Xerox had a year of declining sales and profitability in 2024, against a backdrop of far-reaching restructuring. With a 9.5% drop in sales at constant exchange rates, the group, which has just published its annual financial results, recorded total revenues of $6.22 billion, compared with $6.89 billion in 2023. Adjusted EBITDA for 2024 was $555 million, compared with $651 million in 2023, reflecting a lower operating performance.
Xerox's core segment, Print & Other, was particularly hard hit, with sales down 9.7% for the year and profits down 26%. Faced with this situation, the Group initiated a strategic shift by discontinuing certain product lines, such as the iGen and Nuvera series and by signing partnerships with other manufacturers.
A gradual improvement in the fourth quarter
If 2024 was a difficult year, fourth-quarter results suggest stabilization. Although quarterly revenues were down 8% on 2023, at $1.61 billion, adjusted operating margin improved to 6.4%, compared with 5.4% a year earlier.
This upturn is the result of initial restructuring measures, including a 15% reduction in headcount and an organizational overhaul focused on Global Business Services.
Strategic acquisitions to boost growth
As part of its reinvention, Xerox made two major acquisitions in 2024. The purchase of ITSavvy for $400 million strengthens the company's position in IT services. In addition, the ongoing $1.5 billion acquisition of Lexmark marks a strategic diversification into color printing and advanced document solutions.
These acquisitions should play a central role in the company's recovery, although their impact has not yet been factored into the forecasts for 2025.
2025 forecasts: cautious optimism
By 2025, Xerox expects a "low single-digit growth at constant exchange rates, with an adjusted operating margin of at least 5%. The Group is counting on the execution of its reinvention strategy and the exploitation of synergies from acquisitions to regain positive momentum.
Xerox CEO Steve Bandrowczak insists on the need to "consolidate the transformations begun in 2024 to guarantee sustainable growth" .
