Otis Worldwide Corp Q3 2024 10-Q Filing

Ticker: OTIS · Form: 10-Q · Filed: Oct 31, 2024 · CIK: 1781335

Sentiment: neutral

Topics: 10-Q, quarterly-filing, financials, debt

TL;DR

**Otis Q3 2024 10-Q: Financials released, showing product & service segment performance.**

AI Summary

Otis Worldwide Corp filed its 10-Q for the period ending September 30, 2024. The filing details financial performance for the third quarter and the first nine months of the year, including revenues from product and service segments. Key financial data and balance sheet information are presented, reflecting the company's operational and financial standing.

Why It Matters

This filing provides investors and analysts with a detailed look at Otis's financial health and operational performance during the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Numbers

Key Players & Entities

FAQ

What were the key revenue drivers for Otis in Q3 2024?

The filing indicates revenues from 'us-gaap:ProductMember' and 'us-gaap:ServiceMember' for the periods ending September 30, 2024, and September 30, 2023, but specific dollar amounts for Q3 2024 are not detailed in this header information.

What is the fiscal year end for Otis Worldwide Corp?

Otis Worldwide Corp's fiscal year ends on December 31, as indicated in the filing.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted on October 31, 2024.

What is the primary SIC code for Otis Worldwide Corp?

The Standard Industrial Classification (SIC) code for Otis Worldwide Corp is 3600, categorized under 'ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP)'.

What are some of the debt instruments mentioned in the filing?

The filing references 'otis:A0318NotesDue2026Member' and 'otis:A0934NotesDue2031Member', indicating specific notes due in 2026 and 2031.

Filing Stats: 4,909 words · 20 min read · ~16 pages · Grade level 16.8 · Accepted 2024-10-31 16:13:38

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4

Financial Statements

Item 1. Financial Statements: 4 Condensed Consolidated Statements of Operations for the quarters ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Operations for the nine months ended Septem ber 30, 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Income for the quarters and nine months ended September 30, 2024 and 2023 6 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 7 Condensed Consolidated Statements of Changes in Equity for the quarters ended September 30, 2024 and 2023 8 Condensed Consolidated Statements of Changes in Equity for the nine months ended September 30, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the nine months ended Septe mber 30, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11 Report of Independent Registered Public Accounting Firm 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 46

– OTHER INFORMATION

PART II – OTHER INFORMATION 49

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 49

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 Otis Worldwide Corporation's and its subsidiaries' names, abbreviations thereof, logos, and product and service designators are all either the registered or unregistered trademarks or tradenames of Otis Worldwide Corporation and its subsidiaries. Names, abbreviations of names, logos, and products and service designators of other companies are either the registered or unregistered trademarks or tradenames of their respective owners. As used herein, the terms "we," "us," "our," "the Company" or "Otis," unless the context otherwise requires, mean Otis Worldwide Corporation and its subsidiaries. References to Internet websites in this Form 10-Q are provided for convenience only. Information available through these websites is not incorporated by reference into this Form 10-Q. 3 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements OTIS WORLDWIDE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Quarter Ended September 30, (dollars in millions, except per share amounts; shares in millions) 2024 2023 Net sales: Product sales $ 1,309 $ 1,435 Service sales 2,239 2,088 3,548 3,523 Costs and expenses: Cost of products sold 1,089 1,195 Cost of services sold 1,381 1,282 Research and development 40 36 Selling, general and administrative 455 452 2,965 2,965 Other income (expense), net ( 220 ) 13 Operating profit 363 571 Non-service pension cost (benefit) 1 — Interest expense (income), net ( 150 ) 39 Net income before income taxes 512 532 Income tax expense (benefit) ( 45 ) 137 Net income 557 395 Less: Noncontrolling interest in subsidiaries' earnings 17 19 Net income attributable to Otis Worldwide Corporation $ 540 $ 376 Earnings per share (Note 2): Basic $ 1.35 $ 0.92 Diluted $ 1.34 $ 0.91 Weighted average number of shares outstanding: Basic shares 400.2 410.8 Diluted shares 402.7 413.7 See accompanying Notes to Condensed Consolidated Financial Statements. 4 Table of Contents OTIS WORLDWIDE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Nine Months Ended September 30, (dollars in millions, except per share amounts; shares in millions) 2024 2023 Net sales: Product sales $ 4,010 $ 4,346 Service sales 6,576 6,243 10,586 10,589 Costs and expenses: Cost of products sold 3,324 3,621 Cost of services sold 4,077 3,843 Research and development 115 107 Selling, general and administrative 1,366 1,386 8,882 8,957 Other income (expense), net ( 227 ) 32 Operating profit 1,477 1,664 Non-service pension cost (benefit) — 1 Interest expense (income), net ( 79 ) 109 Net income before income taxes 1,556 1,554 Income tax expense (benefit) 175 400 Net income 1,381 1,154 Less: Noncontrolling interest in subsidiaries' earnings 73 71 Net income attributable to Otis Worldwide Corporatio

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