Otis reports rise in quarterly profit on strong service demand

Jan 28 (Reuters) - Elevator maker Otis Worldwide OTIS.N on Wednesday reported a rise in fourth-quarter profit and revenue, helped by strong services demand, as tariffs impact sales of new elevators and escalators.

Shares of the company, however, fell 4.6% in premarket trading.

The company's tariff-resistant services segment continued to see robust demand for maintenance, repair, and modernization for its existing equipment, such as elevators and escalators, resulting in an 8% rise in segment net sales from a year ago.

The company said that its modernization orders grew 43% in the reported quarter.

Otis' adjusted profit rose to $1.03 per share in the quarter ended December 31, from 93 cents a year ago.

Quarterly revenue rose to about $3.80 billion from $3.68 billion a year ago.

Analysts on average expected revenue of $3.88 billion, according to data compiled by LSEG.

The Farmington, Connecticut-based company forecast 2026 revenue between $15 billion and $15.3 billion, while analysts expect $15.25 billion.

It also forecasts a rise in 2026 adjusted profit by mid to high single digits, but expects organic New Equipment sales to go down low single digits to flat.