Key Highlights

  • Third quarter Revenue was USD 471.5 million against an estimate of USD 449.92 million, up 2.5% year over year.
  • Non-GAAP diluted loss was USD 0.12 per share against an estimate of USD 0.21, while GAAP loss was USD 2.76.
  • New Business total contract value was USD 221 million, up 78% year over year, within USD 594 million overall.
  • Full-year constant currency revenue guidance is a decline of 3.0% to 1.5%, from a prior decline of 5.0% to 3.5%.

Unisys Corporation (NYSE:UIS) reported third quarter revenue of USD 471.5 million, against USD 460.2 million a year earlier and an estimate of USD 449.92 million. Non-GAAP diluted loss per share was USD 0.12, against an estimate of a USD 0.21 loss and a USD 0.08 loss a year earlier. GAAP loss per share attributable to the company was USD 2.76, which included a non-cash pension settlement loss of USD 151 million, net of tax.

Revenue and Segments

Revenue rose 2.5%, or 0.6% in constant currency. Technology Solutions and Services revenue was USD 387.1 million, up 2.6%, and ClearPath revenue was USD 84.4 million, up 1.7% but down 1.1% in constant currency. The company said Gross Profit Margin of 26.7% was 120 basis points higher, driven by a higher mix of software licenses relative to hardware within ClearPath renewals, partly offset by higher cost reduction charges.

By segment, Digital Workplace Solutions revenue was USD 130.2 million, up 3.9%, on higher hardware revenue, with a gross margin of 9.5% that the company tied to known client attrition and higher implementation and delivery costs. Cloud, Applications and Infrastructure Solutions revenue was USD 180.3 million, down 0.1%. Enterprise Computing Solutions revenue was USD 140.6 million, up 5.6%, with a 55.5% gross margin.

Profit, Contracts and Pension Action

Operating profit was USD 23.7 million, or 5.0% of revenue, against a loss of USD 33.5 million. Non-GAAP operating profit was USD 34.0 million, or 7.2%, against 5.4%. Adjusted EBITDA was USD 59.7 million, or 12.7% of revenue, against USD 48.2 million, or 10.5%. The net loss attributable to the company was USD 201.0 million.

New business total contract value was USD 221 million against USD 124 million. Backlog was USD 2.92 billion against USD 2.83 billion. The company purchased a group Annuity contract to transfer about USD 200 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. It has reduced about USD 520 million of such liabilities since July 2025 and targets about USD 600 million, with an additional settlement scheduled for the first half of 2027.

Cash and Guidance

Cash and cash equivalents were USD 264.2 million at September 30, against USD 413.9 million at December 31, 2025. Cash used for operations was USD 35.8 million against cash provided of USD 38.0 million, and free Cash Flow was negative USD 57.7 million. The company tied the operating cash use to timing of interest on its 10.625% Senior Secured Notes due 2031.

Full-year constant currency revenue guidance is now a decline of 3.0% to 1.5%, from a prior decline of 5.0% to 3.5%, equal to reported growth of negative 0.4% to 1.1% at September 30 exchange rates. Non-GAAP operating profit margin guidance of 9.0% to 11.0% was reaffirmed. The guidance assumes ClearPath revenue of about USD 425 million.

Benchmarks Ahead

Revenue of USD 471.5 million sits alongside a non-GAAP Operating Margin of 7.2%, new business total contract value of USD 221 million and cash of USD 264.2 million.

The CEO said new business signings continued and pointed to AI-First delivery opening markets in agentic services, AI infrastructure and the ClearPath ecosystem. Management named the benchmarks it is working to: full-year non-GAAP operating margin of 9.0% to 11.0%, ClearPath revenue of about USD 425 million, and the additional pension settlement in the first half of 2027.