Dxc Technology Company · NYSE:DXC
Dxc Technology — Q2 2025 Earnings Presentation
23 slides from Dxc Technology's earnings presentation, Nov 7, 2024
Slide 1: 2nd Quarter Fiscal Year 2025 Earnings Presentation
2nd Quarter Fiscal Year 2025 Earnings Presentation November 7, 2024
Slide 2: Agenda for Today
Agenda for Today 1 Q2 Performance Highlights and Business Update 2 Detailed Review of Q2 Results and Guidance Update 3 Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements All statements and assumptions contained in this earnings presentation that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” Forward-looking statements often include words such as “anticipates,” “believes,” “estimates,” “e
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present Non-GAAP financial measures which are derived from the statements of operations, cash flow and balance sheets of DXC. These Non-GAAP financial measures include earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted EBIT excluding pension income, a
Slide 5: CEO Update
CEO Update Q2 Performance Refining Operating & Building A Culture For Highlights Delivery Models Success 5
Slide 6: CFO Update: Q2 Fiscal Year 2025 Performance Metrics
CFO Update: Q2 Fiscal Year 2025 Performance Metrics Organic Revenue Growth Adjusted EBIT Margin Adjusted EPS (5.6%) 8.6% $0.93 YoY +130 bps YoY +33% YoY * Reconciliation of GAAP to Non-GAAP measures provided in appendix 6
Slide 7: CFO Update: Q2 Fiscal Year 2025 GBS Results
CFO Update: Q2 Fiscal Year 2025 GBS Results GBS YoY Organic Segment Profit Revenue Book-to-Bill Ratio Revenue Growth* Margin $1,677M (1.6%) 12.8% 0.90x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 7
Slide 8: CFO Update: Q2 Fiscal Year 2025 GBS Results by Offering
CFO Update: Q2 Fiscal Year 2025 GBS Results by Offering Revenue YoY Organic Revenue Growth* Book-to-Bill Ratio Consulting & Engineering $1,281M (3.4%) 0.93x Services Insurance Software & BPS $396M 4.4% 0.78x GBS $1,677M (1.6%) 0.90x * Reconciliation of GAAP to Non-GAAP measures provided in appendix
Slide 9: CFO Update: Q2 Fiscal Year 2025 GIS Results
CFO Update: Q2 Fiscal Year 2025 GIS Results GIS YoY Organic Revenue Segment Profit Revenue Book-to-Bill Ratio Growth* Margin $1,564M (9.6%) 8.2% 0.71x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 9
Slide 10: CFO Update: Q2 Fiscal Year 2025 GIS Results by Offering
CFO Update: Q2 Fiscal Year 2025 GIS Results by Offering Revenue YoY Organic Revenue Growth* Book-to-Bill Ratio Cloud, ITO & $1,188M (10.1%) 0.69x Security Modern Workplace $376M (8.0%) 0.80x GIS $1,564M (9.6%) 0.71x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 10
Slide 11: CFO Update: Q2 Fiscal Year 2025 Balance Sheet & Free Cash Flow
CFO Update: Q2 Fiscal Year 2025 Balance Sheet & Free Cash Flow Capex + Originations Total Debt as % of Revenue Free Cash Flow* $4.1B 4.8% $48M ($96M) QoQ Capex $147M vs. $91M in Q2 FY24 Lease Originations $10M * Reconciliation of GAAP to Non-GAAP measures provided in appendix 11
Slide 12: CFO Update: Full Year Fiscal 2025 & Fiscal Q3 2025 Outlook
CFO Update: Full Year Fiscal 2025 & Fiscal Q3 2025 Outlook* Full Fiscal Year 2025 YoY Organic Adjusted EBIT Non-GAAP Free Cash Flow Revenue Growth Margin Diluted EPS (5.5%) – (4.5%) 7.0% – 7.5% $3.00 – $3.25 ~$550M Q3 Fiscal Year 2025 YoY Organic Adjusted EBIT Non-GAAP Revenue Growth Margin Diluted
Slide 13: oXw Technology
oXw TECHNOLOGY
Slide 14: Appendix
Appendix Non-GAAP Reconciliations Definitions 14
Slide 15: YoY Organic Revenue Growth
YoY Organic Revenue Growth ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Q2 FY25 GBS revenue 1,703 1,709 1,696 1,712 6,820 1,673 1,677 YoY GBS revenue growth (3.1%) (0.2%) (2.4%) (2.2%) (2.0%) (1.8%) (1.9%) Foreign currency 0.8% (1.6%) (1.4%) 0.6% (0.4%) 1.8% 0.1% Acquisitions and divestit
Slide 16: Non-GAAP Reconciliation Organic Revenue
Non-GAAP Reconciliation Organic Revenue Consulting & Insurance Cloud ITO + Modern Acquisitions & Q2 FY25 (in $M) Engineering Total Software & BPS Security Workplace Divestitures Services Revenue 1,281 396 1,188 376 - 3,241 Prior-year revenue 1,323 383 1,318 409 3 3,436 YoY change $ (42) 13 (130) (33
Slide 17: Reconciliation of Segment Profit to Pretax Income
Reconciliation of Segment Profit to Pretax Income GBS ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Q2 FY25 Segment revenue 1,703 1,709 1,696 1,712 6,820 1,673 1,677 Segment profit 192 213 202 228 835 181 214 GBS profit % 11.3% 12.5% 11.9% 13.3% 12.2% 10.8% 12.8% GIS ($M) Q1 FY24 Q2 FY24 Q
Slide 18: Adjusted EBIT and Adjusted EBITDA Reconciliation
Adjusted EBIT and Adjusted EBITDA Reconciliation EBIT to Adjusted EBIT ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Q2 FY25 Net income (loss) 42 99 140 (195) 86 25 45 Income tax expense (benefit) 36 29 72 (114) 23 43 48 Interest income (49) (53) (56) (56) (214) (51) (51) Interest expense
Slide 19: Non-GAAP Reconciliation – EPS
Non-GAAP Reconciliation – EPS Non-GAAP EPS Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Q2 FY25 GAAP EPS (diluted) $0.17 $0.49 $0.81 ($1.10) $0.46 $0.14 $0.23 Restructuring costs 0.07 0.13 0.16 0.08 0.44 0.17 0.18 TSI — 0.01 0.01 0.01 0.03 0.03 0.07 Amortization of acquired intangible assets 0
Slide 20: DXC Free Cash Flow
DXC Free Cash Flow Free Cash Flow (in $M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Q2 FY25 Cash flows from operating activities 127 248 706 280 1,361 238 195 Less capex Purchase of property & equipment (55) (53) (36) (38) (182) (48) (41) Payments for transition & transformation contract co
Slide 21: Non-GAAP and Other Definitions
Non-GAAP and Other Definitions Segment profit: Segment revenue less costs of services, segment selling, general and administrative, depreciation and amortization, and other income, excluding the movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities an
Slide 22: Non-GAAP Adjustments
Non-GAAP Adjustments Our Non-GAAP adjustments include: • Restructuring costs: Includes costs, net of reversals, related to workforce and real estate optimization and other similar charges. • Transaction, separation and integration-related (“TSI”) costs: Includes costs related to integration, separat
Slide 23: oXw Technology
oXw TECHNOLOGY
DXC Technology Company — Q2 2025 Earnings Presentation on 6ix