Otis Q2 sales rise 7% to $3.9 billion

• Otis reported second-quarter net sales of $3.86 billion, up 7%, with organic growth of 6%.
• Adjusted EPS fell 4% to $1.01, while Otis shares were down 2.1% at $71.95.
• Otis revised its full-year outlook to adjusted EPS of $4.01–$4.05 and sales of $15.1–$15.3 billion.

Otis Worldwide (NYSE:OTIS) reported second-quarter sales of $3.86 billion, up 7%, as Service growth offset weaker New Equipment profitability.

Organic sales rose 6%, but adjusted operating profit fell $25 million to $587 million and adjusted margin dropped to 15.2%.

Service organic sales rose 9%, including 24% modernization growth, while New Equipment orders fell 5% and its margin reached 3.1%.

Following the announcement, Otis share price was down 2.1% at $71.95 in premarket trading.

Otis generated $267 million in operating cash flow, $290 million in adjusted free cash flow and repurchased approximately $400 million of shares.

Otis said it now expects full-year sales of $15.1–$15.3 billion, adjusted operating profit of about $2.4 billion and adjusted EPS of $4.01–$4.05.