Otis Worldwide Corporation (NYSE:OTIS) Q2 2024 Earnings Conference Call July 24, 2024 8:30 AM ET

Company Participants

Michael Rednor - Senior Director, IR
Judith Marks - Chair, CEO & President
Anurag Maheshwari - EVP & CFO
Cristina Mendez - EVP & CFO

Conference Call Participants

Jeffrey Sprague - Vertical Research Partners
Nigel Coe - Wolfe Research
Julian Mitchell - Barclays
Steve Tusa - JPMorgan
Joseph O'Dea - Wells Fargo
Justin Pellegrino - Melius Research
Nicholas Housden - RBC Capital Markets
Jack Ayers - TD Cowen
Miguel Borrega - Exane BNP Paribas

Operator

Good morning, and welcome to Otis' Second Quarter 2024 Earnings Conference Call. This call is being carried live on the Internet and recorded for replay. Presentation materials are available for download from Otis' website at www.otis.com.

I'll now turn it over to Michael Rednor, Vice President, Investor Relations.

Michael Rednor

Thank you, Sarah. Welcome to Otis' second quarter 2024 earnings conference call. On the call with me today are Judy Marks, Anurag Maheshwari, and Cristina Mendez. Please note, except where otherwise noted, the company will speak to results from continuing operations, excluding restructuring and significant non-recurring items. A reconciliation of these measures can be found in the appendix of the webcast.

We also remind listeners that the presentation contains forward-looking statements, which are subject to risks and uncertainties. Otis' SEC filings, including our Form 10-K and quarterly reports on Form 10-Q, provide details on important factors that could cause actual results to differ materially.

Now, I'd like to turn the call over to Judy.

Judith Marks

Thank you, Mike, and good morning, afternoon and evening, everyone. Thank you for joining us. I hope all are safe and well. I'd like to welcome Cristina Mendez, who is joining us this morning on our earnings call. Cristina is an experienced executive, who's been leading our finance team as CFO in the EMEA region for the past 2.5 years, while also leading our global finance transformation under our uplift program.

I look forward to my partnership with Cristina to drive growth, operational execution and value for our customers, colleagues and shareholders. I want to also take this opportunity to thank Anurag for his leadership and for all his contributions to our company, our services growth and in championing our long-term strategy.

Now for earnings, starting with Q2 highlights on Slide 3. Otis delivered a solid second quarter in the face of current economic challenges within China as the Service segment continued to drive strong performance. Service organic sales grew mid-single digits. Overall adjusted profit margin expanded by 110 basis points, and adjusted EPS grew 15%, marking our fourth consecutive quarter of 10% or greater adjusted EPS growth.