Otis Posts 6% Q3 Sales Growth as China New Equipment Sales Fall More Than 20%

Otis Worldwide Corporation’s third-quarter net sales rose 6% year over year to $3.914 billion as growth in its Service business helped offset a more than 20% decline in New Equipment sales in China.

Sales for the quarter ended Sept. 30 were up from $3.690 billion a year earlier. Organic sales also increased 6%. GAAP earnings per share rose 14% to $1.08 from $0.95, while adjusted earnings per share held at $1.05.

Service sales increased 8% to $2.616 billion. Organic Service sales gained 7%, including a 20% increase in modernization and a 4% rise in maintenance and repair. Otis reports Service and New Equipment as its two business segments, with maintenance, repair and modernization included in Service.

New Equipment sales rose 3% to $1.298 billion, with organic sales also up 3%. Regional growth in the segment was partly offset by the decline of more than 20% in China. The China figure refers to New Equipment sales; it does not describe Otis’ total sales in the country.

Higher sales did not translate into higher adjusted operating profit. The measure fell $6 million from a year earlier to $626 million, and adjusted operating margin declined 110 basis points to 16.0%.

Otis maintained its 2026 outlook for net sales of $15.1 billion to $15.3 billion, adjusted earnings per share of $4.01 to $4.05, and adjusted free cash flow of about $1.5 billion.