Otis faces margin pressure despite strong service demand; new equipment sales weak, especially in China.

Otis Worldwide Corporation is experiencing margin contraction due to higher labor costs and slower productivity from new mechanics, despite strong service demand and backlog improvements. New equipment sales remain weak overall, with China continuing to drag performance, although the Americas show promising order momentum and backlog growth. The company trades at about 16 times forward P/E, below historical averages, reflecting near-term margin pressures and slower earnings growth compared to peers like Kone. The outlook suggests cautious optimism but highlights challenges in translating service strength into earnings growth.