Construction and infrastructure cycle exposure
New equipment demand depends on building starts, remodeling, and public infrastructure spending.
- Scope
- New Equipment segment
- Materiality
- high
Otis Worldwide Corp
Otis Worldwide Corp designs, manufactures, installs, services, and modernizes elevators, escalators, and moving walkways. The company operates through two segments, New Equipment and Service, and serves residential, commercial, retail, and infrastructure projects across a global network spanning more than 200 countries and territories.
15,6 %
9,6 %
+1,2 %
0.85
0.77
| % | |
|---|---|
| New Equipment | 35% Design, manufacture, sale, and installation of elevators, escalators, and moving walkways for new projects. |
| Service | 65% Maintenance, repair, and modernization services for installed elevator and escalator fleets. |
Otis sells new equipment mainly to real estate developers, general contractors, and government agencies involved in...
- Real estate developers and general contractorsprimary
Buy new elevators, escalators, and moving walkways for residential, commercial, retail, and mixed-use projects.
- Building owners and facility managersprimary
Buy maintenance, repair, and modernization services to keep installed equipment operating and compliant.
- Government agencies and infrastructure operatorssecondary
Buy new equipment for airports, railways, metros, and other public infrastructure projects.
- Housing associations and large property portfoliossecondary
Buy recurring service contracts and modernization work for multi-site residential assets.
Otis serves customers in over 200 countries and territories and has a direct physical presence in more than 70...
- •Operations span over 200 countries and territories
- •Direct physical presence in more than 70 countries
- •International operations were about 71% of net sales in 2025
- •China has been a major operating market through joint ventures
- •Local branches and offices support installation and service delivery
Otis focuses on converting new equipment installations into long-duration service relationships, using its installed...
01
Expand the service portfoliomedium-term
Service relationships are recurring and deepen customer retention after installation.
02
Convert new equipment wins into long-term servicemedium-term
The installed base creates future service and modernization opportunities.
03
Preserve local execution in global marketslong-term
Elevator demand is shaped by local codes, customer preferences, and project execution.
Otis is exposed to construction and infrastructure cycles, so slower building activity or weaker public spending can...
Fragmented service competition
Independent service providers and local operators compete aggressively on price and coverage.
- Scope
- Service segment
- Materiality
- high
Foreign exchange and trade policy
A large share of sales comes from outside the U.S., creating translation and tariff exposure.
- Scope
- International operations
- Materiality
- high
Supply chain and site-access disruption
Installation and maintenance require timely parts delivery and access to customer buildings.
- Scope
- Global operations
- Materiality
- medium
Joint venture and divestiture-related exposure
Partnership structures and divestitures can leave residual obligations or execution risk.
- Scope
- China and corporate transactions
- Materiality
- medium
Revenue recognition for equipment and service contracts
Affects timing of sales and margin recognition across quarters
Goodwill impairment
Could create non-cash charges if reporting unit values decline
Foreign currency translation
Can move sales and operating profit without changing local demand
Contingent liabilities and divestiture obligations
May affect cash flows and expense recognition
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