Unisys Announces 4Q and Full-Year 2025 Results

Core Insights - Unisys Corporation reported its financial results for Q4 and full year 2025, highlighting a solid cash balance and improved profitability metrics, despite a decline in overall revenue for the year [1][2]. Financial Performance - Q4 2025 revenue was $574.5 million, a 5.3% increase year-over-year (YoY), with a 2.7% increase in constant currency [1][2]. - Full year 2025 revenue decreased to $2.0 billion, down 2.9% YoY and 3.3% in constant currency [1][2]. - Operating profit margin for Q4 2025 was 13.3%, up 440 basis points YoY, while the non-GAAP operating profit margin was 18.0%, up 640 basis points YoY [1][2]. - Full year operating profit margin was 4.0%, down 80 basis points YoY, with a non-GAAP operating profit margin of 9.1%, up 30 basis points YoY [1][2]. Cash Flow and Liquidity - Cash provided by operations in Q4 2025 was $104.9 million, compared to $76.6 million in Q4 2024 [1][2]. - Full year cash used for operations was $140.0 million, which included a discretionary pension contribution of $250 million [1][2]. - Cash and cash equivalents at the end of 2025 were $413.9 million, an increase from $376.5 million at the end of 2024 [1][2]. Segment Performance - Digital Workplace Solutions (DWS) revenue for Q4 2025 was $126.4 million, a decline of 1.4% YoY [2]. - Cloud, Applications & Infrastructure Solutions (CA&I) revenue decreased by 1.1% YoY to $190.6 million in Q4 2025 [2]. - Enterprise Computing Solutions (ECS) revenue increased by 16.4% YoY to $236.8 million in Q4 2025, driven by software license renewals [2]. Pension and Liabilities - The defined benefit pension plans funding deficit improved to $448.5 million in 2025 from $750.2 million in 2024, a reduction of $301.7 million [1][2]. - The net loss attributable to Unisys Corporation for 2025 was $339.8 million, which included a non-cash pension settlement loss of $227.7 million [1][2]. Future Outlook - Unisys provided guidance for 2026, projecting revenue growth in constant currency to be between -6.5% and -4.5%, with a non-GAAP operating profit margin expected to be between 9.0% and 11.0% [2].