Slides
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Second Quarter Financial Results Mike Thomson Chief Executive Officer & President Deb McCann Chief Financial Officer J U LY 3 0, 2 0 2 5
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Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27 A 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 control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should” and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this presentation and the accompanying release include, but are not limited to, statements made in Mr . Thomson's and Ms. McCann's quotations, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, expectations regarding the impacts of changes to our organizational structure, investments in our solutions and artificial intelligence adoption and innovation, TCV and Ex-L&S New Business TCV, the impact of new logo signings, backlog, book-to-bill(4), full-year 2025 revenue growth and profitability guidance, including constant currency revenue, Ex-L&S constant currency revenue growth, L&S revenue, non-GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in connection with our revised full-year 2025 financial guidance, debt extinguishment, the completed 2031 note offering and the use of proceeds therefrom, including pension contributions, the reduction of uncertainty and volatility of cash requirements, including pension contributions, our pension liability, future economic benefits from net operating losses and statements regarding future economic conditions or performance. Projections of deficit and cash contributions related to our U.S. qualified defined benefit plans contained within this prese ntation were provided by the Company’s actuary WTW and are based on certain estimates and actuarial assumptions that are subject to change. Unisys does not assume any obligation to update such pro jections. Additional information and factors that could cause actual results to differ materially from Unisys’ expectations are contained in Unisys’ filings with the U.S. Securities and Exchange Commission (SEC), including Unisys’ Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in this presentation is representative as of the date of this presentation only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys’ results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events, except as required by applicable law. Non-GAAP Information This presentation includes certain non-GAAP financial measures that exclude certain items such as postretirement expense; debt extinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company’s profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company’s ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company’s financial performance and liquidity, as well as greater transparency into management’s view and assessment of the company’s ongoing operating performance. Non-GAAP financial measures are often provided and utilized by the company’s management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for , or considered in isolation from, measures calculated in accordance with U.S. GAAP . A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.
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Operating Profit & Free Cash Flow Sales Metrics Total contract value (TCV) of $437M, (5%) Y oY and +5% year-to- date New business TCV of $122M, (43%) Y oY and +15% year-to-date Trailing twelve months (TTM) book-to-bill for total company and ex-L&S solutions of 1.0x; backlog of $2.9B, up 5% Y oY 2Q operating margin of 6.3%; non-GAAP Operating margin of 7 .6%, exceeding expectations Increasing non-GAAP operating margin guidance to 8.0% to 9.0% from 6.5% to 8.5% previously Enhanced profitability driven by upside in L&S solutions and improved operational efficiency Increased outlook for pre-pension free cash flow by $10M to $110M for full-year 2025 2Q25 Highlights Revenue 2Q revenue of $483M exceeded expectations; constant currency (“CC”) revenue growth of 1.0% year-over-year (“Y oY”) and (0.4%) in Ex-L&S solutions Sequential CC revenue growth of 8.5% for the total company and 6.5% in Ex-L&S revenue Ex-L&S revenue benefited from strong 2024 New Business signings with sequential improvement in project volumes, high- value field services, and PC-related hardware and services Gross Profit 2Q gross margin of 26.9%, down 30 basis points (bps) year- over-year; Ex-L&S Gross Margin of 17 .6%, down 110 bps Y oY driven by higher cost reduction charges in 2Q25; flat Y oY excluding these items Positive sequential margin expansion of 270 bps in DWS, and 130 bps in CA&I due to delivery improvements and workforce optimization initiatives
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$478 $396 $483 $396 Total Company Ex-L&S 2Q Revenue ($M) COMPANY 1.1% YoY 1.0% cc 1 YoY DWS CA&I ECS $131 $140 2024 2025 $194 $185 2024 2025 $132 $138 2024 2025 Up 4.5% as reported, or up 4.6% in cc1 Down (4.5%) as reported, or down (4.9%) in cc1 Up 7.3% as reported, or up 8.2% in cc1 (0.1%) YoY (0.4%) cc 1 YoY 2024 2025 2024 2025 Driven by lower volume with clients in the public sector Driven by the timing of software license renewals, and integrated systems purchases, as well as higher volume in specialized managed services Total company increase primarily driven by higher L&S revenue. Ex-L&S revenue was flat year-over-year Primarily driven by new business including higher hardware revenue
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2Q 2025 Revenue Profile Highly diverse revenue streams with large base of recurring revenue 18% L&S Solutions 82% Ex-L&S Solutions MIX O F TOTA L COMP ANY REVENUE Geography Client Sector Segments 38% 29% 29% 4% 42% 32% 15% 11% 37% 32% 31% CA&I ECS DWS All Other US & Canada EMEA Asia Pacific Latin America Commercial Public Sector Financial Services
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27.2% 18.7% 26.9% 17.6% Total Company Ex-L&S 2Q Gross Margin 16.2% 16.9% 2024 2025 20.7% 20.8% 2024 2025 53.3% 53.5% 2024 2025 10 bps expansion 20 bps expansion 70 bps expansion 2024 2025 2024 2025 (30) bps YoY (110) bps YoY Total Company margins were relatively flat year- over-year; Ex-L&S margin contraction was primarily driven by higher cost reduction charges in 2Q25, partially offset by improvement within the company's operating segments COMPANY DWS CA&I ECS Margins were relatively flat year-over-yearExpansion primarily driven by delivery improvement and labor cost savings initiatives
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Decline primarily due to cash contributions to the company's U.S. qualified defined benefit pension plans and changes in working capital $3 ($316) ($19) ($337) 2024 2025 $24 $30$29 $37 2024 2025 ($12) ($20) $58 $61 2024 2025 2Q Profitability and Free Cash Flow ($M, except per share data) 2Q GAAP & Non-GAAP1 Operating Profit & Margins 2Q GAAP Net Income (Loss) & Adj. EBITDA1 and Margins 6.3%6.1% 4.9% 7.6% 12.7% (2.5%) (4.2%) GAAP Non-GAAP1 ($0.17) ($0.28) $0.16 $0.19 2024 2025 2Q GAAP & Non-GAAP1 Diluted Earnings Per Share 2Q Operating Cash Flow & Free Cash Flow1 Operating Cash Flow Free Cash Flow1 12.2% Margin improvement primarily driven by lower expense due to realized benefits from the company’s cost reduction actions and reduced professional services expense. The net loss included a loss on debt extinguishment of $6.8million related to the repurchase, satisfaction and discharge of the Senior Secured Notes due 2027
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2Q EBITDA and Cash Flow Detail $M 2Q25 2Q24 YTD25 YTD24 EBITDA 1 $ 28.6 $ 35.6 $ 33.6 ($ 68.6) ADJUSTED EBITDA 1 $ 61.4 $ 58.4 $ 101.6 $ 123.7 ADJUSTED EBITDA MARGIN 1 12.7% 12.2% 11.1% 12.8% CASH (USED FOR) PROVIDED BY OPERA TIONS ($ 316.2) $ 2.7 ($ 282.9) $ 26.5 CAPIT AL EXPENDITURES ($ 20.3) ($ 21.2) ($ 40.4) ($ 41.1) FREE CASH FLOW 1 ($ 336.5) ($ 18.5) ($ 323.3) ($ 14.6) PRE -PENSION AND POSTRETIREMENT FREE CASH FLOW 1 ($ 58.3) ($ 13.8) ($ 35.7) ($ 2.2) ADJUSTED FREE CASH FLOW 1 ($ 49.4) ($ 8.0) ($ 21.1) $ 9.3
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$M JUNE 30, 2025 SENIOR SECURED NOTES 1 $ 700.0 FINANCE LEASES AND OTHER DEBT 12.5 TOTAL D E BT $ 712.5 GLOBAL NET PENSION DEFICIT (AS OF DEC 31, 2024) 2 500.2 TOT AL DEBT INCLUDING PENSION DEFICIT $ 1,212.7 CASH $ 300.8 NET LEVERAGE $ 411.7 NET LEVERAGE INCLUDING PENSION DEFICIT $ 911.9 L TM ADJUSTED EBITDA $ 270.0 NET LEVERAGE RA TIO 1.5x NET LEVERAGE RA TIO INCLUDING PENSION DEFICIT 3.4x Leverage Detail Represents face value of debt. Represents global net pension deficit as of 12/31/2024 adjusted for the discretionary $250M contribution in the US QDB Pension Plans.
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Updated Financial Guidance Full-Ye a r 2 0 2 5 (1.0%) to +1.0% Constant Currency Revenue Growth Non-GAAP Operating Profit Margin 8.0% to 9.0% Other 2025 Expectations • Pre-Pension Free Cash Flow of ~$110M compared to ~$100M previously • Capital Expenditures of ~$95M • Cash taxes of ~$70M • Net interest payments of ~$3M, compared to ~$15M previously, reflecting shift of second- half interest payment into January 2026 as a result of the recent refinancing • Environmental, legal, and restructuring & other net inflows of ~$10M • Pension and postretirement contributions of ~$345M, includes discretionary US contribution of $250M • Constant currency revenue growth guidance translates to reported revenue growth of (0.5%) to +1.5% based on exchange rates as of the end of 2Q25 • Constant currency growth range assumes L&S revenue of approximately $430 million, up from $410 million previously (and original guidance of $390 million), and constant currency Ex-L&S revenue growth relatively flat year-over-year Previously 0.5% to 2.5% Previously 6.5% to 8.5%
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Strategic Capital Structure Objectives We continue to focus on the following objectives related to our capital structure and pension Maintain strong cash balances and liquidity Improve net leverage ratio and credit rating Reduce uncertainty and volatility of cash requirements, including pension contributions Reduce the size of the U.S. Qualified Defined Benefit (QDB) Pension Plans, and ultimately remove Maintain debt capacity for growth opportunities Institute a capital return program
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Steps We Have T aken… © 2025 UNISYS CORPORATION. ALL RIGHTS RESERVED. 12 Issued new $700M Senior Secured Notes Refinanced $485M notes Extended Asset-Backed Revolver Maturity Contributed $250M to U.S. QDB Pension Plans Reallocated U.S. QDB Pension Plans Assets …Next Steps Increase Capacity to Fund Cost of Full Removal Execute Annuity Purchases to Reduce Cost of Full Removal of U.S. QDB Pension Plans 1 2
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Benefits of Recent Debt Raise and Pension Actions Removes Substantially All Pension Volatility Reallocated assets to match movements in assets to movements in liabilities, lowering volatility in aggregate U.S. pension contributions to <3% Reduces complexity and risk while removing uncertainty for modeling and valuation purposes Increases funding level to allow continuation of annuity purchases Removes pension liabilities at lower cost while reducing future cost of full plan removal Planning for $600M of annuity purchases by year-end 2026 Enables Further Annuity Purchase Transactions Reduces GAAP Pension Deficit & Contributions $250M contribution reduces U.S. GAAP pension deficit dollar- for-dollar ~$35M average annual reduction in required contributions in 2026-2029 to U.S. QDB Pension Plans Cash Flow Accretive Over Next 5 Y ears1 Contribution reduction exceeds interest on incremental debt ~$70M aggregate cash flow benefit (~$14M average annual benefit) for the 5-yr period of 2025-2029 3-5 Y ear Path to Full Removal of U.S. QDB Plans U.S. GAAP pension deficit declines by ~40% of aggregate contributions over next 5 years Operating cash flow provides additional de- leveraging to support potential removal of U.S. QDB Plans Supports path to 2.5x net leverage target
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Summary of Debt Transaction Closed on Friday, June 27 , 2025 Aggregate Principal amount $700 million of senior secured notes Tenor; Maturity 5.5 years; January 15, 2031 Coupon 10.625% Redemption NC-2.5 (to January 15, 2028), then callable at par plus 50% of coupon, then par plus 25% of coupon and then to par In addition, prior to January 15, 2028,the Company may redeem once per calendar year 10% of the issuance at a purchase price equal to 103% of the principal amoutn of the notes redeemed, plus accrued and unpaid interest, if any, and up to 40% of the issuance with the proceeds from an equity issuance at par plus the coupon Covenants Usual and customary Ranking Second lien to asset-backed revolver collateral Allows incremental Pari Passu Debt up to (a) an amount such that after giving pro forma effect to the debt incurrence Total Net Leverage Ratio would not exceed 1.70 to 1.00 plus (b) up to the greater of (i) $150.0 million and (ii) 8.0% of Consolidated Total Assets Guarantors All of the Company’s existing or future domestic majority-owned subsidiaries that are guarantors or borrowers under the asset-backed Credit Facility Security Substantially all assets of the Unisys and guarantors, with a first lien on such assets constituting non-ABL Priority Collateral (including a pledge of 100% of the capital stock of each first tier domestic and foreign subsidiary of the Issuer and Guarantors) and a second lien on such assets constituting ABL Priority Collateral, subject to permitted liens and customary exceptions Use of proceeds To refinance existing $485 million notes, contribute $250 million to U.S. QDB Pension Plans, including $50 million from balance sheet cash, and for general corporate purposes Distribution 144A / Reg S
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Reduction of Volatility in the U.S. QDB Pension Plans Provides near certainty of cash flow impact of pension contributions Reallocated assets such that movements in assets matches movements in liabilities • Significantly reduces volatility of GAAP pension deficit and fixes aggregate 2025-2029 contributions within ~3% of current forecast1 • Reduces expected return on assets to 5.4% from 7.4% • Opportune time to de-risk due to low risk premium associated with growth assets 61% 14% 25% 50% 50% Liability Hedging Portfolio Growth Portfolio T arget Asset Allocation Growth Portfolio, 65% Liability Hedging Portfolio, 35% U.S. Treasuries2 U.S. Investment Grade Corporate Bonds Return Seeking Bonds Global Public Equities Prior to July 1, 2025 Growth Portfolio, 10% Liability Hedging Portfolio, 90% Current: Asset Liability Matching 100%90% 10% Liability Hedging Portfolio Growth Portfolio T arget Asset Allocation U.S. Treasuries2 U.S. Investment Grade Corporate Bonds Opportunistic
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Accretion to Five-Y ear Cash Flow Contribution reduction exceeds interest on incremental debt • Analysis shows $70M cash flow benefit assuming minimum required pension contributions only • Benefit could improve from discretionary debt or pension payments from operational cash flows Forecasted ($M) 2025 2026 2027 2028 2029 Total U.S. QDB Pension Plans Contribution Forecast: January 20251 $59 $92 $93 $95 $91 $430 U.S. QDB Pension Plans Contribution Forecast: July 20251.2 $59 $51 $75 $26 $54 $265 Reduction to contributions after the transaction $0 $41 $18 $69 $37 $165 Additional interest expense on incremental $200M debt $0 $21 $21 $21 $21 $85 Reduced interest income due to $50M use of cash $1 $2 $2 $2 $2 $10 Net cash flow (use) / benefit ($1) $18 ($5) $46 $14 $70 All Other Plans Contribution Forecast: July 20253 $33 $31 $31 $30 $30 $155 Total Global Pension Plans Contribution Forecast: July 2025 $92 $82 $106 $56 $84 $420
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Ability to Continue U.S. Annuity Purchases Removes gross liability with minimal impact to net leverage and significantly reduces costs to remove U.S. QDB Pension Plans • Reduces cost of full plan termination to more manageable size – Opportunity to continue annuity purchases beyond 2026 to further reduce termination costs Forecasted (Y ear-end, $M1) 2025 2026 2027 2028 2029 Cost of Removal 20292 U.S. QDB Pension Plans' liabilities 1,844 1,744 1,644 1,543 1,444 @10% premium on liabilities @15% premium on liabilities U.S. QDB Pension Plans' deficit (234) (216) (173) (175) (150) 295 365 Assuming Potential Annuity Purchases in 2025 and 2026 U.S. QDB Pension Plans liabilities 1,452 1,176 1,106 1,035 966 @10% premium on liabilities @15% premium on liabilities Annuity Purchase at 3% premium to U.S. GAAP 400 200 U.S. QDB Pension Plans deficit (245) (232) (189) (144) (136) 235 280 Assumes No Annuity Purchases Assumes Annuity Purchases Removing ~$600M of Liabilities
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Appendix
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Our Portfolio of Offerings Cloud, Applications & Infrastructure Solutions Digital Workplace Solutions Enterprise Computing Solutions Cloud Consulting, migration, and managed services across multi-cloud environments including public and private clouds or hybrid workloads Cloud AI Establishing robust AI foundations and enabling AI adoption at scale Applications Development, migration, & modernization Data Modernizing, migrating, and managing data to enable analytics and unlock insights Cybersecurity To ensure architecture, applications and data in motion and at rest are secure Intelligent Workplace Enhanced Service Desk and Field Service solutions Unified Experience Management XLAs, experience monitoring software, automation, AI, and our Experience Management Office (XMO) Modern Device Management To remotely provision, track, manage and protect Workplace as a Service Solutions including device subscription services and enterprise service management Seamless Collaboration Collaboration tools and optimizing networks, platforms, and workspaces to enhance productivity ClearPath Forward® A flexible collection of products and platforms that provide secure, scalable operating environments for high-intensity enterprise computing Specialized Services Services to manage and modernize infrastructure that runs our ClearPath Forward operating system Industry solutions Leveraging data, AI, advanced computing including for Air Cargo, Travel, Financial Services, and Public Sector clients Simplifying mission-critical IT at scale ~$100B T AM in 2024 / 5.5% 3-yr CAGR3 Focus on existing base ~38% of Revenue1 / ~20% gross profit margin1 ~26% of Revenue1 / ~16% gross profit margin1 ~31% of Revenue1 / ~58% gross profit margin1 Tech-Enabled Services (Ex-L&S) (~80% of Revenue)1 Software (L&S) (~20% of Revenue)1 ~$600B T AM in 2024 / 12.7% 3-yr CAGR2 Consistent Revenue Recognition Revenue Growth / Margin Expansion Up-Front License Revenue / Support Over Term
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We have multiple opportunities to create solid value for Unisys stakeholders Our Opportunity Grow Ex-L&S revenue Building awareness and recognition of our solutions & capabilities Accelerate growth rate Through higher-value solutions and leveraging AI to more rapidly scale solution delivery ClearPath Forward 2050 Invest in L&S ecosystem, unlock data & insights, and support client modernization Expand profitability Through delivery optimization, solution mix shift, and SG&A efficiencies Improve free cash flow conversion Lower environmental & restructuring payments, one-time environmental recovery, utilization of tax assets Sustain flexible capital structure Reducing leverage and pension deficit/liabilities to enable full removal of U.S. Qualified Defined Benefit Pension Plans
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How Unisys enables enterprise AI Strategy & Consulting AI Center of Excellence 3 1 4 2 Data Services Solutions Managed Services AI vision & strategy | Maturity & Readiness assessment | Roadmap development | Change management | Upskilling Data preparation & transformation | Governance& security | Data strategy | Data quality & analytics | Risk assessment Unique Unisys solutions | Partner-integrated solutions | Agents, accelerators and technology frameworks | Partner-focused services Operations & optimization | Application, cloud & security management | Datacenter management | Performance monitoring A comprehensive, start-to-future AI portfolio with a pragmatic approach High-impact business outcomes Holistic ecosystem support Security and regulatory compliance
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Excluding License and Support (Ex-L&S) Revenue and Gross Profit $M 2Q25 2Q24 YTD25 YTD24 L&S REVENUE $ 87.6 $ 82.1 $ 158.7 $ 175.3 EX-L&S REVENUE 395.7 396.1 756.7 790.7 REVENUE $ 483.3 $ 478.2 $ 915.4 $ 966.0 L&S GROSS PROFIT $ 60.3 $ 55.7 $ 103.6 $ 120.5 EX-L&S GROSS PROFIT 69.7 74.2 133.9 145.4 GROSS PROFIT $ 130.0 $ 129.9 $ 237.5 $ 265.9 L&S GROSS PROFIT MARGIN 68.8% 67.8% 65.3% 68.7% EX-L&S GROSS PROFIT MARGIN 17.6% 18.7% 17.7% 18.4% GROSS PROFIT MARGIN 26.9% 27.2% 25.9% 27.5%
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Non-GAAP Operating Profit $M 2Q25 2Q24 YTD25 YTD24 GAAP OPERA TING PROFIT $ 30.3 $ 23.6 $ 35.4 $ 41.3 CERT AIN LEGAL MA TTERS 1 0.1 3.1 0.6 10.4 COST REDUCTION AND OTHER EXPENSES 2 6.0 2.3 11.9 11.3 PENSION AND POSTRETIREMENT EXPENSE 1 0.4 0.3 0.8 0.7 NON -GAAP OPERA TING PROFIT $ 36.8 $ 29.3 $ 48.7 $ 63.7 REVENUE $ 483.3 $ 478.2 $ 915.4 $ 966.0 GAAP OPERA TING PROFIT MARGIN 6.3% 4.9% 3.9% 4.3% NON -GAAP OPERA TING PROFIT MARGIN 7.6% 6.1% 5.3% 6.6%
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Adjusted EBITDA Reconciliation $M 2Q25 2Q24 YTD25 YTD24 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 20.1) ($ 12.0) ($ 49.6) ($ 161.5) NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0.1 (0.5) (1.0) (0.3) INTEREST EXPENSE, NET OF INTEREST INCOME OF $5.6, $5.3, $11.4 AN D $11.9, RESPECTIVELY 1 2.6 2.6 5.0 3.9 PROVISION FOR INCOME TAXES 20.0 18.8 30.6 35.8 DEPRECIATION 10.1 12.3 19.5 24.7 AMORTIZATION 15.9 14.4 29.1 28.8 EBITDA $ 28.6 $ 35.6 $ 33.6 ($ 68.6) PENSION AND POSTRETIREMENT EXPENSE 22.0 12.4 43.9 159.0 LOSS ON DEBT EXTINGUISHMENT 1 6.8 - 6.8 - CERTAIN LEGAL MATTERS, NET 2 0.7 6.5 0.3 (1.7) ENVIRONMENTAL MATTERS 1 0.9 0.7 1.3 1.0 COST REDUCTION AND OTHER EXPENSES 3 0.1 1.3 3.8 10.0 NON -CASH SHARE BASED EXPENSE 2.9 4.6 9.7 11.1 OTHER (INCOME) EXPENSE, NET ADJUSTMENT 4 (0.6) (2.7) 2.2 12.9 ADJUSTED EBITDA $ 61.4 $ 58.4 $ 101.6 $ 123.7 REVENUE $ 483.3 $ 478.2 $ 915.4 $ 966.0 ADJUSTED EBITDA MARGIN 12.7% 12.2% 11.1% 12.8%
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Non-GAAP Net Income $ M EXCEPT SHARE AND PER SHARE DATA 2Q25 2Q24 YTD25 YTD24 NET LOSS ATTRIBUTABLE TO UNISYS CORPORATION ($ 20.1) ($ 12.0) ($ 49.6) ($ 161.5) PENSION & POSTRETIREMENT EXPENSE PRETAX 22.0 12.4 43.9 159.0 TAX 0.6 0.1 1.2 0.2 NET OF TAX $ 21.4 $ 12.3 $ 42.7 $ 158.8 LOSS ON DEBT EXTINGUISHMENT PRETAX 6.8 - 6.8 - TAX - - - - NET OF TAX $ 6.8 - $ 6.8 - CERTAIN LEGAL MATTERS, NET PRETAX 0.7 6.5 0.3 (1.7) TAX - - - (2.8) NET OF TAX $ 0.7 $ 6.5 $ 0.3 $ 1.1 ENVIRONMENTAL MATTERS PRETAX 0.9 0.7 1.3 1.0 TAX - - - - NET OF TAX $ 0.9 $ 0.7 $ 1.3 $ 1.0 COST REDUCTION & OTHER EXPENSES PRETAX 4.4 3.5 9.2 14.6 TAX 0.3 - 0.3 0.3 NET OF TAX $ 4.1 $ 3.5 $ 8.9 $ 14.3 NON- GAAP NET INCOME ATTRIBUTABLE TO UNISYS CORPORATION $ 13.8 $ 11.0 $ 10.4 $ 13.7
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Non-GAAP Diluted Earnings Per Share $M EXCEPT SHARE AND PER SHARE DATA 2Q25 2Q24 YTD25 YTD24 NON- GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION $ 13.8 $ 11.0 $ 10.4 $ 13.7 WEIGHTED A VERAGE SHARES (THOUSANDS) 71,261 69,275 70,683 68,990 PLUS INCREMENT AL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS - - - - ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 71,261 69,275 70,683 68,990 WEIGHTED A VERAGE SHARES (THOUSANDS) 71,261 69,275 70,683 68,990 PLUS INCREMENT AL FROM ASSUMED VESTING OF EMPLOYEE STOCK PLANS 2,306 1,636 2,885 1,952 NON -GAAP ADJUSTED WEIGHTED AVERAGE SHARES (THOUSANDS) 73,567 70,911 73,568 70,942 GAAP DILUTED LOSS PER SHARE NET LOSS A TTRIBUT ABLE TO UNISYS CORPORA TION ($ 20.1) ($ 12.0) ($ 49.6) ($ 161.5) DIVIDED BY ADJUSTED WEIGHTED A VERAGE SHARES (THOUSANDS) 71,261 69,275 70,683 68,990 DILUTED LOSS PER SHARE ($ 0.28) ($ 0.17) ($ 0.70) ($ 2.34) NON- GAAP DILUTED EARNINGS PER SHARE NON- GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION $ 13.8 $ 11.0 $ 10.4 $ 13.7 DIVIDED BY NON -GAAP ADJUSTED WEIGHTED A VERAGE SHARES 73,567 70,911 73,568 70,942 NON -GAAP DILUTED EARNINGS PER SHARE $ 0.19 $ 0.16 $ 0.14 $ 0.19
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Adjusted Free Cash Flow $M 2Q25 2Q24 YTD25 YTD24 CASH (USED FOR) PROVIDED BY OPERA TIONS ($ 316.2) $ 2.7 ($ 282.9) $ 26.5 ADDITIONS TO MARKET ABLE SOFTWARE (12.4) (12.5) (23.6) (25.7) ADDITIONS TO PROPERTIES AND OTHER ASSETS ( 7.9 ) (8.7) (16.8) (15.4) FREE CASH FLOW ($ 336.5) ($ 18.5) ($ 323.3) ($ 14.6) PENSION AND POSTRETIREMENT FUNDING 278.2 4.7 287.6 12.4 PRE -PENSION AND POSTRETIREMENT FREE CASH FLOW ($ 58.3) ($ 13.8) ($ 35.7) ($ 2.2) DEBT EXTINGUISHMENT P A YMENTS 4.0 - 4.0 - CERT AIN LEGAL P A YMENTS 0.8 1.2 1.8 2.6 ENVIRONMENT AL MA TTERS P A YMENTS 1.3 2.0 3.5 4.4 COST REDUCTION AND OTHER P A YMENTS, NET 2.8 2.6 5.3 4.5 ADJUSTED FREE CASH FLOW ($ 49.4) ($ 8.0) ($ 21.1) $ 9.3
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Non-GAAP Net Income (Loss) Margin $M 2Q25 2Q24 YTD25 YTD24 REVENUE $ 483.3 $ 478.2 $ 915.4 $ 966.0 NET LOSS A TTRIBUT ABLE TO UNISYS CORPORA TION ($ 20.1) ($ 12.0) ($ 49.6) ($ 161.5) NON -GAAP NET INCOME A TTRIBUT ABLE TO UNISYS $ 13.8 $ 11.0 $ 10.4 $ 13.7 NET LOSS A TTRIBUT ABLE TO UNISYS CORPORA TION AS A % OF REVENUE (4.2%) (2.5%) (5.4%) (16.7%) NON -GAAP NET INCOME A TTRIBUT ABLE TO UNISYS CORPORA TION AS A % OF REVENUE 2.9% 2.3% 1.1% 1.4%
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Potential Economic Benefit of T ax Assets (as of December 31, 2024) $M DESCRIPTION NET DEFERRED TAX ASSETS 1 FUTURE AVAILABLE REDUCTIONS IN TAXABLE INCOME U.S. NOLS AND TAX CREDITS: NET OPERATING LOSS – FEDERAL & STATE $ 536 $1,617 TAX CREDITS 91 435 PENSION AND OTHER: PENSION 150 600 OTHER DEFERRED TAX ASSETS 120 479 TOTAL AVAILABLE U.S. $ 897 $3,131 NON -U.S. FOREIGN TAX ATTRIBUTES NET OPERATING LOSS – NON- U.S. $ 252 $ 969 PENSION AND OTHER – NON- U.S. 87 343 TOTAL AVAILABLE NON -U.S. $ 339 $ 1,312 TOTAL AVAILABLE $ 1,236 $ 4,443 VALUATION ALLOWANCE 1 (1,168) TOTAL NET DEFERRED TAX ASSET 1 $ 68
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Definitions of Non-GAAP Financial Metrics Non-GAAP operating profit –This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses. EBITDA & adjusted EBITDA –Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill impairment charge, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses; non-cash share-based expense; and other (income) expense adjustments. Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share –These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill impairment; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items. Free cash flow – Represents cash flow from operations less capital expenditures. Pre-pension and postretirement free cash flow (Pre-pension free cash flow) – Represents free cash flow before pension and postretirement contributions. Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.
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Definitions of Other Metrics License and Support (L&S) – Represents software license and related support services, primarily ClearPath Forward®, within the company's ECS segment. Excluding License and Support (Ex-L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support services within the company’s ECS segment. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company’s business outside of these areas. Constant currency –A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue has b een and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comp arisons of the company’s business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods. Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s results of operations, but backlog can b e a useful metric and indicator of the company’s estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversio n of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Total Contract Value (TCV) –Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or re venue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represent s TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or te rms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company’s res ults of operations, but TCV can be a useful leading indicator of the company’s ability to generate future revenue over time, subject to certain inherent limitations. Measuring T CV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract mod ifications, including terminations, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP. Book-to-bill – Represents total contract value booked divided by revenue in a given period. New Business – Represents expansion and new scope for existing clients and new logo contracts.