Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Q1 2025 Earnings Presentation
28 slides from Unisys Corporation New's earnings presentation, May 1, 2025
Slide 1: First Quarter Financial Results
Mike Thomson First Quarter Financial Results APRIL 30, 2025 Chief Executive Officer & President Deb McCann Chief Financial Officer i unisys
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys ca
Slide 3: 1Q25 Highlights
1025 Highlights Revenue Reiterating full-year constant currency (CC) growth guidance range of +0.5% to +2.5% and increasing full-year L&S revenue expectations to $410M, up from $390M Revenue decline of (8.5%) in CC driven by the timing of software license renewals in the ECS segment Ex-L&S revenue d
Slide 4: 1Q Revenue ($m)
1Q Revenue ($m) COMPANY (11.4%) YoY (8.5%) cc! YoY (8.5%) YoY (5.5%) cc! YoY 2024 2025 2024 2025 Total Company Ex-L&S Dws CA&l ECS Down 10.4% as reported, or down 7.5% in cc! Down 14.8% as reported, o1 Down 6.3% as reported, or down 11.2% in cc! down 3.3% in cct 2024 2025 i $188 2024 2025 2024 2025
Slide 5: 1Q 2025 Revenue Profile
1Q 2025 Revenue Profile Highly diverse revenue streams with large base of recurring revenue 16% L&S Solutions Mix OF TOTAL COMPANY REVENUE 84% Ex-L&S Solutions Segments CA&l ECS DWs All Other Geography US & Canada EMEA Asia Pacific Latin America Client Sector Commercial Public Sector Financial Servi
Slide 6: 1Q Gross Margin
1Q Gross Margin COMPANY (300) bps YoY (20) bps YoY 2024 2025 2024 = 2025 Total Company Ex-L&S DWSs 20 bps contraction 2024 2025 CA&l 10 bps expansion | | 2024 2025 ECS 1690 bps contraction| | 2024 2025 Total Company contraction was primarily driven by lower ECS revenue; Ex-L&S margins were relativel
Slide 7: Profitability and Free Cash Flow
10 Profitability and Free Cash Flow ($M, except per share data) 1Q GAAP & Non-GAAP"! Operating 1Q GAAP Net Income (Loss) & 1Q GAAP & Non-GAAP" Diluted Profit & Margins Adj. EBITDA’ and Margins Earnings Per Share 7.1% 13.4% 9 9.3% $0.04 ($0.05) ($30) ($0.42) ) (6.8%) ($2.18) (30.6%) 2024 2025 2024 20
Slide 8: 1Q25 EBITDA and Cash Flow Detail
1025 EBITDA and Cash Flow Detail $m 1025 1024 EBITDA’ $51 ($ 104.2) ADJUSTED EBITDA' $40.2 $65.3 ADJUSTED EBITDA MARGIN" 9.3% 13.4% OPERATING CASH FLOW $33.3 $ 23.8 CAPITAL EXPENDITURES ($ 20.1) ($ 19.9) FREE CASH FLOW! $13.2 $3.9 PRE-PENSION AND POSTRETIREMENT FREE CASH FLOW! $226 $11.6 ADJUSTED FR
Slide 9: Leverage Detail
Leverage Detail $M MARCH 31, 2025 SENIOR SECURED NOTES! $ 485.0 FINANCE LEASES AND OTHER DEBT 12.9 TOTAL DEBT $ 497.9 GLOBAL NET PENSION DEFICIT (AS OF DEC 31, 2024) 750.2 TOTAL DEBT INCLUDING PENSION DEFICIT $ 1,248.1 CASH $393.1 NET LEVERAGE $104.8 NET LEVERAGE INCLUDING PENSION DEFICIT $ 855.0 LT
Slide 10: Reiterating Financial Guidance Full-Year 2025
Reiterating Financial Guidance Full-Year 2025 +0.5% to +2.5% 6.5% to 8.5% Revenue Growth in Non-GAAP Operating Constant Currency Profit Margin Guidance Assumptions & Other 2025 Expectations + Constant currency revenue guidance translates to reported revenue growth of (1.1%) to +0.9% based on exchang
Slide 11: Appendix
Appendix Us unisys
Slide 12: The Unisys Transformation and 2025 Outlook
The Unisys Transformation 2025 Outl Sustained Strength in Profitable L&S Solutions Positive Inflection in New Accelerating Ex-L&S. Logo Signings Growth Pre-pension Free Cash Improved Ex-L&S. Flow of $82M, up $39M Profitability year-over-year Leader Recognition in Key Analyst & Advisor Reports . Cont
Slide 13: Our Portfolio of Offerings
Our Portfolio of Offerings Simplifying mission-critical IT at scale Cloud, Applications & Infrastructure Solutions Cloud Consulting, migration, and managed services across multi-cloud environments including public and private clouds or hybrid workloads Cloud Al Establishing robust Al foundations and
Slide 14: How Unisys enables enterprise AI
How Unisys enables enterprise Al A comprehensive, start-to-future Al portfolio with a pragmatic approach Al Center of Excellence Data Services Unique Unisys solutions | Partner-integrated solutions | Agents, accelerators and technology frameworks | Partner-focused services Operations & optimization
Slide 15: Core Growth Tenets
Core Growth Tenets Unisys Drivers 2 Land & Expand Improving win rate with new logo, cross-selling to increase number of clients purchasing solutions from multiple Unisys segments, expanding geographies with existing base, and moving higher up the client tech eco-system. ® Expanding Addressable Marke
Slide 16: ClearPath Forward (License & Support)
ClearPath Forward® (“License & Support”) ( @ Proprietary, high-intensity compute environments Designed for powerful, secure, mission-critical transaction processing yy Decades of use in key industries Including Financial Services, Public Sector, Travel & Transportation @ Prioritizing security for se
Slide 17: ClearPath Forward 2050 Strategy
ClearPath Forward 2050 Strategy Expanding and enhancing the ecosystem; strategy evolution is driven by stability of the existing base, market demand, and client needs Product & * Continually enhancing core operating systems Platform * Diversify compute capabilities (e.g. hybrid computing, cloud expa
Slide 18: Value creation opportunity
E lv BY me Grow Ex-L&S Accelerate Invest in our core revenue growth rate L&S platforms Building awareness Through higher-value Leveraging expertise in Uu 4 and recognition of our solutions including hybrid compute to solutions & capabilities Al-related services increase value for clients Opportu Nn
Slide 19: Potential Economic Benefit of Tax Assets
Potential Economic Benefit of Tax Assets (as of December 31, 2024) FUTURE AVAILABLE NET DEFERRED TAX REDUCTIONS IN TAXABLE $M DESCRIPTION 1 ASSETS INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS - FEDERAL & STATE $536 $1,617 TAX CREDITS 91 435 PENSION AND OTHER: PENSION 150 600 OTHER DEFERRED T
Slide 20: Excluding License and Support (Ex-L&S) Revenue and Gross Profit
Excluding License and Support (Ex-L&S) Revenue and Gross Profit $M 1Q25 1024 L&S REVENUE $711 $93.2 EX-L&S REVENUE 361.0 394.6 REVENUE $432.1 $ 487.8 L&S GROSS PROFIT $43.3 $64.8 EX-L&S GROSS PROFIT 64.2 71.2 GROSS PROFIT $107.5 $136.0 L&S GROSS PROFIT MARGIN 60.9% 69.5% EX-L&S GROSS PROFIT MARGIN 1
Slide 21: Non-GAAP Operating Profit
Non-GAAP Operating Profit $M 1Q25 1Q24 GAAP OPERATING PROFIT $51 $177 CERTAIN LEGAL MATTERS! 05 73 COST REDUCTION AND OTHER EXPENSES2 5.9 9.0 PENSION AND POSTRETIREMENT EXPENSE! 04 04 NON-GAAP OPERATING PROFIT $11.9 $34.4 REVENUE $ 4321 $ 487.8 GAAP OPERATING PROFIT MARGIN 1.2% 3.6% NON-GAAP OPERATI
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 1Q25 1Q24 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($29.5) ($149.5) NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1.1) 0.2 INTEREST EXPENSE, NET OF INTEREST INCOME OF $5.7 AND $6.6, RESPECTIVELY" 25 13 PROVISION FOR INCOME TAXES 10.6 17.0 DEPRECIATION
Slide 23: Non-GAAP Net Income
Non-GAAP Net Income $M EXCEPT SHARE AND PER SHARE DATA 1Q25 1Q24 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 29.5) ($149.5) PENSION & POSTRETIREMENT EXPENSE PRETAX 21.9 146.6 TAX 0.6 04 NET OF TAX $21.3 $146.5 CERTAIN LEGAL MATTERS, NET PRETAX (0.4) (8.2) TAX - (28) NET OF TAX ($0.4) ($5.4) ENVIR
Slide 24: Non-GAAP Diluted Earnings Per Share
Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 1Q25 1Q24 NON-GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION ($ 3.4) $27 WEIGHTED AVERAGE SHARES (THOUSANDS) 70,106 68,704 PLUS INCREMENTAL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS - - ADJUSTED WEIGHTED AVERAGE SHA
Slide 25: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 1Q25 1024 CASH PROVIDED BY OPERATIONS $ 33.3 $ 23.8 ADDITIONS TO MARKETABLE SOFTWARE (11.2) (13.2) ADDITIONS TO PROPERTIES AND OTHER ASSETS (8.9) (67) FREE CASH FLOW $13.2 $3.9 PENSION AND POSTRETIREMENT FUNDING 94 77 PRE-PENSION AND POSTRETIREMENT FREE CASH FLOW $ 22.6 $1
Slide 26: Non-GAAP Net Income Margin
Non-GAAP Net Income Margin $M 1Q25 1Q24 REVENUE $ 4321 $ 487.8 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 29.5) ($ 149.5) NON-GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS ($3.4) $27 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION (6.8%) (30.6%) NON-GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORP
Slide 27: Definitions of Non-GAAP Financial Metrics
Definitions of Non-GAAP Financial Metrics Non-GAAP operating profit - This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, inc
Slide 28: Definitions of Other Metrics
Definitions of Other Metrics License and Support (L&S) - Represents software license and related support services, primarily ClearPath Forward®, within the company's ECS segment. Excluding License and Support (Ex-L&S) - These measures exclude revenue, gross profit and gross profit margin in connecti
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