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Otis Profit Climbs as Service Contracts Offset China Slump

A 6% rise in quarterly sales to $3.91 billion has bolstered Otis Worldwide, as the elevator manufacturer leans on robust service contracts to navigate a cooling Chinese market. The Farmington-based firm outperformed Wall Street expectations, reporting net income of $414 million, or $1.08 a share, for the third quarter.

Otis Profit Climbs as Service Contracts Offset China Slump

Adjusted earnings reached $1.05 a share, comfortably clearing the $1.01 estimate set by analysts. While new-equipment sales grew 3% to $1.3 billion—buoyed by orders across the Americas, Europe, and the Middle East—the company faced a distinct contraction in China. This regional weakness was effectively masked by the service unit, where revenue climbed 8% to $2.62 billion, driven by higher volume and pricing strategies despite mounting labor costs.

Looking toward 2026, the company reaffirmed its financial roadmap, projecting adjusted earnings between $4.01 and $4.05 a share. Management expects total sales to reach a range of $15.1 billion to $15.3 billion, an increase from the $14.4 billion anticipated for 2025. These figures align closely with current analyst consensus, suggesting stability even as the company manages shifting global demand patterns.

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