Unisys : PDF (2024 annual report)
UIS
2024 ANNUAL REPORT
Breakthrough Solutions Redefining Possibilities
From our Chair & CEO and our President & COO
In 2024, Unisys demonstrated its resilience and adaptability in a rapidly evolving global landscape.
The past year saw a complex interplay of macroeconomic and geopolitical factors, as well as advanced technology trends that significantly influenced the environment in which we operate.
Geopolitical tensions, as well as country-specific regulations and taxes, can influence our business as our clients determine when and how to navigate a changing environment. Both 2024 and early 2025 delivered varied pressures, including changing regulations and the prospect of further affected tax environments. Our operations and revenue are widely diverse, which has and should continue to mitigate any specific economic impact on our company. For 2024, approximately 44% of our revenue was aributed to the U.S. & Canada, with 29% to EMEA, 14% to Asia Pacific, and 13% to Latin America.
In terms of the technology sector, several trends stand out, not only for their immediate impact but also for their long-term implications: Artificial Intelligence and its subset, Generative AI; rising global and regional demands for power consumption; the increasing scope and cost of cyberaacks; the ubiquity of personal devices and edge computing capabilities; and the continuing development of quantum computing capabilities with the need for post-quantum cryptography (PQC).
Artificial Intelligence & GenAI
Artificial Intelligence, including Generative AI or "GenAI," was transformative in 2024 and promises to continue to be in the future. We are investing in AI-enabled solutions across our business segments, given that AI and Gen AI have become critical investments for all enterprises. In 2024, we released new research, "The AI Equation: 2024 AI Business Impact Research," which revealed that 71% of employees from the U.S., UK, Germany, and Australia believe AI has positively impacted job satisfaction, with many reporting increased fulfillment at work as AI is more effectively integrated into daily tasks. Our study also showed that AI's influence extends beyond job satisfaction, with 83% of respondents stating that it significantly boosts day-to-day productivity.
Growing Power Needs
The rising global and regional demands for power consumption, particularly driven by AI workloads, present both challenges and opportunities. The expansion of AI, including GenAI, is expected to further increase demand for power generation. As companies scale adoption, data center power needs are estimated to grow 160% in five years from current levels.1 In the U.S. alone, power consumption is projected to rise from 3% of the total in 2022 to 8% by 2030.2 The implications are uncertain, as these mostly well-funded efforts in the private and tech sector compete with other less well-funded efforts to meet the growing needs from increased population sources, to fuel economic growth in certain countries and regions, and climate considerations.
Cybersecurity & Aack Costs
We saw broadening scope and costs related to cybersecurity aacks (as well as the cost of defending against such aacks). The increasing scope and cost of cyberaacks continue to be of concern to our clients. According to IBM's Cost of a Data Breach Report 2024, the global average cost of a data breach reached USD $4.88 million in 2024, representing a 10% increase over the previous year.3 The same report highlights that organizations with mature security practices and AI-powered security solutions experienced significantly lower breach costs, saving an average of USD $2.22 million compared to organizations without these measures. Furthermore, the cost to defend against these aacks is also rising significantly, with Gartner forecasting that worldwide end-user spending on security and risk management will grow 14.3% to reach $215 billion in 2024.4
The Rise of Personal Devices and Edge Computing
The proliferation of personal devices and edge computing is reshaping IT landscapes. In 2024, IoT Analytics estimated the number of IoT devices in use at 18.8 billion, a 13% increase from 2023.5 Global edge computing spending is forecasted to hit $378 billion by 20286. The surge in edge-enabled devices is fueling demand for real-time analytics, automation, and enhanced user experiences across industries.
Future-Proofing Quantum Security
Lastly, the continuing development of quantum computing capabilities, while bringing great promise for new and improved solutions in many fields, has heightened the need for PQC as organizations prepare for quantum threats. According to Gartner's forecasts, most traditional asymmetric cryptographic methods will become vulnerable by 2029 due to quantum computing advancements.7 The NIST's ongoing standardization process8 and the adoption of these standards is crucial for future-proofing sensitive data and communications against quantum aacks.
Unisys Readiness: Cultivating Expertise & Creating Demand
These trends underscore the dynamic nature of our industry and the importance of our continued investment in innovation. Amidst all these underlying forces, Unisys demonstrated remarkable agility and focus. Our solutions, tailored to address the evolving needs of our clients, have gained traction in the market. We saw increased demand for our cloud, AI, and cybersecurity offerings as organizations sought trusted partners to navigate the complexities of the digital age. Here are some examples of how we are capitalizing on these trends:
Unisys AI Solutions & Services
In 2024, we continued our work from 2023 to ensure that our people understood AI and GenAI so they could best use these tools and incorporate them into our solutions. For example, more than 95% of our associates completed AI coursework. We are infusing AI across our portfolio, from developing specialized AI agents that train on client-specific data to automate tasks in Cloud, Applications and Infrastructure (CA&I) to investing in our GenAI-enabled Service Experience Accelerator in Digital Workplace Solutions (DWS), which forms the foundation of our next-generation Service Desk and has the potential to disrupt the Digital Workplace market by addressing client data, security, and cost considerations.
ClearPath Forward® & Data Management
With the significant expansion of the use of data to power AI and other applications across various industries, this trend has had a positive impact on our ClearPath Forward® (CPF) platform, which has seen increased usage as organizations leverage its robust capabilities to manage and process large volumes of data for AI, analytics and other value-add initiatives. The scalability and security features of CPF make it ideal for clients looking to harness the power of their data while maintaining strict control and compliance.
Data Center Experts
As the demand for data centers continues to surge, driven by the growth in data processing and AI workloads, our team's expertise in data center management and advanced cooling technologies has become increasingly important. Liquid cooling solutions are critical for managing the intense heat generated by high-performance computing and AI systems. This expertise helps position us in the market as data centers grapple with escalating power consumption and the need for more efficient cooling methods.
Our liquid cooling capabilities within field services not only address the immediate challenges of power-intensive AI workloads but also contribute to more sustainable and energy-efficient data center operations. As we look ahead, we anticipate that our proficiency in these areas will enable us to support our clients in building and managing the next generation of data centers that can handle the growing demands of AI and other data-intensive applications.
Cybersecurity at the Core
Our security solutions, integrated across our service offerings, provide robust protection against evolving threats. We have implemented a robust structure that embeds security expertise throughout our organization and client interactions. By placing dedicated information security officers within each of our business lines, we ensure that cybersecurity considerations are integral to all our solutions and services. Our client-centric approach allows us to offer more personalized and effective security solutions, addressing the challenges each client faces in their specific industry and technological environment.
Edge-Driven Workplace Transformation
The ubiquity of personal devices and edge computing capabilities is reshaping the digital workplace and IT infrastructure landscape. Our DWS segment is well-positioned to support this trend, offering solutions that enable seamless, secure, and efficient work across diverse devices and locations. We are also leveraging edge computing to enhance our service delivery and provide more responsive solutions to our clients.
High-Power Computing Capabilities & Post-quantum Cryptography
Looking to the future, we are making significant strides in quantum computing and PQC. Our innovative Unisys Logistics Optimization solution exemplifies our commitment to pushing the boundaries of computational capabilities, and it was named to
Fast Company's 2024 Next Big Things in Tech list in the Enduring Impact: 15+ Years in Business category, honoring the most groundbreaking technological innovations of 2024. This advanced solution uses quantum annealing and leverages quantum-inspired algorithms and artificial intelligence to revolutionize supply chain management, offering unprecedented efficiency in route optimization, load planning, and warehouse optimization.
We are also developing our PQC practice, anticipating its critical importance in the quantum era. By 2025, we aim to have a robust PQC offering that will help our clients transition their cryptographic systems to quantum-resistant algorithms. This proactive approach aligns with our ClearPath Forward® 2050 program, ensuring our clients are prepared for the post-quantum future.
2024 Performance & Strategic Outcomes
We are pleased to report that even during an unpredictable year, our strategic initiatives and commitment to client success translated into solid financial results for 2024. We exceeded our profitability guidance range and met our revenue guidance.
While detailed financials are in the following pages of this report, we want to highlight our revenue, improved profitability, and balance sheet. These accomplishments reflect the effectiveness of our operational excellence programs and the increasing value we deliver to our clients.
In 2024, our revenue came in at $2.0 billion. Our DWS and CA&I business units improved their margins by 170 and 110 basis points, respectively. For operating profit and cash flow, we achieved operating profit of $97 million and non-GAAP operating profit of $176 million vs. $77 million and $141 million a year ago, respectively, representing a 4.8% operating margin and an 8.8% non-GAAP operating margin vs. 3.8% and 7.0% a year ago, respectively, and we exceeded our free cash flow outlook for the second consecutive year.
Our ability to convert New Business - which we define as new logo, new scope and expansion with existing clients - marks what we believe to be a positive evolution in our ongoing strategy.
Beyond financial performance, Unisys achieved other key goals this year. Our focus on operational efficiency yielded substantial improvements in project delivery and client satisfaction. We streamlined processes, enhanced resource allocation, and leveraged automation to enhance productivity across our organization.
Recognition by third-party industry analysts is also important, as they are often in a position to influence which companies are considered for opportunities. In 2024, we received 16 leader designations, a 60% increase from the previous year, from firms such as Avasant, IDC, ISG, Everest, and Nelson Hall, recognizing our market-relevant solutions across the business.
As we embark on another year, we want to express our deepest gratitude to our associates worldwide. Your dedication, creativity, and relentless drive to innovate and help our clients succeed are the driving forces behind our company's achievements. We also extend our thanks to our clients, partners, and shareholders for their continued trust and support.
The journey ahead is filled with exciting potential, and we are confident that Unisys will continue to break new ground, redefine what is possible, and create lasting value for all our stakeholders.
Sincerely,
Peter Altabef
Michael Thomson
Chair and, through
President and Chief Operating
March 31, 2025,
Officer and President and
Chief Executive
Chief Executive Officer from
Officer
April 1, 2025
1 Source Gen AI Power Consumption: goldmansachs.com/insights/articles/AI-poised-to-drive-160-increase-in-power-demand
2 Source Gen AI Power Consumption: goldmansachs.com/insights/articles/AI-poised-to-drive-160-increase-in-power-demand
3 Source Cost of Cyber Breach: ibm.com/reports/data-breach
4 Source Gartner Forecasts Global Security and Risk Management Spending to Grow 14% in 2024:hps://www.gartner.com/en/newsroom/press-releases/
2023-09-28-gartner-forecasts-global-security-and-risk-management-spending-to-grow-14-percent-in-2024
5 Source TechTarget 15 edge computing trends to watch in 2025 and beyond:hps://www.techtarget.com/searchcio/tip/Top-edge-computing-trends-to-watch-in-2020
6 Source Forbes, 2025 IT Infrastructure Trends: The Edge Computing, HCI And AI Boom:hps://www.forbes.com/councils/forbestechcouncil/2024/12/12/2025-it-infrastructure-trends-the-edge-computing-hci-and-ai-boom/
7 Source Gartner, Gartner Identifies the Top 10 Strategic Technology Trends for 2025: hps://www.gartner.com/en/newsroom/press-releases/
2024-10-21-gartner-identifies-the-top-10-strategic-technology-trends-for-2025
8 Source NIST, Computer Security Resource Center:hps://csrc.nist.gov/Projects/post-quantum-cryptography
Board of Directors
Peter Altabef5
Chair and Chief Executive Officer of Unisys Corporation
Nathaniel A. Davis
Lead Independent Director of Unisys Corporation and Retired Chairman of the Board and Chief Executive Officer of Stride, Inc.
Matthew J. Desch
Chief Executive Officer of Iridium Communications Inc.2
Philippe Germond
Partner at Barber Hauler Capital Advisers1,3
Deborah Lee James Retired U.S. Secretary of the Air Force2,3
John A. Kritzmacher
Retired Executive Vice President and Chief Financial Officer of
John Wiley & Sons, Inc.1,4
Paul E. Martin
Retired Senior Vice President and Chief Information Officer of Baxter International, Inc.1,4
Regina Paolillo
Retired Global Chief Operating Officer of TTEC Holdings, Inc.1,4
Troy K. Richardson
Retired President of the Digital Thread group of PTC Inc.2,4
Lee D. Roberts6
Chief Executive Officer and President of BlueWater Consulting, LLC2,3
Roxanne Taylor
Retired Senior Vice President and
Chief Marketing and Communications Officer of Memorial Sloan Kettering Cancer Center2,3
Michael M. Thomson7
President and Chief Operating Officer of Unisys Corporation
Board Committees and Other Board of Director Updates
1Audit and Finance Commiee
2Compensation and Human Resources Commiee
3Nominating and Corporate Governance Commiee
4Security and Risk Commiee
5Effective April 1, 2025, Mr. Altabef will no longer serve as Chief Executive Officer but will remain Chair of the Board of Directors
6Mr. Roberts is not standing for re-election to the board of directors
7Effective April 1, 2025, Mr. Thomson will become a member of the board of directors
Corporate Officers
Peter Altabef1
Chair and Chief Executive Officer
Michael M. Thomson2
President and Chief Operating Officer
Christopher Arrasmith 3
Executive Vice President and Chief Operating Officer
Debra McCann
Executive Vice President and Chief Financial Officer
Ruchi Kulhari
Senior Vice President and Chief Human Resources Officer
Teresa Poggenpohl
Senior Vice President and Chief Marketing Officer
Kristen Prohl
Senior Vice President,
General Counsel, Secretary and Chief Administration Officer
Joel Raper4
Senior Vice President and Chief Commerical Officer
Shalabh Gupta
Vice President, Tax and Treasurer
David Brown
Vice President, Chief Accounting Officer and Corporate Controller
Corporate Officer Updates
1Effective April 1, 2025, Mr. Altabef will retire from the position of Chief Executive Officer and remain Chair of the Board of Directors
2Effective April 1, 2025, Mr. Thomson will become Chief Executive Officer
3Effective April 1, 2025, Mr. Arrasmith will become Chief Operating Officer
4Effective April 1, 2025, Mr. Raper is a Section 16 Officer
Forward-looking statements
Any statements contained in this report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that total contract value is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this report include, but are not limited to, trends in the technology industry, generative artificial intelligence and our investments.
Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site,http://www.sec.gov. Information included in this report is representative as of the date of this report only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys' results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.
Non-GAAP Information
This report includes certain non-GAAP measures that exclude certain items and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company's profitability results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company's ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company's financial performance, as well as greater transparency into management's view and assessment of the company's ongoing operating performance.
Non-GAAP financial measures are often provided and utilized by the company's management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found in our earnings release, dated February 18, 2025, except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 2024
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
.
Commission file number 1-8729
UNISYS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
38-0387840
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
801 Lakeview Drive, Suite 100
Blue Bell, Pennsylvania 19422
(Address of principal executive offices and zip code)
(215) 986-4011
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01
UIS
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes ☒ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
☐ Yes
☒ No Aggregate market value of the voting and non-voting common equity held by non-affiliates as of the last business day of the registrant's most recently completed second fiscal quarter: approximately $273.1 million.
The amount shown is based on the closing price of Unisys Common Stock as reported on the New York Stock Exchange composite tape on June 30, 2024. Voting stock beneficially held by officers and directors is not included in the computation. However, Unisys Corporation has not determined that such individuals are "affiliates" within the meaning of Rule 405 under the Securities Act of 1933.
Number of shares of Unisys Common Stock, par value $.01, outstanding as of January 31, 2025: 69,604,122
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Unisys Corporation's Definitive Proxy Statement for the 2025 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.
Disclaimer
Unisys Corporation published this content on March 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 25, 2025 at 00:36:34.339.