Otis Worldwide (NYSE:OTIS) delivered a resilient first-quarter performance for 2026, reporting net sales of $3.6 billion.
The 6% year-over-year increase was primarily driven by the company’s service-led strategy, which successfully mitigated ongoing headwinds in the global new equipment market, particularly within the Chinese real estate sector.
On an organic basis, which excludes the impact of currency fluctuations and acquisitions, sales rose 1%.
The company’s Service segment emerged as the primary engine of growth, with net sales climbing 11% to lead the quarterly results.
Within this division, repair revenue saw a significant 16% surge, or approximately 10% on an organic basis, reflecting a steady demand for maintenance across an aging global elevator base.
Furthermore, modernization efforts showed significant momentum as orders rose 11%, contributing to a total modernization backlog that has expanded by 32% compared to the prior year.
In contrast, the New Equipment segment faced challenges, reporting a decline in sales that management attributed largely to the sluggish performance of the Chinese market.
Despite this regional contraction in new installations, the strength of the service portfolio allowed Otis to report a GAAP diluted earnings per share (EPS) of $0.87, a 43% increase over the previous year.
On an adjusted basis, EPS was $0.89, representing a 3% decrease, as the company navigated shifting macroeconomic conditions and investment requirements.
Looking ahead, Otis reiterated its full-year 2026 financial outlook.
The company expects adjusted EPS to fall within the range of $4.20 to $4.24 and targets an adjusted operating profit of approximately $2.5 billion.