Q2 2024 Otis Worldwide Corp Earnings Call Transcript
Key Points
- Otis Worldwide Corp (OTIS) delivered a solid second quarter with service organic sales growing mid-single digits.
- Overall adjusted profit margin expanded by 110 basis points, and adjusted EPS grew 15%, marking the fourth consecutive quarter of 10% or greater adjusted EPS growth.
- The company generated $353 million in adjusted free cash flow and returned $300 million to shareholders through share repurchases in the quarter.
- Otis Worldwide Corp (OTIS) published its 2023 ESG report, outlining progress towards 13 ESG goals and recently received ISO 45001 certification.
- Service segment continued to show strong performance with portfolio growth above 4% for the seventh consecutive quarter and 14% modernization orders growth.
- New equipment orders were down 11% in the second quarter, with significant declines in the Americas and China.
- The new equipment backlog at constant currency was down 3% versus the prior year.
- Economic softness in China severely impacted new equipment orders, with the market expected to be down 10% to 15% for the full year.
- Adjusted operating profit was impacted by a $15 million foreign exchange headwind.
- Organic sales were down 1% in the quarter, driven by a 9% decline in new equipment sales.
Good morning, and welcome to Otis's second-quarter 2024 earnings conference call. This call is being carried live on the Internet and recorded for replay. Presentation materials are available for download from Otis's website at www.otis.com.
I'll now turn it over to Michael Rednor, Vice President, Investor Relations.
Thank you, Sarah. Welcome to Otis's second-quarter 2024 earnings conference call. On the call with me today are Judy Marks, Anurag Maheshwari, and Cristina Méndez.
Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding restructuring and significant non-recurring items. A reconciliation of these measures can be found in the appendix of the webcast.
We also remind listeners that the presentation contains forward-looking statements, which are subject to risks and uncertainties. Otis's SEC filings, including our Form 10-K and
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