BLUE BELL, PA — Unisys Corporation (NYSE: UIS) posted improved second-quarter operating profit and a stronger margin outlook for 2025, even as it slightly lowered revenue expectations for the full year. The IT services and solutions provider continues to restructure its capital base and invest in AI-enabled offerings to support long-term growth.
For the quarter ended June 30, 2025, Unisys reported $483.3 million in revenue, up 1.1% year over year and 11.8% sequentially. The company’s operating profit margin expanded 140 basis points to 6.3%, with non-GAAP operating profit margin rising to 7.6%, reflecting disciplined cost control and lower professional services expenses.
CEO Michael Thomson pointed to the adoption of generative AI in the company’s solutions portfolio as a key factor in driving efficiency gains. “We are pleased with the sequential growth and improved profitability we achieved in the second quarter,” Thomson said. “The investments we made in applying agentic and generative artificial intelligence capabilities… are beginning to advance our growth and efficiency priorities.”
Strategic Pension and Capital Moves
During the quarter, Unisys completed a major restructuring of its U.S. defined benefit pension plan, aimed at reducing future contribution volatility. A $250 million discretionary contribution, funded by $50 million in cash and proceeds from a $700 million private placement of senior secured notes due 2031, significantly reduced liabilities and extended the company’s only major debt maturity to 2031.
CFO Deb McCann said the moves have “removed substantially all volatility from our U.S. pension contributions” and put Unisys on a more defined path toward fully eliminating pension obligations.
Total cash and equivalents declined $75.7 million during the quarter, largely due to the pension contribution. Free cash flow fell by $318 million year over year, primarily as a result of the pension outlay and changes in working capital.
Segment Performance
- Digital Workplace Solutions (DWS) revenue rose 4.5% year over year, supported by new business wins and higher hardware sales. Segment margin improved by 70 basis points to 16.9%.
- Cloud, Applications & Infrastructure (CA&I) revenue declined 4.5%, reflecting lower volume from public sector clients. Despite the top-line drop, CA&I gross margin improved slightly to 20.8%.
- Enterprise Computing Solutions (ECS) posted a 7.3% increase in revenue, driven by license renewals and higher managed services volume. ECS maintained strong profitability, with margins improving to 53.5%.
Outlook
Unisys updated its 2025 guidance, lowering constant currency revenue expectations to flat year over year but raising its non-GAAP operating profit margin forecast to a range of 8.0% to 9.0%, up from previous projections.
Total contract value (TCV) for the quarter dipped 5%, primarily due to timing shifts in new signings outside of license and support. However, the company’s backlog grew to $2.92 billion, up from $2.79 billion a year earlier.
Despite headwinds in public sector demand and a mixed revenue picture, Unisys appears focused on margin expansion, balance sheet improvement, and positioning its AI capabilities as a driver for long-term profitability.
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