On February 18, 2025, Unisys Corporation (NYSE: UIS) released its financial results for the fourth quarter and the full year of 2024. The report highlighted a mix of challenges and successes, with revenue showing slight declines while profitability metrics showed improvement.

2. Key Executive Insights

Peter A. Altabef, Chair and CEO of Unisys, expressed optimism in the company’s performance, stating, “In 2024, we exceeded the top end of our upwardly revised profitability guidance range and met our revenue guidance.” He further emphasized the company's commitment to enhancing its Ex-L&S (Excluding License and Support) solutions, noting positive consumption trends and long-term client commitments to their profitable L&S platforms.

Chief Financial Officer Deb McCann added, “We are continuing to execute our strategy to enhance pre-pension and postretirement free cash flow, which nearly doubled to $82 million for the full year." She indicated that Unisys is well-positioned for future growth, backed by rising profit contributions and improved operational efficiency.

3. Financial Highlights

Fourth Quarter Results

Revenue: $545.4 million, down 2.2% year-over-year (YoY) from $557.6 million in Q4 2023.

Ex-L&S Revenue: $393.7 million, a decline of 4.7% YoY.

Gross Profit: $175.0 million, with a gross profit margin of 32.1%, down slightly from 32.5% YoY.

Operating Profit: Increased to $48.6 million from $44.0 million in Q4 2023, reflecting an operating profit margin of 8.9%.

Net Income: Reported at $30.0 million, a significant turnaround from a loss of $165.3 million in the same quarter of the previous year.

EBITDA: $90.3 million, compared to a loss of $103.6 million in Q4 2023.

Full-Year Results

Total Revenue: $2,008.4 million, a slight decline from $2,015.4 million in 2023.

Ex-L&S Revenue: $1,576.9 million, down from $1,586.3 million in 2023.

Net Loss: Narrowed to $193.4 million compared to a loss of $430.7 million in 2023.

Adjusted EBITDA: Increased to $292.1 million, up from $285.9 million in the previous year.

Segment Performance

Digital Workplace Solutions (DWS):

Revenue: $128.2 million (down 7.9% YoY)

Gross Profit Margin: Increased to 15.9%.

Cloud, Applications & Infrastructure Solutions (CA&I):

Revenue: $132.1 million (down 4.9% YoY)

Gross Profit Margin: Decreased to 15.4%.

Enterprise Computing Solutions (ECS):

Revenue: $208.9 million (up 2.9% YoY)

Gross Profit Margin: Decreased to 64.7%.

4. Balance Sheet and Cash Flow Strength

Unisys reported cash and cash equivalents of $376.5 million, slightly down from $387.7 million in 2023. The company demonstrated strong cash flow from operations, totaling $135.1 million for the year, compared to $74.2 million in 2023. Free cash flow improved significantly to $55.3 million from a negative $4.5 million in the prior year.

5. Sales Metrics

Unisys reported a total contract value (TCV) of $752 million in Q4 2024, marking a 35% decline year-over-year, though new business TCV showed a 24% increase. The backlog stood at $2.84 billion, down from $3.01 billion a year ago, primarily due to the timing of contract renewals.

6. Outlook for 2025

Looking ahead, Unisys has provided guidance for 2025, projecting revenue growth in constant currency between 0.5% to 2.5% and a non-GAAP operating profit margin of 6.5% to 8.5%. This guidance reflects an expected L&S revenue of approximately $390 million and Ex-L&S constant currency revenue growth of 1.0% to 5.0%.

7. Conclusion

Unisys Corporation's latest financial results indicate a company on the path to recovery, with improved profitability and cash flow metrics despite slight declines in revenue. The firm remains focused on enhancing operational efficiency and client engagement, positioning itself for sustainable growth in the upcoming year. As Unisys prepares for its conference call on February 19, 2025, stakeholders will be keen to hear more about the strategies that will drive its future success.

Original press release