#None #revenue growth #Unisys #Blue Bell #Q2 2025

Unisys Financial Review for Q2 2025

On July 30, 2025, Unisys Corporation announced its financial performance for the second quarter of 2025, revealing notable developments in revenue generation and profitability. With total revenue reaching $483.3 million, the company saw a 1.1% increase year-over-year (YoY) and an impressive 11.8% increase quarter-over-quarter (QoQ). This surge was attributed to enhanced demand across its License and Support solutions.

Unisys CEO and President, Michael Thomson, expressed satisfaction with the company's performance, stating, "We are pleased with the sequential growth and improved profitability we achieved in the second quarter... the investments we made in applying agentic and generative artificial intelligence capabilities to our most innovative solutions are beginning to advance our growth priorities as evidenced by our improved profitability and enhanced cash generation."

Key Financial Metrics

• - Total Revenue: $483.3 million

- YoY Change: +1.1%
- QoQ Change: +11.8%

• - Excluding License and Support Revenue: $395.7 million

- YoY Change: -0.1%
- QoQ Change: +9.6%

• - Operating Profit Margin: 6.3%, reflecting a 140 bps improvement YoY
• - Non-GAAP Operating Profit Margin: 7.6%, an increase of 150 bps YoY.

Pension Strategy and Financial Guidance

In a significant move to stabilize its U.S. pension fund contributions, Unisys executed a discretionary contribution of $250 million. This strategy involved changing its pension asset investment approach and utilizing a combination of cash reserves and proceeds from issuing $700 million in senior secured notes due in 2031. This initiative not only reduces volatility in cash contributions but also sets a clearer path towards eliminating U.S. pension obligations entirely.

Deb McCann, Unisys Chief Financial Officer, remarked, "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."

The company has tempered its full-year revenue guidance, now projecting flat YoY growth while raising the expected non-GAAP operating profit margin to a range of 8.0% to 9.0%. This adjustment signifies cautious optimism given the market's current state.

Segment Performance Breakdown

• - Digital Workplace Solutions (DWS): Revenue increased by 4.5% YoY.
• - Cloud, Applications and Infrastructure Solutions (CAI): Revenue saw a decline of 4.5% YoY.
• - Enterprise Computing Solutions (ECS): Revenue grew by 7.3% YoY, contributing to a solid gross profit margin rise.

As the tech landscape evolves, Unisys is positioned to leverage AI innovations while maintaining a steady focus on operational efficiency and market responsiveness. The company's ongoing financial adjustments and strategic planning will be critical as they navigate future challenges and opportunities within the tech industry.

Conclusion

Unisys's better-than-expected quarterly results reflect strategic decision-making and effective resource management as they continue to adapt and thrive in a competitive landscape. The commitment to enhancing operational efficiency while addressing pension obligations provides a robust framework for sustained growth moving forward.

For investors and stakeholders, the upcoming conference call on July 31 will provide additional insights into the company's strategic outlook and performance metrics, offering a chance to connect with the leadership team.

In summary, Unisys is not only addressing immediate challenges but is also setting a course for future innovations and growth avenues, bolstered by solid financial health and operational capabilities.