Unisys Q2 rev. up 1.1% YoY, op. margin improves 140 bps YoY.

• Unisys reports 2Q25 revenue of $483.3mln, up 1.1% YoY and 11.8% QoQ. • Ex-L&S revenue of $395.7mln, down 0.1% YoY and 9.6% QoQ. • Operating profit margin of 6.3%, improved 140 bps YoY. • Non-GAAP operating profit margin of 7.6%, up 150 bps YoY. • The company reduced U.S. pension plan cash contribution volatility.

Title: Unisys Reports Strong Second-Quarter Results for 2025

Unisys Corporation (NYSE: UIS) has announced its second-quarter 2025 financial results, showing robust performance in revenue and profitability. The company reported total revenue of $483.3 million, a 1.1% increase year-over-year (YoY) and an 11.8% quarter-over-quarter (QoQ) growth. Excluding License and Support (Ex-L&S) revenue, the company achieved $395.7 million, a 0.1% decrease YoY and a 9.6% increase QoQ [3].

Unisys' operating profit margin improved to 6.3% for the quarter, up by 140 basis points (bps) YoY. The non-GAAP operating profit margin also showed significant improvement, rising to 7.6% from 6.1%, an increase of 150 bps YoY [3].

The company's strategic initiatives, particularly in applying agentic and generative artificial intelligence capabilities to its solutions, are contributing to enhanced growth and efficiency. This is reflected in the improved profitability and cash generation observed in the second quarter [3].

Unisys has also taken significant steps to mitigate U.S. pension volatility. The company reduced future cash contribution volatility within its U.S. qualified defined benefit pension plans by changing its pension asset investment strategy and making a discretionary contribution of $250 million. This contribution was funded using a combination of $50 million in cash and $200 million from the issuance of $700 million senior secured notes due 2031, with the remaining proceeds used to refinance existing senior secured notes due 2027 [3].

Unisys' strong performance in the second quarter underscores its ability to navigate a challenging business environment. The company's focus on high-growth areas such as digital workplace services, cybersecurity, and AI-enabled solutions is paying off, as evidenced by the sequential improvement in revenue and profitability [3].

Despite these positive results, Unisys faces several transitional challenges, including the timing of contract ramp-ups, hardware-driven revenue mix, and macro-sensitive public sector engagements. The company will need to continue to execute on its backlog conversion and margin stabilization strategies to maintain its growth trajectory [3].

Investors should closely monitor Unisys' upcoming earnings release for further insights into the company's performance and future prospects.

References

[1] https://finance.yahoo.com/news/buy-sell-hold-unisys-stock-144700096.html
[2] https://seekingalpha.com/news/4473593-unisys-q2-2025-earnings-preview
[3] https://www.placera.se/pressmeddelanden/unisys-unisys-announces-2q25-results-20250730