Arabic version: أوتيس تسعى لاستعادة ثقة وول ستريت
According to Cnbc, Otis, the world’s largest elevator company, is working to regain investor confidence after its stock fell about 15% year-to-date, underperforming both the industrial sector and the broader market. The company operates in more than 200 countries and generated more than $14 billion in revenue in 2025, roughly 13% above its level when it was spun off from United Technologies in 2020.
Analysts said investor interest in high-growth artificial intelligence plays has weighed on Otis, while the company has faced setbacks in its service business. Melius Research global machinery analyst Robert Wertheimer said Otis had “a setback in service” while money was flowing toward AI-related investments. Otis CEO and Chair Judy Marks said the company’s long-term case is tied to urbanization, digitalization, mobility needs for aging people and infrastructure modernization.
Service is Otis’ main profit engine. New-equipment operating profit margin was 4.8% in 2025, while more than 90% of company profits come from maintaining, repairing and modernizing elevators after installation. Otis services about 2.5 million elevators worldwide, up from more than 2 million in 2020. Its service margin reached 25.5% by the end of 2025, but fell 250 basis points in the first quarter of 2026 as retention rates declined.
The company is making $50 million in incremental investments in its service business during 2026. Service sales rose 11% year over year in Otis’ most recent quarter, though Marks said the company had not yet seen a significant improvement in retention. Otis also cut its profit guidance for the year. Wertheimer said investments intended to reduce customer outages could improve renewals, but the company must show that its spending can produce results.
Otis also faces a potentially changing competitive landscape. Finland’s Kone agreed in April to buy Germany’s TK Elevator in a nearly $35 billion deal. Wolfe Research senior analyst Nigel Coe said the transaction could benefit Otis by reducing the number of major companies bidding for contracts from four to three. The deal could face regulatory hurdles, however, and Schindler has said it would challenge it over antitrust considerations.
