Otis Worldwide Corp (OTIS)

Otis is the world's leading elevator and escalator manufacturing, installation and service company, serving customers in over 200 countries and territories through more than 1,400 branches and offices with a direct physical presence in more than 70 countries. The company operates two segments: New Equipment, which contributed 41% of net sales and 15% of segment operating profit in 2023, and Service, which contributed 59% of net sales and 85% of segment operating profit, with international operations representing approximately 72% of net sales. The New Equipment segment designs, manufactures, sells and installs passenger and freight elevators, escalators and moving walkways for residential, commercial and infrastructure projects, selling directly and through agents/distributors, with core product platforms including Gen2, Gen3, Gen360 and SkyRise, and orders generally delivered within 12 months.

The Service segment provides maintenance, repair and modernization services across a global portfolio of approximately 2.3 million units, supported by roughly 35,000 service mechanics and a 24/7 OTISLINE customer support network, with growth driven by conversion of new installations, competitive wins, and acquisitions. Otis is advancing digital offerings through its Otis ONE IoT platform, connecting approximately 900,000 units as of year-end 2023, alongside in-car displays, destination management systems, and smartphone-based elevator control. The company invested $144 million in R&D in 2023 (1.0% of net sales), plus $57 million in digital and strategic initiatives, operates 11 R&D centers and 17 factories globally, employs about 1,200 engineers, and holds approximately 5,000 patents with 1,800 pending applications.

Otis maintains significant joint ventures in China, notably Otis China and its subsidiary Otis Electric, which support manufacturing, installation and servicing in that market. The company competes globally against major players including KONE Oyj, Schindler Group and TK Elevator, as well as numerous independent service providers that hold roughly half of service units by volume. Otis relies on a diverse network of thousands of suppliers, with about 500 considered key to its manufacturing supply chain, and manages commodity and supply risks through hedging, safety stock, and diversified sourcing.

The company has established ESG goals across health and safety, environment, people and communities, and governance, including targets for emissions reduction, carbon-neutral factory electricity, and zero-waste-to-landfill certification. As of December 31, 2023, Otis employed approximately 71,000 colleagues globally, including 42,000 field professionals, distributed across Asia (44%), EMEA (33%), and the Americas (23%), with about 63% of its U.S. workforce covered by collective bargaining agreements. Otis was incorporated in Delaware in 2019 and became an independent public company following its separation from United Technologies Corporation (later RTX Corporation) on April 3, 2020.