OTIS Otis Worldwide Corp

Overview and Growth

Otis Worldwide Corp generated $14.43B of revenue in fiscal 2025, with net income of $1.38B and an operating cash inflow of $1.60B. Revenue of $14.43B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $14.26B in fiscal 2024, revenue recorded a 1.2% year-over-year increase. The company reported diluted EPS of $3.50, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $4.07 in fiscal 2024, the current result was 14.0% lower. At period end, total assets were $10.65B, framing the scale of the company’s operating and financing commitments. Revenue equaled 1.35x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Operations produced $2.13B of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 14.8%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $1.38B for the fiscal year. The final earnings result represented 9.6% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $1.93B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 13.4%, relating income before taxes directly to revenue. The company recognized $479.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 24.8% of pretax income, showing the tax burden absorbed by the year’s earnings. Return on period-end assets was 13.0%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The company held $10.65B of assets against $15.92B of liabilities and -$5.35B of equity, revealing how the asset base was financed. With total equity at -$5.35B, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. Current assets were $6.50B against $7.66B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered only 0.85x of current liabilities, so current liabilities exceeded current assets at period end. The company held $1.10B in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 14.3% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $7.96B, establishing the amount of borrowing carried within the company’s capital structure. Relative to total assets, debt measured 74.7%, showing how much of the asset base was matched by borrowing. Liabilities represented 149.5% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 10.3% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $11.32B in fiscal 2024, the current asset base moved 5.9% and finished lower.

Cash Flow and Earnings Quality

The company reported $1.60B of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 1.15x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $152.00M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 9.5% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $1.44B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 10.0%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 13.6%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.