Conduent lays out 2028 EBITDA climb

What happened

Conduent Inc. (NASDAQ: CNDT) used its Investor Day to outline ASCEND 2026-28 and $234 million of expected gross proceeds from 2026 portfolio actions.

That plan includes $164 million from Public Transit, $70 million from Tolling and a 7% equity interest in Quarterhill Inc.

Management said the portfolio actions top an earlier commitment to generate at least $200 million through portfolio actions.

The deck says the Public Transit and Tolling transactions are a major step in reshaping the portfolio and narrowing its focus.

It also points to a more concentrated portfolio centered on healthcare operations, financial operations and enterprise operations.

For 2026, management gave revenue of $2.15 billion to $2.25 billion and Adjusted EBITDA of $140 million to $170 million.

Key numbers

Metric	Latest	Change	Source
Expected gross proceeds from 2026 portfolio actions	$234 million		SEC 8-K
FY 2026 revenue outlook	$2.15 billion to $2.25 billion		SEC 8-K
FY 2026 Adjusted EBITDA outlook	$140 million to $170 million		SEC 8-K
2028 Adjusted EBITDA target	$230 million		SEC 8-K
2028 pro forma Adjusted EBITDA margin	10.0%		SEC 8-K
Annual savings target	$120 million		SEC 8-K

Read more: Conduent (CNDT) stock analysis and investment case

Why it matters

OptimistFi's case is that Conduent can turn its outsourcing base into cash if it keeps contracts, automates costs and repairs the balance sheet.

This filing supports that view by pairing divestiture proceeds with $120 million of annual savings and a plan for free cash flow positivity in 2028.

The company also said it expects to be free cash flow positive in 2028 as restructuring spend rolls off and EBITDA conversion improves.

Management said growth, contract margin expansion and $90 million of cost improvements should lift Adjusted EBITDA to $230 million and margin to 10.0% by 2028.

The $90 million cost-improvement target is 75% of the $120 million annual savings target.

The filing says these targets are forward-looking, depend on execution, divestiture completion and financing conditions, and should not be relied on as a prediction.

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What's next

Investors will watch completion of the Transit and Tolling divestitures and the next Quarterly Report on Form 10-Q.

The company says the divestiture proceeds are intended to reduce debt and fund growth in the core.

A completed sale and proof that savings are landing would support the case. Delays or weaker results would hurt it.

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