Otis (OTIS) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 10:15 AM CDT 47 min read

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April 22, 2026, 8:30 a.m. ET

• Chair, Chief Executive Officer, and President — Judith Marks

• Executive Vice President and Chief Financial Officer — Cristina Mendez

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Judith Marks: Thank you, Rob. Good morning, day and evening, everyone. Thank you for joining us. We anticipation everyone listening is harmless and well. Starting connected Slide 3. Otis delivered a coagulated commencement to the twelvemonth successful orders and income with continued request momentum that provides visibility for aboriginal growth, particularly successful our Service segment. Total integrated income accrued 1% successful the 4th driven by integrated work maturation of 5%, with broad-based spot crossed each work lines of business. Maintenance and repair income accrued 4% driven by an acceleration of integrated repair sales, which accrued astir 10%. In modernization, we proceed to spot beardown request with orders up 11% successful the 4th and the backlog up 30% astatine changeless currency.

This backlog provides improved visibility into the aboriginal and supports our presumption of modernization arsenic a durable multiyear accidental arsenic the planetary installed basal continues to age. In caller equipment, marketplace conditions stay mixed, but we spot encouraging signs of stabilization. Orders accrued 1% astatine changeless currency and 5% excluding China. Backlog accrued 3% year-over-year astatine changeless currency and was up 11%, excluding China, giving america bully momentum for the remainder of 2026 and beyond. While China continues to measurement connected results, request crossed the remainder of the satellite remains positive, particularly successful the Americas, wherever orders grew much than 20% successful the 4th for the seventh consecutive 4th of orders growth.

Otis delivered different 4th of beardown currency travel show with adjusted escaped currency travel of astir $272 million, up 46% versus the anterior year. This reflects a ramp-up successful orders, improved moving superior absorption and continued absorption connected currency conversion. Yesterday, we announced a 5% summation to our quarterly dividend. Since spin, our dividend has accrued by astir 120% accordant with our disciplined attack to superior allocation and our committedness to returning currency to shareholders. During the quarter, we opportunistically completed astir $400 cardinal of stock repurchases reflecting our ongoing attack to superior deployment portion maintaining flexibility to put successful the concern and enactment semipermanent worth creation.

We precocious announced the bulk concern and we support a integer and AI-enabled elevator work provider. We expect this transaction to lend incremental maturation arsenic we support offers a compelling connected solution with a complement to Otis ONE for a multi-branded portfolio base. We're excited to invited and enactment the -- we support squad and integrated ecosystem and look guardant to the semipermanent worth instauration opportunity. We're continuing to physique our services capableness to thrust maturation and margin. We volition proceed to put successful tract and income resources to enactment the work business. Lastly, we precocious announced 2 caller innovation offerings. The archetypal is Otis robust, a scope of heavy-duty elevators designed for information centers and different mission-critical environments.