Unisys Reports Q3 2025 Financial Results and Strategic Developments

Unisys Corporation (NYSE: UIS) released its financial data for the third quarter of 2025, presenting a comprehensive view of the company’s performance against previous periods. This report details key metrics such as revenue, profit margins, and strategic initiatives regarding the company’s pension liabilities, shedding light on its operational direction.

Financial Overview

In Q3 2025, Unisys faced a total revenue decline of 7.4% year-over-year (YoY), resulting in $460.2 million. When adjusted for constant currency, this drop worsened to 9.0%. These declines were influenced by the timing of software license renewals, which significantly impacted their License and Support (L&S) revenue, falling to $83.0 million and marking a 20.6% decrease. Conversely, their revenue excluding License and Support (Ex-LS) stood at $377.2 million, representing a smaller decline of 3.9% YoY.

Despite the revenue downturn, Unisys was able to boost its cash and cash equivalents to $321.9 million, reflecting a 7.0% increase quarter-over-quarter (QoQ). The company's operations yielded $38.0 million in cash, a rise from $32.0 million in Q3 2024, showcasing effective management practices.

Strategic Initiatives

A significant strategic move was the acquisition of an annuity contract aimed at transferring roughly $320 million of projected U.S. qualified defined benefit pension liabilities to a third-party insurer, underlined as a pivotal aspect of their pension strategy. This transaction is part of a broader initiative to eliminate approximately $600 million in pension liabilities by 2026. CEO Michael Thomson underscored the improvements in L&S platforms which furthered client retention and increased consumption, positioning Unisys for robust future cash generation.

Sector Performance

Unisys operates through several segments, with notable variances in performance. In the Digital Workplace Solutions (DWS) segment, revenues dipped by 4.3% YoY, totaling $125.3 million. The Cloud, Applications & Infrastructure Solutions (CAI) segment also experienced a decline of 4.8%, reporting revenues of $180.4 million, influenced by the volume reduction with public-sector clients.

The Enterprise Computing Solutions (ECS) segment bore the most significant downturn with a 13.5% revenue drop, now at $133.2 million, primarily attributed to the timing of software license renewals. Despite the challenges, ECS maintained a gross profit margin of 46.2%.

Future Outlook

As Unisys adjusts its revenue guidance for the remainder of 2025, it now anticipates a constant currency decline of 4.0% to 3.0%. However, the company reiterated its goal for a non-GAAP operating profit margin in the range of 8% to 9%. With robust strategic steps being undertaken to enhance operating efficiency and generate liquidity, Unisys remains optimistic about navigating these economic challenges and furthering its technological advancements.

In light of the reported figures and strategic maneuvers, Unisys is poised for continued transformation and targeted growth in emerging technologies, emphasizing its commitment to financial health and operational sustainability.

For more detailed insights, stakeholders are encouraged to participate in the upcoming conference call scheduled for November 6, 2025, when Unisys will further discuss its quarterly results and answer questions from analysts.