Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Q3 2025 Earnings Presentation
26 slides from Unisys Corporation New's earnings presentation, Nov 6, 2025
Slide 1: Third Quarter Financial Results
Third Quarter Mike Thomson Chief Executive Officer Financial Results & President NOVEMBER 5, 2025 Deb McCann Chief Financial Officer
Slide 2: Disclaimer
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: 3Q25 Highlights
3Q25 Highlights Revenue Operating Profit & Free Cash Flow 3Q revenue of $460M, a constant currency (CC) revenue 3Q operating loss of ($33.5M) and non-GAAP operating decline of 9.0% YoY, driven by the timing of License & profit of $24.8M, representing a 5.4% margin Support (“L&S”) software renewals O
Slide 4: 3Q Revenue ($M)
3Q Revenue ($M) COMPANY DWS CA&I ECS (7.4%) YoY (9.0%) cc 1 YoY (3.9%) YoY Down (4.3%) as reported, Down (4.8%) as reported, Down (13.5%) as reported, (5.8%) cc 1 YoY or down (5.8%) in cc1 or down (6.8%) in cc1 or down (13.9%) in cc1 $497 $460 $393 $377 $189 $180 $154 $133 $131 $125 2024 2025 2024 2
Slide 5: 3Q 2025 Revenue Profile
3Q 2025 Revenue Profile Highly diverse revenue streams with large base of recurring revenue Segments CA&I 39% ECS 29% DWS 27% All Other 5% 18% Geography US & Canada 40% L&S Solutions MIX EMEA 29% OF TOTAL COMPANY Asia Pacific 18% 82% REVENUE Latin America 13% Ex-L&S Solutions Client Sector Commercia
Slide 6: 3Q Gross Margin
3Q Gross Margin COMPANY DWS CA&I ECS (1200) bps YoY (370) bps YoY +70 bps YoY (10) bps YoY +10 bps YoY 29.2% 58.2% 25.5% 46.2% 17.9% 18.6% 16.3% 16.2% 19.5% 19.6% 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Total Company Ex-L&S Total Company margins decline primarily driven Margins were relati
Slide 7: 3Q Profitability and Free Cash Flow ($M, except per share data)
3Q Profitability and Free Cash Flow ($M, except per share data) 3Q GAAP & Non-GAAP1 3Q GAAP Net Income (Loss) 3Q GAAP & Non-GAAP1 Diluted 3Q Operating Cash Flow Operating Profit & Margins & Adj. EBITDA1 and Margins Earnings Per Share & Free Cash Flow1 9.9% 5.4% 15.5% $49 10.5% $25 $32 $38 1.5% $77 $
Slide 8: 3Q EBITDA and Cash Flow Detail
3Q EBITDA and Cash Flow Detail $M 3Q25 3Q24 YTD25 YTD24 EBITDA1 ($257.5) $ 18.1 $ (223.9) ($ 50.4) ADJUSTED EBITDA1 $ 48.2 $ 77.0 $ 149.8 $ 200.7 ADJUSTED EBITDA MARGIN 1 10.5% 15.5% 10.9% 13.7% CASH (USED FOR) PROVIDED BY OPERATIONS $38.0 $ 32.0 ($ 244.9) $ 58.5 CAPITAL EXPENDITURES ($ 18.1) ($ 17.
Slide 9: Leverage Detail
Leverage Detail $M SEPTEMBER 30, 2025 2 SENIOR SECURED NOTES 1 $ 700.0 FINANCE LEASES AND OTHER DEBT 48.3 TOTAL DEBT EXCLUDING PENSION DEFICIT $ 748.3 ESTIMATED GLOBAL NET PENSION DEFICIT2 ~$470 TOTAL DEBT $ 1,218.3 CASH $ 321.9 NET LEVERAGE EXCLUDING PENSION DEFICIT $ 426.4 NET LEVERAGE $ 896.4 LTM
Slide 10: Updated Financial Guidance
(4.0%) to (3.0%) 8.0% to 9.0% Constant Currency Non-GAAP Operating Revenue Growth Profit Margin Previously (1.0% ) to 1.0% Updated • Revenue growth guidance translates to reported revenue growth of (3.6%) to (2.6%) based on exchange rates as of the end of 3Q25 • Assumes reported L&S revenue of appro
Slide 11: Appendix
Appendix Us unisys
Slide 12: Our Portfolio of Offerings
Our Portfolio of Offerings Simplifying mission-critical IT at scale Software (L&S) Tech-Enabled Services (Ex-L&S) (~80% of Revenue)1 (~20% of Revenue)1 Consistent Revenue Recognition Up-Front License Revenue / Revenue Growth / Margin Expansion Support Over Term Cloud, Applications Digital Workplace
Slide 13: How Unisys enables enterprise AI
How Unisys enables enterprise AI Our portfolio provides holistic ecosystem support for AI adoption AI vision & strategy | Maturity & Readiness assessment | 1 Strategy & Consulting Roadmap development | Change management | Upskilling Data preparation & transformation | Governance & security | High-im
Slide 14: Our Opportunity
Grow Ex-L&S Accelerate ClearPath Forward revenue growth rate 2050 Our Building awareness and recognition of our solutions & capabilities Through higher-value solutions and leveraging AI to more rapidly scale Invest in L&S ecosystem, unlock data & insights, and support client Opportunity solution del
Slide 15: Strategic Capital Structure Objectives
Strategic Capital Structure Objectives We continue to focus on the following objectives related to our capital structure and pension Reduce the size of the U.S. Reduce uncertainty and volatility Maintain strong cash Qualified Defined Benefit (QDB) of cash requirements, including balances and liquidi
Slide 16: Strengthening our Capital Structure
Strengthening our Capital Structure Unisys has taken meaningful strategic steps in its multi-year strategy to reduce and remove U.S. qualified defined benefit pension plan liabilities within three to five years Recent Debt Raise & Pension Actions Benefits June 2025 Mitigates pension Enables further
Slide 17: Excluding License and Support (Ex-L&S) Revenue and Gross Profit
Excluding License and Support (Ex-L&S) Revenue and Gross Profit $M 3Q25 3Q24 YTD25 YTD24 L&S REVENUE $ 83.0 $ 104.5 $ 241.7 $ 279.8 EX-L&S REVENUE 377.2 392.5 1,133.9 1,183.2 REVENUE $ 460.2 $ 497.0 $ 1,375.6 $ 1,463.0 L&S GROSS PROFIT $ 47.0 $ 74.7 $ 150.6 $ 195.2 EX-L&S GROSS PROFIT 70.2 70.3 204.
Slide 18: Non-GAAP Operating Profit
Non-GAAP Operating Profit $M 3Q25 3Q24 YTD25 YTD24 GAAP OPERATING (LOSS) PROFIT ($ 33.5) $ 7.5 $ 1.9 $ 48.8 GOODWILL IMPAIRMENT 55.0 39.1 55.0 39.1 CERTAIN LEGAL MATTERS 1 0.7 (2.2) 1.3 8.2 COST REDUCTION AND OTHER EXPENSES 2 2.2 4.6 14.1 15.9 PENSION AND POSTRETIREMENT EXPENSE 1 0.4 0.4 1.2 1.1 NON
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $M 3Q25 3Q24 YTD25 YTD24 N E T L O S S A TT RI B U TAB L E TO U N I SYS CO RP O RAT I O N ($ 308.9) ($ 61.9) ($ 358.5) ($ 223.4) N E T L O S S AT T RI B U T AB L E TO N O N CO N T RO L L I N G I N T EREST S (0.3) -- (1.3) (0.3) IN TE RE S T EX P EN SE, N ET O F I N TER
Slide 20: Non-GAAP Net Income
Non-GAAP Net Income $M EXCEPT SHARE AND PER SHARE DATA 3Q25 3Q24 YTD25 YTD24 N E T L O SS ATTRIBUTA BL E TO UN ISYS CO RP O RATIO N ($ 308.9) ($ 61.9) ($ 358.5) ($ 223.4) PE N SION & POST RE T IR E ME N T E X PE N SE PRE T AX 242.9 12.1 286.8 171.1 T AX 0.7 0.2 1.9 0.4 N E T O F TAX $ 242.2 $ 11.9 $
Slide 21: Non-GAAP Net Income (Loss) Margin
Non-GAAP Net Income (Loss) Margin $M 3Q25 3Q24 YTD25 YTD24 REVENUE $ 460.2 $ 497.0 $ 1,375.6 $ 1,463.0 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 308.9) ($ 61.9) ($ 358.5) ($ 223.4) NON-GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS ($ 5.9) ($ 7.1) $ 4.9 $ 17.4 NET LOSS ATTRIBUTABLE TO UNISYS COR
Slide 22: Non-GAAP Diluted Earnings Per Share
Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 3Q25 3Q24 YTD25 YTD24 NON-GAAP NET (LOSS) INCOME ATTRIBUTABLE TO UNISYS CORPORATION ($ 5.9) ($ 7.1) $ 4.9 $ 17.4 WEIGHTED AVERAGE SHARES (THOUSANDS) 71,301 69,357 70,889 69,112 PLUS INCREMENTAL FROM ASSUMED VESTING OF EMPLOYEE ST
Slide 23: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 3Q25 3Q24 YTD25 YTD24 CASH (USED FOR) PROVIDED BY OPERATIONS $ 38.0 $ 32.0 ($ 244.9) $ 58.5 ADDITIONS TO MARKETABLE SOFTWARE (12.5) (11.0) (36.1) (36.7) ADDITIONS TO PROPERTIES AND OTHER ASSETS (5.6) (6.8) (22.4) (22.2) FREE CASH FLOW $ 19.9 $ 14.2 ($ 303.4) ($ 0.4) PENSIO
Slide 24: Potential Economic Benefit of Tax Assets (as of December 31, 2024)
Potential Economic Benefit of Tax Assets (as of December 31, 2024) FUTURE AVAILABLE NET DEFERRED TAX $M DESCRIPTION REDUCTIONS IN TAXABLE ASSETS 1 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
Slide 25: 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, incl
Slide 26: 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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