Panel discussion details: Unisys has been proactively working with businesses to address rising security gaps posed by emerging technologies like AI and quantum computing. Recently, the company launched its first post-quantum cryptography service to help organizations defend against future quantum threats. To learn more about Avasant's Empowering Beyond events, click here. About Unisys BLUE BELL, Pa., April 29, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) has announced its participation in Avasant's Empowering B ...

NEW YORK, April 26, 2025 (GLOBE NEWSWIRE) -- Why: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of Unisys Corporation (NYSE: UIS) resulting from allegations that Unisys may have issued materially misleading business information to the investing public. So What: If you purchased Unisys securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The ...

The enhanced digital-first solution streamlines bank operations, boosts security and improves client satisfaction BLUE BELL, Pa., April 2, 2025 /PRNewswire/ -- Unisys (NYSE: UIS) has announced a partnership with Thought Machine, the cloud-native banking technology company, to provide end-to-end core and branch banking solutions that accelerate any bank's technology-first strategies. This solution offers premium features to the banking industry, including trusted, robust transaction processing and the abilit ...

Core Insights - Unisys has launched new Post-Quantum Cryptography (PQC) capabilities to enhance cybersecurity and prepare organizations for future quantum threats [1][2] - The company aims to help organizations identify vulnerabilities in their cryptographic environment and implement actionable steps to strengthen defenses [1][3] - Unisys emphasizes the importance of proactive measures against potential data theft by malicious actors, even before quantum computers become commercially available [3] PQC Capabilities and Services - The PQC capabilities include cryptographic posture assessment, which provides a complete inventory and analysis of an organization's cryptographic environment [1][2] - Unisys offers tailored PQC transition roadmaps based on clients' needs, including modernization pathways and achieving crypto agility [6] - The company implements quantum-resistant technologies and complex cybersecurity program management as part of its PQC infrastructure modernization services [6] Strategic Partnerships - Unisys has joined the Chicago Quantum Exchange (CQE) to drive industry-specific applications for quantum technology and develop top-tier quantum talent [4] - This partnership aims to enhance businesses' quantum resiliency and data protection through Unisys's PQC capabilities and services [4]

Company Participation - Unisys will participate virtually in the Sidoti Small-Cap Conference on March 19 - 20, 2025, allowing management to engage in one-on-one and small group meetings with investors [1] Company Overview - Unisys is a global technology solutions company that provides services in cloud, AI, digital workplace, logistics, and enterprise computing, aimed at helping clients unlock their full potential [2]

Financial Performance - The net loss attributable to Unisys Corporation in 2024 was $193.4 million, or $2.79 per diluted share, compared to a net loss of $430.7 million, or $6.31 per diluted share in 2023, reflecting a significant reduction in losses [181]. - Revenue for 2024 was $2.01 billion, a slight decrease of 0.3% from $2.02 billion in 2023, with U.S. operations revenue declining by 2.8% to $864.1 million [164][165]. - Digital Workplace Solutions (DWS) revenue decreased by 4.1% to $523.5 million in 2024, primarily due to lower volume with existing clients [184]. - Cloud, Applications & Infrastructure Solutions (CA&I) revenue was $526.9 million in 2024, a decrease of 0.8% from 2023, while gross profit margin improved to 16.5% [185]. - Enterprise Computing Solutions (ECS) revenue increased by 0.5% to $651.3 million in 2024, but gross profit margin decreased to 60.2% due to a higher proportion of lower-margin hardware revenue [186]. - Gross profit for 2024 was $585.9 million, with a gross profit margin of 29.2%, an increase from $551.3 million and 27.4% in 2023, driven by delivery modernization and labor cost savings [169]. Cost and Expenses - The company recognized cost-reduction charges of $20.6 million in 2024, compared to $9.3 million in 2023, with workforce reduction charges primarily related to severance costs [166][167]. - Pension expense decreased significantly to $182.8 million in 2024 from $391.3 million in 2023, reflecting lower settlement losses [174]. - The provision for income taxes in 2024 was $117.9 million, up from $79.3 million in 2023, influenced by a new tax provision for certain foreign subsidiaries [176]. Cash Flow and Liquidity - Cash and cash equivalents at December 31, 2024, were $376.5 million, a slight decrease from $387.7 million at the end of 2023 [189]. - Cash provided by operating activities increased to $135.1 million in 2024 from $74.2 million in 2023, primarily due to lower international pension contributions and favorable legal settlements [191]. - Cash used for investing activities rose to $97.4 million in 2024 from $69.6 million in 2023, with capital additions of properties at $16.0 million and investments in marketable software at $47.5 million [192]. - Cash used for financing activities was $18.1 million in 2024, slightly up from $17.3 million in 2023, including a $192 million group annuity contract purchase resulting in a pre-tax settlement loss of $130.1 million [193]. Debt and Obligations - Total debt decreased to $493.2 million as of December 31, 2024, from $504.2 million in 2023 [199]. - The company had operating lease liabilities of $43.9 million and finance lease liabilities of $2.8 million as of December 31, 2024 [200]. - The Amended and Restated ABL Credit Facility was amended to extend maturity to October 29, 2027, with a reduced aggregate loan limit of $125 million [202]. - At December 31, 2024, the company had outstanding standby letters of credit and surety bonds totaling approximately $194 million related to performance and payment guarantees [210]. Pension Plans - The company has reduced its global defined benefit pension obligations by approximately $2.2 billion since December 2020, including $1.5 billion in the U.S. [196]. - The company estimates future cash contributions to its defined benefit pension plans of approximately $92 million in 2025 and $120 million in 2026, with a total of approximately $750 million from 2027 through 2034 [198]. - As of December 31, 2024, the discount rate for U.S. defined benefit pension plans was 6.09%, an increase of 39 basis points from the previous year, while the non-U.S. rate was 5.10%, up 86 basis points [225]. - The calculated value of U.S. qualified defined benefit pension plan assets was $1.61 billion, with a fair value of $1.38 billion as of December 31, 2024 [226]. - For the year ended December 31, 2024, the company recognized consolidated pension expense of $182.8 million, down from $391.3 million in 2023, and expects approximately $87.0 million for 2025 [229]. - The estimated unrecognized loss for U.S. qualified defined benefit pension plans was approximately $1.00 billion, while for non-U.S. plans it was about $490 million as of December 31, 2024 [228]. Impairment and Fair Value - A goodwill impairment charge of $39.1 million was recognized for the DWS reporting unit due to a triggering event identified in the third quarter of 2024 [237]. - The fair value of the DWS reporting unit equaled its carrying value as of December 31, 2024, with no additional impairment charge recognized for other reporting units [238]. - The company had outstanding $481.6 million of 6.875% senior secured notes due 2027, with a fair value of $471.3 million as of December 31, 2024 [243]. Foreign Exchange and Interest Rate Risk - The company is exposed to foreign currency exchange rate risks, primarily benefiting from a weaker dollar against currencies like the Australian dollar and euro [244]. - A hypothetical 10% adverse movement in foreign currency exchange rates would have reduced the estimated fair value of derivative financial instruments by approximately $49 million for both 2024 and 2023 [246]. - The company expects to manage interest rate risk effectively, with substantially all long-term debt at a fixed rate as of December 31, 2024 [242].

Peter Altabef Chair & Chief Executive Officer Deb McCann Chief Financial Officer U unisys FEBRUARY 18, 2025 Disclaimer Forward-Looking Statements Fourth Quarter & Full-Year 2024 Financial Results This presentation contains forward Hooking statements within the meaning of Section 274 of the Seurities A.d. of 1933, asamanded, Section 21E of the Securities Embange Ad and the Pinete-Securities Litigation Reform Act of 1958. Unisys cautions readers that the assumptions forming the basis for forward-kooling state ...

Financial Data and Key Metrics Changes - The fourth quarter revenue was $545 million, down 2.2% year-over-year as reported and 1.5% in constant currency [36] - Full year revenue was $2 billion, down 0.3% on both a reported and constant currency basis [37] - Non-GAAP operating profit for the full year was $176 million, representing an 8.8% margin, up 180 basis points year-over-year [9] - Free pension free cash flow nearly doubled to $82 million in 2024, with full year free cash flow reaching $55 million compared to negative $5 million last year [56][57] Business Line Data and Key Metrics Changes - Digital Workplace Solutions (DWS) revenue declined 8.2% year-over-year to $128 million in Q4, with full year revenue down 4.2% to $524 million [38] - Cloud Applications and Infrastructure (CA&I) revenue declined 5.2% year-over-year to $132 million in Q4, with full year revenue down 0.8% to $527 million [41] - Enterprise Computing Solutions (ECS) revenue increased 6.2% year-over-year to $209 million in Q4, with full year revenue up 1.3% to $651 million [43] Market Data and Key Metrics Changes - New Business Total Contract Value (TCV) was approximately $220 million in Q4, up 24% compared to the prior year period, with full year new business TCV at approximately $790 million, up 29% compared to 2023 [11] - The company exited the year with a backlog of $2.8 billion compared to $3 billion a year ago [46] Company Strategy and Development Direction - The company is raising its L&S revenue expectations to approximately $390 million in 2025 and $400 million in 2026, reflecting a $25 million annual revenue increase from previous expectations [10] - The focus for 2025 includes investments in AI-enabled solutions, application services, and the ClearPath Forward 2050 strategy [22][30] - The company aims to streamline operations and enhance cross-selling opportunities through a centralized application factory [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory in 2025, driven by strong new business signings and expected recovery in client volumes [80][82] - The company anticipates a positive inflection in Ex-L&S revenue growth in 2025, supported by backlog conversion and an expected uptick in the PC refresh cycle [81][84] - Management highlighted the importance of maintaining a strong cash balance while improving free cash flow and reducing legal and environmental payments [65][66] Other Important Information - The company received multiple leader designations from reputable firms in various service areas, validating its investments in innovation and market positioning [20][21] - The company is focusing on workforce optimization initiatives to enhance productivity and minimize external hiring [32] Q&A Session Summary Question: Insights on Ex-L&S business growth trajectory - Management indicated confidence in growth due to strong new business signings and backlog conversion, with expectations for a recovery in client volumes [80][84] Question: Free pension free cash flow improvement and margin levers - Management confirmed expectations for gross margin improvement driven by higher-margin solutions and operational efficiencies, alongside SG&A reductions [88][97] Question: Details on L&S revenue uptick - Management noted that the uptick is broad-based, driven by increased client consumption and longer contract durations, particularly in the context of AI and modernization efforts [108][110] Question: Timing of application services restructuring - Management clarified that the restructuring was planned as part of a broader strategy to leverage existing capabilities and enhance industry focus [115]

Group 1 - Unisys reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.51 per share a year ago, representing an earnings surprise of 65% [1] - The company posted revenues of $545.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.30%, and down from $557.6 million year-over-year [2] - Unisys has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] Group 2 - The stock has gained approximately 6.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $516.3 million, and for the current fiscal year, it is $0.61 on revenues of $2.1 billion [7] Group 3 - The Computers - IT Services industry, to which Unisys belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The current estimate revisions trend for Unisys is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Revenue Performance - Full-year revenue for 2024 was $2,008.4 million, a decrease of 0.3% year over year, meeting the company's guidance[4] - Fourth quarter revenue declined 2.2% year over year, with Ex-L&S revenue down 4.7% year over year, primarily due to lower volume with existing clients[7] - Total revenue for Q4 2024 was $545.4 million, a decrease of 2.0% from $557.6 million in Q4 2023[33] - Revenue for Q4 2024 was $545.4 million, slightly down from $557.6 million in Q4 2023, while total revenue for the year was $2,008.4 million compared to $2,015.4 million in 2023[50] Profitability Metrics - Full-year gross profit margin improved to 29.2%, up 180 basis points year over year; Ex-L&S gross profit margin increased to 17.6%, an improvement of 250 basis points[4] - Operating profit margin for the full year 2024 improved to 4.8%, an increase of 100 basis points year over year[4] - Non-GAAP operating profit for the year ended December 31, 2024, was $97.4 million, compared to $76.9 million in 2023, reflecting a significant improvement[33] - The gross profit margin for the total revenue in Q4 2024 was 32.1%, slightly down from 32.5% in Q4 2023[36] - Adjusted EBITDA for Q4 2024 was $91.4 million, representing 16.8% of revenue, compared to 18.0% in Q4 2023[50] - Non-GAAP operating profit for Q4 2024 was $63.3 million, with a non-GAAP operating profit margin of 11.6%, compared to 11.5% in Q4 2023[50] - The operating profit for Q4 2024 was $48.6 million, an increase from $44.0 million in Q4 2023, resulting in an operating profit margin of 8.9%[50] Cash Flow and Financial Health - Free cash flow for the full year 2024 nearly doubled to $82 million, significantly improving from a negative $4.5 million in 2023[3] - Free cash flow for 2024 was $55.3 million, compared to a negative free cash flow of $(4.5) million in 2023[46] - Net cash provided by operating activities increased from $74.2 million in 2023 to $135.1 million in 2024, a growth of approximately 82.1%[41] - The company reported a consolidated net income of $30.0 million for Q4 2024, a recovery from a net loss of $165.3 million in Q4 2023[33] Business Growth and Contracts - New Business Total Contract Value (TCV) for 2024 reached $791 million, representing a 29% increase year over year driven by new logo signings[4] - Total Contract Value (TCV) for new business was highlighted as a key growth driver, although specific figures were not disclosed[24] - The company anticipates revenue growth in 2025, with a focus on artificial intelligence adoption and innovation[24] - The company expects 2025 revenue growth in constant currency to be between 0.5% and 2.5%, with a non-GAAP operating profit margin guidance of 6.5% to 8.5%[18] Balance Sheet and Assets - Total assets decreased from $1,965.4 million in 2023 to $1,872.3 million in 2024, a decline of approximately 4.7%[38] - Total current liabilities decreased from $650.9 million in 2023 to $628.0 million in 2024, a reduction of approximately 3.5%[38] - Long-term debt remained relatively stable, decreasing slightly from $491.2 million in 2023 to $488.2 million in 2024[38] - Goodwill decreased from $287.4 million in 2023 to $247.9 million in 2024, a decline of approximately 13.8%[38] - Cash, cash equivalents, and restricted cash at the end of the period were $390.6 million, down from $396.7 million in 2023[41] Challenges and Impairments - The company continues to face challenges related to foreign currency fluctuations impacting revenue from international operations[24] - The company experienced a goodwill impairment of $39.1 million for the year ended December 31, 2024[50] - Consolidated net loss improved from $(427.1) million in 2023 to $(193.2) million in 2024, representing a reduction of about 54.7%[41] - Non-GAAP net income attributable to Unisys Corporation for 2024 was $32.1 million, down from $41.7 million in 2023, a decrease of about 23.0%[44] - Diluted earnings per share on a GAAP basis improved to $0.41 in 2024 from $(2.42) in 2023[44]