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F500-2021-235-Otis Worldwide

Raytheon Technologies spun off Otis Worldwide in April 2020. Headquartered in Farmington, Conn., Otis manufactures elevators, escalators, and moving walkways.

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Otis Worldwide Corporation is a global elevator company. Elisha Otis—inventor of the safety elevator—founded the company in 1853 in Yonkers, N.Y., changing urban landscapes forever by enabling the skyscraper. In 1925, the company introduced the first-ever completely automatic elevator. Today, as it operates in nearly every country in the world, Otis manufactures and maintains elevators, escalators, and moving walkways. It became a public company in 2020, the result of a spinoff from United Technologies Corporation.

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Otis Worldwide (OTIS): Company Profile, Stock Price, News, Rankings

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Otis Worldwide

otis worldwide

Good morning, and welcome to Otis' First Quarter twenty twenty five Earnings Conference Call. This call is being carried live on the Internet and recorded for replay. Presentation materials are available for download from Otis' website at www.otis.com. I'll now turn the call over to Rob Quataro, Vice President of Investor Relations. Please go ahead.

Thank you, JL. Welcome to Otis' first quarter twenty twenty five earnings conference call. On the call with me today are Judy Marks, Chair, CEO and President and Christina Mendez, Executive Vice President and CFO. Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding restructuring and significant nonrecurring 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' SEC filings, including our Form 10 ks and quarterly reports on Form 10 Q, provide details on important factors that could cause actual results to differ materially. Now I'd like to turn the call over to Judy.

Thank you, Rob. Good morning, afternoon and evening, everyone. Thank you for joining us. We hope everyone listening is safe and well. Before discussing our results, I'd like to take a moment to recognize an important milestone.

Earlier this month, Otis celebrated our fifth anniversary since returning as an independent public company. The last five years have been challenging and rewarding, and I'm proud of our colleagues and our many accomplishments. Five years ago, when we were completing our spin off, the world was in the midst of a global pandemic. While the pandemic posed many challenges, it also provided an opportunity to demonstrate the impact of our strategy, the resilience of our business and the commitment of our colleagues to serving our customers and continuous improvement. We have made tremendous progress since those early days, and our shareholders have been rewarded.

Since 2019, we've expanded adjusted operating profit margins by two twenty basis points and grown adjusted EPS over 70%. We've more than doubled our dividend. And together with share repurchases, we have returned $6,000,000,000 of capital to our shareholders. I'm proud of our achievements over the last five years and thankful for our 72,000 colleagues who demonstrate our absolutes each and every day. We've laid a strong foundation, and I couldn't be more excited about the future opportunities ahead of us.

Turning to Q1 highlights on Slide three. Otis started the year with a solid first quarter, driven by the resilience and strength of our service driven business model. First quarter organic sales were flat, as strength in service was offset by a decline in new equipment. Service organic sales grew 4% with growth across all business lines. Modernization orders increased 12%, and we ended the quarter with a backlog up 14% at constant currency.

Our maintenance portfolio continued to grow four percent, while we also drove 40 basis points of adjusted operating margin expansion compared to the prior year. Solid growth in service, coupled with margin expansion, enabled us to grow adjusted EPS 5% in the quarter. We generated $186,000,000 in adjusted free cash flow and completed approximately $250,000,000 in share repurchases. And yesterday, we announced an 8% increase in our dividend, which brings our cumulative dividend increase since spin to approximately 110%. During the quarter, we were honored to be recognized by Fortune as one of the world's most admired companies and to be named to Wall Street Journal's Best Managed Companies list.

These prestigious recognitions reflect our colleagues' commitment to serving our customers and living our absolutes every day. Turning to our orders performance on Slide four. New equipment and modernization combined orders grew 2%, driven by strength in modernization. The combined backlog was relatively flat, a sequential improvement from the fourth quarter. Our total backlog, including maintenance and repair, remains at historically high levels and positions us well for future quarters.

New equipment orders declined 1% in the quarter. Americas continued its strong orders performance from the second half of twenty twenty four, growing mid teens in the first quarter. This was driven by mid teens growth in North America and greater than 20% growth in Latin America. Demand in Asia Pacific also remains robust with orders growth greater than 20%, primarily driven by India and Southeast Asia. This strength was offset by continued weakness in China, where orders declined greater than 20%.

This was in line with our expectations, and we continue to expect the new equipment market to stabilize later this year. New equipment orders in EMEA were down mid single digits, partially due to a tough compare with declines in Europe offsetting strength in The Middle East. Our new equipment backlog at constant currency was down 3% versus the prior year, although excluding China, it was up mid single digits. Modernization orders grew 12, and our quarter end backlog increased 14% at constant currency. Order growth was widespread, with China a notable standout growing orders greater than 20%.

We are just at the beginning of a projected multiyear growth cycle globally in modernizations, driven by aging of the 22,000,000 global unit installed base. With 8,000,000 units already in the prime modernization age and that number forecasted to grow mid- to high single digits for several years, we see a significant opportunity ahead in all four regions. Our service portfolio grew 4% with growth across all of our regions. China grew low teens, Asia Pacific grew mid single digits, and EMEA and Americas grew low single digits. Before moving to financial results, I'd like to highlight several exciting projects from the first quarter.

In The Americas, 1 of our standout projects is the modernization of the three elevators that are expected to provide safer and more reliable transportation to over 600,000 annual visitors to the iconic Christ The Redeemer in Rio De Janeiro, Brazil. Our commitment to safety and excellence will enhance the visitor experience while preserving the monument's legacy. In Stockholm, Sweden, Otis is embarking on an exciting project to modernize 29 escalators for A Train, the operator of the Arlanda Express Rail Link. The vital connection links Stockholm City Center to Arlanda Airport. The project will revitalize escalators initially installed by Otis in the late 1990s, bringing them to modern standards.

Modernization was both an efficient and sustainable choice for this customer as Otis can enhance performance while minimizing disruption for passengers in this essential link for the Swedish capital. We continue to excel in the new equipment business by demonstrating our strong performance and reliability. Otis has once again been selected by China's Hangzhou Metro to supply 145 escalators and 26 IoT connected elevators for the new Line 3. This addition brings the total number of Otis units in the city's metro network to over 1,700 across nine subway lines. And in India, Otis has proudly secured a landmark contract to supply over four seventy elevators and escalators to the Prestige Group, spanning five major cities.

The project includes 28 double deck elevators and high speed elevators designed for what will be India's tallest commercial tower. Turning to our first quarter results on Slide 5. Otis delivered net sales of $3,300,000,000 with organic sales flat year over year. Adjusted operating profit, excluding a $16,000,000 foreign exchange headwind, increased 3% with growth in service, offset by a decline in new equipment. Adjusted operating profit margin expanded 40 basis points to 16.7%.

Adjusted EPS grew 5% or $04 in the quarter with solid operational performance and the benefit of a lower share count. With that, I'll turn it over to Cristina to walk through our results in more detail.

with Service on Slide six. Service organic sales grew 4% with growth in all lines of business.

Maintenance and repair organic sales grew 3%, driven by portfolio growth, positive price of 2% in maintenance, partially offset by mix and churn. Repair growth was muted in the first quarter, up low single digits due to timing of backlog execution. We expect acceleration in the balance of the year. Organizational organic sales grew 10% as we executed on our backlog. Growth was broad based across all regions, including high teens growth in China and approximately 10% growth in Americas.

Service operating profit of $537,000,000 increased $29,000,000 at constant currency with higher volume, favorable pricing and productivity including the benefits from uplift more than offsetting higher labor and material costs and mix and churn. Operating profit margins expanded 40 basis points to 24.6% in the quarter. Turning to new equipment on slide seven. New equipment organic sales declined 7% in the quarter as the strength in EMEA and APAC were more than offset by declines in China and Americas. EMEA sales grew mid single digits, primarily due to strength in The Middle East, which grew greater than 20%, while Europe was up low single digits.

APAC grew approximately 10% with a strength across most of the region. Americas declined high single digits as we work through last year's backlog. And lastly, we are continuing to work through China's lower backlog with organic sales down greater than 20% in the quarter due to market conditions and a strict credit controlling shipments. However, as Yuri mentioned, we continue to expect the market to stabilize later this year with self stabilization to follow in 2026. New equipment operating profit of $66,000,000 declined $5,000,000 at actual currency and $4,000,000 at constant currency, driven by the headwinds of lower volume and regional mix that were partially offset by productivity, including the benefits from uplift and our China transformation and lower commodity costs.

Pricing was relatively flat. Operating profit margins increased 20 basis points to 5.7%. I will now turn it back to Judy to discuss our 2025 outlook.

Starting on Slide eight with the market outlook. Before discussing our updated 2025 outlook, I'd like to briefly discuss our global market expectations. In aggregate, our view is unchanged. We continue to expect global new equipment units to decline mid single digits for the year. We have reduced our expectations for The Americas to down low single digits as uncertainty around global trade policies may cause project delays.

In EMEA, our outlook is unchanged with expected low single digit growth. Asia is expected to decline mid- to high single digits, driven by mid single digit growth in Asia Pacific and an approximately 10% decline in China. As we previously mentioned, we continue to expect stabilization in late twenty twenty five. Turning to service. Last year, the global installed base grew mid single digits, reaching approximately 22,000,000 units at year end.

We anticipate this trend will continue with mid single digit growth in the installed base this year. We have good visibility into this growth, given the installed base is driven by units sold approximately two years ago. By region, we expect Americas and EMEA to grow low single digits and Asia to grow mid single digits. Taken together, we expect the global installed base to reach approximately 23,000,000 units at the end of twenty twenty five. Turning to our financial outlook for 2025.

We expect net sales of $14,600,000,000 to $14,800,000,000 which is an increase of approximately $450,000,000 at the midpoint from our original guide, driven by favorable exchange rates. Adjusted operating profit is anticipated to remain between $2,400,000,000 and $2,500,000,000 up $105,000,000 to $135,000,000 on a constant currency basis, excluding the impact of incremental U. S. Tariffs imposed in 2025. The majority of this impact is due to tariffs on products and components imported from China.

Note that the impact of these tariffs is offset by more favorable foreign exchange rates at today's levels. It's important to highlight that our service business, which represents approximately 90% of our segment operating income, is largely insulated from the impact of tariffs. However, given the current tariff rates, we anticipate that our new equipment business will be adversely impacted. As you know, Otis primarily sources and manufactures locally through our 17 factories around the world. Our factory in Florence, South Carolina primarily serves our operations in The U.

S. And Canada. For some components, however, there are no local suppliers, and we source parts from suppliers based in China. In addition, we import some lower volume products to The U. S.

These lower volume products represented well below 1% of our total units sold in 2024. That said, if tariffs on our Chinese imports continue at current levels for the remainder of the year, we expect a negative impact of approximately $45,000,000 to $75,000,000 to our operating profit in 2025, inclusive of our mitigation efforts. These mitigation efforts include customer and supply chain negotiations as well as supply chain shifts to more favorable sources. It's important to note that we expect this impact to be temporary as our exposure is primarily through our existing backlog. For our new orders, we have adjusted contract terms and pricing.

Furthermore, our global manufacturing footprint and standard product platforms give us the flexibility to shift production and adapt to the most cost effective model going forward. Please refer to Slide 15 in the appendix for additional details on tariffs. Turning back to our outlook. We continue to expect adjusted free cash flow of approximately $1,600,000,000 which we will primarily return to our shareholders through dividends and share repurchases. As a reminder, yesterday, we announced an 8% increase in our dividend, bringing our cumulative dividend increases since spin to approximately 110%.

Our share repurchase target for 2025 is unchanged at $800,000,000 Note that we completed approximately $250,000,000 of share repurchases in the first quarter, and we may continue to front load our repurchases earlier in the year. I will now pass it back to Christina to review the 2025 outlook in more detail.

Thank you, Judy. Moving to our organic sales outlook on Slide nine. We continue to expect organic sales growth of 2% to 4%, driven by a strong performance in our Service segment. Our new equipment organic sales growth outlook remains down 1% to 4%. However, we have refined our outlook by region.

We now expect Americas to decline mid single digits as we see project delays due to uncertainty around global trade policies. EMEA is expected to grow mid single digits on the back of strong orders and ending backlog in 2024. Asia is expected to decline mid single digits. And within Asia, we continue to anticipate a strong growth in Asia Pacific offset by declines in China. Service organic sales are expected to increase 5% to 7% for the year.

We have expanded the low end of this range given softer than expected repair execution in the first quarter. However, we expect repair to reaccelerate later in the year. We continue to target mid single digit growth in maintenance and repair, driven by portfolio growth and pricing, partially offset by mix and churn. And we have increased our expectations for modernization organic sales, which are now expected to grow low teens, driven by backlog execution through the year. Moving to our slides 10.

We have been transforming the way we work for nearly two years, beginning with Sublet, which we announced in 2023. We made this bold decision from a position of strength as we saw an opportunity to unlock untapped value. And earlier this year, we began our China transformation program. We have made significant progress with both projects, and we remain well on track. Through these initiatives, we are driving process efficiencies and enabling our field organization to better focus on serving our customers.

In China, our transformation is positioning us to capture the large service and modernization opportunities, while rightsizing our new equipment operations from the current environment. Taken together, we expect Uplift and our China transformation to provide a competitive cost structure and drive sustainable earnings growth. We continue to target $90,000,000 of in year savings in 2025 and $230,000,000 of annual run rate savings by the end of the year. Turning to slide 11. Despite of macroeconomic uncertainty, we expect another year of solid profit and adjusted EPS growth, which is unchanged from our prior guide, driven by the strength and the resiliency of our service driven business.

On a constant currency basis and excluding the impact of tariffs, we expect adjusted operating profit to grow $105,000,000 to $135,000,000 fueled by our service business. On an organic on an actual currency basis, including the impact of tariffs, we expect adjusted operating profit to grow 55,000,000 to $105,000,000 unchanged from our prior guide, as the impact from tariffs is fully mitigated by foreign exchange rates. Margin expansion is expected to be 50 basis points excluding the impact of incremental twenty twenty five tariffs. Including tariffs, we expect margin expansion to be more muted, up 10 basis points due to contraction in new equipment margins. On the other side, we expect service margins to continue expanding as this segment is largely unaffected by tariffs.

Our adjusted free cash flow and share buyback outlook remains unchanged with free cash flow at approximately $1,600,000,000 and approximately $800,000,000 of sales repurchases. Moving to 2025 EPS bridge on Slide 12. Our adjusted EPS outlook for the year is $4 to $4.1 per share. At the midpoint, this includes approximately $0.24 from operational growth, zero five of tailwinds from foreign exchange rates and a net $05 benefit from lower share count and higher interest. These are partially offset by a negative $0.12 from the incremental 2025 tariffs currently in place.

While our overall financial metrics for the year remain generally consistent with our prior outlook, we acknowledge that the economic conditions remain uncertain, including the impact of foreign exchange rates and tariffs. On the operational side, we have delivered a strong first quarter and our outlook remains positive, mainly driven by the Service business. We have taken a conservative approach and we have recalibrated our operational outlook given muted repair growth in the first quarter and the macroeconomic uncertainty that may impact demand. We remain confident in our service flywheel model. And as we have previously said, we are investing savings from uplift into the business to drive service excellence and to accelerate growth.

On the new equipment side, we continue to work on transformation to adapt our cost structure to market conditions. And at the same time, we are executing our backlog with headwinds from price and volumes in China. Regarding our adjusted EPS guidance through the year, we continue to expect the first half to be flat year over year with a stronger growth in the second half. Maintenance results should remain relatively consistent through the year, including improved repair sales. Adjusted EPS growth should step up in the second half due to execution of our modernization backlog, realization of cost savings from Uplift and China transformation initiatives and improving trends in China and Americas new equipment.

With that, I will ask JL to please open the line for questions. Thank you.

Your first question comes from the line of Jeff Sprague of Vertical Research. Your line is open.

Well, Judy, five years already. Can't believe it. Time flies. Good work here. Just back on the on the tariffs.

I'm sorry. Is that a gross or it sounds like you're you're giving us a net number, net of your kinda counteractions. Can you give us a sense of what the what the gross headwind is that you're working against?

Yeah. So Jeff, this is Christina. I can give you some color on the tariff impacts we are considering in the guide. So broadly speaking, that is not impacting our service business because the impact is coming from material purchases. So when we look into U.

S, U. S. Buys $550,000,000 of material purchases per annum. This is approximately 12% of the material purchases in the group. Out of that figure, 100,000,000 comes from China purchases, another $100,000,000 from Rest of the World and the remaining is domestic purchases.

So as you know, China is impacted with two kinds of tariffs. We have reciprocal that is 125 percent on top of the original 20% that were imposed at the beginning of the year and Section two thirty two, that is 25% for steel and aluminum on top of the 20%. So we calculate the annualized impact of China tariffs to be around $90,000,000 and Rest of the World at the moment is 10%. Canada and Mexico are mostly under USMCA, and this is around $10,000,000 impact for us, so $100,000,000 annualized. In terms of mitigation, we are working on many levers.

We are working on supply chain, alternative sourcing. We are also introducing commercial languages in our contracts in order to protect for the new orders that we are taking. So it's more the time of executing the backlog. So out of $100,000,000 excluding commercial, we expect to mitigate half and the other half will be mitigated through commercial.

Yes. Jeff, let me just add just a little more color on that just so you understand. We really experienced almost de minimis tariffs in the first quarter. And we know by project and by supplier when to expect things to enter the port. We're managing this job by job.

So second through fourth quarter won't be identical. So you can't just kind of divide the 60 by three. And we are watching this job by job in case there are changes to the tariffs to ensure we don't end up paying tariffs that are then eventually brought down. So it's a really disciplined approach because it's not a lot of supply that's coming in from China, and we're monitoring it job by job.

And are you just assuming you can't or by contractually, you can't reprice backlog? Or are there some counteractions that you are taking there that maybe you're not counting on yet in the guidance? So just what's your degrees of freedom on adjusting the backlog?

Listen, I think commercially, discussions, as you can imagine, with many of our major customers and our key accounts who understand the costs going up for us. And we've seen some flexibility in scheduling and some early gains, but it's too early to count on any of that. So we wanted to be able to provide what we think is the most realistic estimate with the tariffs we know today. Again, as Christina said, they're covered in our outlook. And if any of them can be reduced, that will drop through.

Your next question comes from the line of Amit Mehrotra of UBS. Your line is open.

Thanks, operator. Morning, everybody. Just a quick follow-up on tariffs. Some of the the pricing actions or commercial actions you're taking, are those in the form of surcharges or actual repricing? Just so I understand maybe how sticky it could be depending on what happens with respect to tariffs?

And then just related to that, are you seeing any impact at the local level in China in terms of retaliation against US companies, any negative impact or any targeting of US companies given the tension?

Yeah. Let me answer the second one first, Amit. Thanks for the questions. And the answer is we are not seeing any overt targeting certainly of Otis at this point in time. And we watch that closely.

We continue to watch that closely and develop continue to develop relations at all levels of the government. And I was over there in March and actually was part of the meeting with President Xi and the China Development Forum as well as many party secretaries. So they understand how local we are, and we are local for local. In terms of the commercial actions, we have increased our prices. And we do that regularly as we watch economic factors where tariffs is just one of those.

So we've increased our prices not just in new equipment, but on our spare parts that are part of our maintenance and repair line of business as well as modernization. So there's not a specific you know so that's all going forward. It's what Jeff asked about the backlog that we're working to mitigate right now.

Right. Okay. Very helpful. And then just, a follow-up for me. So so China orders, I guess, in the quarter are kinda doing what you guys expected them to do.

There was an expectation that, you know, they would, you know, the they would stabilize on easier comp. Are you still expect that? And and are you seeing any incremental weakness? And one of the things we noticed also is maintenance and repair. Is there any anything on the pricing side that we should be watching?

Because I noticed organic growth was, you know, I think, like, 3%, but maybe units were running a little bit above that. So maybe what what what the implication is for for underlying pricing and maintenance and repair.

Yes. Let me take the China question, and Cristina will take the pricing question. We believe the China market was down 15% in the first quarter, which is actually sequentially better than the 20% it was down in the fourth quarter last year. We expect it to continue to be down 15% in the second quarter. This is playing out really how we thought the year would play out.

And then we believe in the second half, really, will be down 10%. So this is what we're seeing on the ground for new equipment. We are now saying that we believe the segment itself for 2025 will be approximately 375,000 units in China. But our team, again, is balancing value, price and new equipment units for service stickiness. So it's all part of our service strategy to do that.

Now I'll turn it over to Kristina on pricing.

Yes. And on pricing, we continue our strategy of passing inflation to the because we have the ability to do it in our contracts. But inflation this year is softer than last year. So our price effect is around two points positive versus three to four points positive last year. What you see probably in the way you are calculating maintenance and repair are growing 3% versus portfolio growing 4%.

So there is one point of mix effect from price into maintenance. And repair was relatively muted in the quarter. Repair was growing low single digit. It's a matter of timing of execution of the backlog. The backlog continues being very strong.

The demand is there. The organization was very focused on transformation. We had organizational changes that has delayed execution a little bit, but we are planning to accelerate in Q2.

And let me just finish that one off with the repair backlog is up 5%. So we have really good line of sight. There's work to be done and it's on us to convert that.

Very good. Okay. Thank you very much for answering my questions. Appreciate it.

Your next question comes from the line of Nigel Coe of Wolfe Research. Your line is open.

Thanks. Good morning. Thanks for the question. I think Amit got four questions in there. So that was

I counted, Nigel. That's what I there was like one and three follow ups.

You got it through pretty quickly. So I'll keep this to two questions. Just Christina, can I go back to the tariff math because I'm a little bit confused? So I apologize for maybe just retreading. The $90,000,000 from China, I think you said $100,000,000 of imports from China into The U.

S. So with the reset, I get 145,000,000 of annualized impact plus whatever the $232,000,000 is. So is the 90,000,000 on Slide 13, is that the pro rata for this year? Or was that net of mitigations? Just trying to understand that number.

No, no. So Nigel, let me give you some additional color so you can make the calculation. So $100,000,000 is annual purchases from China. The annual impact from tariffs coming from those purchases is $90,000,000 on an annual basis. This is because of the mix of February that has lower rate versus reciprocal that has higher rate.

Year will be 100,000,000 Our point estimate for in year 2025 is $60,000,000 that is three quarters of a full year plus mitigation actions that, of course, this year are more muted because time of execution and time of moving through the backlog. Once we go through the backlog and we start converting the new orders, the impact will be much more smaller.

Okay. No, I think that's clear. And then just my follow on is on the 10 basis points of all in OMX for this year. I just want to make sure that we're doing the math correct here. So it looks like new equipment margins may be down to about 4% so, 4.5%.

Service segment margin expansion of about 40 to 50 basis points year over year. Is that about the right math?

Yes. So in our new outlook, we have reduced the bps expansion to 10 points versus 60 points before. There is a component of tariffs. So that is our 50 basis point ex tariffs will be the increase. So that is our 40 basis points of the reduction.

On the other side, we are doing very well in the equipment cost out. You have seen a strong Q1 where the margins were 5.7%, sequentially 100 basis points up versus the margins we had in new equipment in Q4. So we are confident we'll be able to compensate part of the tariff impact in the ROS of new equipment, thanks to our transformation and cost out actions. On the service side, we'll have the remaining 10 basis points reduction of ROS. Service is growing is continually growing, probably a little bit lighter compared to last year because of two effects.

One is the mix in sales. So repair will grow mid to high single digit versus high single digit last year, and we are accelerating more. And on the other side, we are also investing in service. This is an intentional investment on service excellence in order to accelerate portfolio growth and to improve retention rate in the midterm.

Okay. So sorry, when you say 10 basis points reduction to service, you mean 10 basis points relative to the previous forecast?

Your next question comes from the line of Steve Tusa of JPMorgan. Your line is open.

Congrats on the milestones. Been through a lot over that time period, but very consistent performance. Just on the services side, the revenue growth there was I think 4% organically in the quarter and your portfolio units obviously are still trending pretty nicely in that range. So like was that the impact of repair, the repair business? What drove that?

Yes. We did get a little bit of price, Steve, but it was absolutely all repair. As Christina mentioned, as we ended last year, you saw our retention rates had gone down to 92% and change, and we weren't satisfied with that. We know that the importance of this flywheel is growing the portfolio, and the most important part of that is retaining our current customers. They're our best profit sources, but more importantly, they are our annuity business, and that's what we're in business for.

So we've actually refocused in this quarter for what we call service excellence, and that will continue through the year to drive improved retention rates. That was some investment we made consciously. And we also were rolling out some of the uplift organizational changes simultaneously. So the backlog is there. As I said, it's up 5%.

You're going to see revenue on repair and the backlog conversion step up every quarter to where we should have while it won't be exactly the same as last year, we'll see better repair growth rates in revenue quarter after quarter as we go through the rest of '25. But that that was the reason.

Okay. And that's kind of how you accelerate that that number going forward? Is it repair getting Okay.

Otis Worldwide (OTIS) Q1 2025 Earnings Call Transcript

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