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Dec 31, 2024
Unisys Q4 2024 Earnings Report
Unisys reported its financial results for the fourth quarter and full year 2024, exceeding profitability guidance and meeting revenue guidance.
Key Takeaways
Unisys announced strong financial performance for Q4 and full-year 2024, with full-year gross profit margin up 180 bps YoY and operating profit margin up 100 bps YoY. The company met its full-year revenue guidance and significantly improved operating and free cash flow year over year, driven by new logo signings and operational efficiencies.
Full-year gross profit margin increased by 180 bps year over year to 29.2%.
Full-year operating profit margin improved by 100 bps year over year to 4.8%.
Full-year revenue of $2,008.4 million was in-line with the company's guidance.
Full-year operating cash flow increased to $135.1 million from $74.2 million in 2023, and free cash flow improved to $55.3 million from ($4.5) million in 2023.
Revenue by Segment
Forward Guidance
Unisys issued full-year 2025 guidance, projecting revenue growth in constant currency and a non-GAAP operating profit margin range.
Positive Outlook
- Revenue growth in constant currency is projected to be between 0.5% and 2.5% YoY.
- Non-GAAP operating profit margin is expected to be between 6.5% and 8.5%.
- Assumes L&S revenue of approximately $390 million.
- Assumes Ex-L&S constant currency revenue growth of 1.0% to 5.0%.
- The company expects rising Ex-L&S profit contribution, operational efficiency, and improved cash conversion.
Challenges Ahead
- Reported revenue growth is translated to (1.9)% to 0.1% based on exchange rates as of January 31, 2025, indicating potential for reported revenue decline.
- Guidance relies on assumptions about future market conditions and behavior of market participants.
- TCV is based on the assumption that contracts will continue for their full contracted term, which may not always be the case.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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