Conduent sold its public transit and tolling businesses for $234 million in gross proceeds and issued full-year 2026 revenue guidance of $2.15 billion to $2.25 billion, the company said in its second-quarter earnings announcement.
The Public Transit unit generated $164 million in proceeds when sold to Modaxo, while the Tolling unit brought in $70 million plus 7 percent equity stake when sold to Quarterhill. Conduent, a business-process-services company, is disposing of lower-margin transportation operations as part of a broader transformation effort to focus on higher-return segments.
The earnings announcement from August 10 did not specify how the $234 million in proceeds would be deployed. Conduent had held both units as legacy assets inherited from earlier acquisitions and restructurings.
The company's 2026 guidance implies revenue in the midpoint of $2.2 billion, compared to full-year 2025 results that the company did not disclose in the materials available. The transportation operations being sold contributed low double-digit percentage margins, according to internal disclosures, meaning their exit may pressure top-line growth even as profitability per dollar of revenue could improve.
Conduent operates in business services including benefits administration, human resources processing, and digital transformation work for government and commercial clients. The transportation units were legacy holdings from the 2015 spin-off from Xerox and subsequent acquisitions, and had faced competitive pressure from both established infrastructure firms and newer software-as-a-service providers.
The $234 million gross proceeds roughly equal what the two units generated in annual revenue in recent years, meaning Conduent valued them at approximately one times trailing sales. The company did not disclose net proceeds after transaction costs or debt paydown tied to the sales.
Conduent's 2026 revenue guidance of $2.15 billion to $2.25 billion establishes a range of $100 million, or roughly 2.3 percent of the midpoint. The number to watch is whether Conduent announces an acquisition or major contract win in the second half of 2026 that would push results toward the upper end of guidance, since the transportation exits reduce organic growth headroom.
