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Otis Stock to Report Q4 Earnings: Here's What You Need to Know
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Key Takeaways
OTIS is expected to report Q4 adjusted EPS of $1.03, up 10.8% from the prior year's 93 cents.
Strong Service segment growth likely drove sales gains, offsetting weakness in New Equipment and China.
OTIS' adjusted EBITDA is projected to rise 10.7% to $698.3M, with margins expanding 60 basis points.
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 28, 2026, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 5%, while the net sales topped the same by 1.2%. On a year-over-year basis, both the top and bottom lines grew 4% and 9.4%, respectively.
OTIS’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 1.7%.
Trend in Otis’s Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended upward to $1.03 from $1.02 in the past 60 days. The estimated figure indicates an increase of 10.8% from the year-ago adjusted EPS of 93 cents.
The consensus mark for net sales is pegged at $3.9 billion, indicating 6.2% growth from the year-ago figure of $3.68 billion.
The company’s fourth-quarter net sales are likely to have increased year over year, supported by robust operational growth in the Service segment (which contributed 65.9% of third-quarter 2025 net sales). Maintenance and repair activity likely remained resilient, supported by continued growth in the global service portfolio and improving repair execution. Management indicated that repair growth was expected to accelerate to around 10% or higher in the fourth quarter, reflecting better backlog conversion, improved field resourcing and rising repair intensity tied to an aging installed base. Modernization revenues were also expected to contribute meaningfully, supported by strong order momentum earlier in the year and a historically elevated backlog, even though growth was anticipated to moderate sequentially due to the timing of bond-funded projects in China.
In contrast, New Equipment sales (which contributed 34.1% of third-quarter 2025 net sales) likely remained a drag on consolidated revenue. While management noted improving trends in the Americas and solid momentum in EMEA and parts of Asia Pacific, these gains were expected to be more than offset by continued declines in China. Although China new equipment comparisons were described as moderating in the back half of the year, pricing pressure and lower volumes likely continued to weigh on reported sales. Currency movements may have provided a modest tailwind, as seen in prior quarters, but organic growth was still expected to be modest overall.
Otis’ emphasis on strategic acquisitions, product innovation and the integration of advanced technologies, supported by continuous research and development initiatives, is likely to have contributed positively to its overall performance.
For the fourth quarter, our model predicts the Service segment’s net sales to increase year over year by 11.6% to $2.59 billion, with the New Equipment segment’s net sales declining 1.1% to $1.34 billion.
Margins
On the margin front, service mix is expected to have been a key positive driver. Higher service volumes, favorable pricing and productivity initiatives likely supported further expansion in service operating margins, even as labor costs and investments in service excellence persisted. Repair growth, in particular, tends to deliver strong flow-through, benefiting overall profitability.
However, margin performance in New Equipment likely remained under pressure. Lower volumes, unfavorable pricing in China and tariff-related headwinds were expected to continue weighing on segment margins. These pressures were partially mitigated by cost savings from the China transformation program and broader restructuring actions under the UpLift initiative, which management indicated were delivering accelerated in-year savings.
Overall, Otis’ fourth-quarter 2025 results are expected to reflect a familiar but stabilizing pattern — resilient, margin-accretive service growth cushioning ongoing challenges in the cyclical new equipment business, positioning the company for steadier earnings growth as it moves into 2026.
We expect the adjusted operating margin in the New Equipment segment to decrease year over year to 3.8% from 4.7%, while the same for the Service segment is anticipated to grow 30 basis points to 24.8%.
Our model predicts adjusted EBITDA during the quarter to be up year over year by 10.7% to $698.3 million, with the adjusted EBITDA margin to expand 60 bps year over year to 17.8%.
What Our Model Unveils for OTIS
Our proven model does not predict an earnings beat for Otis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
OTIS’ Earnings ESP: OTIS has an Earnings ESP of -1.85%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of Otis: Currently, the company carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some other stocks from the Zacks Industrial Products sector, which, per our model, also have the right combination of elements to deliver an earnings beat this time around.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.9%. Allegion’s earnings for the fourth quarter of 2025 are expected to increase 8.1%.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.13% and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 5.2%. Deere’s earnings for the first quarter of fiscal 2026 are expected to decline 39.8%.
Kennametal (KMT - Free Report) currently has an Earnings ESP of +8.57% and a Zacks Rank of 1.
The company’s earnings beat estimates in two of the trailing four quarters, met in one and missed in one, the average surprise being 26.9%. Kennametal’s earnings for the second quarter of fiscal 2026 are expected to increase 40%.
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Otis Stock to Report Q4 Earnings: Here's What You Need to Know
Key Takeaways
Otis Worldwide Corporation (OTIS - Free Report) is scheduled to report fourth-quarter 2025 results on Jan. 28, 2026, before the opening bell.
In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate by 5%, while the net sales topped the same by 1.2%. On a year-over-year basis, both the top and bottom lines grew 4% and 9.4%, respectively.
OTIS’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 1.7%.
Trend in Otis’s Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) has trended upward to $1.03 from $1.02 in the past 60 days. The estimated figure indicates an increase of 10.8% from the year-ago adjusted EPS of 93 cents.
The consensus mark for net sales is pegged at $3.9 billion, indicating 6.2% growth from the year-ago figure of $3.68 billion.
Otis Worldwide Corporation Price and EPS Surprise
Otis Worldwide Corporation price-eps-surprise | Otis Worldwide Corporation Quote
Key Factors to Note for OTIS’ Q4 Earnings
Net Sales
The company’s fourth-quarter net sales are likely to have increased year over year, supported by robust operational growth in the Service segment (which contributed 65.9% of third-quarter 2025 net sales). Maintenance and repair activity likely remained resilient, supported by continued growth in the global service portfolio and improving repair execution. Management indicated that repair growth was expected to accelerate to around 10% or higher in the fourth quarter, reflecting better backlog conversion, improved field resourcing and rising repair intensity tied to an aging installed base. Modernization revenues were also expected to contribute meaningfully, supported by strong order momentum earlier in the year and a historically elevated backlog, even though growth was anticipated to moderate sequentially due to the timing of bond-funded projects in China.
In contrast, New Equipment sales (which contributed 34.1% of third-quarter 2025 net sales) likely remained a drag on consolidated revenue. While management noted improving trends in the Americas and solid momentum in EMEA and parts of Asia Pacific, these gains were expected to be more than offset by continued declines in China. Although China new equipment comparisons were described as moderating in the back half of the year, pricing pressure and lower volumes likely continued to weigh on reported sales. Currency movements may have provided a modest tailwind, as seen in prior quarters, but organic growth was still expected to be modest overall.
Otis’ emphasis on strategic acquisitions, product innovation and the integration of advanced technologies, supported by continuous research and development initiatives, is likely to have contributed positively to its overall performance.
For the fourth quarter, our model predicts the Service segment’s net sales to increase year over year by 11.6% to $2.59 billion, with the New Equipment segment’s net sales declining 1.1% to $1.34 billion.
Margins
On the margin front, service mix is expected to have been a key positive driver. Higher service volumes, favorable pricing and productivity initiatives likely supported further expansion in service operating margins, even as labor costs and investments in service excellence persisted. Repair growth, in particular, tends to deliver strong flow-through, benefiting overall profitability.
However, margin performance in New Equipment likely remained under pressure. Lower volumes, unfavorable pricing in China and tariff-related headwinds were expected to continue weighing on segment margins. These pressures were partially mitigated by cost savings from the China transformation program and broader restructuring actions under the UpLift initiative, which management indicated were delivering accelerated in-year savings.
Overall, Otis’ fourth-quarter 2025 results are expected to reflect a familiar but stabilizing pattern — resilient, margin-accretive service growth cushioning ongoing challenges in the cyclical new equipment business, positioning the company for steadier earnings growth as it moves into 2026.
We expect the adjusted operating margin in the New Equipment segment to decrease year over year to 3.8% from 4.7%, while the same for the Service segment is anticipated to grow 30 basis points to 24.8%.
Our model predicts adjusted EBITDA during the quarter to be up year over year by 10.7% to $698.3 million, with the adjusted EBITDA margin to expand 60 bps year over year to 17.8%.
What Our Model Unveils for OTIS
Our proven model does not predict an earnings beat for Otis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
OTIS’ Earnings ESP: OTIS has an Earnings ESP of -1.85%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of Otis: Currently, the company carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some other stocks from the Zacks Industrial Products sector, which, per our model, also have the right combination of elements to deliver an earnings beat this time around.
Allegion (ALLE - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.9%. Allegion’s earnings for the fourth quarter of 2025 are expected to increase 8.1%.
Deere & Company (DE - Free Report) currently has an Earnings ESP of +0.13% and a Zacks Rank of 3.
The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 5.2%. Deere’s earnings for the first quarter of fiscal 2026 are expected to decline 39.8%.
Kennametal (KMT - Free Report) currently has an Earnings ESP of +8.57% and a Zacks Rank of 1.
The company’s earnings beat estimates in two of the trailing four quarters, met in one and missed in one, the average surprise being 26.9%. Kennametal’s earnings for the second quarter of fiscal 2026 are expected to increase 40%.