OTIS · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Otis Worldwide Corp · 2026-10-29 · Importance 23 · Surprise 24 · Matches filing data

Selling, general and administrative expense declined $15 million year over year in the third quarter of 2026, while increasing $52 million for the first nine months. Quarterly expense reductions reflected lower restructuring costs, restructuring savings and lower other employment costs, partly offset by labor and organizational initiative costs. Nine-month increases reflected higher labor and organizational initiative costs, higher credit loss reserves and foreign exchange impacts, partly offset by restructuring savings and lower employment costs. SG&A as a share of sales decreased 120 basis points for the quarter and 40 basis points for the nine months.

Key facts

• Otis recorded $5 million of indemnification expense for the German tax litigation in the nine months ended September 30, 2026, compared with $62 million in the nine months ended September 30, 2025, and no expense in the quarter ended September 30, 2026. source
• Otis's SG&A expenses increased $52 million in the nine months ended September 30, 2026, versus the prior-year period, driven by labor and organizational initiative costs, higher credit loss reserves, and foreign exchange, partly offset by lower restructuring and other employment-related costs. source
• Otis's SG&A as a percentage of net sales decreased 120 basis points for the quarter and 40 basis points for the nine months ended September 30, 2026, compared with the respective 2025 periods. source
• Otis's SG&A expenses decreased $15 million in the quarter ended September 30, 2026, versus the prior-year quarter, driven by lower restructuring costs, restructuring savings, and lower other employment-related costs, partly offset by higher labor and organizational initiative costs. source

Impact estimates