(Reuters) – Otis forecast 2025 profit below estimates and missed fourth-quarter profit expectations on Wednesday on sustained weakness in demand for new equipment in China, sending the shares of the elevator-maker down 2.5% before the bell.
It expects 2025 adjusted profit between $4 and $4.10 per share, missing analysts’ average estimate of $4.14, according to LSEG data.
The Chinese economy is struggling to fully recover from the property market crisis, hurting Otis’ new equipment sales in the quarter.
Net sales in new equipment segment fell 7.4% to $1.36 billion in the fourth quarter. But total net sales rose 1.5% to $3.68 billion and beat expectations on steady demand for maintenance and repair.
Otis posted quarterly adjusted profit of 93 cents per share, compared with estimates of 96 cents. It expects full-year net sales of $14.1 to $14.4 billion, below estimates of $14.6 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru)
