Otis Worldwide Corporation

“Otis is the world’s leading elevator and escalator manufacturing, installation, service and modernization company. We serve customers in over 200 countries and territories around the world.”

“Our Company is organized into two segments, New Equipment and Service, which, for 2025, contributed 35% and 65% of our net sales, and 9% and 91% of our segment operating profit, respectively.”

“Our New Equipment customers include real estate and building developers and general contractors who develop and/or design buildings for residential, commercial, retail or mixed-use activity. We also sell New Equipment to government agencies, particularly, to support infrastructure projects, such as airports, railways or metros.”

“Service customers typically comprise building owners, facility managers, housing associations and government agencies that operate buildings where elevators and escalators are installed.”

“Due to the nature of the customer base in China and certain other geographies, our direct sales force is augmented by agents and distributors.”

“We have a maintenance portfolio of approximately 2.5 million units globally, which includes Otis equipment manufactured and sold by us, as well as equipment from other original equipment manufacturers.”

“Through our New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators, as well as escalators and moving walkways for residential, commercial and infrastructure projects.”

“primarily centered around the following elevator platforms: Gen2, Gen3, Gen360 and SkyRise”

“Gen2 has been our principal low-and mid-rise elevator solution. Since its launch in 2000, we have sold over one million units, making it our best-selling elevator platform.”

“The successor to the Gen2 family of elevators, the Gen3 platform enhances the space-saving, energy-efficient design of the Gen2 elevator with the connectivity of the Otis ONE IoT (Internet of Things) digital service platform”

“As of December 31, 2025, approximately 1.1 million units of our global portfolio, including units under the warranty period, are connected.”

“For taller, high-rise buildings, the SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.”

“The Gen360 elevator frees hoistway space to accommodate larger cabins and features a new electronic architecture”

“we operate in certain countries, including Argentina, Brazil, China, India, Indonesia, Malaysia, Mexico, Poland, South Africa, Ukraine, Turkey and certain countries in the Middle East, that carry high levels of currency, political, compliance and economic risk.”

“$152 million of capital expenditures and $109 million of acquisitions of businesses and intangible assets”

“We seek to grow our maintenance portfolio through conversion of newly installed units into maintenance contracts, through prospecting and winning units already in service from customers using another service provider and through acquisitions.”

“The Euro Notes are fully and unconditionally guaranteed by Otis Worldwide Corporation ("OWC") on an unsecured, unsubordinated basis.”

“These macroeconomic trends could continue to impact our business, including impacts to overall financial performance in 2026”

“the Company now estimates the amount payable to RTX to be $56 million.”

“To the extent possible, we continue to operate our business in Ukraine, which represented less than 1% of our 2025, 2024 and 2023 net sales and operating profit.”

“Given that the majority of our net sales are non-U.S. based, a strengthening of the U.S. dollar against other major foreign currencies has adversely affected and could in the future adversely affect our results of operations.”

“a slowdown in building and remodeling activity, whether due to remote work or otherwise, or decreased public spending on infrastructure projects could adversely affect our financial performance.”

“Other than the impact from new tariffs currently in effect of approximately $20 million during 2025 and a similar impact anticipated in 2026”

“we have experienced cyberattacks. While these attacks have not to our knowledge had a material adverse impact on the Company to date”

“A slowdown in urbanization in emerging countries, such as China or India, have and could continue to adversely affect our financial performance.”

“Our emerging market operations can present many risks, including differences in culturally accepted practices (such as employment and business practices), compliance risks, economic and government instability, currency fluctuations, and the imposition of foreign exchange and capital controls.”