v3.26.1
Segment Financial Data
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Financial Data Segment Financial Data
Our operations are classified into two operating segments: New Equipment and Service. Through the New Equipment segment, we design, manufacture, sell and install a wide range of passenger and freight elevators as well as escalators and moving walkways to customers in the residential, commercial and infrastructure projects. The Service segment provides maintenance and repair services for both our products and those of other manufacturers, and provides modernization services to upgrade elevators and escalators. The operating segments are generally based on the management structure of the Company, as well as how management allocates resources, assesses performance and makes strategic and operational decisions.

Segment Information. Otis discloses segment operating profit as its measure of segment performance, reconciled to Net income before income taxes. Segment operating profit excludes certain expenses and income that are not allocated to segments (as described below in "Corporate and Unallocated").

Otis' Chief Operating Decision Maker ("CODM") is the Company's Chief Executive Officer. The CODM assesses the performance of each operating segment and allocates resources to those segments based on net sales and segment operating profit. The CODM compares segment operating profit results to prior periods and forecasted amounts to assess performance and to make decisions regarding the allocation of capital and other investments. Discrete asset information for each segment is not presented to, or reviewed by, the CODM.

Segment information for the quarters ended June 30, 2026 and 2025 is as follows:

Quarter Ended June 30, 2026Quarter Ended June 30, 2025
(dollars in millions)New EquipmentServiceTotalNew EquipmentServiceTotal
Net sales$1,279 $2,580 $3,859 $1,276 $2,319 $3,595 
Costs and expenses:
Cost of sales1,080 1,640 2,720 1,061 1,440 2,501 
Selling, general and administrative132 329 461 119 292 411 
Other including research and development27 12 39 28 9 37 
Total segment operating profit$40 $599 639 $68 $578 646 
Corporate and Unallocated
General corporate expenses and other52 34 
UpLift restructuring— 25 
Other restructuring11 12 
UpLift transformation costs— 18 
Separation-related adjustments— 9 
Other, net1 1 
Total company operating profit575 547 
Non-service pension cost (benefit)2 — 
Interest expense (income), net26 26 
Net income before income taxes$547 $521 
Segment information for the six months ended June 30, 2026 and 2025 is as follows:

Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(dollars in millions)New EquipmentServiceTotalNew EquipmentServiceTotal
Net sales$2,428 $4,997 $7,425 $2,439 $4,506 $6,945 
Costs and expenses:
Cost of sales2,036 3,165 5,201 2,023 2,803 4,826 
Selling, general and administrative261 653 914 229 574 803 
Other including research and development53 24 77 53 14 67 
Total segment operating profit$78 $1,155 1,233 $134 $1,115 1,249 
Corporate and Unallocated
General corporate expenses and other96 77 
UpLift restructuring— 45 
Other restructuring18 35 
UpLift transformation costs— 41 
Separation-related adjustments5 61 
Litigation-related settlement costs— 21 
Held for sale impairment— 10 
Other, net— 1 
Total company operating profit1,114 958 
Non-service pension cost (benefit)2 — 
Interest expense (income), net85 71 
Net income before income taxes$1,027 $887 

Corporate and Unallocated includes adjustments related to the Separation, litigation-related settlement costs, impairment loss related to net assets held for sale, restructuring costs, and UpLift transformation costs.

Separation-related adjustments represent net adjustments of amounts due to and from RTX in accordance with the TMA, including amounts due to RTX related to a favorable ruling received in August 2024 regarding the German tax litigation. These adjustments are recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations during the quarters and six months ended June 30, 2026 and 2025, respectively. See Note 10, "Income Taxes" and Note 15, "Contingent Liabilities" for additional information about the German tax litigation.

Litigation-related settlement costs in the six months ended June 30, 2025 represent the aggregate amount of settlement costs and increase in loss contingency accruals, excluding legal costs, for certain legal matters that are outside of the ordinary course of business due to the size, complexity and/or unique facts of these matters.

Impairment loss related to net assets held for sale is recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations in the six months ended June 30, 2025. See Note 5, "Business Acquisitions, Dispositions, Goodwill and Intangible Assets" for additional information about the held for sale assets and liabilities.

Refer to Note 11, "Restructuring and Transformation Costs" for more information about restructuring and UpLift transformation costs.