Otis Worldwide reported 6% organic sales growth in the second quarter, driven by a 9% increase in service organic sales and a 24% surge in modernization sales, while new equipment sales were nearly flat. Despite the top-line growth, adjusted operating margin fell to 15.2% and the company lowered its full-year adjusted operating profit and earnings per share outlook, citing labor, material, productivity, and investment costs. Otis is investing $50 million in service quality and retention during 2026, with $30 million spent in the first half, and still expects adjusted free cash flow of $1.5 billion to $1.55 billion for the year. The company repurchased approximately $800 million of shares in the first half and raised its dividend by 5%, returning more than $1.1 billion to shareholders.
Otis Worldwide CorpOtis lowered its full-year adjusted operating profit and EPS outlook due to higher costs.