Xerox experienced a revenue decline in both the fourth quarter and full year of 2024 due to market challenges. The company’s revenue dropped by 9.7% compared to the previous year, with lower equipment sales and post-sale revenue contributing to the decline. Despite this, Xerox improved its adjusted operating margin to 6.4% in the fourth quarter, thanks to ongoing cost-cutting efforts under its “Reinvention” strategy. However, it reported a full-year net loss of $1.32 billion, mainly due to a $1 billion non-cash goodwill impairment charge.
The print segment faced challenges due to weak hardware demand and shifts in customer purchasing behaviour. Equipment sales fell by 16.7% for the year, while post-sale revenue declined 7.4%. Xerox is now focusing on optimizing its product and service portfolio, strengthening channel partnerships, and expanding managed IT services. The company has also implemented AI-driven pricing tools and productivity enhancements to improve efficiency.
In 2024, Xerox announced its planned acquisition of Lexmark, a global print solutions provider, to strengthen its position in the print market. The acquisition is expected to close in the second half of 2025, enhancing profitability with projected cost synergies of over $200 million within two years.
Xerox projects low single-digit revenue growth for 2025, supported by improvements in print sales, a full year of IT services revenue from its ITsavvy acquisition, and the benefits of its restructuring initiatives. The company aims to further optimize operations, reduce costs, and expand digital and managed services.
Source: RTM World
