OTIS changes
Pick any two versions below to diff them.
- Balance sheet
- Otis has negative equity: a total equity deficit of $5.6 billion at June 30, 2026. It took on debt at its 2020 spin-off from United Technologies and has bought back shares since then. Treasury stock was $4.2 billion at December 31, 2025. This is not a sign of distress. The Service business maintains about 2.5 million units and gives steady cash flow. Customers also pay in advance, which shows as $3.0 billion of contract liabilities. Total debt was $8.4 billion at June 30, 2026. Almost all of it is unsecured fixed-rate notes at the parent, with a weighted average maturity of about 6 years. Net debt was $7.6 billion. This was about 3.1 times operating profit before depreciation and amortization of about $2.5 billion over the 12 months to June 2026. In the first half of 2026, operating profit of $1.1 billion covered interest expense on external debt of $120 million about 9 times. Cash was $813 million, and the $1.5 billion revolving credit facility to August 2030 was undrawn. No commercial paper was outstanding. In May 2026, Otis issued $700 million of notes due 2029, mostly to repay euro notes due December 15, 2026. Moody's (Baa1, stable outlook when affirmed in April 2025) and S&P give Otis investment-grade ratings. The debt lets Otis keep paying dividends and buying back shares ($807 million in the first half of 2026). But it leaves less room if Service margins keep falling. As of 2026-06-30.
- Checkpoints
- Nov 4, 2026 (estimate): Q3 2026 results: Service margin and 2026 guidance. Pending. Watch: A stable or higher Service margin and reaffirmed adjusted EPS guidance of $4.01 to $4.05 pass; a further margin drop or a second guidance cut fails. Jan 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with adjusted EPS growth and higher Service margins passes; flat or lower EPS guidance or more China weakness fails. Jul 31, 2027: Board names successor to CEO Judy Marks. Pending. Watch: A successor named by July 31, 2027, ideally in the first half of 2027, with a clear plan passes; a missed deadline or a disruptive change in strategy fails.