OTIS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

Otis delivers solid fourth quarter and full year results; announces 2025 outlook with sustained earnings growth driven by continued Service momentum

Fourth quarter 2024

— Net sales up 1.5% and organic sales up 1.9%, driven by Service sales up 7.6% and Service organic sales up 7.8%

— GAAP EPS up 6.3% and adjusted EPS up 6.9% with continued margin expansion

— Maintenance portfolio units increased 4.2%

— Modernization orders up 18%; backlog up 10%, 13% at constant currency

— GAAP cash flow from operations of $690 million; adjusted free cash flow of $682 million; share repurchases of $200 million

Full year 2024

— Net sales up 0.4% and organic sales up 1.4%, driven by Service sales up 5.9% and Service organic sales up 6.8%

— GAAP EPS up 20.1% and adjusted EPS up 8.2%

— GAAP cash flow from operations of $1.6 billion, adjusted free cash flow of $1.6 billion; share repurchases of $1.0 billion

Outlook for full year 2025*: Organic sales up 2 to 4%, adjusted earnings per share of $4.00 to $4.10 and adjusted free cash flow of approximately $1.6 billion

Otis Worldwide Corporation (NYSE:OTIS) reported full year net sales of $14.3 billion with 1.4% organic growth. GAAP earnings per share (EPS) increased 20.1% to $4.07 and adjusted EPS increased 8.2% to $3.83.

“Otis finished 2024 with solid fourth quarter results including high single digit adjusted EPS growth, our highest cash flow since spin, and modernization orders up 18%,” said Chair, CEO & President Judy Marks. “For the full year, we delivered organic sales growth and strong adjusted margin expansion for the fourth consecutive year. Our industry-leading maintenance portfolio grew 4.2% to approximately 2.4 million units, and our modernization backlog grew low teens. The quarter and the year show that our strategic New Equipment, Service and modernization flywheel is working with more growth in the higher margin elements of the business. As in 2023 and 2024, we enter 2025 with continued strong momentum.”

*Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, adjusted effective tax rate and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

Key Figures

($ millions, except per Quarter Ended December 31, Year Ended December 31,share amounts) 2024 2023 Y/Y Y/Y (CFX) 2024 2023 Y/Y Y/Y (CFX)Net sales $ 3,675 $ 3,620 1.5% 2.3% $ 14,261 $ 14,209 0.4% 1.6%Organic sales growth 1.9% 1.4%GAAPOperating profit $ 531 $ 522 $ 9 $ 2,008 $ 2,186 $ (178)Operating profit margin 14.4% 14.4% 0 bps 14.1% 15.4% (130) bpsNet income $ 337 $ 323 4.3% $ 1,645 $ 1,406 17.0%Earnings per share $ 0.84 $ 0.79 6.3% $ 4.07 $ 3.39 20.1%Adjusted non-GAAP comparisonOperating profit $ 583 $ 566 $ 17 $ 22 $ 2,356 $ 2,269 $ 87 $ 118Operating profit margin 15.9% 15.6% 30 bps 16.5% 16.0% 50 bpsNet income $ 374 $ 356 5.1% $ 1,548 $ 1,469 5.4%Earnings per share $ 0.93 $ 0.87 6.9% $ 3.83 $ 3.54 8.2%

Fourth quarter net sales of $3.7 billion increased 1.5% versus the prior year, driven by Service.

Fourth quarter GAAP operating profit of $531 million increased $9 million and adjusted operating profit of $583 million increased $17 million at actual currency and $22 million at constant currency, driven by Service. GAAP operating profit margin was flat versus the prior year and adjusted operating profit margin expanded 30 basis points to 15.9%, driven by favorable Service segment performance and mix.

GAAP EPS of $0.84 increased 6.3% compared to the prior year and adjusted EPS increased 6.9% to $0.93 due to solid operational performance and a lower share count.

Full year net sales of $14.3 billion increased 0.4%, with a 1.4% increase in organic sales, driven by Service. GAAP operating profit of $2.0 billion decreased $178 million driven primarily by separation-related adjustments based on non-recurring tax items. Adjusted operating profit of $2.4 billion increased $87 million at actual currency and $118 million at constant currency, driven by Service. GAAP operating profit margin contracted 130 basis points to 14.1%, and adjusted operating profit margin expanded 50 basis points to 16.5%, driven by favorable Service segment performance and mix. GAAP EPS of $4.07 increased 20.1% compared to the prior year primarily driven by non-recurring tax benefit and related interest income, and adjusted EPS increased 8.2% to $3.83 due to solid operating profit growth, a reduction in the effective tax rate, a lower share count, and lower noncontrolling interest.

New Equipment

Quarter Ended December 31, Year Ended December 31,($ millions) 2024 2023 Y/Y Y/Y (CFX) 2024 2023 Y/Y Y/Y (CFX)Net sales $ 1,357 $ 1,466 (7.4)% (6.7)% $ 5,367 $ 5,812 (7.7)% (6.3)%Organic sales (6.8)% (6.4)%Segment operating profit $ 64 $ 89 $ (25) $ (24) $ 329 $ 381 $ (52) $ (44)Segment operating profit margin 4.7% 6.1% (140) bps 6.1% 6.6% (50) bps

In the fourth quarter, net sales of $1.4 billion decreased 7.4% versus the prior year, with mid-single digit organic sales growth in the Americas, EMEA, and Asia Pacific more than offset by a greater than 20% decline in China.

Segment operating profit of $64 million decreased $25 million at actual currency and $24 millionat constant currency from the impacts of lower volume and unfavorable mix, partially offset by price, productivity including the benefits from UpLift, and commodity tailwinds. Segment operating profit margin contracted 140 basis points to 4.7%.

New Equipment orders were down 4% at constant currency with greater than 20% growth in Asia Pacific and mid-teens growth in the Americas more than offset by high single digit decline in EMEA and a greater than 20% decline in China. Full year New Equipment orders were down 8% with low teens growth in Asia Pacific and mid-single digit growth in EMEA more than offset by mid-single digit decline in the Americas and a greater than 20% decline in China. New Equipment backlog decreased 7% at actual currency and 4% at constant currency.

Full year net sales of $5.4 billiondecreased 7.7% versus the prior year, with mid-single digit organic sales growth in the Americas and Asia Pacific, and low single digit organic sales growth in EMEA more than offset by a greater than 20% decline in China. Segment operating profit of $329 milliondecreased$52 million at actual currency and $44 millionat constant currency from the impacts of lower volume and unfavorable mix, partially offset by price, productivity including the benefits from UpLift, and commodity tailwinds. Segment operating profit margin contracted 50 basis points to 6.1%.

Service

Quarter Ended December 31, Year Ended December 31,($ millions) 2024 2023 Y/Y Y/Y (CFX) 2024 2023 Y/Y Y/Y (CFX)Net sales $ 2,318 $ 2,154 7.6% 8.3% $ 8,894 $ 8,397 5.9% 7.1%Organic sales 7.8% 6.8%Segment operating profit $ 569 $ 518 $ 51 $ 54 $ 2,185 $ 2,014 $ 171 $ 192Segment operating profit margin 24.5% 24.0% 50 bps 24.6% 24.0% 60 bps

In the fourth quarter, net sales of $2.3 billion increased 7.6% versus the prior year, with a 7.8% increase in organic sales. Organic maintenance and repair sales increased 5.6% and organic modernization sales increased 17.5%.

Segment operating profit of $569 million increased $51 million at actual currency and $54 million at constant currency due to higher volume, favorable pricing, and productivity including the benefits from UpLift, partially offset by annual wage inflation. Segment operating profit margin of 24.5% expanded 50 basis points.

Full year net sales of $8.9 billion increased 5.9% versus the prior year, with a 6.8% increase in organic sales. Organic maintenance and repair sales increased 5.7% and organic modernization sales increased 11.7%. Segment operating profit of $2.2 billionincreased $171 million at actual currency and $192 million at constant currency due to higher volume, favorable pricing, and productivity including the benefits from UpLift, partially offset by annual wage inflation. Segment operating profit margin expanded 60 basis points to 24.6%.

Cash flow

Quarter Ended December 31, Year Ended December 31,($ millions) 2024 2023 Y/Y 2024 2023 Y/YCash flow from operations $ 690 $ 597 $ 93 $ 1,563 $ 1,627 $ (64)Free cash flow $ 651 $ 555 $ 96 $ 1,437 $ 1,489 $ (52)Adjusted free cash flow $ 682 $ 573 $ 109 $ 1,571 $ 1,534 $ 37

Fourth quarter cash flow changes were driven by an increase in net income and the benefit from working capital reduction.

Full year cash flow changes were driven by an increase in net income, offset by changes in working capital. Working capital includes the benefit of accounts receivable net of accounts payable.

2025Outlook*

Otis is announcing its full year outlook:

— Net sales of $14.1 to $14.4 billion, down 1 to up 1%

— Organic sales up 2 to 4%

— Organic New Equipment sales down 1 to 4%

— Organic Service sales up 6 to 7%

— Adjusted operating profit of $2.4 to $2.5 billion, up $120 to $150 million at constant currency; up $55 to $105 million at actual currency

— Adjusted EPS of $4.00 to $4.10, up 4 to 7%; adjusted effective tax rate of approximately 24.8%

— Adjusted free cash flow of approximately $1.6 billion

Otis continues strong execution on itsUpLift program and is increasing expected run-rate savings to $200 million by the second half of 2025. Otis also launches its China transformation program to adjust its operating model to adapt to changing market conditions, with expected run-rate savings of $30 million by year-end 2025.

*Note: When we provide outlook for organic sales, adjusted operating profit, adjusted EPS, adjusted effective tax rate and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

About Otis

Otis is the world's leading elevator and escalator manufacturing, installation and service company. We move 2.4 billion people a day and maintain approximately 2.4 million customer units worldwide, the industry's largest Service portfolio. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 44,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and territories worldwide. For more information, visit www.otis.com and follow us on LinkedIn, Instagram, and Facebook @OtisElevatorCo.

Use and Definitions of Non-GAAP Financial Measures

Otis Worldwide Corporation (“Otis”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures (referenced in this press release) to the corresponding amounts prepared in accordance with GAAP appears in the attached tables. These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Below are our non-GAAP financial measures:

Non-GAAP measure DefinitionOrganic sales Represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a non-recurring and/or nonoperational nature (“other significant items”). Management believes organic sales is a useful measure in providing period-to-period comparisons of the results of the Company's ongoing operational performance.Adjusted selling, general and administrative (“SG&A”) expense Represents SG&A expense (a GAAP measure), excluding restructuring costs and other significant items.Adjusted operating profit Represents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.Adjusted net interest expense Represents net interest expense (a GAAP measure), adjusted for the impacts of non-recurring acquisition related financing costs and related net interest expense pending the completion of a transaction and other significant items.Adjusted noncontrolling interest in earnings Represents noncontrolling interest in earnings (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.Adjusted net income Represents net income attributable to Otis Worldwide Corporation (a GAAP measure), excluding restructuring costs and other significant items, including related tax effects.Adjusted earnings per share (“EPS”) Represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of restructuring and other significant items, including related tax effects.Adjusted effective tax rate Represents the effective tax rate (a GAAP measure) adjusted for other significant items and the tax impact of restructuring costs and other significant items.Constant currency GAAP financial results include the impact of changes in foreign currency exchange rates (“AFX”). We use the non-GAAP measure “at constant currency” or “CFX” to show changes in our financial results without giving effect to period-to-period currency fluctuations. Under U.S. GAAP, income statement results are translated in U.S. dollars at the average exchange rate for the period presented. Management believes that this non-GAAP measure is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.Free cash flow Represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis' ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.Adjusted free cash flow Represents cash flow from operations (a GAAP measure) less capital expenditures, adjusted to exclude certain items management believes affect the comparability of operating results. Management believes adjusted free cash flow is a useful measure of liquidity that provides investors additional information regarding the Company's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash flows provided by operating activities, or any other measure of liquidity presented in accordance with GAAP.

Management believes that organic sales, adjustedSG&A, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted EPS and the adjusted effective tax rate are useful measures in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

When we provide our expectations for adjusted net sales, organic sales, adjusted operating profit, adjusted net interest expense, adjusted noncontrolling interest in earnings, adjusted net income, adjusted effective tax rate, adjusted EPS, free cash flow and adjusted free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected diluted EPS from continuing operations, operating profit, the effective tax rate, net sales and expected cash flow from operations) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for Otis' future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “medium-term,” “near-term,” “confident,” “goals” and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, dividends, share repurchases, tax rates, research & development spend, restructuring or transformation actions (including UpLift and related reorganization and outsourcing activities), credit ratings, net indebtedness and other measures of financial performance or potential future plans, strategies or transactions, or statements that relate to climate change and our intent to achieve certain environmental, social and governance targets or goals, including operational impacts and costs associated therewith, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, Otis claims the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate and any changes therein, including financial market conditions, fluctuations in commodity prices and other inflationary pressures, interest rates and foreign currency exchange rates, levels of end market demand in construction, pandemic health issues, natural disasters, whether as a result of climate change or otherwise, and the financial condition of Otis' customers and suppliers; (2) the effect of changes in political conditions in the U.S., including in connection with the new administration's policies and priorities, or otherwise, and other countries in which Otis and its businesses operate, including the effects of the ongoing conflict between Russia and Ukraine, the conflicts in the Middle East, and tensions between the U.S. and China, on general market conditions, commodity costs, global trade policies and related sanctions, export controls and tariffs, and currency exchange rates in the near term and beyond; (3) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (4) future levels of indebtedness, capital spending and research and development spending; (5) future availability of credit and factors that may affect such availability or costs thereof, including credit market conditions and Otis' capital structure; (6) the timing and scope of future repurchases of Otis' common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash; (7) fluctuations in prices and delays and disruption in delivery of materials and services from suppliers, whether as a result of changes in general economic conditions, geopolitical conflicts or otherwise; (8) cost reduction or containment actions, restructuring or transformation costs and related savings and other consequences thereof, including with respect to UpLift and related impacts of reorganization and outsourcing activities and change management; (9) new business and investment opportunities; (10) the outcome of legal proceedings, investigations and other contingencies; (11) pension plan assumptions and future contributions; (12) the impact of the negotiation of collective bargaining agreements and labor disputes, labor actions, including strikes or work stoppages, and labor inflation in the markets in which Otis and its businesses operate globally; (13) the effect of changes in tax, environmental, regulatory (including among other things import/export, tariffs, climate change or other ESG related legal and regulatory changes) and other laws and regulations in the U.S., including in connection with the new administration's policies and priorities, and other countries in which Otis and its businesses operate; (14) the ability of Otis to retain and hire key personnel; (15) the scope, nature, impact or timing of acquisition and divestiture activity, the integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; (16) the determination by the Internal Revenue Service and other tax authorities that the distribution or certain related transactions should be treated as taxable transactions in connection with the separation (the “Separation”) of Otis and Carrier Global Corporation (“Carrier”) from United Technologies Corporation (now known as RTX Corporation (“RTX”); and (17) our obligations and disputes that have or may hereafter arise under the agreements we entered into with RTX and Carrier in connection with the Separation. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see Otis' registration statement on Form 10 and the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Otis Worldwide CorporationCondensed Consolidated Statements of Operations Quarter Ended Year Ended December 31, December 31, (Unaudited) (Unaudited)(amounts in millions, except per share amounts) 2024 2023 2024 2023Net Sales $ 3,675 $ 3,620 $ 14,261 $ 14,209Costs and Expenses: Cost of products and services sold 2,603 2,552 10,004 10,016 Research and development 37 37 152 144 Selling, general and administrative 495 498 1,861 1,884 Total Costs and Expenses 3,135 3,087 12,017 12,044Other income (expense), net (9) (11) (236) 21Operating profit 531 522 2,008 2,186 Non-service pension cost (benefit) – 4 – 5 Interest expense (income), net 48 41 (31) 150Net income before income taxes 483 477 2,039 2,031 Income tax expense 130 133 305 533Net income 353 344 1,734 1,498 Less: Noncontrolling interest in subsidiaries' earnings 16 21 89 92Net income attributable to Otis Worldwide Corporation $ 337 $ 323 $ 1,645 $ 1,406Earnings Per Share of Common Stock: Basic $ 0.85 $ 0.79 $ 4.10 $ 3.42 Diluted $ 0.84 $ 0.79 $ 4.07 $ 3.39Weighted Average Number of Shares Outstanding: Basic shares 398.7 408.0 401.7 411.4 Diluted Shares 401.3 410.9 404.4 414.6Otis Worldwide CorporationReconciliation of Reported (GAAP) to Adjusted Operating Profit & Operating Profit Margin Quarter Ended Year Ended December 31, December 31, (Unaudited) (Unaudited)(dollars in millions) 2024 2023 2024 2023Net SalesNew Equipment $ 1,357 $ 1,466 $ 5,367 $ 5,812Service 2,318 2,154 8,894 8,397Total Net Sales $ 3,675 $ 3,620 $ 14,261 $ 14,209Operating ProfitNew Equipment $ 64 $ 89 $ 329 $ 381Service 569 518 2,185 2,014Total segment operating profit 633 607 2,514 2,395Corporate and Unallocated (102) (85) (506) (209)Total Otis GAAP Operating Profit 531 522 2,008 2,186UpLift restructuring 20 25 31 25Other restructuring 11 6 40 42UpLift transformation costs 20 12 65 16Separation-related adjustments 1 – – 177 -Litigation and settlement costs 2 – – 18 -Held for sale impairment – – 18 -Other, net 1 1 (1) -Total Otis Adjusted Operating Profit $ 583 $ 566 $ 2,356 $ 2,269Reported Total Operating Profit Margin 14.4% 14.4% 14.1% 15.4%Adjusted Total Operating Profit Margin 15.9% 15.6% 16.5% 16.0%1 Separation-related adjustments in the year ended December 31, 2024 represent amounts due toRTX Corporation (our former parent) in accordance with the Tax Matters Agreement, including those amounts related to a favorable ruling received in August 2024 regarding a tax litigation in Germany.2 Litigation-related settlement costs in the year ended December 31, 2024 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 unique facts of these matters.Otis discloses segment operating profit as its measure of segment performance, reconciled to total Otis operating profit. Segment operating profit exclude certain expenses and income that are not allocated to segments (as described above as “Corporate and Unallocated”).Effective in the first quarter of 2024, the measure of segment performance used by Otis' Chief Operating Decision Maker (“CODM”) changed and, as a result, Otis' disclosed measure of segment performance (segment operating profit) was updated. The change to segment operating profit aligns with the update to how the CODM assesses performance and allocates resources for the Company's segments, and therefore is our measure of segment profitability.As a result of the change, restructuring costs and other items not allocated to the operating segments are presented as part of Corporate and Unallocated. The financial information presented herein reflects the impact of the measure of segment performance change for all periods presented.Otis Worldwide CorporationReconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Net Income, Earnings Per Share, and Effective Tax Rate Quarter Ended Year Ended December 31, December 31, (Unaudited) (Unaudited)(dollars in millions, except per share amounts) 2024 2023 2024 2023Adjusted Operating Profit $ 583 $ 566 $ 2,356 $ 2,269Non-service pension cost (benefit) – 4 – 5Adjusted net interest expense 1, 2 48 41 191 150Adjusted income from operations before income taxes 535 521 2,165 2,114Income tax expense (benefit) 130 133 305 533Tax impact on restructuring and non-recurring items 14 11 38 20Non-recurring tax items 1, 2 (1) – 194 -Adjusted net income from operations 392 377 1,628 1,561Adjusted noncontrolling interest 1,3 18 21 80 92Adjusted net income attributable to common shareholders $ 374 $ 356 $ 1,548 $ 1,469GAAP income attributable to common shareholders $ 337 $ 323 $ 1,645 $ 1,406UpLift restructuring 20 25 31 25Other restructuring 11 6 40 42UpLift transformation costs 20 12 65 16Separation-related adjustments – – 177 -Litigation-related settlement costs – – 18 -Held for sale impairment – – 18 -Interest income related to non-recurring tax items 1, 2 (1) – (211) -Tax effects of restructuring, non-recurring items and other adjustments (14) (11) (38) (20)Non-recurring tax items 1, 2 1 – (194) -Other, net 3 – 1 (3) -Adjusted net income attributable to common shareholders $ 374 $ 356 $ 1,548 $ 1,469Diluted Earnings Per Share $ 0.84 $ 0.79 $ 4.07 $ 3.39Impact to diluted earnings per share 0.09 0.08 (0.24) 0.15Adjusted Diluted Earnings Per Share $ 0.93 $ 0.87 $ 3.83 $ 3.54Effective Tax Rate 26.9% 27.9% 15.0% 26.2%Impact of adjustments on effective tax rate (0.2)% (0.3)% 9.8% (0.1)%Adjusted Effective Tax Rate 26.7% 27.6% 24.8% 26.1%1Certain tax reserves were adjusted in 2024. As a result, Net interest expense and Noncontrolling interest are reflected as adjusted without $21 million of interest income and $11 million of the noncontrolling interest share of the reserves adjustments for the year ended December 31, 2024.2 In August 2024, we received a favorable ruling regarding a tax litigation in Germany. As a result, income tax benefits and related interest income were recorded in the third and fourth quarter of 2024. Net interest expense is reflected as adjusted without $1 million and $201 million of interest income for the quarter and year ended December 31, 2024, respectively.3 Noncontrolling interest is reflected as adjusted without $2 million of the noncontrolling interest share of Other restructuring for the quarter and year ended December31, 2024.Otis Worldwide CorporationComponents of Changes in Net SalesQuarter Ended December 31, 2024 Compared with Quarter Ended December 31, 2023 Factors Contributing to Total % Change in Net Sales Organic FX Acquisitions / Total Translation Divestitures, netNew Equipment (6.8)% (0.7)% 0.1% (7.4)%Service 7.8% (0.7)% 0.5% 7.6%Maintenance and Repair 5.6% (0.7)% 0.6% 5.5%Modernization 17.5% (1.0)% 0.3% 16.8%Total Net Sales 1.9% (0.8)% 0.4% 1.5%Year Ended December 31, 2024 Compared with Year Ended December 31, 2023 Factors Contributing to Total % Change in Net Sales Organic FX Acquisitions / Total Translation Divestitures, netNew Equipment (6.4)% (1.4)% 0.1% (7.7)%Service 6.8% (1.2)% 0.3% 5.9%Maintenance and Repair 5.7% (1.1)% 0.3% 4.9%Modernization 11.7% (1.5)% 0.1% 10.3%Total Net Sales 1.4% (1.2)% 0.2% 0.4%Components of New Equipment Backlog December 31, 2024 Y/Y Growth %New Equipment Backlog increase at actual currency (7)%Foreign exchange impact to New Equipment Backlog 3%New Equipment Backlog increase at constant currency (4)%Components of Modernization Backlog December 31, 2024 Y/Y Growth %Modernization Backlog increase at actual currency 10%Foreign exchange impact to Modernization Backlog 3%Modernization Backlog increase at constant currency 13%Otis Worldwide CorporationReconciliation of Segment and Total Adjusted Operating Profit at Constant CurrencyQuarter Ended December 31, 2024 Compared with Quarter Ended December 31, 2023(dollars in millions) 2024 2023 Y/YNew EquipmentSegment Operating Profit $ 64 $ 89 $ (25)Impact of foreign exchange 1 – 1Segment Operating Profit at constant currency $ 65 $ 89 $ (24)ServiceSegment Operating Profit $ 569 $ 518 $ 51Impact of foreign exchange 3 – 3Segment Operating Profit at constant currency $ 572 $ 518 $ 54Otis ConsolidatedAdjusted Operating Profit $ 583 $ 566 $ 17Impact of foreign exchange 5 – 5Adjusted Operating Profit at constant currency $ 588 $ 566 $ 22Year Ended December 31, 2024 Compared with Year Ended December 31, 2023(dollars in millions) 2024 2023 Y/YNew EquipmentSegment Operating Profit $ 329 $ 381 $ (52)Impact of foreign exchange 8 – 8Segment Operating Profit at constant currency $ 337 $ 381 $ (44)ServiceSegment Operating Profit $ 2,185 $ 2,014 $ 171Impact of foreign exchange 21 – 21Segment Operating Profit at constant currency $ 2,206 $ 2,014 $ 192Otis ConsolidatedAdjusted Operating Profit $ 2,356 $ 2,269 $ 87Impact of foreign exchange 31 – 31Adjusted Operating Profit at constant currency $ 2,387 $ 2,269 $ 118Otis Worldwide CorporationCondensed Consolidated Balance Sheet December 31, 2024 December 31, 2023(dollars in millions) (Unaudited)AssetsCash and cash equivalents $ 2,300 $ 1,274Accounts receivable, net 3,428 3,538Contract assets 706 717Inventories 557 612Other current assets 679 259Total Current Assets 7,670 6,400Future income tax benefits 302 323Fixed assets, net 701 727Operating lease right-of-use assets 422 416Intangible assets, net 311 335Goodwill 1,548 1,588Other assets 362 328Total Assets $ 11,316 $ 10,117Liabilities and (Deficit) EquityShort-term borrowings and current portion of long-term debt $ 1,351 $ 32Accounts payable 1,879 1,878Accrued liabilities 1,921 1,873Contract liabilities 2,598 2,696Total Current Liabilities 7,749 6,479Long-term debt 6,973 6,866Future pension and post-retirement benefit obligations 434 462Operating lease liabilities 298 292Future income tax obligations 207 245Other long-term liabilities 383 493Total Liabilities 16,044 14,837Redeemable noncontrolling interest 57 135Shareholders' Equity (Deficit):Common Stock and additional paid-in-capital 265 213Treasury Stock (3,390) (2,382)Accumulated deficit (978) (2,005)Accumulated other comprehensive income (loss) (745) (750)Total Shareholders' Equity (Deficit) (4,848) (4,924)Noncontrolling interest 63 69Total Equity (Deficit) (4,785) (4,855)Total Liabilities and Equity (Deficit) $ 11,316 $ 10,117Otis Worldwide CorporationCondensed Consolidated Statement of Cash Flows Quarter Ended December 31, Year Ended December 31, (Unaudited) (Unaudited)(dollars in millions) 2024 2023 2024 2023Operating Activities:Net income from operations $ 353 $ 344 $ 1,734 $ 1,498Adjustments to reconcile net income to net cash flows provided by operating activities:Depreciation and amortization 48 48 181 193Deferred income tax expense (benefit) (5) (27) (31) (61)Stock compensation cost 21 15 73 64Gain from reversal of German Tax Litigation interest accrual – – (50) -Change in:Accounts receivable, net 25 (25) (68) (239)Contract assets and liabilities, current (63) (98) (40) (30)Inventories 40 23 26 15Other current assets 19 42 (354) 38Accounts payable 172 187 57 152Accrued liabilities 83 99 85 33Pension contributions (17) (16) (51) (48)Other operating activities, net 14 5 1 12Net cash flows provided by (used in) operating activities 690 597 1,563 1,627Investing Activities:Capital expenditures (39) (42) (126) (138)Acquisitions of businesses and intangible assets, net of cash (17) (9) (87) (36)Proceeds from sale of (investments in) marketable securities, net – 6 (9) 4Other investing activities, net 102 (6) 58 (13)Net cash flows provided by (used in) investing activities 46 (51) (164) (183)Financing Activities:Increase (decrease) in short-term borrowings, net (314) (23) 11 (113)Issuance of long-term debt 1,497 – 1,497 747Payment of debt issuance costs (11) – (11) (6)Repayment of long-term debt – (534) – (534)Dividends paid on Common Stock (156) (139) (606) (539)Repurchases of Common Stock (207) (225) (1,007) (800)Dividends paid to noncontrolling interest (13) (9) (94) (85)Acquisition of noncontrolling interest shares – – (75) -Other financing activities, net (3) (2) (24) (20)Net cash flows provided by (used in) financing activities 793 (932) (309) (1,350)Summary of Activity:Net cash provided by (used in) operating activities 690 597 1,563 1,627Net cash provided by (used in) investing activities 46 (51) (164) (183)Net cash provided by (used in) financing activities 793 (932) (309) (1,350)Effect of foreign exchange rate changes on cash and cash equivalents (40) 25 (49) (9)Net increase (decrease) in cash, cash equivalents and restricted cash 1,489 (361) 1,041 85Cash, cash equivalents and restricted cash, beginning of period 832 1,641 1,280 1,195Cash, cash equivalents and restricted cash, end of period 2,321 1,280 2,321 1,280Less: Restricted cash 21 6 21 6Cash and cash equivalents, end of period $ 2,300 $ 1,274 $ 2,300 $ 1,274Otis Worldwide CorporationAdjusted Free Cash Flow Reconciliation Quarter Ended December 31, Year Ended December 31, (Unaudited) (Unaudited)(dollars in millions) 2024 2023 2024 2023Net cash flows provided by operating activities (GAAP) $ 690 $ 597 $ 1,563 $ 1,627Capital expenditures (39) (42) (126) (138)Free cash flow (Non-GAAP) 651 555 1,437 1,489Adjustments for:UpLift restructuring payments $ 12 $ 12 $ 32 $ 12UpLift transformation payments 20 6 54 8Separation-related payments 1 – – 49 25German tax litigation refund (1) – (1) -Adjusted free cash flow (Non-GAAP) $ 682 $ 573 $ 1,571 $ 1,5341 In April of 2023 and 2024, respectively, we made payments to RTX Corporation (our former parent) in accordance with theTax Matters Agreement. These annual payments are anticipated to conclude in 2026.MediaContact: Investor Relations Contact:Katy Padgett RobQuartaro+1-860-674-3047 +1-860-676-6011kathleen.padgett@otis.com investorrelations@otis.com

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