You really shouldn’t be surprised by the market takes of a leading elevator maker, from the AI capex boom to the health of the US economy.
At this intersection is where we find elevator giant Otis Worldwide (OTIS), founded in 1853.
The company reported on Wednesday that fourth quarter sales and earnings per share rose 3% and 11% year over year, respectively. Earnings per share came in line with analyst forecasts.
Consistent to recent quarters, Otis’ business was powered by its higher margin services segment — think building owners calling up to service their elevators. Sales for this division increased 8% year over year, while operating margins expanded to 25.5% from 24.5%.
Shares of Otis fell 4% in morning trading, however. A few potential reasons why:
✅ Sales and operating margins fell in the new equipment business.
✅ 2026 sales guidance: $15 billion to $15.3 billion, compared to analyst average estimate of $15.26 billion.
✅ 2026 EPS guidance: up mid to high-single digit percentage. Analyst average estimate: +9.6%.
At the helm of Otis since its spin-off from United Technologies in 2020 is Judy Marks. The long-time top industrial executive also sits on the board of dump truck maker Caterpillar (CAT), so she has a firsthand look into how key economic trends are taking shape.
Here are a few hot takes from Marks in a phone chat I had with her this morning.
“It’s working in an airport in China right now. Overnight, it’s inspecting all the doors and everything to make sure everything is in alignment. And if it’s not [working], the mechanic knows that’s where I start tomorrow morning. It’s totally unmanned. I just think the applications are going to be limitless.”
Marks added, “It’s something more like you would see from Boston Dynamics that looks more like a dog. I think humanoid, some will have their day, and I think you’re going to see them outside the factory too, which we think is really going to help the thematic of longevity and helping people in their homes. We’re working already to make sure all robots can interface with all of our products and ride the elevators and call them without having to touch the buttons. That’s why it’s an exciting time.”
“We recruit as they’re in their high schools. We have an apprenticeship program with our union throughout the United States, we’ve got about 6,600 members of our local elevator union. It’s a four year apprenticeship. They work for us during the day and get paid as a helper. They go to school at night, but they come out with a great career, no debt, and you know, we’ve been able to fill all the positions. As a matter of fact, when these positions open in any city, they are oversubscribed for people who want to get a slot.”
