 6% (organic +1%). GAAP EPS was $0.87 (+43%); adjusted EPS was $0.89 (−3%). Service led growth: Service net sales +11% (organic +5%); repair +16% (organic ~10%). Modernization orders +11% and backlog +32% (30% CFX). New Equipment sales declined, notably in China. Operating cash flow was $413M, adjusted free cash flow $272M, and share repurchases totaled ~$400M. Company reiterated 2026 outlook with adjusted EPS $4.20–4.24 and adjusted operating profit ≈ $2.5B.
Positive
- Service net sales +11% (organic +5%)
- Repair net sales +16% (organic ~10%)
- Modernization backlog +32% (30% constant currency)
- Operating cash flow $413 million
- Adjusted free cash flow $272 million
- Share repurchases of approximately $400 million
Negative
- New Equipment China sales declined >20%
- New Equipment segment operating profit fell $28 million
- New Equipment margin contracted 240 bps to 3.3%
- Shipment delays in New Equipment and modernization due to Middle East geopolitical issues
News Market Reaction – OTIS
On the day this news was published, OTIS declined 0.40%, reflecting a mild negative market reaction. This price movement removed approximately $126M from the company's valuation, bringing the market cap to $31.25B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
OTIS fell 2.3% while peers were mixed: XYL up 1.1%, but IR, ROK, AME, and SYM declined between 1.1% and
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 01 | Earnings call advisory | Neutral | +0.5% | Announcement of Q1 2026 earnings call and outlook discussion timing. |
| Jan 28 | FY 2025 results | Positive | -2.1% | Full year 2025 results with higher adjusted EPS and capital returns. |
| Jan 07 | Earnings call advisory | Neutral | -1.6% | Notice of Q4 and full year 2025 earnings call and 2026 outlook. |
| Oct 29 | Q3 2025 results | Positive | +2.3% | Q3 2025 results with Service growth and raised 2025 guidance. |
| Oct 08 | Earnings call advisory | Neutral | +0.9% | Scheduling of Q3 2025 earnings call and 2025 outlook discussion. |
Earnings-related headlines have often produced modest moves, with one notable selloff on prior full-year results despite generally positive operating trends.
Over the past few quarters, Otis has emphasized steady Service-led growth, rising modernization orders and expanding backlogs. The Q3 2025 results showed higher adjusted EPS and raised guidance, with a positive price reaction. Full-year 2025 results highlighted stable sales and higher adjusted EPS but drew a negative response. Advisory notices around earnings calls have generated only small moves. Today’s Q1 2026 release continues the focus on Service growth, cash flow strength and updated 2026 guidance.
Historical Comparison
In the last five earnings-tagged events, OTIS averaged a -0.02% move. Today’s -2.3% reaction to Q1 2026 results is a materially larger downside move than typical.
Earnings disclosures progressed from Q3 2025 and full-year 2025 results, which stressed Service growth and rising backlogs, to Q1 2026 results that again highlight Service strength but also margin pressure and a revised 2026 outlook.
Regulatory & Risk Context
An effective Form S-3ASR shelf filed on 2026-02-13 allows Otis and its subsidiary Highland Holdings S.à r.l. to issue various securities, including common stock, debt, preferred stock, units and warrants, with specific terms and uses of proceeds to be detailed in future prospectus supplements.
Market Pulse Summary
This announcement details Q1 2026 results with 6% net sales growth driven by Service, but declining adjusted EPS and compressed margins, particularly in New Equipment. Strong operating and adjusted free cash flow supported about $400 million of share repurchases and an updated 2026 outlook. Historically, earnings news has produced modest stock moves. Investors may watch Service margins, New Equipment trends, execution on cost actions, and any future use of the effective S-3 shelf registration.
Key Terms
organic sales financial
operating profit margin financial
adjusted free cash flow financial
segment operating profit financial
backlog financial
basis points financial
AI-generated analysis. Not financial advice.
Otis delivers net sales growth of
- Net sales up
6% and organic sales up1% , driven by Service net sales up11% with organic sales up5% - Repair net sales up
16% with organic repair sales up approximately10% - Modernization orders up
11% at constant currency, backlog up32% ,30% at constant currency - New Equipment orders up
1% at constant currency, backlog up6% ,3% at constant currency - Operating cash flow of
$413 million $272 million - Share repurchases of approximately
$400 million
"Otis delivered a solid quarter, with net sales up
Judy Marks continued, "While underlying demand remains solid as reflected in our order activity, we faced near‑term pressures, reflected in our Service margins, from cost headwinds and investments in growth. We are taking decisive actions focused on operational execution, pricing, and cost efficiency to address these pressures, while continuing our disciplined capital allocation to drive long‑term shareholder value. The combination of our increasing backlog, pricing actions, and disciplined execution give us confidence in growing momentum into the second quarter and remainder of the year."
Key Figures
Quarter Ended March 31, | ||||||||
(dollars in millions, except per share amounts) | 2026 | 2025 | Y/Y | Y/Y (CFX) | ||||
Net sales | $ 3,566 | 6 % | 1 % | |||||
Organic sales growth | 1 % | |||||||
GAAP | ||||||||
Operating profit | $ 539 | $ 411 | $ 128 | |||||
Operating profit margin | 15.1 % | 12.3 % | 280 bps | |||||
Net income | $ 340 | $ 243 | 40 % | |||||
Earnings per share | $ 0.87 | $ 0.61 | 43 % | |||||
Adjusted non-GAAP comparison | ||||||||
Operating profit | $ 550 | $ 560 | $ (10) | $ (38) | ||||
Operating profit margin | 15.4 % | 16.7 % | (130) bps | |||||
Net income | $ 347 | $ 368 | (6) % | |||||
Earnings per share | $ 0.89 | $ 0.92 | (3) % | |||||
First quarter net sales of
First quarter GAAP operating profit of
GAAP EPS of
Service
Quarter Ended March 31, | ||||||||
(dollars in millions) | 2026 | 2025 | Y/Y | Y/Y (CFX) | ||||
Net sales | $ 2,417 | $ 2,187 | 11 % | 6 % | ||||
Organic sales | 5 % | |||||||
Segment operating profit | $ 556 | $ 537 | $ 19 | $ (10) | ||||
Segment operating profit margin | 23.0 % | 24.6 % | (160) bps | |||||
In the first quarter, net sales of
Segment operating profit of
New Equipment
Quarter Ended March 31, | ||||||||
(dollars in millions) | 2026 | 2025 | Y/Y | Y/Y (CFX) | ||||
Net sales | $ 1,149 | $ 1,163 | (1) % | (5) % | ||||
Organic sales | (5) % | |||||||
Segment operating profit | $ 38 | $ 66 | $ (28) | $ (27) | ||||
Segment operating profit margin | 3.3 % | 5.7 % | (240) bps | |||||
In the first quarter, net sales of
Segment operating profit of
New Equipment orders were up
Cash flow
Quarter Ended March 31, | ||||||
(dollars in millions) | 2026 | 2025 | Y/Y | |||
Cash flow from operations | $ 413 | $ 190 | $ 223 | |||
Free cash flow | $ 380 | $ 156 | $ 224 | |||
Adjusted free cash flow | $ 272 | $ 186 | $ 86 | |||
First quarter cash flow changes were driven by an increase in net income and changes in working capital.
2026 Outlook1
Otis is revising our full year outlook:
- Net sales of
$15.1 $15.3 billion - Organic sales up low to mid-single digits
- Organic New Equipment sales down low single digits to flat
- Organic Service sales up mid to high single digits
- Adjusted operating profit of approximately
$2.5 billion $20 $60 million $60 $100 million - Adjusted EPS of
$4.20 $4.24 - Adjusted free cash flow of
$1.60
1 Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, 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, service and modernization company. We move 2.5 billion people a day and maintain approximately 2.5 million customer units worldwide, the industry's largest Service portfolio. Headquartered in
Use and Definitions of Non-GAAP Financial Measures
Otis Worldwide Corporation ("Otis") reports its financial results in accordance with accounting principles generally accepted in
Non-GAAP measure | Definition |
Organic sales | Represents 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") 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, 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 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 |
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 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 expense, 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 or transformation actions (including UpLift and related reorganization and outsourcing activities and such actions with respect to our business in
Otis Worldwide Corporation Condensed Consolidated Statements of Operations | |||||
Quarter Ended March 31, | |||||
(Unaudited) | |||||
(dollars in millions, except per share amounts; shares in millions) | 2026 | 2025 | |||
Net Sales | $ 3,566 | $ 3,350 | |||
Costs and Expenses: | |||||
Cost of products and services sold | 2,484 | 2,349 | |||
Research and development | 38 | 37 | |||
Selling, general and administrative | 510 | 464 | |||
Total Costs and Expenses | 3,032 | 2,850 | |||
Other income (expense), net | 5 | (89) | |||
Operating profit | 539 | 411 | |||
Non-service pension cost (benefit) | — | — | |||
Interest expense (income), net | 59 | 45 | |||
Net income before income taxes | 480 | 366 | |||
Income tax expense (benefit) | 127 | 110 | |||
Net income | 353 | 256 | |||
Less: Noncontrolling interest in subsidiaries' earnings | 13 | 13 | |||
Net income attributable to Otis Worldwide Corporation | $ 340 | $ 243 | |||
Earnings Per Share of Common Stock: | |||||
Basic | $ 0.88 | $ 0.61 | |||
Diluted | $ 0.87 | $ 0.61 | |||
Weighted Average Number of Shares Outstanding: | |||||
Basic shares | 388.1 | 396.6 | |||
Diluted Shares | 389.6 | 399.1 | |||
Otis Worldwide Corporation Reconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin | ||||
Quarter Ended March 31, | ||||
(Unaudited) | ||||
(dollars in millions) | 2026 | 2025 | ||
Net Sales | ||||
New Equipment | $ 1,149 | $ 1,163 | ||
Service | 2,417 | 2,187 | ||
Total Net Sales | $ 3,566 | $ 3,350 | ||
Operating Profit | ||||
New Equipment | $ 38 | $ 66 | ||
Service | 556 | 537 | ||
Total segment operating profit | 594 | 603 | ||
Corporate and Unallocated | (55) | (192) | ||
Total Otis GAAP Operating Profit | 539 | 411 | ||
UpLift restructuring | — | 20 | ||
Other restructuring | 7 | 23 | ||
UpLift transformation costs | — | 23 | ||
Separation-related adjustments 1 | 5 | 52 | ||
Litigation-related settlement costs 2 | — | 21 | ||
Held for sale impairment | — | 10 | ||
Other, net | (1) | — | ||
Total Otis Adjusted Operating Profit | $ 550 | $ 560 | ||
Reported Total Operating Profit Margin | 15.1 % | 12.3 % | ||
Adjusted Total Operating Profit Margin | 15.4 % | 16.7 % | ||
1 Separation-related adjustments in the quarters ended March 31, 2026 and 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 | ||||
2 Litigation-related settlement costs in the quarter ended March 31, 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. |
Otis Worldwide Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate | ||||
Quarter Ended March 31, | ||||
(Unaudited) | ||||
(dollars in millions, except per share amounts) | 2026 | 2025 | ||
Adjusted Operating Profit | $ 550 | $ 560 | ||
Adjusted net interest expense 1 | 59 | 46 | ||
Adjusted income from operations before income taxes | 491 | 514 | ||
Income tax expense (benefit) | 127 | 110 | ||
Tax impact on restructuring and non-recurring items | 4 | 21 | ||
Adjusted net income from operations | 360 | 383 | ||
Adjusted noncontrolling interest 2 | 13 | 15 | ||
Adjusted net income attributable to common shareholders | $ 347 | $ 368 | ||
GAAP net income attributable to common shareholders | $ 340 | $ 243 | ||
UpLift restructuring | — | 20 | ||
Other restructuring | 7 | 23 | ||
UpLift transformation costs | — | 23 | ||
Separation-related adjustments | 5 | 52 | ||
Litigation-related settlement costs | — | 21 | ||
Held for sale impairment | — | 10 | ||
Interest income related to non-recurring tax items 1 | — | (1) | ||
Tax effects of restructuring, non-recurring items and other adjustments | (4) | (21) | ||
Other, net 2 | (1) | (2) | ||
Adjusted net income attributable to common shareholders | $ 347 | $ 368 | ||
Diluted Earnings Per Share | $ 0.87 | $ 0.61 | ||
Impact to diluted earnings per share | 0.02 | 0.31 | ||
Adjusted Earnings Per Share | $ 0.89 | $ 0.92 | ||
Effective Tax Rate | 26.5 % | 30.1 % | ||
Impact of adjustments on effective tax rate | 0.2 % | (4.5) % | ||
Adjusted Effective Tax Rate | 26.7 % | 25.6 % | ||
1 In August 2024, we received a favorable ruling regarding a tax litigation in income were recorded in 2024. Net interest expense is reflected as adjusted without 31, 2025. | ||||
2 Noncontrolling interest is reflected as adjusted without ended March 31, 2025. | ||||
Otis Worldwide Corporation Components of Changes in Net Sales | ||||||||
Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025 | ||||||||
Factors Contributing to Total % Change in Net Sales | ||||||||
Organic | FX Translation | Acquisitions / Divestitures, net and Other | Total | |||||
New Equipment | (5) % | 4 % | — % | (1) % | ||||
Service | 5 % | 5 % | 1 % | 11 % | ||||
Maintenance and Repair | 4 % | 5 % | 2 % | 11 % | ||||
Modernization | 6 % | 3 % | 1 % | 10 % | ||||
Total Net Sales | 1 % | 5 % | — % | 6 % | ||||
Components of Changes in New Equipment Backlog | ||||||||
March 31, 2026 | ||||||||
Y/Y Growth % | ||||||||
New Equipment Backlog increase at actual currency | 6 % | |||||||
Foreign exchange impact to New Equipment Backlog | (3) % | |||||||
New Equipment Backlog increase at constant currency | 3 % | |||||||
Components of Changes in Modernization Backlog | ||||||||
March 31, 2026 | ||||||||
Y/Y Growth % | ||||||||
Modernization Backlog increase at actual currency | 32 % | |||||||
Foreign exchange impact to Modernization Backlog | (2) % | |||||||
Modernization Backlog increase at constant currency | 30 % | |||||||
Otis Worldwide Corporation Reconciliation of Segment and Total Adjusted Operating Profit at Constant Currency | ||||||
Quarter Ended March 31, 2026 Compared with Quarter Ended March 31, 2025 | ||||||
(dollars in millions) | 2026 | 2025 | Y/Y | |||
New Equipment | ||||||
Segment Operating Profit | $ 38 | $ 66 | $ (28) | |||
Impact of foreign exchange | 1 | — | 1 | |||
Segment Operating Profit at constant currency | $ 39 | $ 66 | $ (27) | |||
Service | ||||||
Segment Operating Profit | $ 556 | $ 537 | $ 19 | |||
Impact of foreign exchange | (29) | — | (29) | |||
Segment Operating Profit at constant currency | $ 527 | $ 537 | $ (10) | |||
Otis Consolidated | ||||||
Adjusted Operating Profit | $ 550 | $ 560 | $ (10) | |||
Impact of foreign exchange | (28) | — | (28) | |||
Adjusted Operating Profit at constant currency | $ 522 | $ 560 | $ (38) | |||
Otis Worldwide Corporation Condensed Consolidated Balance Sheet | ||||
March 31, 2026 | December 31, 2025 | |||
(dollars in millions) | (Unaudited) | |||
Assets | ||||
Cash and cash equivalents | $ 834 | $ 1,096 | ||
Accounts receivable, net | 3,920 | 3,688 | ||
Contract assets | 751 | 699 | ||
Inventories | 669 | 613 | ||
Other current assets | 290 | 405 | ||
Total Current Assets | 6,464 | 6,501 | ||
Future income tax benefits | 400 | 407 | ||
Fixed assets, net | 744 | 743 | ||
Operating lease right-of-use assets | 552 | 554 | ||
Intangible assets, net | 333 | 343 | ||
Goodwill | 1,682 | 1,695 | ||
Other assets | 367 | 410 | ||
Total Assets | $ 10,542 | $ 10,653 | ||
Liabilities and Equity (Deficit) | ||||
Short-term borrowings and current portion of long-term debt | $ 939 | $ 1,056 | ||
Accounts payable | 1,975 | 2,142 | ||
Accrued liabilities | 1,710 | 1,847 | ||
Contract liabilities | 3,100 | 2,611 | ||
Total Current Liabilities | 7,724 | 7,656 | ||
Long-term debt | 6,879 | 6,900 | ||
Future pension and postretirement benefit obligations | 416 | 419 | ||
Operating lease liabilities | 400 | 397 | ||
Future income tax obligations | 225 | 223 | ||
Other long-term liabilities | 333 | 329 | ||
Total Liabilities | 15,977 | 15,924 | ||
Redeemable noncontrolling interest | 74 | 75 | ||
Shareholders' Equity (Deficit): | ||||
Common Stock and additional paid-in capital | 332 | 333 | ||
Treasury Stock | (4,601) | (4,198) | ||
Accumulated deficit | (378) | (440) | ||
Accumulated other comprehensive income (loss) | (1,033) | (1,087) | ||
Total Shareholders' Equity (Deficit) | (5,680) | (5,392) | ||
Noncontrolling interest | 171 | 46 | ||
Total Equity (Deficit) | (5,509) | (5,346) | ||
Total Liabilities and Equity (Deficit) | $ 10,542 | $ 10,653 | ||
Otis Worldwide Corporation Condensed Consolidated Statement of Cash Flows | ||||
Quarter Ended March 31, | ||||
(Unaudited) | ||||
(dollars in millions) | 2026 | 2025 | ||
Operating Activities: | ||||
Net income from operations | $ 353 | $ 256 | ||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||
Depreciation and amortization | 41 | 42 | ||
Deferred income tax expense (benefit) | 4 | — | ||
Stock compensation cost | 19 | 21 | ||
Change in: | ||||
Accounts receivable, net | (229) | (104) | ||
Contract assets and liabilities, current | 432 | 260 | ||
Inventories | (58) | (18) | ||
Other current assets | 137 | (2) | ||
Accounts payable | (176) | (281) | ||
Accrued liabilities | (117) | 12 | ||
Pension contributions | (11) | (18) | ||
Other operating activities, net | 18 | 22 | ||
Net cash flows provided by (used in) operating activities | 413 | 190 | ||
Investing Activities: | ||||
Capital expenditures | (33) | (34) | ||
Acquisitions of businesses and intangible assets, net of cash | (3) | (36) | ||
Other investing activities, net | 51 | (91) | ||
Net cash flows provided by (used in) investing activities | 15 | (161) | ||
Financing Activities: | ||||
Increase (decrease) in short-term borrowings, net | 29 | (11) | ||
Repayment of long-term debt | (135) | — | ||
Dividends paid on Common Stock | (163) | (155) | ||
Repurchases of Common Stock | (400) | (253) | ||
Dividends paid to noncontrolling interest | (3) | (2) | ||
Acquisition of noncontrolling interest shares | (10) | — | ||
Other financing activities, net | (12) | (7) | ||
Net cash flows provided by (used in) financing activities | (694) | (428) | ||
Summary of Activity: | ||||
Net cash provided by (used in) operating activities | 413 | 190 | ||
Net cash provided by (used in) investing activities | 15 | (161) | ||
Net cash provided by (used in) financing activities | (694) | (428) | ||
Effect of exchange rate changes on cash and cash equivalents | 5 | 7 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (261) | (392) | ||
Cash, cash equivalents and restricted cash, beginning of period | 1,105 | 2,321 | ||
Cash, cash equivalents and restricted cash, end of period | 844 | 1,929 | ||
Less: Restricted cash | 10 | 11 | ||
Cash and cash equivalents, end of period | $ 834 | $ 1,918 | ||
Otis Worldwide Corporation Adjusted Free Cash Flow Reconciliation | ||||
Quarter Ended March 31, | ||||
(Unaudited) | ||||
(dollars in millions) | 2026 | 2025 | ||
Net cash flows provided by operating activities (GAAP) | $ 413 | $ 190 | ||
Capital expenditures | (33) | (34) | ||
Free cash flow (Non-GAAP) | 380 | 156 | ||
Adjustments for: | ||||
UpLift restructuring payments | 8 | 11 | ||
UpLift transformation payments | 4 | 19 | ||
Separation-related payments 1 | 6 | — | ||
German Tax Litigation refunds 2 | (126) | — | ||
Adjusted free cash flow (Non-GAAP) | $ 272 | $ 186 | ||
1 These represent payments to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement. | ||||
2 In August 2024, we received a favorable ruling regarding a tax litigation in receive refunds and anticipates the refund process to continue through 2026. | ||||
Media Contact: | Investor Relations Contact: |
Katy Padgett | Rob Quartaro |
+1-860-674-3047 | +1-860-676-6011 |
View original content:https://www.prnewswire.com/news-releases/otis-reports-first-quarter-2026-results-302750146.html
SOURCE Otis Worldwide Corporation