Improved Profitability and Margins
Non-GAAP operating margin of 18% in Q4 and 9.1% for FY2025 (30 bps annual improvement); Q4 gross margin 33.9% (up 180 bps YoY). Full-year non-GAAP operating profit margin exceeded top end of revised guidance.
Strong License & Support (L&S) Performance
Full-year L&S revenue $428,000,000; Q4 L&S revenue $186,000,000 (up 19.8% YoY). Full-year L&S exceeded original expectations by nearly $40,000,000 — third consecutive year of substantial upside. Company guiding L&S ~$415,000,000 for 2026 at ~70% gross margin.
Improved Cash Generation (Pre-Pension)
Pre-pension free cash flow of $128,000,000 for FY2025, up 55% YoY and above the $110,000,000 expectation. Year-end cash balance $414,000,000, up ~$37,000,000 YoY.
Pension De-risking and Leverage Improvement
Total contributions reduced global pension deficit by ~$300,000,000 to ~$450,000,000 at year-end. Executed annuity purchase removing ~ $320,000,000 of gross U.S. defined benefit liabilities. Net leverage (including pension) improved to 2.8x from 3.0x at 2024.
Strong Contracted Bookings and Backlog
Total company TCV $2,200,000,000 for the year, including $1,700,000,000 of renewal TCV (>$1,000,000,000 in Q4). Backlog $3,200,000,000 (up 12% sequential, +11% YoY). Trailing 12-month book-to-bill 1.1x company-wide (1.2x XLNS).
Industry Recognition and Talent
Gartner named Unisys a Leader in Outsourced Digital Workplace Services MQ and ranked #1 in Critical Capabilities for NA and globally for service desks and device management. Additional recognition from Forbes and Time. Voluntary attrition below average at 11.4%.
AI & Product Momentum
Launched Service Experience Accelerator (agentic AI) now in production and planned rollout to ~1/3 of client base in 2026. Advancing agentic AI within CA&I (intelligent operations) and partnerships with hyperscalers and software vendors to scale solutions.
SG&A and Cost Reduction Progress
Reduced SG&A by ~13% (~$60,000,000) over two years; expect to lower SG&A another $10–$20M in 2026. Ongoing workforce optimization and technology investments aimed at further efficiency gains.