Unisys Announces 2Q25 Results
UnisysUnisys(US:UIS) Prnewswire·2025-07-30 20:15

Core Insights - Unisys Corporation reported a sequential improvement in both revenue and profitability for the second quarter of 2025, driven by strong consumption in License and Support solutions and investments in artificial intelligence capabilities [3][9]. Financial Performance - Total revenue for 2Q25 was $483.3 million, reflecting a 1.1% year-over-year increase and an 11.8% quarter-over-quarter increase [5][9]. - Excluding License and Support (Ex-L&S) revenue was $395.7 million, showing a slight decline of 0.1% year-over-year but a 9.6% increase quarter-over-quarter [5][9]. - License and Support revenue increased by 6.7% year-over-year to $87.6 million [5][9]. - Operating profit margin improved to 6.3%, up 140 basis points year-over-year, while non-GAAP operating profit margin reached 7.6%, an increase of 150 basis points year-over-year [9][6]. Segment Performance - Digital Workplace Solutions (DWS) revenue increased by 4.5% year-over-year to $138.1 million, driven by new business and higher hardware revenue [11]. - Cloud, Applications & Infrastructure Solutions (CA&I) revenue declined by 4.5% year-over-year to $185.2 million, primarily due to lower volume with public sector clients [12]. - Enterprise Computing Solutions (ECS) revenue increased by 7.3% year-over-year to $140.2 million, attributed to software license renewals and higher volume in specialized managed services [13]. Cash Flow and Capital Structure - The company made significant cash contributions of $278.2 million to its global defined benefit pension and postretirement plans during the second quarter, including a discretionary contribution of $250 million to U.S. plans [18][19]. - Unisys extended the maturity of its major debt to 2031, enhancing its liquidity position [3][17]. Guidance and Outlook - The company revised its full-year 2025 revenue growth guidance to flat year-over-year, while raising the non-GAAP operating profit margin guidance to a range of 8.0% to 9.0% [23][9].