Core Insights - Unisys has been recognized as a global Leader in the 2025 Provider Lens report for Generative AI (GenAI) Services by Information Services Group (ISG) for the second consecutive year, highlighting its strategic excellence and innovative AI deployment [1][2] Group 1: Recognition and Strengths - The company earned recognition in two key quadrants: Strategy and Consulting for Mid-Size Providers, and Deployment and Development Services for Mid-Size Providers [1] - Unisys's approach to delivering GenAI solutions is noted for being responsible and impactful, with ongoing investments in scalable and adaptable AI technologies [2] - Key strengths include platform extensibility, semantic orchestration, and internal GenAI deployment maturity, positioning Unisys as a trusted partner for enterprise transformation [3] Group 2: Service Offerings and Technology - Unisys differentiates itself with its modular Service Experience Accelerator (SEA) technology, which supports structured ideation and execution of GenAI initiatives [7] - The SEA features a configurable GenAI stack with trust-bound deployment models, pre-integrated retrieval augmented generation (RAG), large language models (LLMs), and semantic controls for responsible GenAI adoption [7] - The company provides industry-specific knowledge assistants and AI playbooks, ensuring consistent and contextually relevant GenAI agent experiences globally [7] Group 3: Client Engagement and Automation - Unisys emphasizes outcome-linked client engagements, showcasing its deep consulting expertise and commitment to delivering measurable business outcomes [7] - The embedded knowledge curation engine within SEA automates lifecycle management, improving chatbot resolution rates and ensuring seamless service across human and digital support tiers [7]

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]