BLUE BELL, PA — Unisys Corporation (NYSE: UIS) reported robust financial results for the third quarter of 2024, showcasing significant improvements in revenue, profit margins, and cash flow. The company achieved a year-over-year revenue growth of 7.0%, or 8.2% in constant currency, driven largely by the timing of software license renewals.
The quarter saw the gross profit margin rise to 29.2%, marking an 870 basis points increase from the previous year. Excluding License and Support (Ex-L&S) solutions, the gross profit margin improved by 390 basis points, reflecting savings from delivery improvements and labor cost initiatives. Operating profit margin also saw a notable increase, reaching 1.5%, up by 520 basis points year-over-year.
Unisys experienced a marked turnaround in its cash flow, generating $32.0 million in operations, compared to a deficit of $4.1 million in the same quarter last year. Free cash flow reached $14.2 million, a significant improvement from the negative $25.7 million reported in the third quarter of 2023.
The company’s strategic focus on AI solutions has played a key role in its growth. “Our strong year-over-year growth in New Business signings continues to demonstrate increased awareness and demand for Unisys’ solutions,” said Unisys Chair and CEO Peter A. Altabef. “We have experienced substantial growth in our AI solutions in production and are strengthening engagement with clients on their AI strategies and projects.”
Alongside revenue growth, Unisys raised its 2024 non-GAAP operating profit margin guidance to a range of 6.5% to 8.5%, up from the previous estimate of 5.5% to 7.5%. CFO Deb McCann highlighted the company’s financial trajectory, stating, “We are reiterating full-year revenue guidance and raising our full-year profitability guidance and expectation for cash generation. We continued to drive year-over-year profitability improvement, including in our Ex-L&S solutions.”
The third-quarter results indicate a promising outlook for Unisys as it continues to focus on operational efficiency and capitalizing on AI advancements. With a strengthened liquidity position and an extended credit facility, Unisys is well-positioned for sustained growth and innovation in the coming quarters.
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