$OTIS

Otis Worldwide Corp

CIK:0001781335|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Net sales:
Net sales	$ 3,859	$ 3,595	$ 7,425	$ 6,945
Costs and expenses:
Research and development	39	38	77	75
Selling, general and administrative	520	499	1,030	963
Costs and expenses	3,282	3,043	6,314	5,893
Other income (expense), net	(2)	(5)	3	(94)
Operating profit	575	547	1,114	958
Non-service pension cost (benefit)	2	0	2	0
Interest expense (income), net	26	26	85	71
Net income before income taxes	547	521	1,027	887
Income tax expense (benefit)	98	98	225	208
Net income	449	423	802	679
Less: Noncontrolling interest in subsidiaries' earnings	21	30	34	43
Net income attributable to Otis Worldwide Corporation	$ 428	$ 393	$ 768	$ 636
Earnings per share (Note 2):
Basic (in usd per share)	$ 1.12	$ 1.00	$ 1.99	$ 1.61
Diluted (in usd per share)	$ 1.12	$ 0.99	$ 1.99	$ 1.60
Weighted average number of shares outstanding:
Basic shares (in shares)	382.6	393.7	385.2	395.1
Diluted shares (in shares)	383.5	395.8	386.4	397.3
Product sales
Net sales:
Net sales	$ 1,279	$ 1,276	$ 2,428	$ 2,439
Costs and expenses:
Cost of sales	1,081	1,066	2,039	2,042
Service sales
Net sales:
Net sales	2,580	2,319	4,997	4,506
Costs and expenses:
Cost of sales	$ 1,642	$ 1,440	$ 3,168	$ 2,813

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities:
Net income	$ 802	$ 679
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	83	86
Deferred income tax expense (benefit)	(38)	(74)
Stock compensation cost	39	44
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(300)	(146)
Contract assets and liabilities, current	284	70
Inventories	(79)	(15)
Other current assets	67	10
Accounts payable	(48)	(212)
Accrued liabilities	(68)	23
Pension contributions	(21)	(27)
Other operating activities, net	(41)	(33)
Net cash flows provided by (used in) operating activities	680	405
Investing Activities:
Capital expenditures	(77)	(70)
Acquisitions of businesses and intangible assets, net of cash (Note 5)	(193)	(82)
Net proceeds from the sale of fixed assets	0	34
Purchase of short-term investments	(84)	0
Receipts (payments) on settlements of derivative contracts	35	(200)
Other investing activities, net	3	(2)
Net cash flows provided by (used in) investing activities	(316)	(320)
Financing Activities:
Net proceeds from (repayments of) borrowings (maturities of 90 days or less)	(33)	473
Proceeds from issuance of long-term debt	700	0
Payment of debt issuance costs	(5)	0
Repayment of long-term debt	(135)	(1,300)
Dividends paid on Common Stock	(330)	(319)
Repurchases of Common Stock	(807)	(561)
Acquisition of noncontrolling interest shares	(10)	0
Dividends paid to noncontrolling interest	(7)	(5)
Other financing activities, net	6	(10)
Net cash flows provided by (used in) financing activities	(621)	(1,722)
Effect of exchange rate changes on cash and cash equivalents	1	19
Net increase (decrease) in cash, cash equivalents and restricted cash	(256)	(1,618)
Cash, cash equivalents and restricted cash, beginning of year	1,105	2,321
Cash, cash equivalents and restricted cash, end of period	849	703
Less: Restricted cash	36	15
Cash and cash equivalents, end of period	$ 813	$ 688

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 813	$ 1,096
Accounts receivable (net of allowance for expected credit losses of $129 and $125)	3,985	3,688
Contract assets	824	699
Inventories	686	613
Other current assets	531	405
Total Current Assets	6,839	6,501
Future income tax benefits	426	407
Fixed assets (net of accumulated depreciation of $1,291 and $1,261)	755	743
Operating lease right-of-use assets	580	554
Intangible assets, net	387	343
Goodwill	1,794	1,695
Other assets	375	410
Total Assets	11,156	10,653
Liabilities and Equity (Deficit)
Short-term borrowings and current portion of long-term debt	1,390	1,056
Accounts payable	2,099	2,142
Accrued liabilities	1,713	1,847
Contract liabilities	3,023	2,611
Total Current Liabilities	8,225	7,656
Long-term debt	7,046	6,900
Future pension and postretirement benefit obligations	411	419
Operating lease liabilities	410	397
Future income tax obligations	196	223
Other long-term liabilities	322	329
Total Liabilities	16,610	15,924
Commitments and contingent liabilities (Note 15)
Redeemable noncontrolling interest	106	75
Shareholders' Equity (Deficit):
Common Stock and additional paid-in capital	353	333
Treasury Stock	(5,005)	(4,198)
Accumulated deficit	(117)	(440)
Accumulated other comprehensive income (loss)	(979)	(1,087)
Total Shareholders' Equity (Deficit)	(5,748)	(5,392)
Noncontrolling interest	188	46
Total Equity (Deficit)	(5,560)	(5,346)
Total Liabilities and Equity (Deficit)	$ 11,156	$ 10,653