Otis Worldwide Corporation (OTIS) Earnings Call Transcripts

Otis Worldwide Corporation's Latest Earnings Call - September 17, 2026

In the third quarter of fiscal year 2026, Otis Worldwide Corporation (OTIS:US) reported revenue of $15.4 billion, reflecting a strong performance driven by its Service business, which grew organically by 9%. The company also highlighted a significant increase in modernization sales, which rose by 24% year-over-year. Management maintained a positive outlook for the future, signaling a continued growth trajectory in the Service segment and improvements in margins, despite some temporary cost pressures. They expect Service margins to improve in the second half of the year, driven by pricing initiatives and operational efficiencies.

Reported metrics

Guidance from management

Management expects Service margins to improve in the second half of the year, driven by operational efficiencies and pricing initiatives. They anticipate continued growth in Service and modernization segments.

What management said

Well, I want to make -- I'm not worried about the gap. I want to make them both grow. So let's start there because the repair pricing, it is market pricing. And that's what we want to reinforce over and over again. And you'll see that, as I said, in the second half of the year. The maintenance pricing, again, we focus on a few things. We focus on what's achievable what's possible. And then besides just the AI micro p...

So we've already hired the mechanics. They're on their journey in terms of their apprenticeships in terms of their learning curve. So in terms of the need to bring in additional surge subcontract to support in the need for us to keep moving labor around whether we're moving China mechanics to Japan or mechanics from Peru to Spain. We've been using our workforce dynamics and subcontractors to be able to help fulfill t...

What analysts pressed on

Analysts expressed concerns regarding the slight decline in retention rates and the impact of rising labor costs on margins. There were questions about how quickly the investments in service quality would translate into improved retention and profitability.

Main topics on the call

• Service Business Growth — Otis's Service business achieved organic growth of 9% in Q2, marking the highest level since its spin-off. Judith Marks stated, "We're entering this period... of significant growth in the Service business that hasn't bee...
• Modernization Sales Surge — Modernization sales grew by 24%, with a backlog increase of 26%. Management noted that there are "9 million units... in this modernization window" which presents a substantial opportunity for future growth.
• Retention Rate Challenges — Retention rates have declined slightly from over 95% to around 94.5%, prompting management to invest in service quality improvements. Marks emphasized, "There's a direct correlation between Service quality and retention ...
• Margin Pressures — Service margins declined by 170 basis points due to increased labor costs and investments. However, management expects these pressures to be temporary, stating, "We know that, that's temporal in terms of what we need to ...

Read the full Otis Worldwide Corporation transcript (September 17, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 40 Otis Worldwide Corporation earnings call transcripts on record, spanning February 11, 2020 to September 17, 2026. Based on this history, Otis Worldwide Corporation reports quarterly. The most recent call on file is dated September 17, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

OTIS

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Machinery

Calls on record

40

First call

February 11, 2020

Most recent

September 17, 2026

Reporting cadence

quarterly