Unisys Corporation New · NYSE:UIS
Unisys Corporation New — Q1 2026 Earnings Presentation
28 slides from Unisys Corporation New's earnings presentation, May 6, 2026
Slide 1: First Quarter Financial Results
First Quarter Mike Thomson Chief Executive Officer & President Financial Results Deb McCann MAY 5, 2026 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 amende d, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisy
Slide 3: 1Q26 Financial Highlights
1Q26 Financial Highlights Revenue Operating Profit & Free Cash Flow Revenue of $438M, up 1.3% year - over -year (YoY) and down Reaffirmed 2026 full -year non - GAAP operating margin (4.5%) YoY in constant currency (CC) driven by the timing of guidance of 9.0% to 11.0% License & Support (“L&S”) softw
Slide 4: How Unisys enables enterprise AI
How Unisys enables enterprise AI A comprehensive AI portfolio and integrated approach Enterprise AI Roadmap & Use - Case Prioritization | AI Architecture & 1 Strategy & Engineering Platform Engineering | Model lifecycle management AI - Ready Data Foundations | Metadata, Lineage & Knowledge Graphs |
Slide 5: The Modern ClearPath Ecosystem
The Modern ClearPath ® Ecosystem Secure, scalable operating systems with the flexibility to enable enterprise AI workflows Deployment Options CPF Ecosystem Application Environment Today’s CPF runs seamlessly in AWS and Azure, a private Evolve and enhance applications with capabilities ranging cloud,
Slide 6: 1Q Revenue
1Q Revenue ($M) COMPANY DWS CA&I ECS +1.3% YoY (4.5%) CC 1 YoY +3.1% YoY Down (0.3%) as reported, Up 3.1% as reported, or Down (2.9%) as reported, (2.9%) CC YoY or down (6.5%) in CC down (2.4%) in CC or down (8.4%) in CC $432 $ 438 $361 $ 372 $177 $182 $119 $118 $119 $115 2025 2026 2025 2026 2025 20
Slide 7: 1Q 2026 Revenue Profile
1Q 2026 Revenue Profile Highly diverse revenue streams with large base of recurring revenue Segments CA&I 42% DWS 27% ECS 26% All Other 5% 15% Geography US & Canada 39% L&S Solutions MIX EMEA 33% OF TOTAL COMPANY Asia Pacific 15% 85% REVENUE Latin America 13% Ex - L&S Solutions Client Sector Public
Slide 8: 1Q Gross Margin
1Q Gross Margin COMPANY DWS CA&I ECS +80 bps YoY +170 bps YoY (70) bps YoY +230 bps YoY (80) bps YoY 24.9% 25.7% 47.7% 46.9% 17.8% 19.5% 19.5% 21.8% 14.2% 13.5% 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 Total Company Ex-L&S Margin expansion primarily driven by Margin contraction primarily Ma
Slide 9: 1Q Profitability and Free Cash Flow
1Q Profitability and Free Cash Flow ($M, except per share data) 1Q GAAP & Non -GAAP 1 1Q GAAP Net Income (Loss) 1Q GAAP & Non -GAAP 1 Diluted 1Q Operating Cash Flow Operating Profit & Margins & Adj. EBITDA 1 and Margins Earnings Per Share & Free Cash Flow 1 10.6% 9.3% $46 4.5% 3.7% $33 1.2% 2.8% $40
Slide 10: 1Q26 EBITDA and Cash Flow Detail
1Q26 EBITDA and Cash Flow Detail $M 1Q26 1Q25 EBITDA 1 $ 13.8 $ 5.1 ADJUSTED EBITDA 1 $ 46.2 $ 40.2 ADJUSTED EBITDA MARGIN 1 10.6% 9.3% CASH (USED FOR) PROVIDED BY OPERATIONS ($ 4.4) $ 33.3 CAPITAL EXPENDITURES ($ 21.1) ($ 20.1) FREE CASH FLOW 1 ($ 25.5) $ 13.2 PRE - PENSION AND POSTRETIREMENT FREE
Slide 11: Leverage Detail
Leverage Detail $M MARCH 31, 2026 1 SENIOR SECURED NOTES $ 698.4 FINANCE LEASES AND OTHER DEBT 51.3 TOTAL DEBT EXCLUDING PENSION DEFICIT $ 749.7 2 ESTIMATED GLOBAL NET PENSION DEFICIT(AS OF DECEMBER 31, 2025) $448.5 TOTAL DEBT $ 1,198.2 CASH $380.2 NET LEVERAGE EXCLUDING PENSION DEFICIT $ 369.5 NET
Slide 12: Reiterating Financial Guidance
(6.5 % ) to (4.5 % ) 9.0 % to 11.0 % Constant Currency Non - GAAP Operating Revenue Growth Profit Margin • Revenue growth guidance translates to reported revenue growth of (3.5%) to (1.5%) based on exchange rates as of April 30 th , 2026 Reiterating • Assumes reported L&S revenue of approximately $4
Slide 13: Appendix
Appendix Uunisys
Slide 14: Our Portfolio of Offerings
Our Portfolio of Offerings Simplifying mission - critical IT at scale Tech -Enabled Services (Ex -L&S) ( ~80 % of Revenue) 1 Software (L&S) (~20% of Revenue) 1 Consistent Revenue Recognition | Revenue Growth / Margin Expansion Up -Front License Revenue / Support Over Term Cloud, Applications Digital
Slide 15: Our Opportunity
Grow E x- 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
Slide 16: 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 17: 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 18: Ability to Continue U.S. Annuity Purchases
Ability to Continue U.S. Annuity Purchases Removes gross liability with minimal impact to net leverage and significantly reduces costs to remove U.S. QDB Pension Plans • Reduces cost of full plan termination to more manageable size • Opportunity to continue annuity purchases beyond 2026 to further r
Slide 19: Potential Economic Benefit of Tax Assets
Potential Economic Benefit of Tax Assets (as of December 31, 2025) NET DEFERRED TAX FUTURE AVAILABLE REDUCTIONS $M DESCRIPTION 1 ASSETS IN TAXABLE INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS – FEDERAL & STATE $ 583 $1,817 TAX CREDITS 71 340 PENSION AND OTHER: PENSION 83 331 OTHER DEFERRED T
Slide 20: Excluding License and Support Revenue and Gross Profit
Excluding License and Support (Ex -L&S) Revenue and Gross Profit $M 1Q26 1Q25 L&S REVENUE $ 65.5 $ 71.1 EX - L&S REVENUE 372.1 361.0 REVENUE $ 437.6 $ 432.1 L&S GROSS PROFIT $ 39.8 $ 43.3 EX - L&S GROSS PROFIT 72.7 64.2 GROSS PROFIT $ 112.5 $ 107.5 L&S GROSS PROFIT MARGIN 60.8% 60.9% EX - L&S GROSS
Slide 21: Non-GAAP Operating Profit
Non - GAAP Operating Profit $M 1Q26 1Q25 GAAP OPERATING PROFIT $ 16.2 $ 5.1 CERTAIN LEGAL MATTERS 1 0.2 0.5 COST REDUCTION AND OTHER EXPENSES 2 3.0 5.9 PENSION AND POSTRETIREMENT EXPENSE 1 0.4 0.4 NON - GAAP OPERATING PROFIT $ 19.8 $ 11.9 REVENUE $ 437.6 $ 432.1 GAAP OPERATING PROFIT MARGIN 3.7% 1.2
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $M 1Q26 1Q25 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 35.8) ($ 29.5) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS (1.0) (1.1) 1 INTEREST EXPENSE, NET OF INTEREST INCOME OF $4.9 AND $5.7, RESPE CTIVELY 13.6 2.5 PROVISION FOR INCOME TAXES 13.7 10.6 DEPRECIATIO
Slide 23: Non-GAAP Net Income
Non - GAAP Net Income $ M EXCEPT SHARE AND PER SHARE DATA 1Q26 1Q25 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 35.8) ($ 29.5) PENSION & POSTRETIREMENT EXPENSE PRETAX 30.5 21.9 TAX 1.2 0.6 NET OF TAX $ 29.3 $ 21.3 FOREIGN EXCHANGE GAINS, NET NET OF TAX ($ 7.1) ($ 0.1) GAINS ON DEBT EXTINGUISHMENT
Slide 24: Non-GAAP Diluted Earnings Per Share
Non - GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 1Q26 1Q25 NON - GAAP NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 9.9) ($ 3.5) WEIGHTED AVERAGE SHARES (THOUSANDS) 71,801 70,106 PLUS INCREMENTAL SHARES FROM ASSUMED VESTING OF EMPLOYEE STOCK P LANS - - ADJUSTED WEIGHTED AVER
Slide 25: Non-GAAP Net Income (Loss) Margin
Non - GAAP Net Income (Loss) Margin $M 1Q26 1Q25 REVENUE $ 437.6 $ 432.1 NET LOSS ATTRIBUTABLE TO UNISYS ($ 35.8) ($ 29.5) NON - GAAP NET LOSS ATTRIBUTABLE TO UNISYS ($ 9.9) ($ 3.5) NET LOSS ATTRIBUTABLE TO UNISYS AS A % OF REVENUE (8.2%) (6.8%) NON - GAAP NET LOSS ATTRIBUTABLE TO UNISYS AS A % OF R
Slide 26: Adjusted Free Cash Flow
Adjusted Free Cash Flow $M 1Q26 1Q25 CASH (USED FOR) PROVIDED BY OPERATIONS ($ 4.4) $ 33.3 ADDITIONS TO MARKETABLE SOFTWARE (10.4) (11.2) ADDITIONS TO PROPERTIES AND OTHER ASSETS (10.7) (8.9) FREE CASH FLOW ($ 25.5) $ 13.2 PENSION AND POSTRETIREMENT FUNDING 28.4 9.4 PRE - PENSION AND POSTRETIREMENT
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 gain s a ssociated with certain legal matters related to settlements, professional services and legal fees,
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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