Xerox revenue slides amid market pressures
January 29, 2025
The OEM reports declining revenue as cost-cutting boosts margins but market headwinds persist.
Xerox reported a sharp decline in revenue for both the fourth quarter and full year, as the print and document management company navigates ongoing market headwinds. The US-based firm, which is restructuring its operations under CEO Steven Bandrowczak, saw a 9.7% drop in full-year revenue to $6.22 billion (€5.72 billion), while fourth-quarter revenue fell 8.6% year-on-year to $1.61billion (€1.48 billion).
Despite the downturn, Xerox delivered improved profitability metrics, with adjusted operating margins rising by 100 basis points to 6.4% in the fourth quarter. The company attributed the gains to efficiency measures, cost controls and a shift towards higher-margin services. However, full-year results were overshadowed by a $1.32 billion (€1.21billion) net loss, driven largely by a $1 billion (€920 million) non-cash goodwill impairment charge.
“2024 was a critical year as we implemented a new operating model and structural process improvements to position Xerox for long-term, sustainable growth,” said Steve Bandrowczak, Chief Executive Officer at Xerox. “We continue to see steady progress in our Reinvention, reflecting the resilience of our team and initiatives taken to-date. In 2025, we expect to build on changes made in 2024 in order to focus on executing our Reinvention strategy, realising the benefits of the ITsavvy and pending Lexmark acquisitions, and strengthening our balance sheet.”
Xerox’s restructuring efforts, including a three-year cost reduction programme, have helped stabilise margins but have yet to offset revenue declines. The company also faces rising competition from digital document management platforms and declining printer sales in key markets.
The printers segment, a traditional mainstay of Xerox’s business, has continued to suffer from weak demand, compounded by supply chain adjustments and customers delaying hardware investments. The company did not provide detailed segment performance figures in its earnings release, but ongoing softness in printer hardware sales has been a recurring trend.
With ongoing restructuring and efforts to bolster digital services, 2025 will be a crucial year for Xerox as it seeks to stabilise revenue while delivering on its margin expansion goals.
Categories : City News
Tags : Financials Printers revenue Strategy Xerox
