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Unisys Reports Robust Financial Performance in 2025

Unisys Corporation has unveiled its financial results for the fourth quarter and the full year of 2025, reflecting a strong operational performance that has exceeded expectations. The company reported a notable revenue increase of 5.3% year over year for Q4, reaching $574.5 million and a solid cash balance, which underscores its resilient operational strategy amidst challenging market conditions.

Fourth Quarter Highlights

In Q4 2025, Unisys achieved significant financial milestones:

• - Revenue Growth: The revenue for the quarter rose to $574.5 million, marking a 5.3% YoY increase, along with a 2.7% increase in constant currency. This growth was largely attributed to the timing of software license renewals, demonstrating effective revenue management.
• - Operating Profit Margin: Unisys reported an operating profit margin of 13.3%, which is 440 basis points higher than the previous year. Additionally, the non-GAAP operating profit margin soared to 18.0%, up by 640 bps, leading to robust profitability improvements.
• - Cash Generation: Cash provided by operations surged to $104.9 million compared to $76.6 million in Q4 2024. The pre-pension and post-retirement free cash flow reached $112.9 million, more than doubling from the previous year’s figure of $61.8 million, showcasing the company’s strong cash generation capabilities.

Full-Year Performance

Despite a challenging overall climate in 2025, Unisys recorded several key achievements:

• - Revenue: The total revenue for the year decreased slightly by 2.9% to $2.0 billion, reflecting the challenging market environment. In constant currency, the decline was 3.3%.
• - Operating Profit Margin: The operating profit margin for the full year was 4.0%, slightly down by 80 bps YoY, while the non-GAAP margin rose to 9.1%, up 30 bps, indicating effective control over operational costs.
• - Pension Improvements: The company succeeded in significantly reducing its defined benefit pension plans funding deficit, which retracted to $448.5 million compared to $750.2 million in 2024. This improvement reflects effective pension management policies.

Leadership Insights

Michael Thomson, CEO and President of Unisys, stated that the 2025 results are a testament to the company's commitment to balancing investments in solution development with the goal of advancing profitability and reducing pension liabilities. Thomson highlighted the strategic use of technology to enhance service delivery and create value for clients.

CFO Deb McCann emphasized the strong liquidity position Unisys ended the year with, attributed to rising cash reserves and no immediate debt maturities. The ongoing transformation toward AI-enabled solutions has also been recognized across the industry, amplifying Unisys's market presence.

Future Guidance

Looking ahead, Unisys has set its sights on continued improvement in 2026 with guidance suggesting revenue challenges, projecting a decline in constant currency growth of 6.5% to 4.5%. The company anticipates a non-GAAP operating profit margin between 9.0% and 11.0%.

In anticipation of upcoming financial engagements, Unisys will host a conference call on April 30, 2026, to provide further insights into its strategy and performance metrics. This can be an excellent opportunity for stakeholders to assess the company’s direction as it navigates through a complex landscape.

Conclusion

Overall, Unisys’s 4Q and full-year 2025 results highlight a resilient organizational framework, showcasing improved profitability, strong cash flow, and a commitment to innovation while navigating systemic market challenges. The financial performance not only reflects well on the company's execution strategy but also provides a solid foundation for growth and investment moving forward.