Otis Worldwide Corporation

from Otis' website at www.otis.com. I'll now turn the call over to Rob Cortaro, Vice President of Investor Relations.

Thank you, Tina. Welcome to Otis' second quarter 2025 earnings conference call. On the call with me today are Judy Marks, Chair, CEO, and President, and Christina Mendez, Executive Vice President and CFO. 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's 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'll turn it over to Judy.

Thank you, Rob. Good morning, afternoon, and evening, everyone. Thank you for joining us. We hope everyone listening is safe and well. Starting with Q2 highlights on slide three, OTIS delivered solid second quarter and first half results as the service segment continued to drive strong performance with both a year-over-year and a sequential operating profit margin improvement. Organic service sales in the second quarter were up 4%, with growth across all business lines and in all regions. Our maintenance portfolio grew 4% again in the quarter, adding to our industry-leading 2.4 million unit portfolio under service. Modernization momentum continued as we accelerated orders to 22%, and ended the quarter with the backlog up 16% at constant currency. New equipment orders decreased by 1% due to continued economic challenges in China, while orders in the rest of the world increased 11% versus the prior year. We continue to make progress with uplift, and we remain on track to achieve $200 million in run rate savings by year end. Additionally, In response to continued weakness in China, we're executing additional actions to reduce costs as part of our China transformation. We now anticipate run rate savings of approximately $40 million by year end. Our 2025 in-year savings targets remain at $70 million and $20 million for uplift and China transformation respectively. Together, These initiatives are enabling us to deliver greater customer centricity and to invest in growth. In addition, we also now expect the impact of 2025 tariffs to be roughly half of our expectations in April, to a range of $25 million to $35 million, reflecting more favorable reciprocal tariff rates and our mitigation efforts. We completed approximately $300 million in share repurchases in the second quarter, taking year-to-date repurchases to approximately $550 million. During the quarter, we closed on our previously announced acquisition of eight urban elevator locations in the U.S. This deal further expands our maintenance portfolio and enhances our ability to serve customers. Adjusted EPS was $1.97 in the first half of the year, growing 2% versus the same period last year due to solid margin expansion and continued tax planning efforts. In June, we published our Connect and Thrive report that outlines our progress and commitments to four key areas, health and safety, governance and accountability, environment and impact, and people and communities. These areas are closely aligned with our strategic vision and the OTIS absolutes of safety, ethics, and quality that we live by every day. During the quarter, we were honored to be recognized with several sustainability awards. USA Today, in collaboration with Statista, included OTIS among America's climate leaders, and Forbes recognized OTIS among 200 U.S. companies included on the net zero leaders list for reduction of carbon emissions. Newsweek also recognized Otis among companies from 26 different countries for our environmental sustainability performance. And most recently, Time Magazine named Otis among the world's most sustainable companies for the second consecutive year. Turning to our orders performance on slide four. Combined new equipment and modernization orders grew 4% in the quarter, driven by continued strength and modernization. Excluding China, orders grew 14% with notable strength in the Americas and Asia Pacific. Our combined backlog remained relatively flat year over year. However, excluding China, it increased 10%. Our total backlog, including maintenance and repair, is at historically high levels, positioning us well for future quarters. New equipment orders declined 1% in the quarter, However, excluding China, we saw robust 11% growth. For the fourth straight quarter, America's orders were up in the low teens. Asia Pacific also delivered strong results, with order growth exceeding 20% for the third consecutive quarter, led by Southeast Asia and India. This strength was offset by continued softness in China, where orders declined by more than 20%. Note, however, that our China new equipment orders were sequentially stable in the first half of 2025, and we anticipate year-over-year growth in the coming quarters. In EMEA, new equipment orders declined low single digits as strength in the Middle East was offset by weaker demand in Europe. At constant currency, our new equipment backlog declined 3% year-over-year, but excluding China, it grew 8%. Modernization acceleration continued as orders grew 22%, leading to our quarter-end backlog of 16% at constant currency. With Americas, China, and Asia Pacific, each growing orders more than 20%. The modernization opportunity is compelling, driven by the aging of the 22 million unit installed base. We continue to expect these aging units to drive a multi-year growth cycle across our regions. Our service portfolio grew 4% in the quarter with contributions from all regions. China's strong growth trajectory continued as the region grew its portfolio low teams, Asia Pacific grew mid-single digit, and EMEA and Americas grew low to single digits. As our global teams continue to deliver, we're proud to share second quarter customer highlights that reflect our success in winning strategic projects through innovation, execution, and trusted collaborations. In the Americas, Otis will modernize 21 elevators at the One America Tower in Indianapolis, expanding our long-term relationship with this customer. Otis provided the original elevators for the buildings in the 1980s, modernized them in 2009, and is the current maintenance provider. Otis will upgrade controls, doors, signals, and cab finishes on the elevators. In Dubai, we continue to strengthen and grow our relationship with Daymac Properties, one of the leading luxury real estate developers. Our latest agreement to supply and install 20 Skyrise elevators at Daymac Bay 2 in Dubai Harbor brings our total orders with Daymac to 88 elevators. This includes 72 Skyrise and 16 Gen 2 systems across six high-rise projects in the city. These orders reflect the trust AMAC places in our technology and service, and they underscore our growing footprint in the Middle East. In China, Otis recently entered into a contract for more than 400 escalators and connected elevators to support metro and infrastructure expansion projects in Hangzhou, Changchun, and Tianjin. These orders reflect our ongoing role in supporting urban mobility across key cities. And in Ho Chi Minh City, Vietnam, Otis has been selected to install and maintain Skyrise and Gen 3 elevator systems at the Cross, a 39-story premium mixed-use development in the city's central business district. These units will be supported by our Compass 360 and EMS Panorama 2.0 management system, delivering a modern, integrated solution for enhanced passenger experience. Turning to our second quarter results on slide five. Otis delivered net sales of $3.6 billion, flat on a year-over-year basis, with organic sales down 2%. Adjusted operating profit margin was flat versus the prior year at 17%. Excluding a $13 million foreign exchange tailwind, adjusted operating profit decreased 2% with growth in service offset by a decline in new equipment. Adjusted EPS declined 1% or one cent in the quarter, driven by a tough year-over-year comparison from an operational and tax standpoint. As I previously mentioned, EPS grew 2% in the first half of the year. Adjusted free cash flow was $243 million in the quarter and $429 million year-to-date. With that, I'll turn it over to Christina to walk through our results in more detail.