Otis Worldwide Corporation announced the expansion of its Gen3 Core elevator line, adding larger cab dimensions—up to 9 feet, 9 inches tall by 10 feet, 1 inch deep—and a higher load capacity of 5,000 pounds. The new model also features an 8‑foot door opening and a refreshed interior with updated hall buttons and an operating panel, positioning the product as a versatile solution for residential, office, and healthcare buildings in the 2‑ to 8‑story segment.
The expanded line is built on Otis’s digital platform, Otis ONE, which connects elevators to the cloud for real‑time monitoring and predictive maintenance. The eView in‑car display allows passengers to connect to Otis customer care via secure voice or video calls during emergencies, while the Otis Integrated Dispatch API enables seamless integration with autonomous service robots—an emerging demand in modern buildings.
The 2‑ to 8‑story market accounts for roughly 80% of U.S. construction, and the Gen3 Core’s larger cab and higher load capacity give Otis a competitive edge in transporting heavier items such as medical equipment and office furniture. The launch aligns with Otis’s broader strategy of driving growth through its Service and Modernization segments, which have delivered strong organic sales and margin expansion in recent quarters. New equipment sales have faced headwinds in China, but the company’s focus on low‑rise modernization orders remains robust, with backlog growth in that segment accelerating in the third quarter of 2025.
In the third quarter of 2025, Otis reported net sales of $3.7 billion, up 2% year‑over‑year, and an adjusted EPS of $1.05, a $0.05 beat over analyst expectations. The revenue growth was supported by the Service segment’s continued strength and the modernization pipeline, while the new equipment segment’s performance was tempered by inflationary pressures and supply‑chain constraints. The Gen3 Core expansion is expected to reinforce the company’s service flywheel by providing a higher‑capacity, digitally connected product that can be quickly retrofitted into existing low‑rise buildings.
Chair, CEO and President Judy Marks highlighted the importance of the Service flywheel and modernization momentum, noting that “our Service flywheel generated our highest organic sales growth and operating profit margin expansion this year, while modernization orders accelerated to mid‑teens.” The company’s focus on energy efficiency—through the ReGen drive that can reduce power consumption by up to 75%—and its patented coated steel belts that last three times longer than conventional ropes, further underscore Otis’s commitment to sustainability and cost savings for building owners.
Investors have expressed concern over recent revenue misses, with the company’s Q2 2025 earnings falling short of expectations despite an EPS beat. The Gen3 Core expansion is viewed as a strategic move to strengthen revenue growth in the low‑rise segment and to offset headwinds in new equipment sales, positioning Otis to capture a larger share of the market and support its long‑term modernization and service strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.