Q3 2025 - Otis Worldwide

Confirming full-year expectations with strong Service momentum - FCF outlook intact

Before the bell yesterday, Otis Worldwide released its Q3 earnings report. After being up 3% pre-market, shares were then flat and closed the session at +2.4%.

Similar to previous quarters, softness on New Equipment continued, especially in China. Meanwhile, the year-over-year comparison in the US was challenging.

As a reminder, 91% of Otis’ EBIT is driven by Service (Maintenance, Repair, and Modernization) where performance continues to be solid, also in China. Because of the stickiness in EBIT, the steady growth in Otis’ unit portfolio, every quarter should be like “Business as usual, and steady progress.”

Let’s take a closer look at the Q3 report, and discuss why we’re adding heavily to another industrial in our portfolio (mentioned at the end of this blog).

Last year, we shared this important slide on installed base businesses and why it’s an interest area to fish for quality growth.