Unisys reports Q3 adjusted EPS (8c), consensus 1c

Reports Q3 revenue $460.2M, consensus $493.65M. “We have enhanced the value of our License & Support (L&S) platforms, resulting in strong client retention and consumption,” said Michael Thomson, Unisys (UIS) CEO and President. “We are pleased with the continued strength of our L&S solutions, which provide a powerful cash generation engine, key to implementing our pension removal strategy. In Ex-L&S, despite revenue growth headwinds we are facing, we are seeing momentum in our newer AI solutions that align with our clients’ priorities. These solutions leverage best-in-class technology partners and technology-first capabilities that we expect to support continued successful expansion of our Ex-L&S gross margin.” Unisys Chief Financial Officer Deb McCann said, “Our steady focus on operational efficiency is allowing us to deliver on our profit and free cash flow priorities. We remain on track to achieve our non-GAAP operating margin guidance of 8% to 9% and continue to expect more than $100 million of pre-pension and postretirement free cash flow. Our liquidity remains strong, with an undrawn asset-backed revolver and no major debt maturity until 2031, providing us the flexibility to continue investing for future growth and efficiency.”