Unisys Corp appoints new COO, sets executive compensation

BLUE BELL, PA – Unisys Corporation (NYSE:UIS), a global information technology company with a market capitalization of $416 million and last twelve months EBITDA of $168 million, announced the appointment of Chris Arrasmith as its new Executive Vice President and Chief Operating Officer effective April 1, 2025. According to InvestingPro analysis, while the company is currently not profitable, analysts expect a return to profitability this year. The company’s Board of Directors confirmed the election on February 12, 2025, as disclosed in a recent SEC filing.

Arrasmith, 49, currently serves as the Senior Vice President and General Manager of Enterprise Computing Solutions since January 2022. His previous experience includes leadership roles at International Business Machines Corporation (NYSE:IBM) and Amelia, an American technology firm.

This change in leadership aligns with the previously announced transition of Michael Thomson from Chief Operating Officer to Chief Executive Officer and President, starting April 1, 2025. Thomson will also join the company’s Board of Directors.

As part of his compensation package, Arrasmith will receive an annual base salary of $540,000, with an annual target bonus of 100% of his earned base salary under Unisys’s Executive Variable Compensation Plan. Additionally, he is slated for an equity award with a target grant date fair value of $1,200,000 in the 2025 annual grant cycle, under the same terms as other recipients.

Arrasmith’s benefits include severance terms outlined in a severance agreement in case of involuntary termination, and a change-in-control agreement applicable in the event of a company takeover. These agreements were detailed in the company’s proxy statement dated March 22, 2024. He will also be eligible for standard health, welfare, and retirement benefits available to salaried employees.

The company’s filing confirms that there are no arrangements or understandings between Arrasmith and any other persons related to his appointment, and he has no direct or indirect material interest in any transaction requiring disclosure under SEC regulations.

This executive transition comes at a time when Unisys continues to navigate the evolving landscape of the computer integrated systems design industry. InvestingPro analysis indicates the company is currently trading below its Fair Value, with analyst price targets ranging from $7 to $8 per share. InvestingPro subscribers can access 6 additional key insights and a comprehensive Pro Research Report, which is available for over 1,400 US stocks, providing detailed analysis of the company’s financial health and growth prospects.

The information for this report is based on a press release statement filed with the SEC. With a strong free cash flow yield and trading at a low revenue multiple, Unisys presents an interesting case for investors. For a deeper understanding of the company’s valuation metrics and growth potential, visit InvestingPro for exclusive financial analysis and expert insights.

In other recent news, Unisys Corporation reported its fourth-quarter 2024 earnings, showcasing a notable performance with an earnings per share (EPS) of $0.41, significantly surpassing analyst expectations of $0.25. However, the company’s revenue slightly missed projections, recording $545 million against the anticipated $546.33 million. Despite the revenue shortfall, the company demonstrated resilience with a year-over-year revenue decline of 2.2% and a full-year revenue of $2 billion, marking a 0.3% decrease. Unisys’s strategic investments in artificial intelligence and digital solutions have been highlighted as key drivers of growth, with an outlook for modest revenue growth and improved cash flow in 2025.

Analyst firms have taken note of Unisys’s performance, with the company’s stock experiencing a positive response following the earnings announcement. The company’s non-GAAP operating profit reached $176 million, reflecting an 8.8% margin, and free cash flow improved to $55 million from a negative $5 million in 2023. Unisys’s strategic focus includes enhancing its high-margin field services and expanding its XL&S revenue, with a projected growth of 1% to 5% in 2025. The company’s leadership emphasized the role of AI in driving future growth and highlighted efforts to optimize workforce efficiency.

Unisys anticipates a 0.5% to 2.5% total revenue growth in constant currency for 2025, with a non-GAAP operating profit margin expected between 6.5% and 8.5%. The company aims for a pre-pension free cash flow of $100 million, supported by strong new business signings and strategic initiatives. Unisys’s competitive position is further bolstered by its recognition as a leader in various digital workplace services by independent analysts and advisors.

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