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FLORHAM PARK, N.J. - Conduent Incorporated (NASDAQ:CNDT) reported a narrower-than-expected second quarter loss on Wednesday, sending its shares up 2% despite revenue that fell short of analyst estimates.
The business process solutions provider posted an adjusted loss of $0.13 per share for the second quarter, beating analyst expectations of a $0.15 loss. Revenue came in at $754 million, below the consensus estimate of $777 million and down 8.9% YoY. Excluding divestitures, adjusted revenue declined 2.6% from the year-ago period.
The company’s adjusted EBITDA rose 54.2% to $37 million, with adjusted EBITDA margin expanding to 4.9% from 3.1% in the same quarter last year. New business signings improved both YoY and sequentially, reaching $150 million in annual contract value.
"Q2 marks another quarter of progress on our journey. We exceeded expectations for Adjusted EBITDA and Adjusted EBITDA margin," said Cliff Skelton, Conduent President and Chief Executive Officer. "Our investments in technology platforms and client relationships are resulting in accelerated performance in our Transportation segment."
For fiscal year 2025, Conduent reaffirmed revenue guidance of $3.1-3.2 billion, compared to the analyst consensus of $3.16 billion. The company also expects adjusted EBITDA margin to range between 5.0% and 5.5%.
During the quarter, Conduent repurchased approximately 2.7 million shares of common stock. The company maintained a strong liquidity position with its $550 million revolving credit facility largely undrawn.
Conduent’s Transportation segment showed improvement, while the company noted that government and legislative decisions may create additional opportunities for its Government segment. Management indicated that ongoing portfolio rationalization efforts are expected to positively impact margins and cash flow.
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