Otis reported fourth quarter 2025 earnings per share of $1.03, narrowly below the consensus estimate of $1.04 and up from $0.93 in the year-ago period. Revenues for the quarter reached $3.8 billion, marking a 3.3% increase year-over-year but falling short of the $3.89 billion forecast by approximately 2.7%. Service revenues grew by high single digits, driven by strong maintenance renewals in North America and Asia-Pacific, while new equipment orders declined modestly due to delayed project starts in Europe.

Management issued a positive outlook for fiscal 2026, forecasting organic sales growth in the low to mid-single digits and adjusted EPS growth in the mid to high single digits. The company expects service revenue growth to contribute over half of total sales gains, supported by a pipeline of modernization orders that rose 12% in December. Capital expenditures are projected at $650 million for the year, with a focus on digitalization initiatives and capacity expansion in emerging markets.

At quarter end, Otis reported a price-to-earnings ratio of 25.4 and a price-to-sales ratio of 2.4, reflecting market confidence in its recurring service model. Enterprise value relative to sales stood at 2.94, and the company’s debt-to-equity ratio was negative 1.57, indicating net cash on the balance sheet. Free cash flow for the full year 2025 totaled $1.1 billion, up 8% from the prior year, enabling a dividend payout ratio of approximately 45% of adjusted net income.