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Dec 31, 2024
Xerox Q4 2024 Earnings Report
Xerox's Q4 2024 financial performance reflected a revenue decline but improved profitability, driven by Reinvention initiatives and strategic acquisitions.
Key Takeaways
Xerox's Q4 2024 results showed a revenue of $1.61 billion, down 8.6% year-over-year, but an improvement in GAAP net loss to $(21) million. The company's adjusted operating margin increased by 100 basis points to 6.4%. Xerox is focusing on its Reinvention strategy and expects revenue and profit growth in 2025.
Revenue decreased by 8.6% to $1.61 billion, or 8.0% in constant currency.
GAAP net loss improved to $(21) million, or $(0.20) per share.
Adjusted operating margin increased by 100 basis points to 6.4%.
The company is guiding to low single-digit revenue growth in constant currency for 2025.
Revenue by Segment
Forward Guidance
Xerox anticipates low single-digit revenue growth in constant currency and an adjusted operating margin of at least 5.0% for 2025, with free cash flow expected to be between $350 million and $400 million.
Positive Outlook
- Total Revenue to grow low single-digits in constant currency
- Full year of revenue associated with the recent ITsavvy acquisition
- Adjusted operating income margin is expected to be at least 5.0%
- Incremental gross cost savings
- Free cash flow is expected to be $350 to $400 million
Challenges Ahead
- Approximately 400 basis points of headwinds associated with ongoing Reinvention actions
- Flow through of geographic simplification actions
- Reductions in High End equipment sales associated with our decision to stop manufacturing High End Production print equipment
- The sale of our European paper business
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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