Unisys Announces 2Q25 Results
Unisys delivers strong sequential improvement in both revenue and profitability while taking strategic steps to mitigate U.S. pension volatility
Total company revenue of $483.3 million, up 1.1% year over year (YoY) and 1.0% in constant currency(1); up 11.8% quarter over quarter (QoQ)
Excluding License and Support (Ex-L&S)(13) revenue of $395.7 million, down 0.1% YoY and 0.4% in constant currency; up 9.6% QoQ
Operating profit margin of 6.3%, improved 140 bps YoY; non-GAAP operating profit(6) margin of 7.6%, an improvement of 150 bps YoY
The company significantly reduced future cash contribution volatility within its U.S. qualified defined benefit pension plans following changes to its pension asset investment strategy and a discretionary contribution of $250 million
The discretionary contribution was funded using a combination of $50 million cash on hand and $200 million of proceeds from the company's issuance of $700 million senior secured notes due 2031, with the remaining proceeds used to refinance the existing $485 million senior secured notes due 2027
The company tempers the mid-point of full-year constant currency revenue guidance to flat YoY while raising full-year non-GAAP operating profit margin guidance to a range of 8.0% to 9.0%
BLUE BELL, Pa., July 30, 2025 /PRNewswire/ -- Unisys Corporation (NYSE:UIS) reported financial results for the second quarter of 2025 (2Q25).
"We are pleased with the sequential growth and improved profitability we achieved in the second quarter and the continued strong consumption in our License and Support solutions," said Michael Thomson, Unisys CEO and President. "The investments we made in applying agentic and generative artificial intelligence capabilities to our most innovative solutions are beginning to advance our growth and efficiency priorities as evidenced by our improved profitability and enhanced cash generation."
Unisys Chief Financial Officer Deb McCann said, "Our capital structure transformation removed substantially all volatility from our U.S. pension contributions and established a more defined path to fully removing our U.S. pension obligations while sustaining our ability to invest in future growth. With our recent financing, we have also solidified our liquidity position by extending our only major debt maturity to 2031 and renewing our undrawn asset-backed revolver."
Financial Highlights
Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented, except for financial guidance since such a reconciliation is not practicable without unreasonable effort.
(In millions, except numbers presented as percentages)
2Q25
2Q24
YTD25
YTD24
Revenue
$483.3
$478.2
$915.4
$966.0
YoY revenue change
1.1 %
(5.2) %
YoY revenue change in constant currency
1.0 %
(3.8) %
Ex-L&S revenue
$395.7
$396.1
$756.7
$790.7
YoY revenue change
(0.1) %
(4.3) %
YoY revenue change in constant currency
(0.4) %
(2.9) %
License and Support(12) revenue
$87.6
$82.1
$158.7
$175.3
YoY revenue change
6.7 %
(9.5) %
YoY revenue change in constant currency
7.7 %
(7.7) %
Gross profit
$130.0
$129.9
$237.5
$265.9
Gross profit percent
26.9 %
27.2 %
25.9 %
27.5 %
Ex-L&S gross profit
$69.7
$74.2
$133.9
$145.4
Ex-L&S gross profit percent
17.6 %
18.7 %
17.7 %
18.4 %
Operating profit
$30.3
$23.6
$35.4
$41.3
Operating profit percent
6.3 %
4.9 %
3.9 %
4.3 %
Non-GAAP operating profit
$36.8
$29.3
$48.7
$63.7
Non-GAAP operating profit percent
7.6 %
6.1 %
5.3 %
6.6 %
Net loss attributable to Unisys Corporation
($20.1)
($12.0)
($49.6)
($161.5)
Non-GAAP net income attributable to Unisys Corporation(8)
$13.8
$11.0
$10.4
$13.7
EBITDA(7)
$28.6
$35.6
$33.6
($68.6)
Adjusted EBITDA(7)
$61.4
$58.4
$101.6
$123.7
Adjusted EBITDA as a percentage of revenue
12.7 %
12.2 %
11.1 %
12.8 %
Second Quarter 2025 Results
Revenue increased 1.1% YoY, a 1.0% increase in constant currency and an 11.8% increase QoQ. Ex-L&S revenue remained relatively flat YoY, a 0.4% decrease in constant currency and a 9.6% increase QoQ.
Gross profit margin declined 30 bps YoY. Ex-L&S gross profit margin decreased 110 bps YoY, primarily driven by higher cost reduction charges in 2Q25, partially offset by improvement within the company's operating segments.
Operating profit margin improved 140 bps YoY, primarily driven by lower expense due to realized benefits from the company's cost reduction actions and reduced professional services expense.
The net loss attributable to Unisys Corporation included a loss on debt extinguishment of $6.8 million related to the repurchase, satisfaction and discharge of the 6.875% Senior Secured Notes due 2027 (the 2027 Notes).
Financial Highlights by Segment
(In millions, except numbers presented as percentages)
2Q25
2Q24
YTD25
YTD24
Digital Workplace Solutions (DWS):
Revenue
$138.1
$132.1
$256.7
$264.4
YoY revenue change
4.5 %
(2.9) %
YoY revenue change in constant currency
4.6 %
(1.4) %
Gross profit
$23.4
$21.4
$40.3
$40.4
Gross profit percent
16.9 %
16.2 %
15.7 %
15.3 %
Cloud, Applications & Infrastructure Solutions (CA&I):
Revenue
$185.2
$193.9
$361.8
$382.3
YoY revenue change
(4.5) %
(5.4) %
YoY revenue change in constant currency
(4.9) %
(4.1) %
Gross profit
$38.6
$40.1
$73.0
$76.7
Gross profit percent
20.8 %
20.7 %
20.2 %
20.1 %
Enterprise Computing Solutions (ECS):
Revenue
$140.2
$130.7
$258.9
$270.0
YoY revenue change
7.3 %
(4.1) %
YoY revenue change in constant currency
8.2 %
(1.8) %
Gross profit
$75.0
$69.6
$131.6
$145.7
Gross profit percent
53.5 %
53.3 %
50.8 %
54.0 %
Second Quarter 2025 Segment Results
DWS revenue increased 4.5% YoY, an increase of 4.6% in constant currency, primarily driven by new business, including higher hardware revenue. DWS gross profit margin was 16.9%, an increase of 70 bps YoY, primarily driven by delivery improvement and labor cost savings initiatives.
CA&I revenue declined 4.5% YoY, a decrease of 4.9% in constant currency, primarily driven by lower volume with clients in the public sector. CA&I gross profit margin was 20.8%, an increase of 10 bps YoY.
ECS revenue increased 7.3% YoY, an increase of 8.2% in constant currency. The increase in revenue was primarily driven by the timing of software license renewals and integrated systems purchases, as well as higher volume in specialized managed services. ECS gross profit margin was 53.5%, an increase of 20 bps YoY.
(In millions)
June 30, 2025
December 31, 2024
Cash and cash equivalents
$ 300.8
$ 376.5
(In millions)
2Q25
2Q24
YTD25
YTD24
Cash (used for) provided by operations
($316.2)
$2.7
($282.9)
$26.5
Free cash flow(9)
($336.5)
($18.5)
($323.3)
($14.6)
Pre-pension and postretirement free cash flow(10)
($58.3)
($13.8)
($35.7)
($2.2)
Adjusted free cash flow(11)
($49.4)
($8.0)
($21.1)
$9.3
Cash and cash equivalents decreased $75.7 million, primarily due to the $50 million in cash used to fund a portion of the discretionary contribution of $250 million to the company's U.S. defined benefit pension plans.
Free cash flow decreased by $318.0 million YoY, primarily due to cash contributions to the company's U.S. defined benefit pension plans and changes in working capital.
Subsequent to June 30, 2025, the company received the remaining $25 million owed from a previously settled legal matter.
In June 2025, the company completed a private placement offering of $700.0 million aggregate principal amount of its 10.625% Senior Secured Notes due 2031 (the 2031 Notes). The net proceeds from the issuance of the 2031 Notes, together with cash on hand, were used to repurchase any and all outstanding aggregate principal amount of the 2027 Notes tendered in a concurrent tender offer, to satisfy and discharge the remaining 2027 Notes not tendered in the concurrent tender offer (which will be redeemed on or about November 1, 2025) and for the payment of related premiums, fees and expenses. Additionally, the company used the net proceeds from the issuance of the 2031 Notes, together with cash on hand, to contribute $250 million to the company's U.S. defined benefit pension plans.
During the second quarter of 2025, the company made cash contributions of $278.2 million to its global defined benefit pension and postretirement plans, including the discretionary contribution of $250 million to its U.S. defined benefit pension plans, compared to cash contributions of $4.7 million in the prior-year period, primarily related to its international defined pension plans. The discretionary cash contribution reduced the pension and postretirement liabilities as well as the projected future required cash contributions.
Concurrently with the issuance of 2031 Notes, the company amended its existing amended and restated secured revolving credit facility to extend the maturity from October 2027 to June 2030 and modify certain other terms and covenants.
Other Metrics
(In millions, except numbers presented as percentages)
2Q25
2Q24
YoY Change
QoQ Change*
TCV(3)
Ex-L&S New Business (5)
$ 122
$ 215
(43) %
(64) %
Ex-L&S Renewals
266
144
85 %
250 %
L&S Renewals
49
103
(52) %
133 %
Total company
$ 437
$ 462
(5) %
1 %
YTD25
YTD24
TCV
Ex-L&S New Business
$ 459
$ 399
15 %
Ex-L&S Renewals
342
225
52 %
L&S Renewals
70
208
(66) %
Total company
$ 871
$ 832
5 %
* QoQ - quarter over quarter
Total company TCV for 2Q25 decreased 5% YoY, primarily driven by a shift in timing in Ex-L&S New Business signings, partially offset by Ex-L&S renewals.
Backlog(2) increased YoY and was $2.92 billion for the second quarter of 2025 compared to $2.79 billion for the second quarter of 2024.
2025 Financial Guidance
The company updates full-year 2025 revenue growth and profitability guidance:
Revised Guidance
Prior Issued Guidance
Revenue growth in constant currency
(1.0)% to 1.0%
0.5% to 2.5%
Non-GAAP operating profit margin
8.0% to 9.0%
6.5% to 8.5%
Constant currency revised revenue guidance translates to reported revenue growth of (0.5)% to 1.5%, based on exchange rates as of the end of 2Q25. The revised guidance assumes L&S revenue of approximately $430 million and relatively flat Ex-L&S constant currency revenue growth.
Conference Call
Unisys will hold a conference call with the financial community on Thursday, July 31, at 8 a.m. Eastern Time to discuss the results of the second quarter of 2025.
The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.
A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-877-344-7529 for domestic callers or 1-412-317-0088 for international callers and entering access code 4992919 from two hours after the end of the call until August 14, 2025.
(1) Constant currency, A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods.
(2) Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but backlog can be a useful metric and indicator of the company's estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.
(3) Total Contract Value (TCV), Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but TCV can be a useful leading ...
