Otis reported net sales of $3.3 billion for Q1 2025, with organic sales flat year-over-year. Service net sales increased 1%, with organic growth of 4%. The company’s maintenance portfolio grew 4%, and modernization orders rose 12%, contributing to a 13% increase in backlog (14% at constant currency).

GAAP earnings per share dropped 29% to $0.61, while adjusted EPS rose 5% to $0.92. The GAAP operating profit margin declined by 350 basis points, but the adjusted operating profit margin improved by 40 basis points.

Otis generated $190 million in GAAP operating cash flow and $186 million in adjusted free cash flow. The company also repurchased approximately $250 million in shares during the quarter.

CEO Judy Marks highlighted strong performance in the Service segment, growth in modernization orders, and continued expansion of the maintenance portfolio. She also noted the announcement of a dividend increase for the fifth year in a row.