Otis
Otis (OTIS) is a leading global manufacturer and servicer of elevators, escalators and moving walkways. Born from a long industry history and spun out from United Technologies in 2020, the company combines equipment sales with a large, recurring-service business that can provide steady cash flow. Investors should know Otis benefits from urbanisation, building renovations and rising demand for modernisation in both developed and emerging markets, but its new-equipment revenues can be cyclical and linked to construction activity. The business model’s strengths include a vast installed base, long-term service contracts and high after‑sales margins; risks include exposure to construction cycles, installation disruptions, raw-material and labour costs, and regulatory or safety issues. Market capitalisation sits around $36.38 billion. This summary is for general information and education only, not personal investment advice; values can rise and fall and past performance is not a guide to the future. Consider suitability for your circumstances or seek independent advice.
Why It's Moving
Otis Worldwide dips amid institutional selling despite robust service growth and contract wins.
Otis shares opened lower at $87.37, reflecting sales by investors like Bank Pictet and Brookstone Capital, even as the company showcases strength in its high-margin service segment. Service revenues surged 9% organically with margin expansion, bolstering full-year EPS guidance amid new equipment challenges.
- Service net sales climbed 9% (organic +6%), driving 70 bps margin expansion to 25.5%, highlighting recurring revenue resilience in urban markets.
- Q3 revenue hit $3.69B, beating estimates by $40M, with adjusted EPS of $1.05 up 9% Y/Y and raised 2025 EPS midpoint signaling operational momentum.
- Secured major deals like 169 high-speed elevators in India and 265 Gen2 Prime units in Egypt, underscoring demand for premium installations in luxury residential projects.
Otis Worldwide dips amid institutional selling despite robust service growth and contract wins.
Otis shares opened lower at $87.37, reflecting sales by investors like Bank Pictet and Brookstone Capital, even as the company showcases strength in its high-margin service segment. Service revenues surged 9% organically with margin expansion, bolstering full-year EPS guidance amid new equipment challenges.
- Service net sales climbed 9% (organic +6%), driving 70 bps margin expansion to 25.5%, highlighting recurring revenue resilience in urban markets.
- Q3 revenue hit $3.69B, beating estimates by $40M, with adjusted EPS of $1.05 up 9% Y/Y and raised 2025 EPS midpoint signaling operational momentum.
- Secured major deals like 169 high-speed elevators in India and 265 Gen2 Prime units in Egypt, underscoring demand for premium installations in luxury residential projects.
Stock Performance Snapshot
Analyst Rating
Analysts suggest holding Otis's stock with a target price of $97.33, indicating modest growth potential.
Financial Health
Otis is earning strong revenues and cash flow, indicating good financial stability and growth potential.
Dividend
Otis's dividend yield of 1.76% indicates a modest return for dividend-seeking investors. If you invested $1000 you would be paid $17.60 a year in dividends (based on the last 12 months).
View more stocks by downloading the app for FREE
It only takes 60 seconds.
Baskets Featuring OTIS
Century Club
These companies have stood the test of time for over 100 years. Carefully selected by our analysts, this collection showcases businesses with proven resilience, established market positions, and the ability to deliver returns across multiple economic cycles.
Published: June 17, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Service-driven growth
Recurring maintenance contracts can provide steady revenue and margins, though overall performance may be affected by economic cycles.
Global footprint
A large installed base across regions supports aftermarket services and expansion, but regional construction slowdowns can weigh on sales.
Product modernisation
Demand for modern, energy-efficient lifts and digital services offers opportunities, balanced by competition and regulatory safety standards.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Opportunities
Ametek Inc.
Ametek is a leading global manufacturer of electronic instruments and electromechanical devices with operations in the United States and across the world.
Applied Industrial Technologies Inc
Distributes industrial and mechanical products to industrial customers in North America.
AO Smith Corp.
AO Smith Corp. is a global manufacturer of water heaters and boilers for residential and commercial applications.
