Unisys Corp Reports Strong Q2 2025 Performance Amid Strategic Pension Moves
Unisys Corporation, a leading U.S.-based information technology consulting firm, has announced its financial results for the second quarter of 2025, showcasing a robust sequential improvement in both revenue and profitability. The company, which operates across commercial, financial services, and government sectors globally, reported total revenue of $483.3 million, marking a 1.1% increase year over year and a 1.0% rise in constant currency terms. This represents an 11.8% quarter-over-quarter growth, underscoring the company’s resilience and strategic initiatives in a competitive IT services landscape.
Excluding License and Support (Ex-L&S) revenue, Unisys posted $395.7 million, a slight 0.1% decrease year over year and a 0.4% dip in constant currency, but still an impressive 9.6% increase quarter over quarter. This nuanced performance highlights the company’s ongoing efforts to streamline its service offerings and focus on high-margin areas.
A significant highlight from the quarter is the improvement in operating profit margins. Unisys achieved a 6.3% operating profit margin, an enhancement of 140 basis points year over year. More notably, the non-GAAP operating profit margin reached 7.6%, up by 150 basis points from the previous year. These figures reflect the company’s effective cost management and strategic investments in growth areas.
In a strategic move to mitigate volatility in its U.S. qualified defined benefit pension plans, Unisys has significantly reduced future cash contribution volatility. This was achieved through changes to its pension asset investment strategy and a discretionary contribution of $250 million. The contribution was funded using $50 million in cash on hand and $200 million from the proceeds of a $700 million senior secured notes issuance due in 2031. This proactive approach not only stabilizes the company’s financial outlook but also demonstrates a commitment to long-term fiscal responsibility.
Despite these positive developments, Unisys continues to face challenges, as evidenced by its negative price-to-earnings ratio of -3.684. However, the company’s strategic initiatives and strong Q2 performance suggest a forward-looking approach aimed at capitalizing on growth opportunities in data analytics, mobility, network, security, and outsourcing services.
As Unisys prepares for its 41st Annual General Meeting on August 28, 2025, stakeholders will be keenly observing the company’s strategic direction and financial health. With a market capitalization of $314.83 million and a close price of $4.13 as of July 30, 2025, Unisys is poised to navigate the complexities of the IT services industry while continuing to deliver value to its shareholders.
In summary, Unisys Corp’s Q2 2025 results reflect a company that is not only managing its current challenges effectively but is also strategically positioning itself for future growth. The reduction in pension plan volatility and the focus on high-margin service areas are indicative of a company that is keenly aware of its operational and financial environment, ready to adapt and thrive in the ever-evolving IT services sector.