Unisys Reports Strong Financial Results for 2024, Exceeding Profitability Expectations
Unisys Corporation, a global leader in technology solutions, has announced its financial results for the fourth quarter and the full year of 2024. This announcement, made on February 18, 2025, highlights the company’s efforts to improve operating and free cash flow, with performance exceeding profitability guidance and meeting revenue expectations.
According to Peter A. Altabef, Chair and CEO of Unisys, "In 2024, we exceeded the top end of our upwardly revised profitability guidance range and met our revenue guidance. Our focus on enhancing our Excluding License and Support (Ex-LS) solutions and the positive consumption trends from our LS platforms have set a solid foundation for future growth. This is evidenced by our 29% increase in New Business Total Contract Value (TCV), driven by New Logo signings, which shows that our offerings are gaining increasing recognition among clients, prospects, and industry analysts."
For the full year, Unisys achieved a gross profit margin of 29.2%, marking an increase of 180 basis points compared to the previous year. The operating profit margin also saw an improvement from 3.8% to 4.8%, with non-GAAP operating profit margin rising from 7% to 8.8%. These figures reflect the company’s strategic initiatives and operational efficiencies.
Full-year revenue for 2024 reached $2,008.4 million, reflecting a slight decrease of 0.3% year-over-year. However, when adjusted for constant currency, this revenue aligned with the company's expectations, demonstrating a resilient performance despite challenging market conditions.
The company's operating cash flow experienced a substantial upgrade, increasing to $135.1 million from $74.2 million in 2023. Similarly, free cash flow turned positive at $55.3 million, a recovery from the previous negative of $(4.5) million. These positive cash flow metrics signal an improved liquidity position for Unisys.
Deb McCann, CFO of the company, stated, "Our ongoing execution has improved our pre-pension and retirement free cash flow, which nearly doubled to $82 million. Looking forward, we anticipate a growing contribution from Ex-LS profits, enhanced operational efficiency, and better cash conversion, all of which will support our future pension requirements and organic growth investments."
In terms of segment performance, Unisys reported varying outcomes across its business units during the fourth quarter. The Digital Workplace Solutions (DWS) segment saw revenue fall by 7.9% year-over-year, primarily due to reduced business with existing clients. The Cloud, Applications & Infrastructure Solutions (CAI) also identified a decline of 4.9% in revenue, while the Enterprise Computing Solutions (ECS) segment noted a modest increase of 2.9%.
Moving forward, Unisys has issued guidance for 2025 that anticipates revenue growth of 0.5% to 2.5% year-over-year, with a non-GAAP operating profit margin forecasted between 6.5% and 8.5%. The company remains optimistic, positioning itself well to navigate the complexities of ever-changing market landscapes while striving for operational excellence.
In conclusion, Unisys Corporation's 2024 results reflect not only a successful year in surpassing profitability expectations but also a clear commitment to future growth and stability in the technology services sector. As the company prepares to discuss these outcomes in greater detail during its upcoming conference call on February 19, it is optimistic about its path forward, driven by its client-centric approach and innovative technology solutions.
According to Peter A. Altabef, Chair and CEO of Unisys, "In 2024, we exceeded the top end of our upwardly revised profitability guidance range and met our revenue guidance. Our focus on enhancing our Excluding License and Support (Ex-LS) solutions and the positive consumption trends from our LS platforms have set a solid foundation for future growth. This is evidenced by our 29% increase in New Business Total Contract Value (TCV), driven by New Logo signings, which shows that our offerings are gaining increasing recognition among clients, prospects, and industry analysts."
For the full year, Unisys achieved a gross profit margin of 29.2%, marking an increase of 180 basis points compared to the previous year. The operating profit margin also saw an improvement from 3.8% to 4.8%, with non-GAAP operating profit margin rising from 7% to 8.8%. These figures reflect the company’s strategic initiatives and operational efficiencies.
Full-year revenue for 2024 reached $2,008.4 million, reflecting a slight decrease of 0.3% year-over-year. However, when adjusted for constant currency, this revenue aligned with the company's expectations, demonstrating a resilient performance despite challenging market conditions.
The company's operating cash flow experienced a substantial upgrade, increasing to $135.1 million from $74.2 million in 2023. Similarly, free cash flow turned positive at $55.3 million, a recovery from the previous negative of $(4.5) million. These positive cash flow metrics signal an improved liquidity position for Unisys.
Deb McCann, CFO of the company, stated, "Our ongoing execution has improved our pre-pension and retirement free cash flow, which nearly doubled to $82 million. Looking forward, we anticipate a growing contribution from Ex-LS profits, enhanced operational efficiency, and better cash conversion, all of which will support our future pension requirements and organic growth investments."
In terms of segment performance, Unisys reported varying outcomes across its business units during the fourth quarter. The Digital Workplace Solutions (DWS) segment saw revenue fall by 7.9% year-over-year, primarily due to reduced business with existing clients. The Cloud, Applications & Infrastructure Solutions (CAI) also identified a decline of 4.9% in revenue, while the Enterprise Computing Solutions (ECS) segment noted a modest increase of 2.9%.
Moving forward, Unisys has issued guidance for 2025 that anticipates revenue growth of 0.5% to 2.5% year-over-year, with a non-GAAP operating profit margin forecasted between 6.5% and 8.5%. The company remains optimistic, positioning itself well to navigate the complexities of ever-changing market landscapes while striving for operational excellence.
In conclusion, Unisys Corporation's 2024 results reflect not only a successful year in surpassing profitability expectations but also a clear commitment to future growth and stability in the technology services sector. As the company prepares to discuss these outcomes in greater detail during its upcoming conference call on February 19, it is optimistic about its path forward, driven by its client-centric approach and innovative technology solutions.
Topics Business Technology）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.