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

附件99

奧的斯公佈2024年第三季度業績報告

奧的斯持續提供高單位數服務銷售增長的優秀表現

•根據通用會計準則（GAAP），每股收益上漲47.3％，調整後的每股收益上漲1.1％。
•服務淨銷售增加了7.2％，服務有機銷售增長了7.7％
•維護組合單位增加了4.2%
•Mod訂單增加3％，積壓增加14％，在固定貨幣下增長12％
•運營活動的GAAP現金流為39400萬美元；調整後的自由現金流為38100萬美元
•購回20000萬美元的股份
•本年截至目前的基本每股收益(GAAP EPS)上升24.2%，調整後每股收益(YTD adjusted EPS) 上升8.2%，股票回購金額為8,0000萬美元
•更新的全年展望1: 調整後的每股收益約為3.85美元，服務有機銷售增長約為6.5％，服務利潤擴大約75個基點

2024年10月30日，奧的斯全球公司（紐交所:OTIS）公布2024年第三季度淨銷售額達35億美元，有機銷售增長1.2％。根據一般公認會計原則，每股收益（EPS）增長47.3％，至1.34美元，調整後每股收益增長1.1％，達0.96美元。

奧的斯在第三季度重新實現了營收增長，展現出我們以服務為導向的業務模式的實力。現代化有機銷售加快至中十幾個百分點，我們的投資組合連續第八個季度增長超過4%，Judy Marks，主席，CEO和總裁說。"在本年度的餘下時間裡，我們將繼續致力於提高生產力，以抵消我們在新設備方面所面臨的持續逆風，而服務業績則繼續保持穩定的全球增長軌道，得益於持續增長的投資組合，並得到堅實的現代化積壓支持。我們在執行以客戶為中心的策略時，預計將在2024年完成另一年的穩健EPS增長。

關鍵數據
（單位：百萬美元，除每股數據外）截至九月三十日的季度截至9月30日的九個月
20242023同比增長年度同比（CFX）20242023同比增長年度同比（CFX）
淨銷售額$3,548$3,5230.7 %1.5 %$10,586$10,589— %1.4 %
有機銷售增長1.2 %1.2 %
GAAP
營業利潤$363$571$(208)$1,477$1,664$(187)
營業利潤率10.2 %16.2 %(600) 基點14.0 %15.7 %(170) 個基點
凈利潤$540$37643.6 %$1,308$1,08320.8 %
每股收益$1.34$0.9147.3 %$3.23$2.6024.2 %
調整後的非GAAP比較
營業利潤$599$595$4$8 $1,773$1,703$70$96 
營業利潤率16.9 %16.9 %0 bps16.7 %16.1 %60個基點
凈利潤$385$395(2.5)%$1,174$1,1135.5 %
每股收益$0.96$0.951.1 %$2.90$2.688.2 %

第三季度淨銷售額達35億美元，較去年同期增長0.7%，主要驅動力來自服務業。



第三季度的GAAP營業利潤為36300萬美元，主要受非經常性稅項相關調整的影響，較去年減少20800萬美元。匯率調整後，调整后營業利润為59900萬美元，實際貨幣下增加400萬美元，恒定貨幣下增加800萬美元，主要受服務業驅動。GAAP營業利潤率下降了600个基点，至10.2％，而调整后的營業利润率為16.9％，與去年持平，受有利的部門組合影響，新設備部門表現及企業成本的不利影響。

根據以前的比較，每股收益為1.34美元的GAAP增加了47.3％，主要是由於非常常見的稅收利益和相關的利息收入。由於出色的營運表現和較少的分享數，每股收益為0.96美元的調整後每股收益增加了1.1％。


新設備
截至九月三十日的季度截至9月30日的九個月
（百萬美元）20242023同比增長年度比較（CFX）20242023同比增長年度比較（CFX）
淨銷售額$1,309$1,435(8.8)%(8.1)%$4,010$4,346(7.7)%(6.2)%
有機銷售(8.2)%(6.3)%
部門營業利潤$84$104$(20)$(20)$265$292$(27)$(20)
部門營業利潤率6.4 %7.2 %(80) 個基點6.6 %6.7 %(10)個基點

在第三季度，總銷售額達13億美元，較去年同期下降8.8%，亞太和美洲地區的單位增長接近於零的有機銷售增長部分被中國超過20%的下降所抵銷。歐洲、中東和非洲地區的有機銷售大致持平。

在實際和恆常貨幣下，成交量較低和不利混合影響，使$8400萬的部門營業利潤減少$2000萬，部分抵銷價格、生產力和商品的正面影響。部門營業利潤率收縮80個基點至6.4%。

新設備訂單在穩定匯率下下降了3%，美洲增長超過20%，亞太地區增長高位數-digit，這一增長被歐洲、中東和非洲地區的高位數-digit下降和中國超過20%的下降所抵銷。新設備积压订单在實際货币下降了1%，而在穩定匯率下下降了3%。

服務
截至九月三十日的季度截至9月30日的九個月
（百萬美元）20242023同比增長年增利潤(現金流)20242023同比增長年增利潤(現金流)
淨銷售額$2,239$2,0887.2 %8.0 %$6,576$6,2435.3 %6.6 %
有機銷售7.7 %6.4 %
分割營業利潤$555$518$37$40$1,616$1,496$120$138
分割營業利潤率24.8 %24.8 %0 bps24.6 %24.0 %60個基點

在第三季度，凈銷售額達到22億美元，增加了7.2％，有機銷售增長了7.7％。有機維護和維修銷售增長了6.4％，有機現代化銷售增長了13.7％。



分部營業利潤為55500萬美元，在實際貨幣下增加了3700萬美元，在固定貨幣下增加了4000萬美元，原因是成交量增加、有利的價格和生產力提高，部分抵消了年度工資通脹。分部營業利潤率為24.8%，與前一年強勁第三季度的利潤率擴張持平。

現金流量

截至九月三十日的季度截至9月30日的九個月
（百萬美元）20242023同比增長20242023同比增長
營運現金流$394 $306 $88$873 $1,030 $(157)
自由現金流$362 $272 $90$786 $934 $(148)
自由現金流$381 $274 $107$889 $961 $(72)

第三季度現金流動變化主要是由於凈利潤增加，部分抵銷了營運資本的變化。


2024年展望1
奧的斯正在修訂其全年展望：
•約142億美元的淨銷售額
•有機銷售額增長約1.5%
◦有機新設備銷量下降中至高個位數
◦有機服務銷售增長約6.5%
•營業利潤調整為約23.75億美元，在固定貨幣下增加約14000萬美元；在實際貨幣下增加約10500萬美元
•調整後每股收益約為3.85美元，上升約9％；調整後有效稅率約為25.0％
•調整後的自由現金流約為14到15億美元

1備註：當我們基於前瞻性提供有機銷售展望、調整後營業利潤、調整後有效稅率和調整後自由現金流時，一般而言非盈利性預期與相應的GAAP措施之間的差異調和工作將是不合理的。有關更多信息，請參閱下方的“非盈利性財務指標的使用和定義”。.

關於奧第斯
奧的斯是全球領先的電梯和扶手梯製造、安裝和服務公司。每天我們運送23億人次，並在全球維護約230萬個客戶裝置，是該行業最大的維護組合。總部設於美國康涅狄格州，奧的斯擁有71,000名員工。 42,000名現場專業人員的奧的斯團隊堅持不懈地滿足全球200多個國家和地區客戶和乘客的多樣化需求。 獲得更多資訊，請訪問www.otis.com，並在LinkedIn、Instagram和Facebook上關注我們@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.