Unisys Reports $20.1 Million Net Loss in Q2 2025, Revenue Increases Slightly

Unisys Corporation reported a net loss of $20.1 million, or $0.28 per diluted share, for the three months ended June 30, 2025, compared to a loss of $12.0 million, or $0.17 per diluted share, in the same period last year. For the six months ended June 30, 2025, the company recorded a net loss of $49.6 million, or $0.70 per diluted share, significantly improved from a loss of $161.5 million, or $2.34 per diluted share, for the same period in 2024. The current quarter's results included a $6.8 million loss on debt extinguishment, while the previous year's results were impacted by a $132.3 million pension settlement loss.

Total revenue for the second quarter of 2025 was $483.3 million, reflecting a slight increase of 1.1% from $478.2 million in the prior year. However, revenue for the first half of 2025 decreased by 5.2% to $915.4 million from $966.0 million in 2024, primarily due to the timing of software license renewals and lower client volumes. The company noted that foreign currency fluctuations had a negligible impact on revenue during both periods. The Enterprise Computing Solutions (ECS) segment saw a revenue increase to $140.2 million in Q2 2025, up from $130.7 million in Q2 2024, driven by software license renewals and higher managed services volume.

In terms of operational developments, Unisys completed a private placement of $700 million in senior secured notes due 2031 in June 2025. The proceeds were utilized to repurchase outstanding 2027 notes and to fund a significant portion of the company's defined benefit pension plans, including a discretionary contribution of $250 million. The company also amended its revolving credit facility, extending its maturity to June 2030. As of June 30, 2025, Unisys reported total debt of $698.4 million, an increase from $493.2 million at the end of 2024, primarily due to the new debt issuance.

Unisys's cash and cash equivalents stood at $300.8 million at the end of the second quarter, down from $376.5 million at the end of 2024. The company experienced cash used in operations of $282.9 million during the first half of 2025, compared to cash provided by operations of $26.5 million in the same period last year. The decline was largely attributed to substantial pension contributions and changes in working capital. The company’s backlog increased to $2.92 billion as of June 30, 2025, up from $2.79 billion a year earlier, indicating a positive outlook for future revenue generation.

Looking ahead, Unisys anticipates continued challenges in revenue growth due to market conditions and client demand fluctuations. The company plans to focus on improving operational efficiencies and managing costs while navigating the complexities of its pension obligations and debt management. The management remains cautious about the economic environment and its potential impact on business performance, emphasizing the need for strategic adjustments to align with evolving market dynamics.