Building Systems & Vertical Transportation Equipment Manufacturing
Strategic Profile
The company operates through two segments, New Equipment and Service, with the service segment driving profitability and recurring revenue. The company's modernization backlog increased by 30% at constant currency, reaching its highest level since the spin-off. Subscription revenue from Otis ONE units surged 35% in 2025, demonstrating successful digital platform adoption and recurring revenue expansion.
Cyborg Score Rationale
Otis anticipates mid- to high single-digit EPS growth in 2026, supported by a stable global market and robust service segment growth. The company demonstrates strong cash generation and service dominance, but faces headwinds in new equipment sales particularly in China. Otis Worldwide has underperformed the broader market over the past year, but analysts are moderately optimistic about the stock's prospects, with underperformance due to weak new equipment sales, especially in China and the Americas.
Top Insights
Modernization orders jumped 43% and backlog rose 30%, signaling strong replacement and upgrade demand
New Equipment net sales declined 7% in 2025 with a greater than 20% drop in China due to lower volume, unfavorable pricing, tariffs, and mix
Company achieved record adjusted free cash flow of $817 million in Q4 2025 with modernization backlog at highest level since spin-off
Institutional ownership stands at 89.06%, reflecting strong confidence from large investors
Named Competitors
Kone — Finnish elevator and escalator manufacturer with strong service presence
Schindler — Swiss elevator and escalator company with global operations
TK Elevator — German elevator and escalator manufacturer serving global markets
Recent Developments
(January 2026) Reported full-year 2025 net sales of $14.4 billion with flat organic growth and adjusted EPS growth of 6% to $4.05
(January 2026) Announced 2026 outlook for mid-to-high single-digit organic growth and free cash flow guidance of $1.6-$1.7 billion
(December 2025) Modernization backlog increased 30% at constant currency to highest level since company spin-off
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