EX-99 2 a2024-09x308xkerexhibit99.htm EX-99 Document

附件99

奥的斯公布2024年第三季度业绩报告

奥的斯持续提供高单位数服务销售增长的优秀表现

•根据通用会计准则（GAAP），每股收益上涨47.3％，调整后的每股收益上涨1.1％。
•服务净销售增加了7.2％，服务有机销售增长了7.7％
•维护组合单位增加了4.2%
•Mod订单增加3％，积压增加14％，在固定货币下增长12％
•运营活动的GAAP现金流为39400万美元；调整后的自由现金流为38100万美元
•购回20000万美元的股份
•本年截至目前的基本每股收益(GAAP EPS)上升24.2%，调整后每股收益(YTD adjusted EPS) 上升8.2%，股票回购金额为8,0000万美元
•更新的全年展望1: 调整后的每股收益约为3.85美元，服务有机销售增长约为6.5％，服务利润扩大约75个基点

2024年10月30日，奥的斯全球公司（纽交所:OTIS）公布2024年第三季度净销售额达35亿美元，有机销售增长1.2％。根据一般公认会计原则，每股收益（EPS）增长47.3％，至1.34美元，调整后每股收益增长1.1％，达0.96美元。

奥的斯在第三季度重新实现了营收增长，展现出我们以服务为导向的业务模式的实力。现代化有机销售加快至中十几个百分点，我们的投资组合连续第八个季度增长超过4%，Judy Marks，主席，CEO和总裁说。"在本年度的余下时间里，我们将继续致力于提高生产力，以抵消我们在新设备方面所面临的持续逆风，而服务业绩则继续保持稳定的全球增长轨道，得益于持续增长的投资组合，并得到坚实的现代化积压支持。我们在执行以客户为中心的策略时，预计将在2024年完成另一年的稳健EPS增长。

关键数据
（单位：百万美元，除每股数据外）截至九月三十日的季度截至9月30日的九个月
20242023同比增长年度同比（CFX）20242023同比增长年度同比（CFX）
净销售额$3,548$3,5230.7 %1.5 %$10,586$10,589— %1.4 %
有机销售增长1.2 %1.2 %
GAAP
营业利润$363$571$(208)$1,477$1,664$(187)
营业利润率10.2 %16.2 %(600) 基点14.0 %15.7 %(170) 个基点
净利润$540$37643.6 %$1,308$1,08320.8 %
每股收益$1.34$0.9147.3 %$3.23$2.6024.2 %
调整后的非GAAP比较
营业利润$599$595$4$8 $1,773$1,703$70$96 
营业利润率16.9 %16.9 %0 bps16.7 %16.1 %60个基点
净利润$385$395(2.5)%$1,174$1,1135.5 %
每股收益$0.96$0.951.1 %$2.90$2.688.2 %

第三季度净销售额达35亿美元，较去年同期增长0.7%，主要驱动力来自服务业。



第三季度的GAAP营业利润为36300万美元，主要受非经常性税项相关调整的影响，较去年减少20800万美元。汇率调整后，调整后营业利润为59900万美元，实际货币下增加400万美元，恒定货币下增加800万美元，主要受服务业驱动。GAAP营业利润率下降了600个基点，至10.2％，而调整后的营业利润率为16.9％，与去年持平，受有利的部门组合影响，新设备部门表现及企业成本的不利影响。

根据以前的比较，每股收益为1.34美元的GAAP增加了47.3％，主要是由于非常常见的税收利益和相关的利息收入。由于出色的营运表现和较少的分享数，每股收益为0.96美元的调整后每股收益增加了1.1％。


新设备
截至九月三十日的季度截至9月30日的九个月
（百万美元）20242023同比增长年度比较（CFX）20242023同比增长年度比较（CFX）
净销售额$1,309$1,435(8.8)%(8.1)%$4,010$4,346(7.7)%(6.2)%
有机销售(8.2)%(6.3)%
部门营业利润$84$104$(20)$(20)$265$292$(27)$(20)
部门营业利润率6.4 %7.2 %(80) 个基点6.6 %6.7 %(10)个基点

在第三季度，总销售额达13亿美元，较去年同期下降8.8%，亚太和美洲地区的单位增长接近于零的有机销售增长部分被中国超过20%的下降所抵销。欧洲、中东和非洲地区的有机销售大致持平。

在实际和恒常货币下，成交量较低和不利混合影响，使$8400万的部门营业利润减少$2000万，部分抵销价格、生产力和商品的正面影响。部门营业利润率收缩80个基点至6.4%。

新设备订单在稳定汇率下下降了3%，美洲增长超过20%，亚太地区增长高位数-digit，这一增长被欧洲、中东和非洲地区的高位数-digit下降和中国超过20%的下降所抵销。新设备积压订单在实际货币下降了1%，而在稳定汇率下下降了3%。

服务
截至九月三十日的季度截至9月30日的九个月
（百万美元）20242023同比增长年增利润(现金流)20242023同比增长年增利润(现金流)
净销售额$2,239$2,0887.2 %8.0 %$6,576$6,2435.3 %6.6 %
有机销售7.7 %6.4 %
分割营业利润$555$518$37$40$1,616$1,496$120$138
分割营业利润率24.8 %24.8 %0 bps24.6 %24.0 %60个基点

在第三季度，净销售额达到22亿美元，增加了7.2％，有机销售增长了7.7％。有机维护和维修销售增长了6.4％，有机现代化销售增长了13.7％。



分部营业利润为55500万美元，在实际货币下增加了3700万美元，在固定货币下增加了4000万美元，原因是成交量增加、有利的价格和生产力提高，部分抵消了年度工资通胀。分部营业利润率为24.8%，与前一年强劲第三季度的利润率扩张持平。

现金流量

截至九月三十日的季度截至9月30日的九个月
（百万美元）20242023同比增长20242023同比增长
营运现金流$394 $306 $88$873 $1,030 $(157)
自由现金流$362 $272 $90$786 $934 $(148)
自由现金流$381 $274 $107$889 $961 $(72)

第三季度现金流动变化主要是由于净利润增加，部分抵销了营运资本的变化。


2024年展望1
奥的斯正在修订其全年展望：
•约142亿美元的净销售额
•有机销售额增长约1.5%
◦有机新设备销量下降中至高个位数
◦有机服务销售增长约6.5%
•营业利润调整为约23.75亿美元，在固定货币下增加约14000万美元；在实际货币下增加约10500万美元
•调整后每股收益约为3.85美元，上升约9％；调整后有效税率约为25.0％
•调整后的自由现金流约为14到15亿美元

1备注：当我们基于前瞻性提供有机销售展望、调整后营业利润、调整后有效税率和调整后自由现金流时，一般而言非盈利性预期与相应的GAAP措施之间的差异调和工作将是不合理的。有关更多信息，请参阅下方的“非盈利性财务指标的使用和定义”。.

关于奥第斯
奥的斯是全球领先的电梯和扶手梯制造、安装和服务公司。每天我们运送23亿人次，并在全球维护约230万个客户装置，是该行业最大的维护组合。总部设于美国康涅狄格州，奥的斯拥有71,000名员工。 42,000名现场专业人员的奥的斯团队坚持不懈地满足全球200多个国家和地区客户和乘客的多样化需求。 获得更多资讯，请访问www.otis.com，并在LinkedIn、Instagram和Facebook上关注我们@OtisElevatorCo。



Use and Definitions of Non-GAAP Financial Measures

Otis Worldwide Corporation (“Otis”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Below are our non-GAAP financial measures:

Non-GAAP measureDefinition
Organic salesRepresents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a non-recurring and/or nonoperational nature ("other significant items"). Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Adjusted selling, general and administrative (“SG&A”) expenseRepresents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items.
Adjusted operating profitRepresents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.
Adjusted net interest expense
Represents net interest expense (a GAAP measure), adjusted for the impacts of non-recurring acquisition related financing costs and related net interest expense pending the completion of a transaction and other significant items.
Adjusted noncontrolling interest in earnings
Represents noncontrolling interest in earnings (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.
Adjusted net income
Represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.
Adjusted earnings per share (“EPS”)
Represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of restructuring and other significant items, including related tax effects.
Adjusted effective tax rate
Represents the effective tax rate (a GAAP measure) adjusted for other significant items and the tax impact of restructuring costs and other significant items.


Constant currencyGAAP financial results include the impact of changes in foreign currency exchange rates ("AFX"). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Free cash flow
Represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis’ ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.
Adjusted free cash flowRepresents cash flow from operations (a GAAP measure) less capital expenditures, adjusted to exclude certain items management believes affect the comparability of operating results. Management believes adjusted free cash flow is a useful measure of liquidity that provides investors additional information regarding the Company’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Management believes that organic sales, adjusted SG&A, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

When we provide our expectations for adjusted net sales, organic sales, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted effective tax rate, adjusted EPS, free cash flow and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.


Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for Otis’ future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “medium-term,” “near-term,” “confident,” "goals" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research & development spend, restructuring actions (including UpLift), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain environmental, social and governance targets or goals, including operational impacts and costs associated therewith, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues, natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis’ customers and suppliers; (2) the effect of changes in political conditions in the U.S., including in connection with the results of the 2024 elections or otherwise, and other countries in which Otis and its businesses operate, including the effects of the ongoing conflict between Russia and Ukraine, the conflicts in the Middle East, and tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions and export controls, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis’ capital structure; (6) the timing and scope of future repurchases of Otis’ common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) fluctuations in prices and delays and disruption in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (8) cost reduction or containment actions, restructuring costs and related savings and other consequences thereof, including with respect to UpLift; (9) new business and investment opportunities; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes and labor inflation in the markets in which Otis and its businesses operate globally; (13) the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S., including in connection with the results of the 2024 election, and other countries in which Otis and its businesses operate; (14) the ability of Otis to retain and hire key personnel; (15)


the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the “Separation”) of Otis and Carrier Global Corporation ("Carrier") from United Technologies Corporation (now known as RTX Corporation (“RTX”); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis’ registration statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.



Otis Worldwide Corporation
Condensed Consolidated Statements of Operations

Quarter Ended September 30,
Nine Months Ended September 30,
(Unaudited)(Unaudited)
(amounts in millions, except per share amounts)2024202320242023
Net Sales$3,548 $3,523 $10,586 $10,589 
Costs and Expenses:
Cost of products and services sold2,470 2,477 7,401 7,464 
Research and development40 36 115 107 
Selling, general and administrative455 452 1,366 1,386 
Total Costs and Expenses2,965 2,965 8,882 8,957 
Other income (expense), net(220)13 (227)32 
Operating profit363 571 1,477 1,664 
Non-service pension cost (benefit)1 — — 1 
Interest expense (income), net(150)39 (79)109 
Net income before income taxes512 532 1,556 1,554 
Income tax expense (benefit)(45)137 175 400 
Net income557 395 1,381 1,154 
Less: Noncontrolling interest in subsidiaries' earnings17 19 73 71 
Net income attributable to Otis Worldwide Corporation$540 $376 $1,308 $1,083 
Earnings Per Share of Common Stock:
Basic$1.35 $0.92 $3.25 $2.62 
Diluted$1.34 $0.91 $3.23 $2.60 
Weighted Average Number of Shares Outstanding:
Basic shares400.2 410.8 402.7 412.6 
Diluted Shares402.7 413.7 405.4 415.8 





Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin

Quarter Ended September 30,
Nine Months Ended September 30,
(Unaudited)(Unaudited)
(dollars in millions)202420232024
2023
Net Sales
New Equipment$1,309 $1,435 $4,010 $4,346 
Service2,239 2,088 6,576 6,243 
Total Net Sales$3,548 $3,523 $10,586 $10,589 
Operating Profit
New Equipment$84 $104 $265 $292 
Service555 518 1,616 1,496 
Total segment operating profit639 622 1,881 1,788 
Corporate and Unallocated(276)(51)(404)(124)
Total Otis GAAP Operating Profit363 571 1,477 1,664 
UpLift restructuring4 — 11 — 
Other restructuring5 21 29 36 
UpLift transformation costs18 4 45 4 
Separation-related adjustments 1
193 — 177 — 
Litigation and settlement costs 2
— — 18 — 
Held for sale impairment18 — 18 — 
Other, net(2)(1)(2)(1)
Total Otis Adjusted Operating Profit$599 $595 $1,773 $1,703 
Reported Total Operating Profit Margin10.2 %16.2 %14.0 %15.7 %
Adjusted Total Operating Profit Margin16.9 %16.9 %16.7 %16.1 %

1 Separation-related adjustments in the quarter and nine months ended September 30, 2024 represent amounts due to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement, including those amounts related to a favorable ruling received in August 2024 regarding a tax litigation in Germany.

2 Litigation-related settlement costs in the nine months ended September 30, 2024 represent the aggregate amount of settlement costs and increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business due to the size, complexity and unique facts of these matters.

Otis discloses segment operating profit as its measure of segment performance, reconciled to total Otis operating profit. Segment operating profit exclude certain expenses and income that are not allocated to segments (as described above as "Corporate and Unallocated").

Effective in the first quarter of 2024, the measure of segment performance used by Otis' Chief Operating Decision Maker ("CODM") changed and, as a result, Otis' disclosed measure of segment performance (segment operating profit) was updated. The change to segment operating profit aligns with the update to how the CODM assesses performance and allocates resources for the Company's segments, and therefore is our measure of segment profitability.

As a result of the change, restructuring costs and other items not allocated to the operating segments are presented as part of Corporate and Unallocated. The financial information presented herein reflects the impact of the measure of segment performance change for all periods presented.




Otis Worldwide Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate

Quarter Ended September 30,
Nine Months Ended September 30,
(Unaudited)(Unaudited)
(dollars in millions, except per share amounts)2024
2023
2024
2023
Adjusted Operating Profit$599$595$1,773$1,703
Non-service pension cost (benefit)1——1
Adjusted net interest expense 1, 2
5139143109
Adjusted income from operations before income taxes5475561,6301,593
Income tax expense (benefit)(45)137175400
Tax impact on restructuring and non-recurring items55249
Non-recurring tax items 1, 2
185—195—
Adjusted net income from operations 4024141,2361,184
Adjusted noncontrolling interest 1
17196271
Adjusted net income attributable to common shareholders$385$395$1,174$1,113
GAAP net income attributable to common shareholders$540 $376 $1,308 $1,083 
UpLift restructuring4 — 11 — 
Other restructuring5 21 29 36 
UpLift transformation costs18 4 45 4 
Separation-related adjustments193 — 177 — 
Litigation-related settlement costs— — 18 — 
Held for sale impairment18 — 18 — 
Interest income related to non-recurring tax items 1, 2
(200)— (210)— 
Tax effects of restructuring, non-recurring items and other adjustments(5)(5)(24)(9)
Non-recurring tax items 1, 2
(185)— (195)— 
Other, net(3)(1)(3)(1)
Adjusted net income attributable to common shareholders$385$395$1,174$1,113
Diluted Earnings Per Share$1.34 $0.91 $3.23 $2.60 
Impact to diluted earnings per share(0.38)0.04 (0.33)0.08 
Adjusted Earnings Per Share$0.96 $0.95 $2.90 $2.68 
Effective Tax Rate(8.8)%25.8 %11.2 %25.7 %
Impact of adjustments on effective tax rate35.5 %(0.3)%13.0 %— %
Adjusted Effective Tax Rate26.7 %25.5 %24.2 %25.7 %

1 Certain tax reserves were adjusted in the second quarter of 2024. As a result, Net interest expense and Noncontrolling interest are reflected as adjusted without $21 million of interest income and $11 million of the noncontrolling interest share of the reserves adjustments, respectively, for the nine months ended September 30, 2024.

2 In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest income were recorded in the third quarter of 2024. Net interest expense is reflected as adjusted without $200 million of interest income for the quarter and nine months ended September 30, 2024.



Otis Worldwide Corporation
Components of Changes in Net Sales

Quarter Ended September 30, 2024 Compared with Quarter Ended September 30, 2023
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net and Other		Total
New Equipment(8.2)%(0.7)%0.1%(8.8)%
Service7.7%(0.8)%0.3%7.2%
Maintenance and Repair6.4%(0.7)%0.4%6.1%
Modernization13.7%(1.1)%—%12.6%
Total Net Sales1.2%(0.8)%0.3%0.7%
Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023
Factors Contributing to Total % Change in Net Sales
OrganicFX
Translation		Acquisitions /
Divestitures, net and Other		Total
New Equipment(6.3)%(1.5)%0.1%(7.7)%
Service6.4%(1.3)%0.2%5.3%
Maintenance and Repair5.7%(1.3)%0.3%4.7%
Modernization9.7%(1.8)%0.1%8.0%
Total Net Sales1.2%(1.4)%0.2%—%


Components of Changes in New Equipment Backlog
September 30, 2024
Y/Y Growth %
New Equipment Backlog increase at actual currency(1)%
Foreign exchange impact to New Equipment Backlog(2)%
New Equipment Backlog increase at constant currency(3)%


Components of Changes in Modernization Backlog
September 30, 2024
Y/Y Growth %
Modernization Backlog increase at actual currency14%
Foreign exchange impact to Modernization Backlog(2)%
Modernization Backlog increase at constant currency12%



Otis Worldwide Corporation
Reconciliation of Segment and Total Adjusted Operating Profit at Constant Currency

Quarter Ended September 30, 2024 Compared with Quarter Ended September 30, 2023
(dollars in millions)2024
2023
Y/Y
New Equipment
Segment Operating Profit$84 $104 $(20)
Impact of foreign exchange— — — 
Segment Operating Profit at constant currency$84 $104 $(20)
Service
Segment Operating Profit$555 $518 $37 
Impact of foreign exchange3 — 3 
Segment Operating Profit at constant currency$558 $518 $40 
Otis Consolidated
Adjusted Operating Profit$599 $595 $4 
Impact of foreign exchange4 — 4 
Adjusted Operating Profit at constant currency$603 $595 $8 
Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023
(dollars in millions)20242023Y/Y
New Equipment
Segment Operating Profit$265 $292 $(27)
Impact of foreign exchange7 — 7 
Segment Operating Profit at constant currency$272 $292 $(20)
Service
Segment Operating Profit$1,616 $1,496 $120 
Impact of foreign exchange18 — 18 
Segment Operating Profit at constant currency$1,634 $1,496 $138 
Otis Consolidated
Adjusted Operating Profit$1,773 $1,703 $70 
Impact of foreign exchange26 — 26 
Adjusted Operating Profit at constant currency$1,799 $1,703 $96 



Otis Worldwide Corporation
Condensed Consolidated Balance Sheet

September 30, 2024December 31, 2023
(amounts in millions)(Unaudited)
Assets
Cash and cash equivalents$827 $1,274 
Accounts receivable, net 3,604 3,538 
Contract assets776 717 
Inventories625 612 
Other current assets663 259 
Total Current Assets6,495 6,400 
Future income tax benefits315 323 
Fixed assets, net721 727 
Operating lease right-of-use assets409 416 
Intangible assets, net330 335 
Goodwill1,630 1,588 
Other assets361 328 
Total Assets$10,261 $10,117 
Liabilities and Equity (Deficit)
Short-term borrowings and current portion of long-term debt$1,667 $32 
Accounts payable1,779 1,878 
Accrued liabilities1,864 1,873 
Contract liabilities2,787 2,696 
Total Current Liabilities8,097 6,479 
Long-term debt5,596 6,866 
Future pension and postretirement benefit obligations462 462 
Operating lease liabilities286 292 
Future income tax obligations 215 245 
Other long-term liabilities385 493 
Total Liabilities15,041 14,837 
Redeemable noncontrolling interest55 135 
Shareholders' Equity (Deficit):
Common Stock and additional paid-in capital245 213 
Treasury Stock(3,189)(2,382)
Accumulated deficit(1,153)(2,005)
Accumulated other comprehensive income (loss)(804)(750)
Total Shareholders' Equity (Deficit)(4,901)(4,924)
Noncontrolling interest66 69 
Total Equity (Deficit)(4,835)(4,855)
Total Liabilities and Equity (Deficit)$10,261 $10,117 




Otis Worldwide Corporation
Condensed Consolidated Statement of Cash Flows
Quarter Ended September 30,
Nine Months Ended September 30,
(Unaudited)(Unaudited)
(dollars in millions)2024202320242023
Operating Activities:
Net income from operations$557 $395 $1,381 $1,154 
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization48 46 133 145 
Deferred income tax expense (benefit)(1)(18)(26)(34)
Stock compensation cost16 15 52 49 
Gain from reversal of German Tax Litigation interest accrual(50)— (50)— 
Change in:
Accounts receivable, net78 (10)(93)(214)
Contract assets and liabilities, current(84)(86)23 68 
Inventories(4)13 (14)(8)
Other current assets(313)34 (373)(4)
Accounts payable14 (78)(115)(35)
Accrued liabilities129 19 2 (66)
Pension contributions (10)(8)(34)(32)
Other operating activities, net14 (16)(13)7 
Net cash flows provided by (used in) operating activities394 306 873 1,030 
Investing Activities:
Capital expenditures(32)(34)(87)(96)
Acquisitions of businesses and intangible assets, net of cash(30)(7)(70)(27)
Proceeds from sale of (investments in) marketable securities, net(9)(2)(9)(2)
Other investing activities, net(42)2 (44)(7)
Net cash flows provided by (used in) investing activities(113)(41)(210)(132)
Financing Activities:
Increase (decrease) in short-term borrowings, net2 (147)325 (90)
Issuance of long-term debt, net— 747 — 747 
Payment of debt issuance costs— (6)— (6)
Dividends paid on Common Stock(155)(139)(450)(400)
Repurchases of Common Stock(200)(225)(800)(575)
Dividends paid to noncontrolling interest(70)(61)(81)(76)
Acquisition of noncontrolling interest shares— — (75)— 
Other financing activities, net— (2)(21)(18)
Net cash flows provided by (used in) financing activities(423)167 (1,102)(418)
Summary of Activity:
Net cash provided by (used in) operating activities
394 306 873 1,030 
Net cash provided by (used in) investing activities(113)(41)(210)(132)
Net cash provided by (used in) financing activities(423)167 (1,102)(418)
Effect of exchange rate changes on cash and cash equivalents23 (18)(9)(34)
Net increase (decrease) in cash, cash equivalents and restricted cash(119)414 (448)446 
Cash, cash equivalents and restricted cash, beginning of period951 1,227 1,280 1,195 
Cash, cash equivalents and restricted cash, end of period832 1,641 832 1,641 
Less: Restricted cash5 5 5 5 
Cash and cash equivalents, end of period$827 $1,636 $827 $1,636 



Otis Worldwide Corporation
Adjusted Free Cash Flow Reconciliation

Quarter Ended September 30,Nine Months Ended September 30,
(Unaudited)(Unaudited)
(dollars in millions)
2024202320242023
Net cash flows provided by operating activities (GAAP)$394$306$873$1,030
Capital expenditures(32)(34)(87)(96)
Free cash flow (Non-GAAP)362272786934
Adjustments for:
UpLift restructuring payments6—20—
UpLift transformation payments132342
Separation-related payments 1
——4925
Adjusted free cash flow (Non-GAAP)$381$274$889$961
1 In April of 2023 and 2024, respectively, we made payments to RTX Corporation (our former parent) in accordance with the Tax Matters Agreement. These annual payments are anticipated to conclude in 2026.