Unisys Reports $29.5 Million Net Loss in Q1 2025, Revenue Declines 11.4%

Unisys Corporation reported a net loss of $29.5 million, or $0.42 per diluted share, for the first quarter of 2025, a significant improvement compared to a net loss of $149.5 million, or $2.18 per diluted share, in the same period last year. The previous year's loss included a substantial $132.3 million settlement related to a U.S. pension plan. Total revenue for the quarter was $432.1 million, down 11.4% from $487.8 million in the first quarter of 2024, primarily due to the timing of software license renewals and reduced client volumes, with foreign currency fluctuations contributing a 3 percentage-point negative impact on revenue.

In terms of operational performance, Unisys experienced a decrease in revenue across its segments. The Digital Workplace Solutions (DWS) segment generated $118.6 million, down 10.4% year-over-year, while Cloud, Applications & Infrastructure Solutions (CA&I) revenue fell 6.3% to $176.6 million. The Enterprise Computing Solutions (ECS) segment saw a 14.8% decline, bringing in $118.7 million. The company’s gross profit margin also decreased, with total gross profit at $107.5 million, or 24.9% of revenue, compared to 27.9% in the prior year.

Unisys has made strategic adjustments to its organizational structure, integrating its business processing solutions into its ECS and CA&I segments to better align with client needs. This restructuring is aimed at enhancing operational efficiency and leveraging synergies across its reportable segments. The company reported a total contract value (TCV) of $434 million for the quarter, an increase of 17% from $370 million in the previous year, driven by new client contracts. Backlog also grew to $2.89 billion, up 4% year-over-year, indicating a positive outlook for future revenue generation.

The company’s financial position remains stable, with cash and cash equivalents totaling $393.1 million as of March 31, 2025, compared to $376.5 million at the end of 2024. Unisys continues to manage its debt effectively, reporting total debt of $494.8 million, slightly up from $493.2 million at the end of the previous year. The company expects to meet its liquidity needs for at least the next twelve months, supported by cash from operations and its revolving credit facility. Looking ahead, Unisys anticipates ongoing challenges related to market conditions and client demand but remains focused on strategic initiatives to drive growth and improve profitability.