Xerox’s new CEO Louie Pastor has laid out three priorities for his stewardship of the company. In presenting the Q1 results he says: “When I took this role, I was unequivocal that we must be clear about our priorities – stabilise revenue, increase profitability and reduce leverage – and establish credibility by executing on them one quarter at a time. I am genuinely optimistic about the future of this business and confident we are closer to an inflection point than the external narrative suggests. Reaffirming our 2026 guidance reflects that confidence.”
This comes despite the turmoil in the US and rest of the world through tariff and wars with the risk of recession that might follow. Instead the Xerox CEO is focusing on completing the integration of Lexmark and reshaping the balance sheet to enable Xerox to be able to control its destiny.
The integration of Lexmark is on track. It shows in increasing revenues and will lead to $300 million of savings for the business. Revenue in Q1 reached $1,846 million ($1,457 million) largely driven by Lexmark. The print sales pipeline is materially higher compared to this time last year it says.
There has been a 31% increase in production equipment installations as a new generation of Proficio presses revitalises a product line up that is best described as moribund. Further expansion of the production print portfolio later this year opens further sales opportunities.
“This quarter’s results demonstrated tangible progress as revenue and profit trajectory improved, adjusted operating margin expanded, and we further enhanced our liquidity,” says Pastor.
The improvement in liquidity comes through an IP joint venture with TPG Angelo Gordon which provided $450 million to help the business. It remains to be seen whether this proves to be a good move in the longer term or an expedient deal to solve an immediate problem.
