The UpLift program, announced in July 2023, seeks to transform the operating model through standardization and supply chain improvements. The company expects $200 million in annual run-rate savings by the second half of 2025.

In January 2025, the company announced a reorganization of its operations in China, expected to result in $40 million in restructuring actions. These actions are expected to be mostly completed and cash paid by the end of 2025.

UpLift transformation costs of $23 million were incurred in Q1 2025, recorded in Other income (expense), net. These costs are primarily for consultants, third-party service providers and personnel focused on designing and implementing a centralized service delivery model.

The company initiates restructuring actions to keep their cost structure competitive. In the quarters ended March 31, 2025 and 2024, they recorded restructuring costs for new and ongoing restructuring actions, including UpLift actions.

The conflict has resulted in worldwide geopolitical and macroeconomic uncertainty, including volatile commodity markets, supply chain disruptions, and increased cybersecurity risks. The company continues to operate its business in Ukraine to the extent possible.

Global macroeconomic conditions, including inflationary pressures, high interest rates, and changes in global trade policies, continue to impact the company's operations and overall financial performance.

The Service segment performs maintenance and repair services for both our products, and those of other manufacturers, and provides modernization services to upgrade elevators and escalators.

Selling, general and administrative expenses increased $2 million for the quarter ended March 31, 2025, when compared to the same period in 2024, driven by annual wage increases and higher restructuring costs, partially offset by savings resulting from UpLift, lower credit loss reserves, and favorable foreign exchange impacts.

During the quarters ended March 31, 2025 and 2024, the Company repurchased 2.6 million and 3.4 million shares, respectively, for $253 million and $300 million, respectively.

The organic sales decrease of (7)% in New Equipment was primarily driven by a greater than 20% decline in China and high single-digit decline in Americas, partially offset by approximately 10% growth in Asia Pacific and mid single-digit growth in EMEA.