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 ...

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 ...

Financial Performance - Second quarter revenue reached $483 million, exceeding expectations, with constant currency revenue growth of 1.0% year-over-year[7] - Sequential constant currency revenue growth was 8.5% for the total company and 6.5% in Ex-L&S revenue[7] - Gross margin was 26.9%, a decrease of 30 basis points year-over-year, while Ex-L&S gross margin was 17.6%, down 110 basis points year-over-year due to higher cost reduction charges[7] - The company is increasing non-GAAP operating margin guidance to 8.0% to 9.0% from a previous 6.5% to 8.5%[8] Sales Metrics - Total contract value (TCV) was $437 million, down 5% year-over-year, but up 5% year-to-date[8] - New business TCV was $122 million, down 43% year-over-year, but up 15% year-to-date[8] - Backlog increased to $2.9 billion, up 5% year-over-year[8] Capital Structure and Pension - The company issued $700 million in Senior Secured Notes[29] - A $250 million contribution was made to U.S Qualified Defined Benefit (QDB) Pension Plans[29] - Planning for $600 million of annuity purchases by year-end 2026[31]

Core Insights - Unisys Corporation reported a sequential improvement in both revenue and profitability for the second quarter of 2025, driven by strong consumption in License and Support solutions and investments in artificial intelligence capabilities [3][9]. Financial Performance - Total revenue for 2Q25 was $483.3 million, reflecting a 1.1% year-over-year increase and an 11.8% quarter-over-quarter increase [5][9]. - Excluding License and Support (Ex-L&S) revenue was $395.7 million, showing a slight decline of 0.1% year-over-year but a 9.6% increase quarter-over-quarter [5][9]. - License and Support revenue increased by 6.7% year-over-year to $87.6 million [5][9]. - Operating profit margin improved to 6.3%, up 140 basis points year-over-year, while non-GAAP operating profit margin reached 7.6%, an increase of 150 basis points year-over-year [9][6]. Segment Performance - Digital Workplace Solutions (DWS) revenue increased by 4.5% year-over-year to $138.1 million, driven by new business and higher hardware revenue [11]. - Cloud, Applications & Infrastructure Solutions (CA&I) revenue declined by 4.5% year-over-year to $185.2 million, primarily due to lower volume with public sector clients [12]. - Enterprise Computing Solutions (ECS) revenue increased by 7.3% year-over-year to $140.2 million, attributed to software license renewals and higher volume in specialized managed services [13]. Cash Flow and Capital Structure - The company made significant cash contributions of $278.2 million to its global defined benefit pension and postretirement plans during the second quarter, including a discretionary contribution of $250 million to U.S. plans [18][19]. - Unisys extended the maturity of its major debt to 2031, enhancing its liquidity position [3][17]. Guidance and Outlook - The company revised its full-year 2025 revenue growth guidance to flat year-over-year, while raising the non-GAAP operating profit margin guidance to a range of 8.0% to 9.0% [23][9].

Financial Performance - Total company revenue declined by 11.4% year-over-year to $432 million, or 8.5% in constant currency, driven by software license renewals and lower client volumes[13] - Ex-L&S revenue decreased by 10.4% year-over-year to $361 million, or 5.5% in constant currency, due to lower volumes with existing clients[13] - Total Company gross margin was 24.9%, a decrease of 300 bps year-over-year[21] - Ex-L&S gross margin was 17.8%, a decrease of 20 bps year-over-year[21] - GAAP Operating Profit decreased to $5.1 million from $17.7 million, while Non-GAAP Operating Profit decreased to $11.9 million from $34.4 million[55] - GAAP Diluted Loss Per Share was ($0.42), compared to ($2.18) in the prior year; Non-GAAP Diluted Loss Per Share was ($0.05) compared to earnings of $0.04 in the prior year[59] Sales Metrics and Outlook - Total Company Total Contract Value (TCV) increased by 17% year-over-year to $434 million[11] - Ex-L&S New Business TCV increased by 83% year-over-year to $337 million, driven by new logo signings[11] - The company reiterated full-year constant currency revenue growth guidance of +0.5% to +2.5%[9] - The company increased full-year L&S revenue expectations to $410 million, up from $390 million[9]

Core Insights - Unisys Corporation reported a significant increase in new business signings, with an over 80% year-over-year growth, indicating strong demand for its innovative solutions [3][6] - The company achieved solid profitability results in the first quarter of 2025, with a focus on improving efficiency and enhancing free cash flow [3][6] - Despite a decline in overall revenue, Unisys reiterated its full-year financial guidance, expecting constant currency revenue growth and a path to exceed profitability guidance [3][16] Financial Performance - Total revenue for 1Q25 was $432.1 million, down 11.4% from $487.8 million in 1Q24, with a constant currency decline of 8.5% [5][6] - Excluding License and Support (Ex-L&S) revenue, the total was $361.0 million, reflecting an 8.5% year-over-year decrease [5][6] - Gross profit margin decreased to 24.9% from 27.9% year-over-year, primarily due to the timing of software license renewals [5][8] Segment Results - Digital Workplace Solutions (DWS) revenue declined 10.4% year-over-year to $118.6 million, with a gross profit margin of 14.2% [9][10] - Cloud, Applications & Infrastructure Solutions (CA&I) revenue decreased 6.3% year-over-year to $176.6 million, maintaining a gross profit margin of 19.5% [9][10] - Enterprise Computing Solutions (ECS) revenue fell 14.8% year-over-year to $118.7 million, with a gross profit margin of 47.7% [11][10] Cash Flow and Balance Sheet - Cash provided by operations increased to $33.3 million from $23.8 million in 1Q24, while free cash flow improved to $13.2 million from $3.9 million [12][6] - The company reported cash and cash equivalents of $393.1 million as of March 31, 2025, up from $376.5 million at the end of 2024 [12][40] Guidance and Outlook - Unisys reiterated its full-year 2025 revenue growth guidance in constant currency, projecting a growth range of 0.5% to 2.5% [16] - The company expects non-GAAP operating profit margin to be between 6.5% and 8.5% for the full year [16]