Summary of Conference Call Transcript Company Overview - The company discussed is Unisys, focusing on its ECS (Enterprise Computing Solutions) and L&S (Lifecycle Services) segments, particularly the ClearPath product line. Key Points and Arguments Financial Performance - The ECS segment is expected to maintain a margin of around 70%, with annual revenue projected at approximately $400 million, indicating strong cash flow and profitability [2][19]. - The Digital Workplace Solutions (DWS) segment includes five key solutions, with a consistent margin profile expected in the low to mid-20% range [8][10]. - The total addressable market (TAM) for CANI (Cloud Applications and Infrastructure) is estimated at $600 billion, with a compound annual growth rate (CAGR) of 10%-12%, while DWS has a TAM of $150 billion with a CAGR of 5%-8% [10]. AI Integration - AI is viewed as a benefit to the business, enhancing consumption and operational efficiency, particularly through the ClearPath Forward operating system [3][12]. - Real-world applications of AI include the Generative and Agentic AI in the service desk solution, which improves customer service efficiency and knowledge management [12][14]. Competitive Landscape - Unisys claims minimal competition in the ClearPath Forward platform, with IBM's Z Series being the closest alternative, but they do not typically lose clients to competitors [5][17]. - The competitive environment is described as historically competitive, with increased pricing pressure due to AI's impact on revenue [17]. Margin Improvement Strategies - The company has improved its margin profile by approximately 600 basis points over the last few years and sees further opportunities for enhancement through offshore delivery and AI adoption [18][19]. - The current revenue mix is 80% recurring, which stabilizes the business but may limit margin potential compared to a more consultative approach [19]. Growth Outlook - Unisys anticipates a normalized growth rate of 3%-5% CAGR for the overall company, with some segments expected to grow faster [20]. Pension Management - The company has reduced pension liabilities by $2.5 billion over five years and aims for full defeasance of the pension plan within three to five years [22][25]. - Recent transactions have improved cash flow and mitigated pension contribution volatility, which is expected to enhance net leverage [23][24]. Capital Allocation - Future capital allocation priorities include business growth, potential equity buybacks, and debt reduction once pension issues are resolved [26]. Market Perception - The company believes that the market undervalues its ECS and L&S segments, which could be worth more than the current market cap based on discounted cash flows [28][29]. - There is a need for improved communication with investors to clarify the company's value proposition and operational improvements [29]. Additional Important Insights - The company emphasizes the importance of maintaining pricing discipline amidst competitive pressures and the need for transparency in communicating its growth story to investors [17][29].

Group 1 - Unisys CEO Michael Thomson will participate in the virtual William Blair Tech Innovators Conference on October 10, 2025, with opportunities for one-on-one and small group meetings with investors [1] - Unisys is a global technology solutions company that provides services in cloud, AI, digital workspace, applications, and enterprise computing, helping clients unlock their potential [2] - The company has been assisting clients in pushing boundaries for over 150 years [2] Group 2 - Unisys announced the transfer of approximately $320 million of its U.S. defined benefit pension obligations to F&G through the purchase of group annuity contracts [4] - An upcoming investor education event regarding Unisys's ClearPath Forward will be hosted on October 9, 2025, at 2 p.m. EDT [5]