Unisys | 10-K: FY2025 Revenue Beats Estimate at USD 1.95 B

Revenue: As of FY2025, the actual value is USD 1.95 B, beating the estimate of USD 1.945 B.EPS: As of FY2025, the actual value is USD -4.79, beating the estimate of USD -5.7825.EBIT: As of FY2025, the actual value is USD 111.2 M.Overall Company PerformanceNet Loss Attributable to Unisys Corporation:2025: - $339.8 million 2024: - $193.4 million Gross Profit:2025: $549.3 million 2024: $585.9 million Gross Profit Margin:2025: 28.2% 2024: 29.2% The decrease was primarily due to a higher proportion of hardware revenue within the Enterprise Computing Solutions (ECS) segment .Operating Profit:2025: $78.5 million 2024: $97.4 million The decrease was primarily due to a higher goodwill impairment charge in 2025 .Selling, General and Administrative Expenses (SG&A):2025: $391.2 million (20.1% of revenue) 2024: $424.2 million (21.1% of revenue) The decrease was primarily due to a reduction in variable compensation expense of $17.2 million and lower professional services expense of $7.4 million .Research and Development (R&D) Expenses:2025: $24.6 million 2024: $25.2 million Interest Expense:2025: $53.4 million 2024: $31.9 million The increase was primarily due to increased long-term debt balance and a higher interest rate following the issuance of the 2031 Notes .Other (Expense), Net:2025: - $297.3 million 2024: - $140.8 million 2025 included pension plan settlement losses of $228.2 million and a loss on debt extinguishment of $7.0 million .2024 included pension plan settlement losses of $130.6 million, a $40.0 million gain from a litigation settlement, and a $14.9 million net gain from a Brazilian services tax matter .Loss Before Income Taxes:2025: - $272.2 million 2024: - $75.3 million Provision for Income Taxes:2025: $67.8 million 2024: $117.9 million Effective Tax Rate:2025: - 24.9% 2024: - 156.6% Cost-Reduction Charges and Other Costs:Total 2025: $30.5 million Total 2024: $18.0 million Breakdown for 2025:Cost of revenue: $18.0 million Selling, general and administrative: $9.4 million Research and development: $3.1 million Breakdown for 2024:Cost of revenue: $12.1 million Selling, general and administrative: $6.0 million Research and development: - $0.1 million Workforce reductions (net): $23.0 million in 2025 (comprising a $27.6 million severance charge and a - $4.6 million credit for changes in estimates) .Workforce reductions (net): $13.5 million in 2024 (comprising a $23.7 million severance charge and a - $10.2 million credit for changes in estimates) .Other charges in 2025: $4.3 million lease abandonment costs and $3.2 million asset write-off .Other charges in 2024: $4.4 million asset write-off and $0.1 million net charge for other expenses .Segmented Financial MetricsDigital Workplace Solutions (DWS):Revenue 2025: $508.4 million Revenue 2024: $523.5 million Decrease of 2.9% .Gross Profit Percent 2025: 14.5% Gross Profit Percent 2024: 15.7% Decreases in revenue and gross profit percent were primarily due to lower client volume .Goodwill impairment charges: $55.0 million in 2025 and $39.1 million in 2024 .Cloud, Applications & Infrastructure Solutions (CA&I):Revenue 2025: $732.8 million Revenue 2024: $764.4 million Decrease of 4.1%, primarily due to lower client volume in the public sector .Gross Profit Percent 2025: 20.2% Gross Profit Percent 2024: 19.6% Increase in gross profit percent primarily driven by labor cost savings initiatives .Enterprise Computing Solutions (ECS):Revenue 2025: $628.9 million Revenue 2024: $627.5 million Remained relatively flat .Gross Profit Percent 2025: 55.5% Gross Profit Percent 2024: 58.0% Decrease in gross profit percent primarily driven by a higher proportion of hardware revenue .License and Support (L&S) (within ECS):Revenue 2025: $428.1 million Revenue 2024: $431.5 million Decrease of 0.8% .Gross Profit 2025: $293.9 million Gross Profit 2024: $308.3 million Gross Profit Percent 2025: 68.7% Gross Profit Percent 2024: 71.4% Excluding License and Support (Ex-L&S):Revenue 2025: $1,522.0 million Revenue 2024: $1,576.9 million Decrease of 3.5% .Gross Profit 2025: $255.4 million Gross Profit 2024: $277.6 million Gross Profit Percent 2025: 16.8% Gross Profit Percent 2024: 17.6% .Cash FlowCash and Cash Equivalents:As of December 31, 2025: $413.9 million As of December 31, 2024: $376.5 million Cash Used for Operating Activities:2025: - $140.0 million Cash Provided by Operating Activities:2024: $135.1 million The decline in 2025 was primarily due to cash contributions of $343.7 million to defined benefit pension plans, including a discretionary $250 million contribution to U.S. plans .Cash Used for Investing Activities:2025: - $31.8 million 2024: - $97.4 million Net proceeds from foreign exchange forward contracts were $37.0 million in 2025, compared to net purchases of - $17.3 million in 2024 .Investment in marketable software: $47.6 million in 2025 and $47.5 million in 2024 .Capital additions of properties and other assets: $30.0 million in 2025 and $32.3 million in 2024 .Cash Provided by Financing Activities:2025: $186.0 million Cash Used for Financing Activities:2024: - $18.1 million Primarily driven by net proceeds from the issuance of $700.0 million aggregate principal amount of 2031 Notes, partially offset by the repurchase and discharge of 2027 Notes .Proceeds from Issuance of Long-Term Debt:2025: $700.0 million Payments of Long-Term Debt:2025: - $492.1 million Issuance Costs Relating to Long-Term Debt:2025: - $14.1 million Cash Paid for Debt Extinguishment:2025: - $4.2 million .Unique MetricsTotal Contract Value (TCV):As of December 31, 2025: $2,207 million As of December 31, 2024: $1,946 million Increase of 13% in 2025, driven by higher Ex-L&S renewals, partially offset by a decrease in New Business TCV .New Business TCV (expansion and new scope/logo contracts): $491 million in 2025 (includes - $228 million client termination adjustment) vs. $791 million in 2024 .Ex-L&S Renewals: $1,353 million in 2025 vs. $633 million in 2024 .L&S Renewals: $363 million in 2025 vs. $522 million in 2024 .Backlog:As of December 31, 2025: $3.16 billion As of December 31, 2024: $2.84 billion Increase primarily due to Ex-L&S renewal signings .Approximately $1.11 billion (35%) of 2025 backlog is expected to convert to revenue in 2026 .Total Indebtedness:As of December 31, 2025: $741.7 million As of December 31, 2024: $493.2 million .ABL Credit Facility Availability:As of December 31, 2025: $92.2 million (net of $13.5 million letters of credit outstanding) .Estimated Future Cash Contributions to Defined Benefit Pension Plans:2026: Approximately $87 million (including $47 million to U.S. plans and $40 million to international plans) .2027: Approximately $105 million .2028-2030 (aggregate): Approximately $241 million .Voluntary Attrition Rate:2025: 11.4% .Outlook / GuidanceUnisys Corporation anticipates cash contributions to its global defined benefit pension plans of approximately $87 million in 2026 and $105 million in 2027, with an aggregate of $241 million from 2028 through 2030 . The company expects to recognize pension expense of approximately $120 million in 2026 . Unisys Corporation believes it will have adequate liquidity to meet expected cash requirements and will continue to meet all covenants and conditions under its lending agreements through at least the next twelve months .