Unisys Announces 4Q and Full-Year 2025 Results

Exceeds Upwardly Revised Profitability Guidance and Finishes Year with Solid Cash Balance and Strong Liquidity

Fourth Quarter 2025 (4Q25) Highlights:

• Revenue of $574.5 million, up 5.3% year over year (YoY) and 2.7% in constant currency⁽¹⁾
• Operating profit margin of 13.3%, up 440 bps YoY, non-GAAP operating profit⁽⁶⁾ margin of 18.0 %, up 640 bps YoY
• Cash provided by operations of $104.9 million compared to $76.6 million in 4Q24; pre-pension and postretirement free cash flow⁽¹⁰⁾ of $112.9 million compared to $61.8 million in 4Q24

Full Year 2025 Highlights:

• Revenue of $2.0 billion, down 2.9% YoY and 3.3% in constant currency
• Operating profit margin of 4.0%, down 80 bps YoY, non-GAAP operating profit margin of 9.1%, up 30 bps YoY
• Cash used for operations of $140.0 million (including a discretionary pension contribution of $250 million) compared to cash provided by operations of $135.1 million in 2024; pre-pension and postretirement free cash flow of $127.7 million compared to $82.4 million in 2024
• Cash and cash equivalents at December 31, 2025, were $413.9 million compared with $376.5 million at December 31, 2024
• Defined benefit pension plans funding deficit status of $448.5 million compared to funding deficit of $750.2 million in 2024, improved by $301.7 million

BLUE BELL, Pa., Feb. 24, 2026 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) reported financial results for the fourth quarter and full year 2025.

"Our 2025 results reflect our ongoing commitment to a consistent strategy that balances our investment in solution development with our financial objectives of advancing profitability, free cash flow, and removal of pension liabilities," said Michael Thomson, Unisys CEO and President. "We believe we are effectively leveraging technology in our delivery capabilities and building AI-enabled solution frameworks to increase the scale and pace of value realization for our clients. This allows Unisys to show up differently in the market, and we see increasing recognition for our capabilities across our clients, partners, and industry analysts as we work towards accelerating revenue growth."

Unisys Chief Financial Officer Deb McCann said, "We were pleased to deliver another year of solid profitability improvement, exceeding the high-end of our upwardly revised non-GAAP operating margin guidance. Our License & Support ecosystem has continued to outperform our financial expectations, with consumption continuing to benefit from client adoption of AI. We ended the year with a strong liquidity position driven by increasing cash balances, an undrawn credit facility and no major near-term debt maturities."

Financial Highlights

Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented except for financial guidance since such a reconciliation is not practicable without unreasonable effort.

Fourth Quarter 2025 Results

Revenue increased 5.3% YoY, a 2.7% increase in constant currency, primarily driven by the timing of software license renewals. Ex-L&S revenue declined 1.4% YoY, a 3.9% decrease in constant currency, primarily driven by lower volume with clients in the Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure Solutions (CA&I) segments.

Gross profit margin increased 180 bps YoY, primarily driven by the timing of software license renewals. Ex-L&S gross profit margin decreased 250 bps YoY, primarily due to 110 bps in higher cost reduction charges and an additional 70 bps from costs associated with a mutually agreed-upon client contract termination.

Full Year 2025

Revenue decreased 2.9% YoY, a 3.3% decrease in constant currency, primarily driven by lower volume with clients in the DWS and CA&I segments. Gross profit margin decreased 100 bps YoY, primarily driven by a higher proportion of hardware revenue within the Enterprise Computing Solutions (ECS) segment.

Ex-L&S revenue decreased 3.5%, a 3.9% decrease in constant currency, and Ex-L&S gross profit margin decreased 80 bps YoY. These declines were primarily driven by lower volume with clients in the DWS and CA&I segments.

Operating profit included non-cash goodwill impairment charges of $55.0 million and $39.1 million, in 2025 and 2024, respectively.

In 2025, net loss attributable to Unisys Corporation included a non-cash pension settlement loss of $227.7 million net of tax as a result of a group annuity purchase contract to transfer approximately $320 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. 

Financial Highlights by Segment

Fourth Quarter 2025 Segment Results

DWS revenue declined 1.4% YoY, a 3.7% decline in constant currency. DWS gross profit margin was 10.5%, a decrease of 540 bps YoY. These declines were primarily driven by lower volume with clients. Additionally, the DWS gross profit margin was negatively impacted by 200 bps associated with costs related to a mutually agreed-upon client contract termination.

CA&I revenue declined 1.1% YoY, a 4.1% decline in constant currency, primarily driven by lower volume with clients. CA&I gross profit margin was 20.7%, an increase of 210 bps YoY, primarily driven by labor cost savings initiatives.

ECS revenue increased 16.4% YoY, a 14.0% increase in constant currency. ECS gross profit margin was 65.9%, an increase of 270 bps YoY. These increases were primarily driven by the timing of software license renewals.

Full Year 2025

DWS revenue decreased 2.9%YoY, a 3.1% decrease in constant currency. DWS gross profit margin was 14.5%, a decrease of 120 bps YoY. These declines were primarily driven by lower volume with clients.

CA&I revenue decreased 4.1% YoY, a 4.8% decrease in constant currency, primarily driven by lower volume with clients in the public sector. CA&I gross profit margin was 20.2%, an increase of 60 bps YoY, primarily driven by labor cost savings initiatives.

ECS revenue remained relatively flat YoY and in constant currency. ECS gross profit margin was 55.5%, a decrease of 250 bps YoY, primarily driven by a higher proportion of hardware revenue, which has a lower gross margin profile relative to license renewals.

Balance Sheet and Cash Flow

Cash and cash equivalents increased $37.4 million YoY.

At December 31, 2025, the defined benefit pension plans had a funding deficit of $448.5 million, a decrease of $301.7 million YoY. This reduction is primarily due to $343.7 million in cash contributions, including a $250 million discretionary contribution to the company's U.S. defined benefit pension plans, which was funded with approximately $200 million from the net proceeds of the 10.625% Senior Secured Notes due 2031 and $50 million from cash on hand.

Fourth quarter 2025 free cash flow increased by $30.1 million YoY, primarily driven by lower net interest payments and increased license renewals collections.

Full-year 2025 free cash flow declined by $272.9 million YoY, primarily resulting from cash contributions, including the discretionary pension contribution discussed above, partially offset by the favorable settlement of a legal matter and changes in working capital.

Full-year 2025 pre-pension and postretirement free cash flow increased by $45.3 million YoY, primarily due to the favorable settlement of a legal matter and changes in working capital.

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