Unisys Presentation SOUTHWEST IDEAS CONFERENCE NOVEMBER 19, 2025 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 cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to contro ...

Core Points - Unisys will present at the Southwest IDEAS Investor Conference on November 19, 2025, at 1:20 p.m. CST, with a webcast available for access [1][2] - Management will be available for one-on-one and small group meetings with investors on November 19 and 20, 2025 [2] - Unisys has been recognized as a global Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services [4] Company Overview - Unisys is a global technology solutions company that provides services in cloud, AI, digital workplace, applications, and enterprise computing [3] - The company has a history of over 150 years in helping clients achieve breakthroughs and unlock their potential [3]

Core Insights - Unisys has been recognized as a global Leader in the 2025 Gartner Magic Quadrant for Outsourced Digital Workplace Services, highlighting its strong execution capabilities and vision in the digital workplace sector [1][2]. Company Performance - Unisys has demonstrated exceptional execution in empowering teams to work securely from any location and device, which has contributed to its high positioning in the Gartner report [2]. - The company emphasizes its focus on delivering differentiated digital workplace solutions that yield tangible outcomes for clients, supported by its deep industry expertise and advisory capabilities [2]. Service Offerings - Unisys provides a range of digital workplace services, including: - Field Services for on-site installation and maintenance of technology [7]. - Next-Generation Service Desk solutions offering 24/7 support and AI-powered automation [7]. - Device Subscription Service that converts capital expenses into predictable monthly costs [7]. - Unified Endpoint Management for centralized security and monitoring across various devices [7]. - Experience-as-a-Service to enhance employee technology experiences through AI insights [7]. - Expert management of Microsoft 365 with features for hybrid collaboration [7]. Market Positioning - The Gartner Magic Quadrant evaluates providers based on their Ability to Execute and Completeness of Vision, categorizing them into Leaders, Challengers, Visionaries, and Niche Players, which helps businesses align their technology needs with market analysis [3].

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $308.9 million, or $4.33 per diluted share, compared to a net loss of $61.9 million, or $0.89 per diluted share for the same period in 2024, primarily due to a U.S. pension plan settlement loss of $227.7 million [124][144]. - Revenue for the three months ended September 30, 2025 was $460.2 million, a decrease of 7.4% from $497.0 million in the same period of 2024, driven by the timing of software license renewals [127]. - License and Support (L&S) revenue decreased by 20.6% to $83.0 million for the three months ended September 30, 2025, compared to $104.5 million for the same period in 2024, also due to the timing of software license renewals [128]. - Excluding License and Support (Ex-L&S) revenue for the three months ended September 30, 2025 was $377.2 million, down 3.9% from $392.5 million in the same period of 2024, primarily due to lower volume with clients in the DWS and CA&I segments [129]. - Gross profit for the three months ended September 30, 2025 was $117.2 million, with a gross profit margin of 25.5%, compared to $145.0 million and 29.2% for the same period in 2024 [133]. - For the nine months ended September 30, 2025, revenue was $1,375.6 million, a decrease of 6.0% from $1,463.0 million in the same period of 2024, mainly due to the timing of software license renewals [145]. - L&S revenue for the nine months ended September 30, 2025 was $241.7 million, down 13.6% from $279.8 million in the same period of 2024 [146]. - Gross profit for the nine months ended September 30, 2025 was $354.7 million, with a gross profit margin of 25.8%, compared to $410.9 million and 28.1% for the same period in 2024 [151]. - For the nine months ended September 30, 2025, the company reported a net loss of $358.5 million, or $5.06 per diluted share, compared to a net loss of $223.4 million, or $3.23 per diluted share for the same period in 2024 [159][160]. - Total revenue for the nine months ended September 30, 2025 was $1,375.6 million, a decrease of 6.0% from $1,463.0 million in the prior year [161]. - The company's gross profit for the nine months ended September 30, 2025 was $354.7 million, representing a gross profit margin of 25.8%, down from 28.1% in the prior year [161]. Expenses and Costs - The company recognized net cost-reduction charges of $1.0 million related to workforce reductions during the three months ended September 30, 2025 [131]. - Interest expense increased to $18.2 million for the three months ended September 30, 2025, compared to $7.9 million for the same period in 2024, primarily due to increased long-term debt and higher interest rates [137]. - Research and development expenses for the nine months ended September 30, 2025 were $16.5 million, slightly down from $17.5 million in the prior year [153]. - The operating profit for the nine months ended September 30, 2025 was $1.9 million, significantly lower than the $48.8 million reported in the prior year, impacted by goodwill impairment charges [154]. - Interest expense increased to $34.6 million for the nine months ended September 30, 2025, compared to $23.7 million in the prior year, primarily due to higher long-term debt and interest rates [155]. - The company experienced a loss before income taxes of $312.9 million for the nine months ended September 30, 2025, compared to a loss of $134.6 million in the prior year [157]. Revenue Breakdown - Digital Workplace Solutions (DWS) revenue decreased by 3.4% to $382.0 million for the nine months ended September 30, 2025, compared to $395.3 million in the prior year [167]. - Cloud, Applications & Infrastructure Solutions (CA&I) revenue decreased by 5.2% to $542.2 million for the nine months ended September 30, 2025, compared to $571.7 million in the prior year [168]. - Enterprise Computing Solutions (ECS) revenue decreased by 7.5% to $392.1 million for the nine months ended September 30, 2025, compared to $424.0 million in the prior year [169]. Cash Flow and Debt - Cash and cash equivalents at September 30, 2025, were $321.9 million, down from $376.5 million at December 31, 2024 [177]. - Cash used for operations during the nine months ended September 30, 2025, was $244.9 million, compared to cash provided by operations of $58.5 million in the same period of 2024 [180]. - Total debt increased to $734.9 million as of September 30, 2025, from $493.2 million at December 31, 2024, primarily due to the issuance of the 2031 Notes [183]. - The company completed a private placement offering of $700 million aggregate principal amount of the 2031 Notes in June 2025 [184]. - Cash provided by financing activities during the nine months ended September 30, 2025, was $188.1 million, compared to cash used for financing activities of $13.7 million in the prior year [182]. - The company had no borrowings under its Amended and Restated ABL Credit Facility as of September 30, 2025, with $90.6 million available under the facility [196]. - The company expects to meet all covenants and conditions under its various lending and funding agreements for at least the next 12 months [201]. - The company incurred a loss on debt extinguishment of $7.0 million related to the satisfaction and discharge of the 2027 Notes [194]. Pension and Contributions - In September 2025, the company purchased a group annuity contract for approximately $316 million, resulting in a pre-tax settlement loss of $227.7 million for the three and nine months ended September 30, 2025 [202]. - For the nine months ended September 30, 2025, the company made cash contributions totaling $317.2 million, including a discretionary contribution of $250 million to its U.S. defined benefit pension plans [204]. - The company expects to make cash contributions of approximately $24 million for the remainder of 2025, leading to total expected contributions of approximately $342 million for the year [205]. - Future total cash contributions to global defined benefit pension plans are estimated at approximately $78 million in 2026 [206]. - The company made cash contributions of $17.6 million primarily to international defined benefit pension plans for the nine months ended September 30, 2024 [207]. - The company may need additional funding if it cannot generate sufficient cash flows from operations to meet pension contributions [208]. - The company will evaluate opportunities for further reduction of its global defined benefit pension obligations depending on market conditions [209]. - The company may explore additional debt and equity sources to fund its liquidity and capital needs [210]. Accounting and Risk Assessment - There have been no significant changes to the company's critical accounting policies and estimates since the last annual report [211]. - There has been no material change in the company's assessment of its sensitivity to market risk since the last annual report [212].

Financial Data and Key Metrics Changes - Third quarter revenue was $460 million, a decline of 7.4% year over year or 9% in constant currency [26] - Non-GAAP operating profit was $25 million, with a non-GAAP operating margin of 5.4% [32] - The company generated $20 million of free cash flow in the third quarter, an improvement from $14 million in the prior year period [34] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue was $125 million, down 5.8% year over year [27] - Cloud Applications and Infrastructure (CA&I) revenue was $180 million, a 6.8% decline compared to the prior year [28] - Enterprise Computing Solutions (ECS) revenue was $133 million, a 13.9% year-over-year decline [29] Market Data and Key Metrics Changes - The total contract value (TCV) for new business in the third quarter was $124 million, in line with solid levels from the second quarter [9] - The pricing environment remains competitive, with clients seeking to share in AI cost savings [10] Company Strategy and Development Direction - The company is focused on improving delivery and operational efficiency to navigate macroeconomic uncertainties [4] - There is a commitment to executing a pension strategy aimed at removing U.S. pension liabilities [5] - The company is investing in AI-driven productivity solutions and workforce optimization to enhance delivery efficiency [8][17] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue was impacted by timing issues, including a shift of a large license and support renewal to the fourth quarter [6] - Concerns about federal funding and the ongoing U.S. government shutdown have affected client project initiation [6][57] - The company expects to generate approximately $110 million of pre-pension free cash flow for the full year [39] Other Important Information - The company received recognition as a leader in cloud services for mid-market enterprises and was named to Time Magazine's 2025 list of the world's best companies [23][24] - The trailing 12-month signings amounted to approximately $2 billion, translating to a book-to-bill ratio of 1.1x [29] Q&A Session Summary Question: How is AI impacting overall P&L? - Management indicated that AI is helping reduce delivery costs, improving margin profiles, and increasing consumption rates in the L&S business [41][42] Question: What is enabling margin performance despite revenue shortfall? - The increase in L&S revenue and successful renewal activity with higher margin profiles are contributing to margin performance [44][45] Question: What is the demand for cloud spending, particularly on AI? - Demand for AI applications is strong, but the adoption is sensitive due to security and other factors [51][52] Question: Update on public sector demand amid government shutdown? - There has been a pause in project work in the U.S. public sector, with some areas showing constant demand [56][57] Question: Is pricing pressure a new development? - Pricing pressure has been ongoing, with competitors undercutting prices, but the company remains disciplined in contract negotiations [58][59]

Third Quarter Financial Results NOVEMBER 5, 2025 Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer 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 cautions readers that the assumptions forming the basis for forward-looking state ...

Core Insights - Unisys reported a quarterly loss of $0.08 per share, outperforming the Zacks Consensus Estimate of a loss of $0.27, marking an earnings surprise of +70.37% [1] - The company generated revenues of $460.2 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.11% and down from $497 million year-over-year [2] - Unisys shares have declined approximately 46.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Financial Performance - Over the last four quarters, Unisys has exceeded consensus EPS estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $593 million, and for the current fiscal year, it is $0.45 on revenues of $1.99 billion [7] Market Outlook - The earnings outlook for Unisys is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Computers - IT Services industry, to which Unisys belongs, is ranked in the top 30% of over 250 Zacks industries, suggesting a favorable industry backdrop [8]

Revenue Performance - Total company revenue for 3Q25 was $460.2 million, a decrease of 7.4% year over year (YoY) and 9.0% in constant currency[5] - Total revenue for Q3 2025 was $460.2 million, a decrease of 7.4% from $497.0 million in Q3 2024[31] - Revenue for the three months ended September 30, 2025, was $460.2 million, down from $497.0 million in the same period of 2024, representing a decrease of approximately 7.5%[49] - For the nine months ended September 30, 2025, total revenue was $1,375.6 million, a decrease of 6.0% from $1,463.0 million in the same period of 2024[35] - Excluding License and Support (Ex-L&S) revenue was $377.2 million, down 3.9% YoY and 5.8% in constant currency[5] - Excluding license and support revenue, the revenue for the three months ended September 30, 2025, was $377.2 million, compared to $392.5 million in 2024[37] - Services revenue was $404.1 million, down from $414.9 million year-over-year, while technology revenue decreased to $56.1 million from $82.1 million[31] Profitability and Loss - The company reported a net loss attributable to Unisys Corporation of $308.9 million, which included a non-cash pension settlement loss of $227.7 million[10] - The company reported a consolidated net loss of $309.2 million for Q3 2025, compared to a net loss of $61.9 million in Q3 2024[31] - The company reported a consolidated net loss of $359.8 million for the nine months ended September 30, 2025, compared to a net loss of $223.7 million in 2024[41] - Non-GAAP operating profit was $24.8 million, representing a margin of 5.4%, compared to 9.9% in 3Q24[7] - Non-GAAP operating profit for the three months ended September 30, 2025, was $24.8 million, down from $49.4 million in the same period of 2024[51] - Operating loss for the three months ended September 30, 2025, was $(33.5) million, compared to an operating profit of $7.5 million in the same period of 2024[51] - Adjusted EBITDA for the three months ended September 30, 2025, was $48.2 million, compared to $77.0 million for the same period in 2024, reflecting a decline of about 37.4%[49] - The percentage of revenue represented by net loss attributable to Unisys Corporation was (67.1)% for the three months ended September 30, 2025, compared to (12.5)% in the same period of 2024[49] Cash Flow and Liquidity - Cash provided by operations was $38.0 million, an increase from $32.0 million in 3Q24, with free cash flow of $19.9 million compared to $14.2 million in the prior year[15] - Free cash flow for the three months ended September 30, 2025, was $19.9 million, an increase from $14.2 million in the same period of 2024[47] - Cash and cash equivalents stood at $321.9 million, reflecting a 7.0% increase quarter over quarter[5] - Cash and cash equivalents decreased to $321.9 million as of September 30, 2025, from $376.5 million at the end of 2024[39] - Adjusted free cash flow for the nine months ended September 30, 2025, was $9.2 million, a decrease from $37.5 million in the same period of 2024[47] Future Outlook and Guidance - The company updated its full-year 2025 revenue growth guidance to a decline of 4.0% to 3.0% in constant currency[17] - The company anticipates revenue growth and margin expansion in the future, with specific guidance for full-year 2025 revenue growth[23] - Total Contract Value (TCV) for 3Q25 increased by 15% YoY, driven by the timing of renewals[16] - The total contract value (TCV) is a key metric for future revenue generation, reflecting the initial estimated revenue from contracts signed[22] - Backlog was $2.83 billion for 3Q25, compared to $2.80 billion for the same period in 2024[17] - Backlog represents future revenue to be recognized under contracted work, although it is subject to various factors affecting conversion to revenue[21] - Book-to-bill ratio is a critical measure, calculated as total contract value booked divided by revenue in a given period[21] Asset and Liability Management - Long-term debt increased to $723.2 million as of September 30, 2025, compared to $488.2 million at the end of 2024[39] - The company’s total assets decreased to $1,743.8 million as of September 30, 2025, down from $1,872.3 million at the end of 2024[39] - The company plans to reduce approximately $600 million of U.S. defined benefit pension plan liabilities by the end of 2026[10] - The company experienced a significant goodwill impairment of $55.0 million during the nine months ended September 30, 2025[41] - The company experienced a goodwill impairment of $55.0 million for the three months ended September 30, 2025, consistent with the same amount in 2024[49] Operational Highlights - Non-GAAP operating profit margin was not specified, but the company emphasizes the importance of non-GAAP measures for understanding ongoing operations[25] - Free cash flow was not detailed, but the company highlighted the significance of cash flow generation in its financial performance[25] - The company is focused on new business expansion and the development of new technologies to drive future growth[22] - Gross profit margin for the three months ended September 30, 2025, was 25.5%, down from 29.2% in the prior year[37] - The gross profit percentage excluding license and support for the nine months ended September 30, 2025, was 18.0%, slightly down from 18.2% in the prior year[37]

Core Insights - Unisys Corporation reported a decline in revenue and net loss for the third quarter of 2025, while reiterating its non-GAAP operating profit margin guidance of 8% to 9% and advancing its pension strategy through an annuity purchase transaction [2][6][17]. Financial Performance - Total revenue for 3Q25 was $460.2 million, down 7.4% year-over-year (YoY) and 9.0% in constant currency [5][6]. - Excluding License and Support (Ex-L&S) revenue, the total was $377.2 million, a decrease of 3.9% YoY and 5.8% in constant currency [5][6]. - The company reported a net loss attributable to Unisys Corporation of $308.9 million, compared to a loss of $61.9 million in 3Q24 [5][9]. - Non-GAAP operating profit was $24.8 million, down from $49.4 million in the same quarter last year [5][6]. Segment Performance - Digital Workplace Solutions (DWS) revenue decreased by 4.3% YoY to $125.3 million, while Cloud, Applications & Infrastructure Solutions (CA&I) revenue fell by 4.8% YoY to $180.4 million [10][11]. - Enterprise Computing Solutions (ECS) experienced a significant decline, with revenue down 13.5% YoY to $133.2 million [10][11]. Cash Flow and Liquidity - Cash and cash equivalents increased by 7.0% quarter-over-quarter to $321.9 million [6][12]. - Cash provided by operations was $38.0 million, up from $32.0 million in 3Q24, with free cash flow of $19.9 million compared to $14.2 million in the prior year [6][13]. Pension Strategy - The company purchased an annuity contract to transfer $320 million of projected U.S. defined benefit pension liabilities to a third-party insurer, marking the first step in a plan to reduce approximately $600 million in pension liabilities by the end of 2026 [9][6]. Guidance and Outlook - Unisys has lowered its full-year constant currency revenue growth guidance to a range of -4.0% to -3.0% and reiterated its non-GAAP operating profit margin guidance [17].

Core Insights - Unisys Corporation has secured a significant cybersecurity contract with the European Commission, enhancing its position in the European public sector market [1][2] - The contract is part of the FREIA framework agreement, where Unisys will lead the EUCybersafe Consortium to provide cybersecurity services across 71 EU institutions [1][2] - This win is crucial as it aligns with the increasing focus on digital defense in Europe amid rising cyber threats, positioning Unisys as a key player in the region's cybersecurity strategy [2] Company Overview - Unisys Corporation is a global IT services and solutions provider, specializing in digital workplace services, cloud infrastructure, enterprise computing, and cybersecurity [3] - The company serves both government and commercial clients on a worldwide scale [3]