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Fourth Quarter & Full-Ye a r 2025 Financial Results Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer FEBRUARY 24, 2026
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Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27 A 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 cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys’ ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this presentation and the accompanying release include, but are not limited to, statements made by Mr. Thomson and Ms. McCann, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, effective use of technology, investments in our solutions and artificial intelligence adoption and innovation, TCV and Ex-L&S New Business TCV, the impact of new logo signings, backlog, book-to-bill, full-year 2026 revenue growth and profitability guidance, including constant currency revenue, Ex-L&S constant currency revenue growth, L&S revenue, non-GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in connection with our full-year 2026 financial guidance, the reduction of uncertainty and volatility of cash requirements, including pension contributions, our pension liability, debt extinguishment, future economic benefits from net operating losses and statements regarding future economic conditions or performance. Additional information and factors that could cause actual results to differ materially from Unisys’ expectations are contained in Unisys’ filings with the U.S. Securities and Exchange Commission (SEC), including Unisys’ Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this presentation is representative as of the date of this presentation only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys’ results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events, except as required by applicable law. Non-GAAP Information This presentation includes certain non-GAAP financial measures that exclude certain items such as pension and postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company’s profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company’s ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company’s financial performance and liquidity, as well as greater transparency into management’s view and assessment of the company’s ongoing operating performance. Non-GAAP financial measures are often provided and utilized by the company’s management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP . A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.
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Full-Ye a r 2 0 2 5 Performance Highlights Enhanced Free Cash Flow Strong Pre-Pension Free Cash Flow of $128M, exceeding full-year expectations and increasing $45M from prior year Increased Industry Recognition Received 19 Leader designations for solutions in 2025, including a new Leader ranking in the Gartner Outsourced Digital Workplace Solutions Magic Quadrant Successful Renewal Y ear Renewed $1.4B of ex-L&S TCV, more than double prior year renewal value, securing a large portion of our recurring revenue base Increased Cash Balance and Reduced Net Leverage Cash balance of $414M, a $37M increase year-over-year; Global Pension GAAP deficit reduced by $300M to $450M; improved net leverage of 2.8x compared to 3.0x a year ago $1,950M REVENUE Reported (2.9%) YoY In CC (3.3%) YoY $1,522M EX - L&S REVENUE Reported (3.5%) YoY In CC (3.9%) YoY $3.2B BACKLOG Up +12% sequentially Up +11% YoY $79M $177M GAAP Operating Profit 4.0% Margin Non-GAAP Operating Profit 9.1% Margin ($140M) $128M Cash from Operations ($275M)YoY Pre-Pension Free Cash Flow +$45M YoY Exceeded Profit Guidance 9.1% Non-GAAP Operating Margin Exceeded top-end of upwardly-revised guidance range +13% YoY Total TCV 1.2X1.1X Total Company Ex-L&S TTM1 BOOK-TO-BILL 1. TTM: Trailing-Twelve-Months 2. Refers to U.S. Qualified Defined Benefit Plans $2.2B Sales Metrics Momentum in ClearPath Forward 2050 Strategy Full-Y ear L&S revenue of $428M with a gross margin of 69%, exceeded original guidance by nearly $40 million; third consecutive year of substantial upside Potential Removal of the U.S. Pension Plans2 by End of 2029 U.S. pension deficit and aggregate contributions continue to demonstrate stability achieved following $250M discretionary contribution in 2025, with contributions expected to provide gradual leverage reduction while annuity purchases remove liabilities and lower cost of full removal
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How Unisys enables enterprise AI Enterprise AI Roadmap & Use-Case Prioritization | AI Architecture & Platform Engineering | Model lifecycle managementStrategy & Engineering AI that Delivers Value 3 1 4 6 Responsible AI Governance | Model Transparency & Explainability | Security & Compliance ControlsResponsible AI Intelligent Workflow Automation | AI-Powered Decision Support | Closed-Loop Optimization | Autonomous Exception HandlingProcess AI Code Understanding & Refactoring Agents | API Wrapping & Service Extraction | Modernization Streamlining Agentic Modernization A comprehensive AI portfolio and integrated approach 5 Edge, Io T & Embedded Intelligence | Data Center Build and Run | Lifecycle Management | Global Field Services Physical AI / Infrastructure 2 AI-Ready Data Foundations | Metadata, Lineage & Knowledge Graphs | Data Governance & Quality ControlsData for AI High-impact business outcomes infused with security and flexibility at the core.
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Value-added Solutions Solutions designed to support contemporary application development as well as data sharing to and from the CPF environment, providing flexibility to power enterprise AI with the high-value client data generated on CPF platforms Services for Optimal Results Enterprise experts maximize business outcomes through a comprehensive range of services from technical support to hosting and running client environments so clients know they can rely on CPF for decades to come. Deployment Options Today’s CPF runs seamlessly in AWS and Azure, a private cloud, or on traditional integrated systems., future-proofing investments for evolving hybrid multi-cloud strategies of clients seeking to manage rising costs of compute driven by AI adoption Application Environment Evolve and enhance applications with capabilities ranging from sophisticated data analysis to modern development environments to updated user experiences . AB Suite®DataExchangeePortal The Modern ClearPath® Ecosystem Secure, scalable operating systems with the flexibility to enable enterprise AI workflows ClearPath® Forward Professional and Managed Services Public Cloud MS Azure or AWS Private Cloud VMware or bare-metal Pre-integrated Systems Unisys, on-prem, or co-lo hosted CPF Ecosystem Operating Environments Providing unmatched security, scalability, and speed that is extremely difficult to replicate, especially given decades of client data and customization embedded in our platforms CPF Operating Systems Secure, high-speed and volume compute environments Designed for mission-critical workloads Continuously adapting and expanding Certified to run wherever the client needs Unisys Applications Client Applications Partner Applications
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$545 $394 $575 $388 Total Company Ex-L&S Revenue ($M) 1 +5.3% YoY +2.7% cc2 YoY (1.4%) YoY (3.9%) cc2 YoY 2024 2025 2024 2025 4Q25 Total company revenue growth was primarily driven by the timing of L&S software license renewals. Ex-L&S decline primarily driven by lower volume with existing clients in DWS and CA&I $2,008 $1,577 $1,950 $1,522 Total Company Ex-L&S (2.9%) YoY (3.3%) cc2 YoY (3.5%) YoY (3.9%) cc2 YoY Revenue declines were primarily driven by lower volume with existing clients in DWS and CA&I 2024 2025 2024 2025 1 FY25
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FY 2025 Revenue Profile Highly diverse revenue streams with large base of recurring revenue 22% L&S Solutions 78% Ex-L&S Solutions MIX O F TOTA L COMP ANY REVENUE Geography Client Sector Segments 38% 32% 26% 4% 42% 31% 15% 12% 35% 34% 31% CA&I ECS DWS All Other US & Canada EMEA Asia Pacific Latin America Commercial Public Sector Financial Services
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Segment Revenue ($M) $204 $237 2024 2025 $193 $191 $0 $50 $100 $150 $200 $250 $300 2024 2025 $128 $126 2024 2025 +14.0% in constant currency Driven by the timing of L&S software license renewals DWS CA&I ECS (3.7%) in constant currency Primarily driven by lower volume with existing clients 4Q25 FY25 $524 $508 2024 2025 $764 $733 2024 2025 $628 $629 2024 2025 (3.1%) in constant currency Primarily driven by lower volume with existing clients Revenue was relatively flat YoY (4.1%) in constant currency Primarily driven by lower volume with existing clients (4.8%) in constant currency Primarily driven by lower volume with clients in the public sector
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Gross Margins ($M) 32.1% 15.7% 33.9% 13.2% Total Company Ex-L&S 2024 2025 2024 2025 Total company margin expansion primarily driven by the timing of software license renewals. Ex-L&S gross margin declines were primarily driven by higher cost reduction charges and timing of other one-time items 29.2% 17.6% 28.2% 16.8% Total Company Ex-L&S1 2024 2025 2024 2025 Total company margin decline was primarily driven by higher proportion of hardware revenue within the ECS segment, expected to normalize in 2026. Ex-L&S margin decline was primarily driven by lower volume with clients in DWS and CA&I 1 4Q25 FY25
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Segment Gross Margins ($M) 15.7% 14.5% 2024 2025 19.6% 20.2% 2024 2025 58.0% 55.5% 2024 2025 Margin expansion primarily driven by labor cost savings initiatives Margin contraction primarily driven by a higher proportion of hardware revenue, which has a lower gross margin profile relative to license renewals Margin contractions primarily driven by lower volume with clients 15.9% 10.5% 2024 2025 Margin contraction primarily driven by one-time items including transition costs 18.6% 20.7% 2024 2025 Margin expansion primarily driven by labor cost savings and a one- time benefit 63.2% 65.9% 2024 2025 Margin expansion due to the timing of L&S software license renewals DWS CA&I ECS 4Q25 FY25
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$49 $77$63 $103 2024 2025 $30 $19 $91 $129 2024 2025 4Q GAAP & Non-GAAP1 Operating Profit & Margin 4Q GAAP Net Income & Adj. EBITDA1 and Margins 13.3% 11.6% Operating Margin +440bps YoY and Non-GAAP Operating Margin +640bps YoY 8.9% 18.0% 16.8% 22.5% 3.3% 5.5% GAAP Non-GAAP1 $97 $79 $176 $177 2024 2025 ($193) ($340) $292 $279 Non-GAAP Operating Margin expansion driven by upside in high-margin L&S Solutions, and SG&A efficiencies; Negative GAAP Net Income in FY24 & FY25 includes non-cash settlement charges related to pension annuity purchases GAAP Non-GAAP1 Full-Year GAAP & Non-GAAP1 Operating Profit & Margin Full-Year GAAP Net Income & Adj. EBITDA1 and Margins 4Q25 FY25 2024 2025 14.5% 14.3% (9.6%) (17.4%) 4.0% 8.8% 4.8% 9.1% Operating Profit, Net Income & Adjusted EBITDA ($M)
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$0.41 $0.25 $0.36 $0.86 2024 2025 GAAP Non-GAAP1 GAAP Non-GAAP1 4Q GAAP & Non-GAAP1 Diluted Earnings Per Share 4Q Operating Cash Flow & Free Cash Flow1 $77 $105 $56 $86 2024 2025 4Q25 Free Cash Flow increase primarily driven by lower net interest payments and the timing of license renewals collections $135 ($140) $55 ($218) 2024 2025 ($2.79) ($4.79) $0.62 $0.93 2024 2025 Full-Year GAAP & Non-GAAP1 Diluted Earnings Per Share Full-Year Operating Cash Flow & Free Cash Flow1 Operating (loss) profit included non-cash goodwill impairment charges of $55.0 million and $39.1 million, in 2025 and 2024, respectively. Full-year 2025 Free Cash Flow decline primarily resulting from pension cash contributions - including a discretionary contribution of $250 million to the company's U.S. defined benefit pension plans – partially offset by the favorable settlement of a legal matter and changes in working capital Diluted Earnings Per Share & Cash Flow ($M) 4Q25 FY25 Operating Cash Flow Free Cash Flow1Operating Cash Flow Free Cash Flow 1
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4Q25 & FY24 EBITDA and Cash Flow Detail $M 4Q25 4Q24 FY25 FY24 EBITDA 1 $ 79.5 $ 90.3 $ (144.3) $ 39.8 ADJUSTED EBITDA 1 $ 129.0 $ 91.4 $ 278.8 $ 292.1 ADJUSTED EBITDA MARGIN 1 22.5% 16.8% 14.3% 14.5% CASH (USED FOR) PROVIDED BY OPERA TIONS $ 104.9 $ 76.6 ($ 140.0) $ 135.1 CAPIT AL EXPENDITURES ($ 19.1) ($ 20.9) ($ 77.6) ($ 79.8) FREE CASH FLOW 1 $ 85.8 $ 55.7 ($ 217.6) $ 55.3 PRE -PENSION AND POSTRETIREMENT FREE CASH FLOW 1 $ 112.9 $ 61.8 $ 127.7 $ 82.4 ADJUSTED FREE CASH FLOW 1 $ 115.9 $ 67.0 $ 125.1 $ 104.6
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$M DECEMBER 31, 2025 SENIOR SECURED NOTES 1 $ 700.0 FINANCE LEASES AND OTHER DEBT 54.5 TOT AL DEBT EXCLUDING PENSION DEFICIT $ 754.5 ESTIMA TED GLOBAL NET PENSION DEFICIT 2 $448.5 TOTAL D E BT $ 1,203.0 CASH $413.9 NET LEVERAGE EXCLUDING PENSION DEFICIT $ 340.6 NET LEVERAGE $ 789.1 L TM ADJUSTED EBITDA $ 278.8 NET LEVERAGE RA TIO EXCLUDING PENSION DEFICIT 1.2x NET LEVERAGE RA TIO 2.8x Leverage Detail Represents face value of debt. U.S. QBD Pension Plans’ deficit of ~$239 million and All Other Plans’ deficit of ~$210 million.
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$2.70 $2.72 $3.45 $3.17 ($0.75) ($0.45) Assets PBO Deficit $1.30 $1.42 $1.54 $1.63 ($0.24) ($0.21) Assets PBO Deficit Defined Benefit Plans Update Global GAAP pension deficit decreased by approximately $300 million to ~$450 million, primarily as a result of contributions made during the year. In 2025, we had one U.S. annuity purchase which removed approximately $320 million of pension liabilities. December 31, 2025 Global Defined Benefit Plans ($Billions) December 31, 2024 U.S. Qualified Defined Benefit Plans December 31, 2025 Detail All Other Plans1 All Other Plans includes all international defined benefit plans and our U.S. non-qualified defined benefit plan.
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Expected 10-Y ear Cash Pension Contributions ($M) • As of December 31, 2025, expected contributions to our global pension plans for the 2026 to 2029 period are $352 million. • Expected contributions to our U.S. Qualified Defined Benefit Plans for the four-year period beginning in 2026 are $213 million, $7 million higher than our projections in July 2025 primarily due to the annuity purchase executed in September 2025. 1 1 All Other Plans includes all international defined benefit plans and our U.S. non-qualified defined benefit plan. Note: Figures only include postretirement contributions to pension global pension plans. The funding estimates for our U.S. qualified defined benefit pension plans are based on estimated asset returns and the funding discount rates used for the U.S. qualified defined benefit plans as of December 31, 2025. The future funding requirements are likely to change based on, among other items, market conditions and changes in discount rates. Current estimates for future contributions to international plans are based on local funding regulations and agreements as of December 31, 2025, and are likely to change based on a number of factors including market conditions, changes in funding agreements, changes in discount rates and changes in currency rates. No future cash contributions are expected beyond the period shown to U.S. qualified defined plans. Future cash contributions to all other plans beyond the period shown are expected to be approximately $11M per year. T argeting removal of U.S. QDB Pension Plans by end of 2029 for ~$225M - $275M $47 $72 $70 $24 $49 $68 $65 $28 $40 $33 $33 $33 $33 $32 $32 $30 $11 $11 $87 $105 $103 $57 $82 $100 $97 $58 $13 $11 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 U.S. Qualified Defined Benefit Plans All Other Plans
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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 reduce termination costs Forecasted (Y ear-end, $M1) 2025A 2026 2027 2028 2029 Cost of Removal 20292 U.S. QDB Pension Plans' liabilities 1,540 1,454 1,369 1,286 1,204 @10% premium on liabilities @15% premium on liabilities U.S. QDB Pension Plans' deficit (239) (221) (176) (131) (129) 250 310 Assuming Additional Annuity Purchase in 2026 U.S. QDB Pension Plans liabilities 1,540 1,178 1,109 1,041 975 @10% premium on liabilities @15% premium on liabilities Annuity Purchase3 316 284 U.S. QDB Pension Plans deficit (239) (229) (183) (137) (127) 225 275 Assumes No Annuity Purchase in 2026 Reflects Annuity Purchase in 2026 Accounting Deficits for All Other Plans All Other Plans’ deficit4 (210) (172) (144) (113) (82)
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Financial Guidance Full-Y ear 2026 (6.5%) to (4.5%) Constant Currency Revenue Growth Non-GAAP Operating Profit Margin 9.0% to 11.0% Other 2026 Expectations • Free Cash Flow of ~($25M) • Capital Expenditures of ~$85M • Cash taxes of ~$70M • Net interest payments of ~$70M • Other payments, primarily restructuring, of ~$30M • Pension and postretirement contributions of ~$92M • Revenue growth guidance translates to reported revenue growth of (3.8%) to (1.8%) based on exchange rates as of February 1, 2026 • Assumes reported L&S revenue of approximately $415 million • Assumes Ex-L&S constant currency revenue growth of (7 .0%) to (4.5%)
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Appendix
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4Q 2025 Revenue Profile Highly diverse revenue streams with large base of recurring revenue 32% L&S Solutions 68% Ex-L&S Solutions MIX O F TOTA L COMP ANY REVENUE Geography Client Sector Segments 41% 33% 22% 4% 41% 32% 15% 12% 37% 33% 30% ECS CA&I DWS All Other US & Canada EMEA Asia Pacific Latin America Public Sector Financial Services Commercial
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Our Portfolio of Offerings Cloud, Applications & Infrastructure Solutions Digital Workplace Solutions Enterprise Computing Solutions Cloud Consulting, migration, and managed services across multi-cloud environments including public and private clouds or hybrid workloads Cloud AI Establishing robust AI foundations and enabling AI adoption at scale Applications Development, migration, & modernization Data Modernizing, migrating, and managing data to enable analytics and unlock insights Cybersecurity To ensure architecture, applications and data in motion and at rest are secure Intelligent Workplace Enhanced Service Desk and Field Service solutions Unified Experience Management XLAs, experience monitoring software, automation, AI, and our Experience Management Office (XMO) Modern Device Management To remotely provision, track, manage and protect Workplace as a Service Solutions including device subscription services and enterprise service management Seamless Collaboration Collaboration tools and optimizing networks, platforms, and workspaces to enhance productivity ClearPath Forward® A flexible collection of products and platforms that provide secure, scalable operating environments for high-intensity enterprise computing Specialized Services Services to manage and modernize infrastructure that runs our ClearPath Forward operating system Industry solutions Leveraging data, AI, and advanced computing for clients in the Air Cargo, Travel, Financial Services, and Public Sector sectors. 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
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We have multiple opportunities to create solid value for Unisys stakeholders Our Opportunity Grow Ex-L&S revenue Building awareness and recognition of our solutions & capabilities Accelerate growth rate Through higher-value solutions and leveraging AI to more rapidly scale solution delivery ClearPath Forward 2050 Invest in L&S ecosystem, unlock data & insights, and support client modernization Expand profitability Through delivery optimization, solution mix shift, and SG&A efficiencies Improve free cash flow conversion Lower environmental & restructuring payments, one-time environmental recovery, utilization of tax assets Sustain flexible capital structure Reducing leverage and pension deficit/liabilities to enable full removal of U.S. Qualified Defined Benefit Pension Plans
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Strategic Capital Structure Objectives We continue to focus on the following objectives related to our capital structure and pension Maintain strong cash balances and liquidity Improve net leverage ratio and credit rating Reduce uncertainty and volatility of cash requirements, including pension contributions Reduce the size of the U.S. Qualified Defined Benefit (QDB) Pension Plans, and ultimately remove Maintain debt capacity for growth opportunities Institute a capital return program
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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 Issued new $700M senior secured notes Extended asset-backed revolver maturity Contributed $250M to U.S. pension plans Reallocated U.S. QDB pension plans assets Retired existing $485M notes June 2025 September 2025 Transferred $320M in U.S. pension liabilities through annuity purchase contract First step in removing $600M in U.S. pension liabilities by year-end 2026 Benefits Cash flow accretive over next 5 years1 Reduces GAAP pension deficit & contributions 3-5 year path to full removal of U.S. pension plans Mitigates pension volatility Enables further annuity purchase transactions Accelerated path to full removal, with next steps including: 1. Execute additional annuity purchases to reduce cost of full removal of U.S. qualified defined benefit pension plans 2. Increase capacity to fund cost of full removal
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Potential Economic Benefit of T ax Assets (as of December 31, 2025) $M DESCRIPTION NET DEFERRED TAX ASSETS 1 FUTURE AVAILABLE REDUCTIONS 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 TAX ASSETS 156 626 TOTAL AVAILABLE U.S. $ 893 $3,114 NON -U.S. FOREIGN TAX ATTRIBUTES NET OPERATING LOSS – NON- U.S. $ 259 $ 1,014 PENSION AND OTHER – NON- U.S. 86 349 TOTAL AVAILABLE NON -U.S. $ 345 $ 1,363 TOTAL AVAILABLE $ 1,238 $ 4,477 VALUATION ALLOWANCE (1,172) TOTAL NET DEFERRED TAX ASSET $ 66
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Excluding License and Support (Ex-L&S) Revenue and Gross Profit $M 4Q25 4Q24 FY25 FY24 L&S REVENUE $ 186.4 $ 151.7 $ 428.1 $ 431.5 EX-L&S REVENUE 388.1 393.7 1,522.0 1,576.9 REVENUE $ 574.5 $ 545.4 $ 1,950.1 $ 2,008.4 L&S GROSS PROFIT $ 143.3 $ 113.1 $ 293.9 $ 308.3 EX-L&S GROSS PROFIT 51.3 61.9 255.4 27 7.6 GROSS PROFIT $ 194.6 $ 175.0 $ 549.3 $ 585.9 L&S GROSS PROFIT MARGIN 76.9% 74.6% 68.7% 71.4% EX-L&S GROSS PROFIT MARGIN 13.2% 15.7% 16.8% 17.6% GROSS PROFIT MARGIN 33.9% 32.1% 28.2% 29.2%
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Non-GAAP Operating Profit $M 4Q25 4Q24 FY25 FY24 GAAP OPERA TING PROFIT $ 76.6 $ 48.6 $ 78.5 $ 97.4 CERT AIN LEGAL MA TTERS, NET 1 0.3 0.8 1.6 9.0 GOODWILL IMP AIRMENT 0.0 0.0 55.0 39.1 COST REDUCTION AND OTHER EXPENSES 2 26.1 13.6 40.2 29.5 PENSION AND POSTRETIREMENT EXPENSE 1 0.4 0.3 1.6 1.4 NON -GAAP OPERA TING PROFIT $ 103.4 $ 63.3 $ 176.9 $ 176.4 REVENUE $ 574.5 $ 545.4 $ 1,950.1 $ 2,008.4 GAAP OPERA TING PROFIT MARGIN 13.3% 8.9% 4.0% 4.8% NON -GAAP OPERA TING PROFIT MARGIN 18.0% 11.6% 9.1% 8.8%
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Adjusted EBITDA Reconciliation $M 4Q25 4Q24 FY25 FY24 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $ 18.7 $ 30.0 ($ 339.8) ($ 193.4) NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1.1 0.5 (0.2) 0.2 INTEREST EXPENSE, NET OF INTEREST INCOME OF $4.7, $5.8, $20.7 AN D $23.2, RESPECTIVELY 1 14.1 2.4 32.7 8.7 PROVISION FOR INCOME TAXES 20.9 28.8 67.8 117.9 DEPRECIATION 11.6 10.9 40.6 46.9 AMORTIZATION 13.1 17.7 54.6 59.5 EBITDA $ 79.5 $ 90.3 ($ 144.3) $ 39.8 PENSION AND POSTRETIREMENT EXPENSE 22.2 11.1 309.0 182.2 GOODWILL IMPAIRMENT - - 55.0 39.1 FOREIGN EXCHANGE LOSSES, NET 1,2 4.4 2.4 8.5 11.9 LOSS ON DEBT EXTINGUISHMENT 1 - - 7.0 - CERTAIN LEGAL MATTERS, NET 3 (2.8) (39.2) (1.8) (40.1) ENVIRONMENTAL MATTERS 1 1.6 7.4 3.1 8.8 COST REDUCTION AND OTHER EXPENSES 4 19.8 9.7 23.6 22.1 NON -CASH SHARE BASED EXPENSE 2.9 5.0 15.1 20.9 OTHER EXPENSE, NET ADJUSTMENT 5 1.4 4.7 3.6 7.4 ADJUSTED EBITDA $ 129.0 $ 91.4 $ 278.8 $ 292.1 REVENUE $ 574.5 $ 545.4 $ 1,950.1 $ 2,008.4 ADJUSTED EBITDA MARGIN 22.5% 16.8% 14.3% 14.5%
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Non-GAAP Net Income $ M EXCEPT SHARE AND PER SHARE DATA 4Q25 4Q24 FY25 FY24 NET INCOME (LOSS) ATTRIBUTABLE TO UNISYS CORPORATION $ 18.7 $ 30.0 ($ 339.8) ($ 193.4) PENSION & POSTRETIREMENT EXPENSE PRETAX 22.2 11.1 309.0 182.2 TAX 0.6 0.2 2.5 0.6 NET OF TAX $ 21.6 $ 10.9 $ 306.5 $ 181.6 GOODWILL IMPAIRMENT NET OF TAX - - $ 55.0 $ 39.1 FOREIGN EXCHANGE, LOSSES, NET NET OF TAX $ 4.4 $ 2.4 $ 8.5 $ 11.9 LOSS ON DEBT EXTINGUISHMENT NET OF TAX - - $ 7.0 - CERTAIN LEGAL MATTERS, NET PRETAX (2.8) (39.2) (1.8) (40.1) TAX - - - (2.8) NET OF TAX ($ 2.8) ($ 39.2) ($ 1.8) ($ 37.3) ENVIRONMENTAL MATTERS NET OF TAX $ 1.6 $ 7.4 $ 3.1 $ 8.8 COST REDUCTION & OTHER EXPENSES PRETAX 21.8 15.2 32.0 33.7 TAX 1.9 0.1 2.2 0.4 NET OF TAX $ 19.9 $ 15.1 $ 29.8 $ 33.3 NON- GAAP NET INCOME ATTRIBUTABLE TO UNISYS CORPORATION $ 63.4 $ 26.6 $ 68.3 $ 44.0
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Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 4Q25 4Q24 FY25 FY24 NON- GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION $ 63.4 $ 26.6 $ 68.3 $ 44.0 WEIGHTED A VERAGE SHARES (THOUSANDS) 71,308 69,458 70,994 69,199 PLUS INCREMENT AL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS 2,330 3,480 - - ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 73,638 72,938 70,994 69,199 WEIGHTED A VERAGE SHARES (THOUSANDS) 71,308 69,458 70,994 69,199 PLUS INCREMENT AL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS 2,330 3,480 2,616 2,340 NON -GAAP ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 73,638 72,938 73,610 71,539 GAAP DILUTED INCOME (LOSS) PER SHARE NET INCOME (LOSS) A TTRIBUT ABLE TO UNISYS CORPORA TION $ 18.7 $ 30.0 ($ 339.8) ($ 193.4) DIVIDED BY ADJUSTED WEIGHTED A VERAGE SHARES (THOUSANDS) 73,638 72,938 70,994 69,199 DILUTED EARNINGS (LOSS) PER SHARE $ 0.25 $ 0.41 ($ 4.79) ($ 2.79) NON- GAAP DILUTED (LOSS) EARNINGS PER SHARE NON- GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION $ 63.4 $ 26.6 $ 68.3 $ 44.0 DIVIDED BY NON -GAAP ADJUSTED WEIGHTED A VERAGE SHARES 73,638 72,938 73,610 71,539 NON -GAAP DILUTED EARNINGS PER SHARE $ 0.86 $ 0.36 $ 0.93 $ 0.62
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Non-GAAP Net Income (Loss) Margin $M 4Q25 4Q24 FY25 FY24 REVENUE $ 574.5 $ 545.4 $ 1,950.1 $ 2,008.4 NET INCOME (LOSS) A TTRIBUT ABLE TO UNISYS $ 18.7 $ 30.0 ($ 339.8) ($ 193.4) NON -GAAP NET INCOME A TTRIBUT ABLE TO UNISYS $ 63.4 $ 26.6 $ 68.3 $ 44.0 NET INCOME (LOSS) A TTRIBUT ABLE TO UNISYS CORPORA TION AS A % OF REVENUE 3.3% 5.5% (17.4%) (9.6%) NON -GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION AS A % OF REVENUE 11.0% 4.9% 3.5% 2.2%
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Adjusted Free Cash Flow $M 4Q25 4Q24 FY25 FY24 CASH PROVIDED BY (USED FOR) OPERA TIONS $ 104.9 $ 76.6 ($ 140.0) $ 135.1 ADDITIONS TO MARKET ABLE SOFTWARE (11.5) (10.8) (47.6) (47.5) ADDITIONS TO PROPERTIES AND OTHER ASSETS ( 7.6) (10.1) (30.0) (32.3) FREE CASH FLOW $ 85.8 $ 55.7 ($ 217.6) $ 55.3 PENSION AND POSTRETIREMENT FUNDING 27.1 6.1 345.3 27.1 PRE -PENSION AND POSTRETIREMENT FREE CASH FLOW $ 112.9 $ 61.8 $ 127.7 $ 82.4 DEBT EXTINGUISHMENT P A YMENTS - - 4.2 - CERT AIN LEGAL P A YMENTS (RECEIPTS) (3.1) (6.8) (26.3) (4.8) ENVIRONMENT AL MA TTERS P A YMENTS 2.3 8.7 7.4 1 7.2 COST REDUCTION AND OTHER P A YMENTS 3.8 3.3 12.1 9.8 ADJUSTED FREE CASH FLOW $ 115.9 $ 67.0 $ 125.1 $ 104.6
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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, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses. EBITDA & adjusted EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses; non-cash share-based expense; and other (income) expense adjustments. Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill impairment; foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items. Free cash flow – Represents cash flow from operations less capital expenditures. Pre-pension and postretirement free cash flow (Pre-pension free cash flow) – Represents free cash flow before pension and postretirement contributions. Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.
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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 connection with software license and support services within the company’s ECS segment. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company’s business outside of these areas. Constant currency – A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue has b een and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comp arisons of the company’s business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods. Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s results of operations, but backlog can b e a useful metric and indicator of the company’s estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversio n of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalt y, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Total Contract Value (TCV) – Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or re venue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represent s TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or te rms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s res ults of operations, but TCV can be a useful leading indicator of the company’s ability to generate future revenue over time, subject to certain inherent limitations. Measuring T CV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract mod ifications, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Book-to-bill – Represents total contract value booked divided by revenue in a given period. New Business – Represents expansion and new scope for existing clients and new logo contracts.