Otis Worldwide CorpOTIS
Otis Worldwide Corp Segments Disclosure
Segment Financial Data
Our operations are classified into two operating segments: New Equipment and Service. Through the New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators as well as escalators and moving walkways to customers in the residential, commercial and infrastructure projects. The Service segment provides maintenance and repair services for both our products and those of other manufacturers, and provides modernization services to upgrade elevators and escalators. The operating segments are generally based on the management structure of the Company, as well as how management allocates resources, assesses performance and makes strategic and operational decisions.
Segment Information. Otis discloses segment operating profit as its measure of segment performance, reconciled to Net income before income taxes. Segment operating profit excludes certain expenses and income that are not allocated to segments (as described below in "Corporate and Unallocated").
Otis' Chief Operating Decision Maker ("CODM") is the Company's Chief Executive Officer. The CODM assesses the performance of each operating segment and allocates resources to those segments based on net sales and segment operating profit. The CODM compares segment operating profit results to prior periods and forecasted amounts to assess performance and to make decisions regarding the allocation of capital and other investments. Discrete asset information for each segment is not presented to, or reviewed by, the CODM.
Segment information for 2025 is as follows:
| 2025 | ||||||||||||||||||||
| (dollars in millions) | New Equipment | Service | Total | |||||||||||||||||
| Net sales | $ | 4,989 | $ | 9,442 | $ | 14,431 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of sales | 4,157 | 5,860 | 10,017 | |||||||||||||||||
| Selling, general and administrative | 485 | 1,184 | 1,669 | |||||||||||||||||
| Other including research and development | 107 | 24 | 131 | |||||||||||||||||
| Total segment operating profit | $ | 240 | $ | 2,374 | 2,614 | |||||||||||||||
| Corporate and Unallocated: | ||||||||||||||||||||
| General corporate expenses and other | 180 | |||||||||||||||||||
| UpLift restructuring | 76 | |||||||||||||||||||
| Other restructuring | 54 | |||||||||||||||||||
| UpLift transformation costs | 69 | |||||||||||||||||||
| Separation-related adjustments | 70 | |||||||||||||||||||
| Litigation-related settlement costs | 21 | |||||||||||||||||||
| Held for sale impairment | 10 | |||||||||||||||||||
| Other, net | 1 | |||||||||||||||||||
| Total company operating profit | 2,133 | |||||||||||||||||||
| Non-service pension cost (benefit) | 3 | |||||||||||||||||||
| Interest expense (income), net | 196 | |||||||||||||||||||
| Net income before income taxes | $ | 1,934 | ||||||||||||||||||
Segment information for 2024 is as follows:
| 2024 | ||||||||||||||||||||
| (dollars in millions) | New Equipment | Service | Total | |||||||||||||||||
| Net sales | $ | 5,367 | $ | 8,894 | $ | 14,261 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of sales | 4,443 | 5,533 | 9,976 | |||||||||||||||||
| Selling, general and administrative | 490 | 1,144 | 1,634 | |||||||||||||||||
| Other including research and development | 105 | 32 | 137 | |||||||||||||||||
| Total segment operating profit | $ | 329 | $ | 2,185 | 2,514 | |||||||||||||||
| Corporate and Unallocated: | ||||||||||||||||||||
| General corporate expenses and other | 158 | |||||||||||||||||||
| UpLift restructuring | 31 | |||||||||||||||||||
| Other restructuring | 40 | |||||||||||||||||||
| UpLift transformation costs | 65 | |||||||||||||||||||
| Separation-related adjustments | 177 | |||||||||||||||||||
| Litigation-related settlement costs | 18 | |||||||||||||||||||
| Held for sale impairment | 18 | |||||||||||||||||||
| Other, net | (1) | |||||||||||||||||||
| Total company operating profit | 2,008 | |||||||||||||||||||
| Non-service pension cost (benefit) | — | |||||||||||||||||||
| Interest expense (income), net | (31) | |||||||||||||||||||
| Net income before income taxes | $ | 2,039 | ||||||||||||||||||
Segment information for 2023 is as follows:
| 2023 | ||||||||||||||||||||
| (dollars in millions) | New Equipment | Service | Total | |||||||||||||||||
| Net sales | $ | 5,812 | $ | 8,397 | $ | 14,209 | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of sales | 4,837 | 5,173 | 10,010 | |||||||||||||||||
| Selling, general and administrative | 498 | 1,174 | 1,672 | |||||||||||||||||
| Other including research and development | 96 | 36 | 132 | |||||||||||||||||
| Total segment operating profit | $ | 381 | $ | 2,014 | 2,395 | |||||||||||||||
| Corporate and Unallocated: | ||||||||||||||||||||
| General corporate expenses and other | 126 | |||||||||||||||||||
| UpLift restructuring | 25 | |||||||||||||||||||
| Other restructuring | 42 | |||||||||||||||||||
| UpLift transformation costs | 16 | |||||||||||||||||||
| Total company operating profit | 2,186 | |||||||||||||||||||
| Non-service pension cost (benefit) | 5 | |||||||||||||||||||
| Interest expense (income), net | 150 | |||||||||||||||||||
| Net income before income taxes | $ | 2,031 | ||||||||||||||||||
Corporate and Unallocated includes adjustments related to the Separation, Litigation-related settlement costs, impairment loss for held for sale net assets, restructuring costs and UpLift transformation costs.
Separation-related adjustments represent net adjustments of amounts due to and from RTX in accordance with the TMA, including amounts due to RTX related to a favorable ruling received in August 2024 regarding the German tax litigation. Separation-related adjustments in 2024 also include a reduction of our contractual indemnity obligation payable to RTX that resulted from the TMA and receipts from RTX in accordance with the TMA. These adjustments are recorded in Other income (expense), net in our Consolidated Statements of Operations in 2025 and 2024, respectively. See Note 14, "Income Taxes" and Note 20, "Contingent Liabilities" for additional information about the German tax litigation.
Litigation-related settlement costs in 2025 and 2024 represent the aggregate amount of settlement costs and increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business due to the size, complexity and unique facts of these matters.
Impairment loss related to net assets held for sale is recorded in Other income (expense), net in the Consolidated Statements of Operations in 2025 and 2024, respectively. See Note 7, "Business Acquisitions, Dispositions, Goodwill and Intangible Assets" for additional information about the held for sale assets and liabilities.
Refer to Note 15, "Restructuring and Transformation Costs" for more information about restructuring and UpLift transformation costs.
Geographic External Sales and Long-Lived Assets. Geographic Net sales are attributed to the geographic regions based on their location of origin. Long-lived assets are Fixed assets, net attributed to the specific geographic regions. With the exception of the U.S. and China, there were no individually significant countries with Net sales exceeding 10% of the Company's consolidated Net sales during 2025, 2024 and 2023.
| External Net Sales | Long Lived Assets | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| United States Operations | $ | 4,192 | $ | 4,239 | $ | 4,030 | $ | 323 | $ | 315 | $ | 325 | ||||||||||||||||||||||||||
| International Operations | ||||||||||||||||||||||||||||||||||||||
| China | 1,650 | 1,919 | 2,444 | 70 | 72 | 83 | ||||||||||||||||||||||||||||||||
| Other | 8,589 | 8,103 | 7,735 | 350 | 314 | 319 | ||||||||||||||||||||||||||||||||
| Total | $ | 14,431 | $ | 14,261 | $ | 14,209 | $ | 743 | $ | 701 | $ | 727 | ||||||||||||||||||||||||||
Disaggregated Net sales by type. Net sales disaggregated by product and service type for 2025, 2024 and 2023 are as follows:
| (dollars in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| New Equipment | $ | 4,989 | $ | 5,367 | $ | 5,812 | ||||||||||||||
| Maintenance and Repair | 7,584 | 7,211 | 6,870 | |||||||||||||||||
| Modernization | 1,858 | 1,683 | 1,527 | |||||||||||||||||
| Total Service | 9,442 | 8,894 | 8,397 | |||||||||||||||||
| Total | $ | 14,431 | $ | 14,261 | $ | 14,209 | ||||||||||||||
Major Customers. There were no customers that individually accounted for 10% or more of the Company's consolidated Net sales for 2025, 2024 and 2023.
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About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.