Otis Worldwide

Otis views Kone’s planned takeover of TK Elevator as a potential opportunity, especially if parts of the business in Europe are sold that could complement Otis. CEO Judy Marks expects additional job applications and possible new customers as a result of uncertainty among employees and clients, but warns of large antitrust reviews and integration burdens. The company continues to rely on its high-margin maintenance business as a driver of revenue and profit, while Marks prepares to step down in the first half of 2027. » More on faz.net

Judy Marks will resign as chair, chief executive officer and president of Otis once a successor is found; this is expected in the first half of 2027. The board has launched a succession search with support from Spencer Stuart, overseen by a committee of independent directors. Marks will remain in her role until July 31, 2027, or serve as senior advisor until a successor is appointed. Under her leadership, Otis returned $8.4 billion to shareholders since the spin-off, total shareholder return was 77%, and the service portfolio grew by about 25% to roughly 2.5 million units. » More on de.investing.com

Otis shares hit a 52-week low, closing at $69.14, about 21% down year-to-date and roughly 27% below the year high of $94.56. Despite a revenue beat in the second quarter of $3.9 billion and adjusted EPS of $1.01, the company cut its full-year guidance and forecast lower operating results, which put pressure on margins. The service segment reported 9% organic revenue growth, but adjusted operating income and margins declined, affected by inflation and productivity issues. InvestingPro notes a dividend yield of 2.51% and six consecutive dividend increases, suggesting the stock may be undervalued at current levels. » More on de.investing.com