Otis Lowers 2025 Outlook Amid Sales Weakness

Otis Worldwide Corp. reported second-quarter revenue of $3.60 billion, missing analyst estimates due to a 10% decline in new equipment sales and ongoing weakness in China and the Americas, exacerbated by a sluggish property market and new U.S. import tariffs. Despite the revenue shortfall, Otis' adjusted earnings per share of $1.05 slightly exceeded expectations, supported by a 6.4% increase in its service segment sales. The company lowered its full-year revenue forecast to between $14.5 billion and $14.6 billion, down from the previous range of $14.6 billion to $14.8 billion, while reaffirming its adjusted earnings per share guidance. Otis continues to mitigate tariff impacts by relocating some production from China to Mexico and the U.S. Shares fell more than 10% in premarket trading following the report. Investor concerns have shifted to the company's sluggish long-term growth and persistent headwinds in the new equipment segment.