Unisys(US:UIS)2025-11-05 21:23Revenue Performance - Total company revenue for 3Q25 was $460.2 million, a decrease of 7.4% year over year (YoY) and 9.0% in constant currency[5] - Total revenue for Q3 2025 was $460.2 million, a decrease of 7.4% from $497.0 million in Q3 2024[31] - Revenue for the three months ended September 30, 2025, was $460.2 million, down from $497.0 million in the same period of 2024, representing a decrease of approximately 7.5%[49] - For the nine months ended September 30, 2025, total revenue was $1,375.6 million, a decrease of 6.0% from $1,463.0 million in the same period of 2024[35] - Excluding License and Support (Ex-L&S) revenue was $377.2 million, down 3.9% YoY and 5.8% in constant currency[5] - Excluding license and support revenue, the revenue for the three months ended September 30, 2025, was $377.2 million, compared to $392.5 million in 2024[37] - Services revenue was $404.1 million, down from $414.9 million year-over-year, while technology revenue decreased to $56.1 million from $82.1 million[31] Profitability and Loss - The company reported a net loss attributable to Unisys Corporation of $308.9 million, which included a non-cash pension settlement loss of $227.7 million[10] - The company reported a consolidated net loss of $309.2 million for Q3 2025, compared to a net loss of $61.9 million in Q3 2024[31] - The company reported a consolidated net loss of $359.8 million for the nine months ended September 30, 2025, compared to a net loss of $223.7 million in 2024[41] - Non-GAAP operating profit was $24.8 million, representing a margin of 5.4%, compared to 9.9% in 3Q24[7] - Non-GAAP operating profit for the three months ended September 30, 2025, was $24.8 million, down from $49.4 million in the same period of 2024[51] - Operating loss for the three months ended September 30, 2025, was $(33.5) million, compared to an operating profit of $7.5 million in the same period of 2024[51] - Adjusted EBITDA for the three months ended September 30, 2025, was $48.2 million, compared to $77.0 million for the same period in 2024, reflecting a decline of about 37.4%[49] - The percentage of revenue represented by net loss attributable to Unisys Corporation was (67.1)% for the three months ended September 30, 2025, compared to (12.5)% in the same period of 2024[49] Cash Flow and Liquidity - Cash provided by operations was $38.0 million, an increase from $32.0 million in 3Q24, with free cash flow of $19.9 million compared to $14.2 million in the prior year[15] - Free cash flow for the three months ended September 30, 2025, was $19.9 million, an increase from $14.2 million in the same period of 2024[47] - Cash and cash equivalents stood at $321.9 million, reflecting a 7.0% increase quarter over quarter[5] - Cash and cash equivalents decreased to $321.9 million as of September 30, 2025, from $376.5 million at the end of 2024[39] - Adjusted free cash flow for the nine months ended September 30, 2025, was $9.2 million, a decrease from $37.5 million in the same period of 2024[47] Future Outlook and Guidance - The company updated its full-year 2025 revenue growth guidance to a decline of 4.0% to 3.0% in constant currency[17] - The company anticipates revenue growth and margin expansion in the future, with specific guidance for full-year 2025 revenue growth[23] - Total Contract Value (TCV) for 3Q25 increased by 15% YoY, driven by the timing of renewals[16] - The total contract value (TCV) is a key metric for future revenue generation, reflecting the initial estimated revenue from contracts signed[22] - Backlog was $2.83 billion for 3Q25, compared to $2.80 billion for the same period in 2024[17] - Backlog represents future revenue to be recognized under contracted work, although it is subject to various factors affecting conversion to revenue[21] - Book-to-bill ratio is a critical measure, calculated as total contract value booked divided by revenue in a given period[21] Asset and Liability Management - Long-term debt increased to $723.2 million as of September 30, 2025, compared to $488.2 million at the end of 2024[39] - The company’s total assets decreased to $1,743.8 million as of September 30, 2025, down from $1,872.3 million at the end of 2024[39] - The company plans to reduce approximately $600 million of U.S. defined benefit pension plan liabilities by the end of 2026[10] - The company experienced a significant goodwill impairment of $55.0 million during the nine months ended September 30, 2025[41] - The company experienced a goodwill impairment of $55.0 million for the three months ended September 30, 2025, consistent with the same amount in 2024[49] Operational Highlights - Non-GAAP operating profit margin was not specified, but the company emphasizes the importance of non-GAAP measures for understanding ongoing operations[25] - Free cash flow was not detailed, but the company highlighted the significance of cash flow generation in its financial performance[25] - The company is focused on new business expansion and the development of new technologies to drive future growth[22] - Gross profit margin for the three months ended September 30, 2025, was 25.5%, down from 29.2% in the prior year[37] - The gross profit percentage excluding license and support for the nine months ended September 30, 2025, was 18.0%, slightly down from 18.2% in the prior year[37]