Investors in Unisys Corporation (UIS) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 17, 2025 $02.00 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

Accessibility StatementSkip Navigation Unisys distinguishes itself with agile hybrid cloud modernization, AI-integration andcomprehensive cybersecurity capabilities in U.S. and U.K. markets Equally noteworthy, Unisys has released a new global report, "From Complexity to Clarity: Modernizing Cloud and IT for What Comes Next," which explores how organizations are evolving their IT strategies to support emerging technologies. Click here to learn more about the widening gap between business ambitions and IT re ...

Global technology company advances in ranking, recognized for secure data-driven transformation capabilities in the public sectorBLUE BELL, Pa., Sept. 3, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) has been named an Innovator in Avasant's State and Local Government Digital Services 2025 RadarView™. The annual report, published by leading management consulting firm Avasant, offers a comprehensive assessment of service providers supporting digital transformation across public sector agencies. Providers are catego ...

Unisys (UIS) FY Conference Summary Company Overview - Unisys is a global IT services company operating in a $1.6 trillion market with high single-digit growth [3][4] - The company has approximately 16,000 employees, including 8,000 engineers, and serves around 700 clients across more than 50 countries [3][4] - Unisys generated nearly $2 billion in revenue, approximately $300 million in adjusted EBITDA, and over $50 million in free cash flow in 2024 [4] Business Segments - Unisys operates in three segments: 1. **Cloud Applications and Infrastructure Solutions**: Focuses on managed cloud services, application development, and cybersecurity [5][6] 2. **Digital Workplace**: Provides outsourced IT support and manages technology experiences for clients [7][8] 3. **Enterprise Computing**: Includes proprietary software (ClearPath Forward) used for mission-critical workloads in various industries [9][10][11] Financial Performance and Strategy - The company aims for 150 basis points of annual gross margin expansion in its XLNS solutions, having achieved 600 basis points since 2022 [25] - Unisys has implemented a cost reduction program, removing $30 million to $40 million from its SG&A base [26] - The company plans to execute $600 million in annuity purchases over the next two years to reduce pension liabilities [41] Pension Management - In June, Unisys issued $700 million in senior secured notes to refinance existing debt and contribute $250 million to its pension plans, reducing the pension deficit from $500 million to $250 million [34][35] - The company aims to eliminate its U.S. qualified defined benefit plans over the next three to five years [31][42] AI and Innovation - Unisys is leveraging AI to enhance service delivery and reduce costs, with a focus on improving employee productivity [22][23][45] - The company is developing knowledge management capabilities to address challenges in AI implementation and ensure data quality [57][59] Future Outlook - Unisys anticipates generating $100 million in pre-pension cash flow, with potential growth to $140 million as EBITDA increases to $300 million over the next six years [61][66] - The company plans to use future cash flows for debt reduction, organic growth investments, and returning capital to shareholders [68][71] Key Takeaways - Unisys is positioned for growth in the IT services market, with a strong focus on innovation and client relationships [4][18] - The company's strategic initiatives in pension management and AI integration are expected to enhance financial stability and operational efficiency [31][22] - Future financial performance will be closely tied to successful execution of its growth strategies and management of pension liabilities [34][42]

Core Insights - The report highlights a significant gap between business ambitions and IT readiness, raising concerns about wasted investments and cybersecurity risks [1][4][5] - Organizations are increasingly recognizing the importance of emerging technologies like generative AI and agentic AI for long-term success, with 73% of executives viewing agentic AI as critical [4][7] - Despite intentions to invest more in generative AI, only 36% of organizations feel prepared to support large-scale AI workloads [7][8] Investment Trends - 78% of organizations plan to increase their investment in generative AI, reflecting growing confidence in its potential [4][7] - 82% of innovation leaders are allocating over 6% of their IT budgets to generative AI-enabled data management [4] - Three-quarters of business executives are increasing investments in cloud, automation, and generative AI despite dissatisfaction with current ROI [7] Infrastructure Challenges - Many organizations are still operating on outdated infrastructure, which hampers the adoption of AI and quantum computing [5][6] - Only 36% of organizations feel confident in their ability to support large-scale generative AI workloads, with even lower readiness for quantum computing (32%) and edge computing (34%) [5][7] - The lack of alignment between business and IT priorities remains a significant challenge [5][6] Cybersecurity Concerns - 85% of organizations describe their cybersecurity posture as reactive, exposing them to serious security risks [8][9] - 17% of organizations experienced a breach in the past year, with downtime costs reaching up to $500,000 per hour [8] - Only 14% of business executives believe their systems are prepared for post-quantum cryptography, highlighting a critical vulnerability [8][9] Strategic Shifts - 62% of business executives are adopting or planning to adopt Zero Trust models, indicating a shift towards more proactive cybersecurity strategies [9] - 61% prioritize cyber recovery, while only 43% have implemented AI-based cybersecurity measures, suggesting room for improvement [9]

Group 1 - Unisys Corporation is implementing a significant turnaround strategy by reducing its pension liabilities, focusing on higher-margin infrastructure services, and integrating AI into its IT delivery services [1] - The company aims to identify high-quality and mispriced investment opportunities, suggesting a strategic shift towards more lucrative business segments [1] Group 2 - The article emphasizes the importance of investing in great companies at attractive prices, indicating a value-driven investment philosophy [1]

Core Insights - Unisys has been recognized as an Innovator in the 2025 Application Management Services RadarView™ by Avasant for the third consecutive year, highlighting its leadership in AI-augmented application services [1][2] - The report evaluates 34 firms and emphasizes Unisys's advanced application life cycle services, DevSecOps capabilities, and AI-powered modernization frameworks [2] - Unisys's strategic direction focuses on empowering clients with modern, scalable, and secure application ecosystems, leveraging generative AI and proprietary Large Language Models [3] Company Performance - Unisys received a five-star rating in practice maturity, indicating its growing strength in delivering advanced application services [1] - The company has developed a comprehensive portfolio of proprietary solutions and strategic partner initiatives to address market dynamics in application management services [3] Industry Trends - Organizations are increasingly adopting application management services to modernize legacy systems and integrate disparate platforms, driven by the need to manage complex application landscapes [3] - The report showcases Unisys's ability to drive measurable business outcomes in highly regulated sectors such as financial services, government, telecommunications, and media [3] Strategic Initiatives - Unisys continues to invest in AI-augmented services, agile delivery models, and strategic partnerships, including collaborations with Thought Machine [3] - The company has successfully delivered an enterprise SaaS solution for a government agency, supporting 13,000 users and over two million monthly queries [6] - Unisys transformed a legacy financial platform into a micro-front-end architecture, enabling ten times faster feature rollouts and over 500 deployments per quarter [6]

PART I - FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Unisys Corporation's unaudited consolidated financial statements for Q2 and H1 2025 and 2024, including income, balance sheet, cash flow, and equity statements [Consolidated Statements of Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) The company reported a net loss of $20.1 million for Q2 2025, while the H1 2025 net loss significantly narrowed to $49.6 million due to a prior-year pension settlement loss Consolidated Statements of Income (Loss) Highlights (in Millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $483.3 | $478.2 | +1.1% | $915.4 | $966.0 | -5.2% | | **Operating Income** | $30.3 | $23.6 | +28.4% | $35.4 | $41.3 | -14.3% | | **Net Loss Attributable to Unisys** | $(20.1) | $(12.0) | +67.5% | $(49.6) | $(161.5) | -69.3% | | **Diluted Loss Per Share** | $(0.28) | $(0.17) | +64.7% | $(0.70) | $(2.34) | -70.1% | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $1.80 billion by June 30, 2025, driven by reduced cash, while total liabilities also decreased due to lower pension obligations despite increased long-term debt Key Balance Sheet Items (in Millions) | Account | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $300.8 | $376.5 | $(75.7) | | Total Assets | $1,796.6 | $1,872.3 | $(75.7) | | Long-term debt | $692.7 | $488.2 | $204.5 | | Long-term pension and postretirement liabilities | $551.9 | $816.4 | $(264.5) | | Total Deficit | $(206.9) | $(269.3) | $62.4 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw a $282.9 million cash outflow from operations, primarily due to pension contributions, while financing activities provided $190.3 million from new debt issuance Six Months Ended June 30, Cash Flow Summary (in Millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(282.9) | $26.5 | | Net cash used for investing activities | $(10.0) | $(46.8) | | Net cash provided by (used for) financing activities | $190.3 | $(11.9) | | **Decrease in cash, cash equivalents and restricted cash** | **$(81.6)** | **$(44.0)** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail a $287.2 million pension contribution, a $700 million debt refinancing, and a reorganization of reportable segments (DWS, CA&I, ECS) - In June 2025, the company issued **$700.0 million** of 10.625% Senior Secured Notes due 2031. The proceeds were used to repurchase its 6.875% Senior Secured Notes due 2027, resulting in a **$6.8 million loss on debt extinguishment**, and to fund a portion of its U.S. pension deficit[76](index=76&type=chunk)[88](index=88&type=chunk) - The company made cash contributions of **$287.2 million** to its global defined benefit pension plans in the first six months of 2025, including a discretionary contribution of **$250 million** to its U.S. plans[34](index=34&type=chunk) - In January 2025, the company reorganized its business, integrating its business processing solutions into the Enterprise Computing Solutions (ECS) and Cloud, Applications & Infrastructure Solutions (CA&I) segments. Application development capabilities were centralized within CA&I[109](index=109&type=chunk) - As of June 30, 2025, the company had approximately **$0.9 billion** of remaining performance obligations, with about **22%** expected to be recognized as revenue by the end of 2025[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations)) Management discusses Q2 2025 revenue growth and H1 2025 decline, segment performance (DWS, CA&I, ECS), and the June 2025 financial restructuring involving new debt and a significant pension contribution [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased 1.1% to $483.3 million, while H1 2025 revenue decreased 5.2% to $915.4 million, with H1 net loss significantly improving due to prior-year pension settlement Q2 2025 vs Q2 2024 Performance (in Millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $483.3 | $478.2 | | Gross Profit | $130.0 | $129.9 | | Operating Profit | $30.3 | $23.6 | | Net Loss Attributable to Unisys | $(20.1) | $(12.0) | H1 2025 vs H1 2024 Performance (in Millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $915.4 | $966.0 | | Gross Profit | $237.5 | $265.9 | | Operating Profit | $35.4 | $41.3 | | Net Loss Attributable to Unisys | $(49.6) | $(161.5) | - Total Contract Value (TCV) for H1 2025 increased **5%** YoY to **$871 million**, driven by growth in Ex-L&S New Business and Renewals. Backlog increased **5%** YoY to **$2.92 billion** as of June 30, 2025[166](index=166&type=chunk) [Financial Condition](index=35&type=section&id=Financial%20Condition) Liquidity relies on cash and ABL facility; cash decreased to $300.8 million due to a $282.9 million operating cash outflow, while total debt increased to $698.4 million from new note issuance - Cash used for operations was **$282.9 million** for H1 2025, primarily due to a discretionary pension contribution of **$250 million**[171](index=171&type=chunk) - In June 2025, the company completed a private offering of **$700.0 million** of 10.625% Senior Secured Notes due 2031 to refinance its 2027 Notes and fund pension liabilities[175](index=175&type=chunk) - The company amended its ABL Credit Facility, extending the maturity to June 2030. As of June 30, 2025, availability under the facility was **$99.1 million**[186](index=186&type=chunk)[187](index=187&type=chunk) - Total expected cash contributions to global defined benefit pension plans for 2025 are approximately **$342 million**. The estimated contribution for 2026 has been reduced to approximately **$82 million** from a previous estimate of **$122 million**[196](index=196&type=chunk)[197](index=197&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk)) There have been no material changes in the company's market risk sensitivity since its 2024 Annual Report on Form 10-K - There has been no material change in the company's market risk profile since its 2024 Annual Report[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures)) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[204](index=204&type=chunk) - No material changes were made to the company's internal control over financial reporting during the second quarter of 2025[205](index=205&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings)) Legal proceedings, referenced from Note 12, include ongoing litigation in Brazil for indirect taxes and labor claims, with unreserved tax matters estimated at $97 million - The company is involved in various litigation in Brazil concerning taxes and labor, with an estimated **$97 million** in unreserved tax-related matters[101](index=101&type=chunk) - The company settled a trade secrets lawsuit against a competitor, Atos, for **$40 million**. **$15 million** was received by Dec 31, 2024, and the remaining **$25 million** was received after June 30, 2025[102](index=102&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors)) No material changes to risk factors from 2024 Annual Report, except for new risks from debt refinancing, including restrictive covenants in new notes and ABL facility - A new risk factor has been added concerning the restrictive covenants in the new 10.625% Senior Secured Notes due 2031 and the Amended ABL Credit Facility[208](index=208&type=chunk) - These covenants restrict the company's ability to, among other things, incur additional debt, pay dividends, sell assets, and make investments, which may limit operational flexibility and growth[212](index=212&type=chunk) - A breach of these covenants could result in an event of default and acceleration of the company's debt[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds)) The company reported no unregistered sales of equity securities during the reporting period - None[216](index=216&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information)) No Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers, and the 2026 annual stockholders' meeting is scheduled for May 1, 2026 - The company's 2026 annual meeting of stockholders is scheduled for May 1, 2026[217](index=217&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits)) This section indexes exhibits filed with Form 10-Q, including corporate governance, debt agreements for new 2031 Notes, ABL facility amendments, and officer certifications

Core Insights - Unisys Corporation (UIS) stock increased by 8.4% in after-hours trading following the release of its Q2 2025 earnings, which exceeded Wall Street expectations with sequential revenue growth and improved profitability metrics [1][10] - The company has made strategic financial restructuring moves to mitigate pension volatility despite facing macro uncertainties [1] Financial Performance - Unisys reported revenues of $483.3 million, surpassing the Zacks Consensus Estimate of $443 million, reflecting a 1.1% year-over-year increase and an 11.8% sequential growth driven by higher License and Support (L&S) revenue [3][10] - Non-GAAP earnings were reported at 19 cents per share, significantly better than the expected loss of 34 cents per share and an improvement from 16 cents per share in the previous year [4][10] Margins and Profitability - Gross profit was $130 million, with a slight decrease in gross margin to 26.9% from 27.2% due to increased cost reduction charges [5] - Adjusted EBITDA rose by 5% year-over-year to $61.4 million, with the margin improving by 50 basis points to 12.7% [6] Segment Performance - Enterprise Computing Solutions (ECS) revenue increased by 7.3% year-over-year to $140.2 million, supported by license renewals and managed services [7] - Digital Workplace Solutions (DWS) revenue rose by 4.5% year-over-year to $138.1 million, aided by higher hardware sales [7] - Cloud, Applications & Infrastructure (CA&I) revenue decreased by 4.5% to $185.2 million, impacted by reduced public sector demand [8] Contract Value and Backlog - Total contract value (TCV) for the quarter was $437 million, down 5% year-over-year, but renewals were strong with Ex-L&S renewals up 85% year-over-year [9] - Backlog improved to $2.92 billion from $2.79 billion in the prior year, indicating a stable long-term revenue base [9] Balance Sheet and Liquidity - As of June 30, 2025, cash and cash equivalents were $300.8 million, down from $376.5 million at year-end 2024, primarily due to a $250 million pension contribution [11] - Adjusted free cash flow was negative $49.4 million in Q2, compared to a loss of $8.0 million a year ago, reflecting pension funding and working capital timing [12] Outlook - Unisys narrowed its 2025 constant-currency revenue guidance to a range of -1% to +1% while raising non-GAAP operating margin guidance to 8%-9% from the previous range of 6.5%-8.5% [2][13]

Financial Data and Key Metrics Changes - In Q2 2025, total revenue was $483 million, a 1.1% increase year over year and a 12% increase sequentially [26][9] - Non-GAAP operating profit margin increased to 7.6% from 6.1% in the prior period, driven by higher L and S revenue and improved operational efficiency [35] - Adjusted EBITDA was $61 million, with an adjusted EBITDA margin of 12.7%, representing a 50 basis point margin expansion year over year [35] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $138 million, a 4.6% increase year over year, with a 13% sequential growth driven by new business and ramping volumes in high-end storage field services [27][28] - Cloud Applications and Infrastructure (CAI) revenue was $185 million, a 4.9% decline year over year, but grew 2% sequentially [29] - Enterprise Computing Solutions (ECS) revenue was $140 million, an 8.2% increase year over year, with L and S revenue at $88 million, up 7.7% year over year [30] Market Data and Key Metrics Changes - The company reported a slight increase in total contract value (TCV) based on higher renewal levels, with first half new business TCV up 15% compared to 2024 [12] - The backlog at the end of Q2 was $2.9 billion, up 5% year over year, indicating a strong pipeline for future revenue [31] Company Strategy and Development Direction - The company is focused on enhancing long-term shareholder value by removing pension volatility and improving financial flexibility [8] - Continued investment in AI and operationalizing it to scale delivery, shifting from a labor-augmented model to a technology-led model [15][16] - The ClearPath Forward strategy aims to modernize hybrid infrastructure and applications while unlocking valuable data [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic and geopolitical uncertainties but expressed confidence in achieving full-year objectives [11] - The company expects a strong inflection in revenue growth in Q4, driven by increased L and S revenue and project work [47] - Management noted that while some revenue items may moderate in Q3, the overall contract value remains intact [11] Other Important Information - The company made a $250 million discretionary pension contribution, reducing its U.S. pension deficit dollar for dollar [7] - Cash balances were $301 million as of June 30, reflecting the use of cash for pension contributions [39] - The company received recognition as one of the Global Top 100 Most Loved Workplaces, highlighting its commitment to workforce empowerment [24] Q&A Session Summary Question: Can you break down the components of the change in your new revenue guidance for 2025? - Management indicated that the tempering of guidance was largely due to macroeconomic uncertainties and backlog conversion challenges, but they expect overall contract value to remain stable [51][54] Question: Can you elaborate on the DWS volumes and progress in ramping the high-performance compute business? - Management noted that DWS volumes have stabilized, with increased activity in high-end storage and network services, and they are well-positioned to capitalize on these trends [57][59] Question: What is your ability to add new logos in this environment? - Management expressed confidence in their pipeline for new logos, with a 15% increase in new business TCV in the first half of the year, indicating strong market resonance for their offerings [71][72]