Otis Reports Strong Service Growth Amid Second Quarter Sales of $3.9 Billion

Chair and CEO Judy Marks attributed the results to strategic investments in service quality and digital technology. The service segment emerged as a primary growth engine, with organic sales climbing 9%. Modernization orders rose 9%, while the modernization backlog surged 24%, signaling strong demand for reliability and upgrades across the company's aging installed base of 2.5 million units.

While service performance remained a bright spot, the New Equipment segment faced a more challenging landscape, with sales remaining flat. Regional volatility played a significant role, as high-teens declines in China and mid-single-digit drops in EMEA were offset by 10% organic growth in the Americas. Despite these mixed results, Otis maintained a solid liquidity position, generating $290 million in adjusted free cash flow and returning approximately $400 million to shareholders through stock repurchases during the quarter.

Looking ahead, the company has revised its full-year 2026 outlook, projecting net sales between $15.1 billion and $15.3 billion. Management remains focused on front-line operating excellence and pricing initiatives to navigate global economic pressures. With a total workforce of 72,000, the firm continues to prioritize its service-led model as the core driver for long-term value creation.