Otis

Overview

Otis is the world’s leading manufacturer, installer, servicer and modernizer of elevators and escalators. The company operates in more than 200 countries and territories, with over 1,400 branches and offices, a direct physical presence in more than 70 countries, and an extensive manufacturing and service footprint.

Business segments

• New Equipment: Design, manufacture, sale and installation of passenger and freight elevators, escalators, and moving walkways for residential, commercial, retail, infrastructure and government projects.
• Service: Maintenance, repair and modernization of elevators and escalators, including upgrades to existing equipment.

Net sales mix (2025)

• New Equipment: 35% of net sales.
• Service: 65% of net sales.
• Approximately 71% of net sales were generated outside the U.S. in 2025.
• Within New Equipment, larger projects can have longer delivery timelines; orders are typically delivered within 12 months of booking, with shorter windows in some regions, including China.

Customers and demand characteristics

• New Equipment customers include real estate developers, general contractors and government agencies for infrastructure projects such as airports, railways and metros.
• New Equipment sales are generally conducted directly by Otis sales personnel; in China and some other regions, agents and distributors augment direct sales.
• Otis is not dependent on any single customer and generally does not have material contracts with any single customer.
• Service contracts tend to be long-term agreements with property owners and managers.

Products and platforms

• Elevator platforms:
  • Gen2: Principal low- and mid-rise solution; launched in 2000; over one million units sold.
  • Gen3: Successor to Gen2 with improved space-saving, energy efficiency and Otis ONE IoT integration; enhanced safety features.
  • Gen360: Electronic architecture modernization with increased electronics, optional remote diagnostics via 360-degree cameras; supports remote service and a flat roof design in some configurations.
  • SkyRise: High-rise residential, commercial and mixed-use skyscraper solutions.
• Escalators and moving walkways: Offered with varied finishes, aesthetics and safety features, including sensor-based operation to conserve energy.
• Digital and IoT offerings:
  • Otis ONE: Cloud-based IoT platform for real-time monitoring, predictive maintenance and improved communication with customers and technicians.
  • Other digital options: eView In-Car Display (live infotainment and connection to OTISLINE), Compass 360 Destination Management System (destination-based passenger flow optimization), eCall Plus smartphone app (remote passenger summoning).
• Service and modernization:
  • Maintenance portfolio of approximately 2.5 million units globally (units in service and units manufactured by Otis as well as units from other OEMs).
  • Modernization offerings range from cosmetic upgrades to major component replacements (machines, ropes/belts, safety systems, entire cars or escalators).

Technology, R&D and intellectual property

• R&D expense in 2025: $152 million (1.1% of net sales).
• Additional digital and strategic investments in 2025: $45 million (combined with R&D, 1.4% of net sales).
• 11 global R&D centers and 16 factories; about 1,300 engineers.
• Approximately 4,600 patents issued and about 1,300 patent applications pending.
• Around 900 patent applications filed in the last three years, with filings primarily in Europe, the United States and Asia.

Global footprint and operations

• Direct physical presence in 70+ countries; operations in over 200 countries and territories.
• More than 1,400 branches and offices.
• Approximately 2,300 facilities, including manufacturing and warehousing.
• Principal manufacturing facilities across Brazil, China, Japan, France, India, Korea, Spain and the United States (13 facilities owned).
• Principal R&D centers in China, France, Germany, India, Japan, Spain and the United States.
• Workforce of approximately 72,000 colleagues as of December 31, 2025, including about 45,000 field professionals.
  • Regional composition: ~45% in Asia, ~34% in Europe/Middle East/Africa (EMEA), ~21% in the Americas.
  • About 64% of the U.S. workforce is covered by a collective bargaining agreement.
  • Global service workforce includes roughly 37,000 service mechanics.
• Otis maintains a global service portfolio of about 2.5 million units and approximately 1.1 million Otis-connected units (including units under warranty) as of December 31, 2025.

Joint ventures and China

• Otis Elevator (China) Investment Company Limited (Otis China) is a major joint venture in China.
• Otis Electric Co. Limited (Otis Electric) was a joint venture; as of October 2025, Otis Electric is 100% owned by Otis China after acquiring the noncontrolling stake from a partner (Xizi Elevator Group Co.).

Additional context

• Otis combines direct sales, distributors and service networks, with an emphasis on long-term service relationships and modernization opportunities.
• Revenues for New Equipment projects are recognized on a percentage-of-completion basis.
• The company positions its integrated digital ecosystem (IoT, remote monitoring and data-driven service) as a core differentiator and growth driver.

Financial highlights (selected, 2025)

• Net sales mix by segment: New Equipment 35%, Service 65%.
• International net sales: ~71% of net sales.
• Long-term debt outstanding: $7.7 billion as of December 31, 2025.
• R&D and related spend: $152 million (R&D) plus $45 million (digital/strategic) in 2025 (combined 1.4% of net sales).
• Total connected units: ~1.1 million (as of 12/31/2025), including units under warranty.