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Unisys Announces 4Q and Full-Year 2024 Results

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Company Exceeds Profitability Guidance and Meets Revenue Guidance, Significantly Improves Operating and Free Cash Flow Year over Year

Full-year gross profit margin of 29.2%, up 180 bps year over year (YoY); Excluding License and Support (Ex-L&S)(13) gross profit margin of 17.6%, an improvement of 250 bps YoYFull-year operating profit margin of 4.8%, an improvement of 100 bps YoY; non-GAAP operating profit(6) margin of 8.8%, an improvement of 180 bps YoYFull-year revenue of $2,008.4 million, (0.3)% YoY as reported and in constant currency(1); in-line with the company’s full-year guidanceFull-year operating cash flow of $135.1 million compared to $74.2 million in 2023, and free cash flow(9) of $55.3 million compared to ($4.5) million in 2023Full-year New Business(5) Total Contract Value (TCV)(3) of $791 million, an increase of 29% YoY driven by new logo signingsCompany issues full-year 2025 guidance of 0.5% to 2.5% YoY revenue growth in constant currency and 6.5% to 8.5% non-GAAP operating profit margin

BLUE BELL, Pa., Feb. 18, 2025 /PRNewswire/ — Unisys Corporation (NYSE: UIS) reported financial results for the fourth quarter and full year 2024.

“In 2024, we exceeded the top end of our upwardly revised profitability guidance range and met our revenue guidance,” said Unisys Chair and CEO Peter A. Altabef. “We have improved the profitability of our Ex-L&S solutions and are seeing positive consumption trends and long-term client commitment to our highly profitable L&S platforms. We laid a strong foundation for future growth, signing 29% more New Business TCV driven by New Logo signings, which we believe validates the increasing recognition our solutions are receiving from our clients, prospects, industry analysts and advisors.”

Unisys Chief Financial Officer Deb McCann said, “We are continuing to execute our strategy to enhance pre-pension and postretirement free cash flow, which nearly doubled to $82 million for the full year. We believe we have a solid liquidity position and expect rising Ex-L&S profit contribution, operational efficiency and improved cash conversion will allow us to fund our future pension contributions and organic investments for profitable growth.”

Financial Highlights

Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented except for financial guidance since such a reconciliation is not practicable without unreasonable effort.

(In millions, except numbers presented as percentages)

4Q24

4Q23

FY24

FY23

Revenue

$545.4

$557.6

$2,008.4

$2,015.4

YoY revenue growth

(2.2) %

(0.3) %

YoY revenue growth in constant currency

(1.5) %

(0.3) %

Ex-L&S revenue

$393.7

$413.3

$1,576.9

$1,586.3

YoY revenue growth

(4.7) %

(0.6) %

YoY revenue growth in constant currency

(4.8) %

(0.6) %

License and Support (L&S)(12) revenue

$151.7

$144.3

$431.5

$429.1

YoY revenue growth

5.1 %

0.6 %

YoY revenue growth in constant currency

8.4 %

0.8 %

Gross profit

$175.0

$181.2

$585.9

$551.3

Gross profit percent

32.1 %

32.5 %

29.2 %

27.4 %

Ex-L&S gross profit

$61.9

$68.4

$277.6

$240.0

Ex-L&S gross profit percent

15.7 %

16.5 %

17.6 %

15.1 %

Operating profit

$48.6

$44.0

$97.4

$76.9

Operating profit percent

8.9 %

7.9 %

4.8 %

3.8 %

Non-GAAP operating profit

$63.3

$64.0

$176.4

$140.8

Non-GAAP operating profit percent

11.6 %

11.5 %

8.8 %

7.0 %

Net income (loss) attributable to Unisys Corporation

$30.0

($165.3)

($193.4)

($430.7)

Non-GAAP net income attributable to Unisys Corporation(8)

$24.2

$35.4

$32.1

$41.7

EBITDA(7)

$90.3

($103.6)

$39.8

($204.5)

Adjusted EBITDA(7)

$91.4

$100.4

$292.1

$285.9

Adjusted EBITDA as a percentage of revenue

16.8 %

18.0 %

14.5 %

14.2 %

Fourth Quarter 2024 Results

Revenue for the fourth quarter of 2024 declined 2.2% YoY, a 1.5% decrease in constant currency, and Ex-L&S revenue declined 4.7% YoY, a 4.8% decrease in constant currency, primarily driven by lower volume with existing clients.

Gross profit margin the fourth quarter of 2024 declined 40 bps YoY and Ex-L&S gross profit margin declined 80 bps YoY, primarily due to higher cost reduction charges.

Net income attributable to Unisys Corporation in the fourth quarter of 2024 includes a gain of $40 million related to a favorable settlement of a litigation matter, for which the company received payment of $15 million as of December 31, 2024. The remaining related amount is due mid-2025.

Financial Highlights by Segment

(In millions, except numbers presented as percentages)

4Q24

4Q23

FY24

FY23

Digital Workplace Solutions (DWS):

Revenue

$128.2

$139.2

$523.5

$546.1

YoY revenue growth

(7.9) %

(4.1) %

YoY revenue growth in constant currency

(8.2) %

(4.2) %

Gross profit

$20.4

$21.3

$82.1

$76.2

Gross profit percent

15.9 %

15.3 %

15.7 %

14.0 %

Cloud, Applications & Infrastructure Solutions (CA&I):

Revenue

$132.1

$138.9

$526.9

$531.0

YoY revenue growth

(4.9) %

(0.8) %

YoY revenue growth in constant currency

(5.2) %

(0.8) %

Gross profit

$20.3

$22.7

$87.1

$81.9

Gross profit percent

15.4 %

16.3 %

16.5 %

15.4 %

Enterprise Computing Solutions (ECS):

Revenue

$208.9

$203.0

$651.3

$648.0

YoY revenue growth

2.9 %

0.5 %

YoY revenue growth in constant currency

6.2 %

1.3 %

Gross profit

$135.2

$136.9

$391.9

$396.6

Gross profit percent

64.7 %

67.4 %

60.2 %

61.2 %

Fourth Quarter 2024 Segment Results

DWS revenue for the fourth quarter of 2024 declined 7.9% YoY, an 8.2% decrease in constant currency, primarily driven by lower volume with existing clients. DWS gross profit margin for the fourth quarter of 2024 was 15.9%, an increase of 60 bps YoY, and for the full year was 15.7%, an increase of 170 bps. The increase in gross profit margin was primarily driven by delivery modernization and efficiency initiatives.

CA&I revenue for the fourth quarter of 2024 declined 4.9% YoY, a 5.2% decrease in constant currency, primarily driven by lower hardware revenue and volume with existing clients. CA&I gross profit margin for the fourth quarter of 2024 was 15.4%, a decrease of 90 bps YoY. Full-year CA&I gross profit percent was 16.5%, an increase of 110 bps, primarily driven by labor cost savings initiatives.

ECS revenue for the fourth quarter of 2024 increased 2.9% YoY, a 6.2% increase in constant currency, driven by the timing of software license renewals. ECS gross profit margin for the fourth quarter of 2024 was 64.7%, a decrease of 270 bps YoY, primarily driven by a higher proportion of hardware revenue, which has a lower gross margin relative to license renewals.

Balance Sheet and Cash Flow

(In millions)

4Q24

4Q23

FY24

FY23

Cash and cash equivalents

$376.5

$387.7

Cash provided by operations

$76.6

$23.0

$135.1

$74.2

Free cash flow

$55.7

$4.0

$55.3

($4.5)

Pre-pension and postretirement free cash flow(10)

$61.8

$10.7

$82.4

$43.5

Adjusted free cash flow(11)

$67.0

$30.9

$104.6

$120.5

Full-year 2024 free cash flow improved by $59.8 million YoY due to lower international pension contributions and favorable settlements of legal and other matters.

Sales Metrics

(In millions, except numbers presented as percentages)

Amount

YoY
Change

QoQ
Change*

4Q24

TCV

Total company

$752

(35) %

107 %

Ex-L&S New Business

$218

24 %

26 %

Ex-L&S Renewals

$312

(62) %

225 %

L&S Renewals

$222

46 %

139 %

FY24

TCV

Total company

$1,946

(11) %

Ex-L&S New Business

$791

29 %

Ex-L&S Renewals

$633

(50) %

L&S Renewals

$522

77 %

*   QoQ – quarter over quarter

In the fourth quarter and full-year 2024, total company TCV and Ex-L&S TCV declined primarily driven by the timing of renewals, partially offset by strong growth in New Business.

Backlog(2) was $2.84 billion for the fourth quarter 2024 compared to $3.01 billion for the fourth quarter of 2023 and $2.80 billion in the third quarter of 2024. The YoY decrease was primarily driven by the timing of Ex-L&S contract renewals and movement in foreign exchange.

2025 Financial Guidance

The company has issued full-year 2025 revenue growth and profitability guidance:

 Guidance

Revenue growth in constant currency

0.5% to 2.5%

Non-GAAP operating profit margin

6.5% to 8.5%

Constant currency revenue guidance translates to reported revenue growth of (1.9)% to 0.1% based on exchange rates as of January 31, 2025, and assumes L&S revenue of approximately $390 million and Ex-L&S constant currency revenue growth of 1.0% to 5.0%.

Conference Call

Unisys will hold a conference call with the financial community on Wednesday, February 19 at 8 a.m. Eastern Time to discuss the results of the fourth quarter and full-year 2024 and financial guidance for 2025.

The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.

A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-877-344-7529 for domestic callers or 1-412-317-0088 for international callers and entering access code 6837798 from two hours after the end of the call until March 5, 2025.

(1) Constant currency – A significant amount of the company’s revenue is derived from international operations. As a result, the company’s revenue has been 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 comparisons 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.

(2) Backlog – Represents future revenue associated with contracted work which has not yet been delivered or performed. Although the company believes this revenue will be recognized, it may, for commercial reasons, allow the orders to be canceled, with or without penalty.

(3) Total Contract Value (TCV) – Represents the estimated revenue related to contracts signed in the period without regard for cancellation terms. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts.

(4) Book-to-bill – Represents total contract value booked divided by revenue in a given period.

(5) New Business – Represents expansion and new scope for existing clients and new logo contracts.

(6) 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.

(7) 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, 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.

(8) Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures excluded pension and postretirement expense and charges or (credits) in connection with goodwill impairment; 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.

(9) Free cash flow – Represents cash flow from operations less capital expenditures.

(10) Pre-pension and postretirement free cash flow – Represents free cash flow before pension and postretirement contributions.

(11) Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; 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.

(12) License and Support (L&S) – Represents software license and related support revenue within the company’s ECS segment.

(13) Excluding License and Support (Ex-L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support revenue 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.

Forward-Looking Statements

This release 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 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 release and the accompanying presentation include, but are not limited to, statements made in Mr. Altabef’s and Ms. McCann’s quotations, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, investments in our solutions and artificial intelligence adoption and innovation, TCV and 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 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 full-year 2025 financial guidance, our pension liability, future economic benefits from net operating losses and statements regarding future economic conditions or performance. 

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 release is representative as of the date of this release 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.

Non-GAAP Information

This release includes certain non-GAAP financial measures that exclude certain items such as postretirement expense; 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 and to isolate in some instances the impact of software license renewals, which tend to be lumpy, and related support services in order to evaluate the company’s business outside of these areas. 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.

About Unisys

Unisys is a global technology solutions company that powers breakthroughs for the world’s leading organizations. Our solutions – cloud, AI, digital workplace, logistics and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what’s possible for more than 150 years, visit unisys.com and follow us on LinkedIn.

RELEASE NO.: 0218/9988

Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.

UIS-Q

 

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

(Millions, except per share data)

Three Months Ended

December 31,

Year Ended

December 31,

2024

2023

2024

2023

Revenue

Services

$        417.5

$        429.8

$    1,665.3

$    1,665.9

Technology

127.9

127.8

343.1

349.5

545.4

557.6

2,008.4

2,015.4

Costs and expenses

Cost of revenue:

Services

311.4

318.8

1,247.3

1,282.4

Technology

59.0

57.6

175.2

181.7

370.4

376.4

1,422.5

1,464.1

Selling, general and administrative

118.7

129.0

424.2

450.3

Research and development

7.7

8.2

25.2

24.1

Goodwill impairment

39.1

496.8

513.6

1,911.0

1,938.5

Operating income

48.6

44.0

97.4

76.9

Interest expense

8.2

7.9

31.9

30.8

Other income (expense), net

18.9

(176.7)

(140.8)

(393.9)

Earnings (loss) before income taxes

59.3

(140.6)

(75.3)

(347.8)

Provision for income taxes

28.8

23.6

117.9

79.3

Consolidated net earnings (loss)

30.5

(164.2)

(193.2)

(427.1)

Net income attributable to noncontrolling interests

0.5

1.1

0.2

3.6

Net income (loss) attributable to Unisys Corporation

$          30.0

$      (165.3)

$      (193.4)

$      (430.7)

Earnings (loss) per share attributable to Unisys Corporation

Basic

$          0.43

$        (2.42)

$        (2.79)

$        (6.31)

Diluted

$          0.41

$        (2.42)

$        (2.79)

$        (6.31)

 

UNISYS CORPORATION

SEGMENT RESULTS

(Unaudited)

(Millions)

Total

DWS

CA&I

ECS

Other

Three Months Ended December 31, 2024

Revenue

$        545.4

$        128.2

$        132.1

$        208.9

$              76.2

Gross profit percent

32.1 %

15.9 %

15.4 %

64.7 %

Three Months Ended December 31, 2023

Revenue

$        557.6

$        139.2

$        138.9

$        203.0

$              76.5

Gross profit percent

32.5 %

15.3 %

16.3 %

67.4 %

Total

DWS

CA&I

ECS

Other

Year Ended December 31, 2024

Revenue

$    2,008.4

$        523.5

$        526.9

$        651.3

$           306.7

Gross profit percent

29.2 %

15.7 %

16.5 %

60.2 %

Year Ended December 31, 2023

Revenue

$    2,015.4

$        546.1

$        531.0

$        648.0

$           290.3

Gross profit percent

27.4 %

14.0 %

15.4 %

61.2 %

 

UNISYS CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions)

December 31, 2024

December 31, 2023

Assets

Current assets:

Cash and cash equivalents

$                  376.5

$                  387.7

Accounts receivable, net

467.2

454.5

Contract assets

16.0

11.7

Inventories

16.4

15.3

Prepaid expenses and other current assets

106.3

101.8

Total current assets

982.4

971.0

Properties

396.2

396.4

Less – Accumulated depreciation and amortization

339.1

332.1

Properties, net

57.1

64.3

Outsourcing assets, net

24.0

31.6

Marketable software, net

165.0

166.2

Operating lease right-of-use assets

38.4

35.4

Prepaid pension and postretirement assets

25.6

38.0

Deferred income taxes

96.6

114.0

Goodwill

247.9

287.4

Intangible assets, net

35.5

42.7

Restricted cash

14.1

9.0

Other long-term assets

185.7

205.8

Total assets

$               1,872.3

$               1,965.4

Total liabilities and deficit

Current liabilities:

Current maturities of long-term debt

$                      5.0

$                    13.0

Accounts payable

97.9

130.9

Deferred revenue

210.4

198.6

Other accrued liabilities

314.7

308.4

Total current liabilities

628.0

650.9

Long-term debt

488.2

491.2

Long-term pension and postretirement liabilities

816.4

787.7

Long-term deferred revenue

108.8

104.4

Long-term operating lease liabilities

28.9

25.6

Other long-term liabilities

71.3

44.0

Commitments and contingencies

Total Unisys Corporation stockholders’ deficit

(283.4)

(151.8)

Noncontrolling interests

14.1

13.4

Total deficit

(269.3)

(138.4)

Total liabilities and deficit

$               1,872.3

$               1,965.4

 

UNISYS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Millions)

Year Ended

December 31,

2024

2023

Cash flows from operating activities

Consolidated net loss

$       (193.2)

$       (427.1)

Adjustments to reconcile consolidated net loss to net cash provided by operating activities:

Foreign currency losses

14.5

0.2

Non-cash interest expense

1.2

1.2

Employee stock compensation

21.2

17.2

Depreciation and amortization of properties

24.3

29.1

Depreciation and amortization of outsourcing assets

22.6

50.3

Amortization of marketable software

52.3

49.7

Amortization of intangible assets

7.2

9.7

Other non-cash operating activities

(1.2)

(0.2)

Goodwill impairment

39.1

Loss on disposal of capital assets

0.2

6.0

Pension and postretirement contributions

(27.1)

(48.0)

Pension and postretirement expense

182.2

388.5

Deferred income taxes, net

35.6

24.5

Changes in operating assets and liabilities, excluding the effect of acquisitions:

Receivables, net and contract assets

(24.5)

4.2

Inventories

(1.7)

Other assets

(21.5)

(25.5)

Accounts payable and current liabilities

(20.7)

(20.9)

Other liabilities

24.6

15.3

Net cash provided by operating activities

135.1

74.2

Cash flows from investing activities

Proceeds from foreign exchange forward contracts

3,077.1

2,751.6

Purchases of foreign exchange forward contracts

(3,094.4)

(2,740.4)

Investment in marketable software

(47.5)

(46.0)

Capital additions of properties

(16.0)

(21.3)

Capital additions of outsourcing assets

(16.3)

(11.4)

Purchases of businesses, net of cash acquired

(1.2)

Other

(0.3)

(0.9)

Net cash used for investing activities

(97.4)

(69.6)

Cash flows from financing activities

Payments of long-term debt

(15.4)

(16.9)

Financing fees

(0.5)

Other

(2.2)

(0.4)

Net cash used for financing activities

(18.1)

(17.3)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(25.7)

6.7

Decrease in cash, cash equivalents and restricted cash

(6.1)

(6.0)

Cash, cash equivalents and restricted cash, beginning of period

396.7

402.7

Cash, cash equivalents and restricted cash, end of period

$         390.6

$         396.7

 

UNISYS CORPORATION

RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited)

(Millions, except per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Net income (loss) attributable to Unisys Corporation

$          30.0

$      (165.3)

$      (193.4)

$      (430.7)

Pension and postretirement expense

pretax

11.1

174.4

182.2

388.5

tax

0.2

(0.1)

0.6

(0.7)

net of tax

10.9

174.5

181.6

389.2

Goodwill impairment

pretax

39.1

tax

net of tax

39.1

Certain legal matters, net

pretax

(39.2)

11.9

(40.1)

35.7

tax

(2.8)

net of tax

(39.2)

11.9

(37.3)

35.7

Environmental matters

pretax

7.4

7.0

8.8

24.7

tax

net of tax

7.4

7.0

8.8

24.7

Cost reduction and other expenses, net

pretax

15.2

7.6

33.7

23.8

tax

0.1

0.3

0.4

1.0

net of tax

15.1

7.3

33.3

22.8

Non-GAAP net income attributable to Unisys Corporation

$          24.2

$          35.4

$          32.1

$          41.7

Weighted average shares (thousands)

69,458

68,402

69,199

68,254

Plus incremental shares from assumed vesting:

Employee stock plans

3,480

Adjusted weighted average shares

72,938

68,402

69,199

68,254

Weighted average shares (thousands)

69,458

68,402

69,199

68,254

Plus incremental shares from assumed vesting:

Employee stock plans

3,480

1,365

2,340

945

Non-GAAP adjusted weighted average shares

72,938

69,767

71,539

69,199

Diluted earnings (loss) per share

GAAP basis

Net income (loss) attributable to Unisys Corporation

$          30.0

$      (165.3)

$      (193.4)

$      (430.7)

Divided by adjusted weighted average shares

72,938

68,402

69,199

68,254

Diluted earnings (loss) per share

$          0.41

$        (2.42)

$        (2.79)

$        (6.31)

Non-GAAP basis

Non-GAAP net income attributable to Unisys Corporation for diluted
earnings per share

$          24.2

$          35.4

$          32.1

$          41.7

Divided by Non-GAAP adjusted weighted average shares

72,938

69,767

71,539

69,199

Non-GAAP diluted earnings per share

$          0.33

$          0.51

$          0.45

$          0.60

 

UNISYS CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP

 (Unaudited)

(Millions)

FREE CASH FLOW

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Cash provided by operations

$          76.6

$          23.0

$        135.1

$          74.2

Additions to marketable software

(10.8)

(13.1)

(47.5)

(46.0)

Additions to properties

(5.0)

(5.9)

(16.0)

(21.3)

Additions to outsourcing assets

(5.1)

(16.3)

(11.4)

Free cash flow

55.7

4.0

55.3

(4.5)

Pension and postretirement funding

6.1

6.7

27.1

48.0

Pre-pension and postretirement free cash flow

61.8

10.7

82.4

43.5

Certain legal (receipts) payments

(6.8)

9.7

(4.8)

30.2

Environmental matters payments

8.7

7.2

17.2

21.8

Cost reduction and other payments, net

3.3

3.3

9.8

25.0

Adjusted free cash flow

$          67.0

$          30.9

$        104.6

$        120.5

 

UNISYS CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP

 (Unaudited)

(Millions)

EBITDA

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Net income (loss) attributable to Unisys Corporation

$          30.0

$      (165.3)

$      (193.4)

$      (430.7)

Net income attributable to noncontrolling interests

0.5

1.1

0.2

3.6

Interest expense, net of interest income of $5.8, $6.3, $23.2, $26.3
respectively(1)

2.4

1.6

8.7

4.5

Provision for income taxes

28.8

23.6

117.9

79.3

Depreciation

10.9

21.0

46.9

79.4

Amortization

17.7

14.4

59.5

59.4

EBITDA

$          90.3

$      (103.6)

$          39.8

$      (204.5)

Pension and postretirement expense

$          11.1

$        174.4

$        182.2

$        388.5

Goodwill impairment

39.1

Certain legal matters, net(2)

(39.2)

11.9

(40.1)

35.7

Environmental matters(1)

7.4

7.0

8.8

24.7

Cost reduction and other expenses, net(3)

9.7

4.5

22.1

13.5

Non-cash share based expense

5.0

4.1

20.9

16.6

Other expense, net adjustment(4)

7.1

2.1

19.3

11.4

Adjusted EBITDA

$          91.4

$        100.4

$        292.1

$        285.9

(1) Included in other (expense), net on the consolidated statements of income (loss).

(2) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss).  For the three months ended and the year ended December 31, 2024, certain legal matters , net include a gain of $40.0 million related to a favorable settlement of a litigation matter. Additionally, for the year ended December 31, 2024, certain legal matters, net include a net gain of $14.9 million related to a favorable judgement received in a Brazilian services tax matter.

(3) Reduced for depreciation and amortization included above.

(4) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, interest income and items included in certain legal and environmental matters, cost reduction and other expenses.

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Revenue

$   545.4

$   557.6

$  2,008.4

$  2,015.4

Net earnings (loss) attributable to Unisys Corporation as a percentage of
revenue

5.5 %

(29.6) %

(9.6) %

(21.4) %

Non-GAAP net income attributable to Unisys Corporation as a
percentage of revenue

4.4 %

6.3 %

1.6 %

2.1 %

Adjusted EBITDA as a percentage of revenue

16.8 %

18.0 %

14.5 %

14.2 %

 

UNISYS CORPORATION

RECONCILIATIONS OF GAAP TO NON-GAAP

 (Unaudited)

(Millions)

OPERATING PROFIT

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Operating profit

$     48.6

$     44.0

$     97.4

$     76.9

Goodwill impairment

39.1

Certain legal matters(1)

0.8

11.4

9.0

35.2

Cost reduction and other expenses(2)

13.6

8.4

29.5

27.4

Pension and postretirement expense(1)

0.3

0.2

1.4

1.3

Non-GAAP operating profit

$     63.3

$     64.0

$   176.4

$   140.8

Revenue

$   545.4

$   557.6

$  2,008.4

$  2,015.4

Operating profit percent

8.9 %

7.9 %

4.8 %

3.8 %

Non-GAAP operating profit percent

11.6 %

11.5 %

8.8 %

7.0 %

(1) Included in selling, general and administrative expenses within the consolidated statements of income (loss).

(2) Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss).

 

EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT

Three Months Ended

Year Ended

December 31,

December 31,

2024

2023

2024

2023

Revenue

$    545.4

$    557.6

$ 2,008.4

$ 2,015.4

L&S revenue

151.7

144.3

431.5

429.1

Ex-L&S Non-GAAP revenue

$    393.7

$    413.3

$ 1,576.9

$ 1,586.3

Gross profit

$    175.0

$    181.2

$     585.9

$    551.3

L&S gross profit

113.1

112.8

308.3

311.3

Ex-L&S Non-GAAP gross profit

$      61.9

$      68.4

$     277.6

$    240.0

Gross profit percent

32.1 %

32.5 %

29.2 %

27.4 %

Ex-L&S Non-GAAP gross profit percent

15.7 %

16.5 %

17.6 %

15.1 %

 

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Technology

VibeBeats Launches AI-Powered Music Streaming Service for Businesses globally

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Vibebeats AI gives cafés, gyms, retailers, bars and hotels fully licensed, AI-curated streaming music for business from any phone, tablet or browser — no hardware, no lock-in contracts, no licensing paperwork — from A$29 a month with a 7-day free trial.

BRISBANE, Australia, July 24, 2026 /PRNewswire-PRWeb/ — VibeBeats Launches AI-Powered Music Streaming Service for Businesses globally

VibeBeats gives venues fully licensed, AI-curated Music at a fraction of the cost — one app, one licence, one platform.

Vibebeats AI gives cafés, gyms, retailers, bars and hotels fully licensed, AI-curated streaming music for business from any phone, tablet or browser — no hardware, no lock-in contracts, no licensing paperwork — from A$29 a month with a 7-day free trial.

Most venues playing music through consumer apps are doing it on the wrong licence. VibeBeats, an Australian-built, AI-powered streaming music for business platform, has launched across Australia and worldwide to fix that — turning any phone, tablet or browser into a fully licensed venue sound system in under five minutes. One agreement covers commercial performance rights across OneMusic and APRA AMCOS in Australia, and ASCAP, BMI, PRS and other rights bodies internationally — the same platform serving a café in Melbourne or a gym in London.

The “Spotify for business” that actually exists

Every month, thousands of venue owners worldwide search for “Spotify for business” — a product that doesn’t exist. Consumer streaming accounts are licensed for personal use only, leaving businesses that play them exposed under copyright law in Australia and virtually every other market. VibeBeats fills that gap: a business music streaming service where the commercial music rights are handled under one agreement — no separate music licence for business paperwork to manage.

“The number one thing we see is venue owners assuming it’s fine to play their personal Spotify account in the café — most don’t realise a licence fee even applies,” said Damien King, founder of VibeBeats. “It’s not bad intent. Licensing is complex, and when you’re running a small business there are a hundred competing priorities. VibeBeats solves it with one app, one licence, one platform.”

What VibeBeats delivers

Fully Licensed for Commercial Use — one agreement covers the rights that would otherwise involve OneMusic, APRA AMCOS, ASCAP, BMI, PRS and more.No Hardware Required — any phone, tablet or browser becomes the venue sound system — set up in under five minutes.AI-Curated Background Music for Business — stations matched to venue type and time of day, from morning coffee trade to peak gym floor to late-night bar.Smart Scheduling — playlists by daypart, with music that keeps running through connection drops.Multi-Venue Dashboard — manage every location from a single account.Simple Pricing — from A$29 per month per venue with a 7-day free trial — no lock-in contracts.

Pricing and availability

VibeBeats is available now from $29AUD/$20US per month per venue, and globally, with a 7-day free trial at vibebeats.ai. Purpose-built stations are available for cafés, gyms, retail and in-store environments, bars and hotels.

About VibeBeats

VibeBeats is an AI-powered commercial music streaming platform for businesses, offering direct-licensed music for cafés, restaurants, bars, retail stores, gyms and hotels. One agreement covers commercial performance rights that would otherwise involve PROs, OneMusic, APRA AMCOS, ASCAP, BMI, PRS and more. Australian-built and available globally, VibeBeats AI streams to any device with no proprietary hardware required. Learn more at vibebeats.ai.

VibeBeats is not affiliated with Spotify.

Media Contact

Damien King, Vibebeats AI, 61 0408009067, hello@vibebeats.ai, https://vibebeats.ai

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Inside information: Valmet initiates a strategic review to evaluate a potential separation of its two segments

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Valmet Oyj’s stock exchange release (inside information) on July 24, 2026 at 9.01a.m. EEST 

ESPOO, Finland, July 24, 2026 /PRNewswire/ — The Board of Directors of Valmet Oyj (“Valmet” or the “Company”) has decided to initiate a strategic review to evaluate a potential separation of its two core businesses, Biomaterial Solutions and Services, and Process Performance Solutions, into two standalone publicly listed companies. The review will focus on assessing whether a separation of the two businesses and their operation as separately listed companies on Nasdaq Helsinki would create additional value for shareholders compared with the current combined structure.

Both Valmet’s core businesses report as separate segments and they have grown into large, mostly independent profitable businesses, each with strong market positions and scale that allow them to succeed independently. With the recent completion of the Severn acquisition taking Process Performance Solutions to approximately EUR 1.7 billion in annual net sales and the renewed operating model now firmly in place, the Board believes this is the right time to assess whether a separation would unlock shareholder value by enabling each business to better realise its full potential.

The Board also notes that the two core businesses operate relatively independently as they serve mainly different customer industries, exhibit distinct business drivers, and have different capital allocation profiles. Biomaterial Solutions and Services is a global technology and lifecycle services business focused on the pulp, board, paper, tissue and energy industries, where its competitive advantage is anchored in a vast installed base, advanced technology, global presence, strong customer references and global services penetration. Process Performance Solutions is a mission-critical automation and flow control business serving a diversified set of industries. Over the past decade, it has evolved from a business primarily focused on pulp and paper into a diversified industrial platform, with close to 70 percent of net sales generated from other industries today.

Based on the Board’s initial assessment, a separation would allow each business to pursue sustainable profitable growth opportunities more independently and efficiently, with the potential for sharper management focus, greater agility, more tailored capital allocation, and more flexible access to external capital to support both organic and inorganic growth. The Board will also assess whether, if implemented, a separation would improve transparency, simplify governance, and allow capital markets to better recognize the full value of both businesses.

Pekka Vauramo, Chair of the Board, said:
“The Board continuously evaluates how to create the greatest long-term value for Valmet’s shareholders. Today, Valmet consists of two strong businesses with distinct markets, growth opportunities and capital allocation needs. Through this review, we will assess whether they can create more value as independent companies than they can together. We will only proceed with a separation if we conclude after detailed analysis that separation is clearly in the best interests of our shareholders.” 

Thomas Hinnerskov, President and CEO of Valmet, said:
“Both of our businesses are well positioned, with strong customer relationships and market positions, as well as talented employees. The review reflects the strength and maturity of both businesses, which we have built through strong execution, organic growth and strategic investments into sizeable and successful operations with the scale, capabilities and opportunities to create further value both together and, potentially, as independent companies. This review does not change our commitment to our customers or our strategy. It is a priority for us to preserve the strength of our full offering and the value our customers gain from services, automation and technology working together. Throughout the process, our focus remains on serving our customers and delivering value for their success.”

Although the strategic review has been initiated, there is no guarantee that the review will result in any transaction, including a separation. The Board will only execute or recommend changes to the Group’s structure if clear evidence of enhanced shareholder value creation can be attained. Valmet will provide an update on the review latest in connection with the publication of its full-year 2026 results.

Further information, please contact:

For investors: Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020

For media: Valmet Communications, media@valmet.com

VALMET

Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com

Valmet is a global technology leader in serving process industries. We work with our customers throughout the lifecycle, delivering cutting-edge technologies and services, as well as mission-critical automation and flow control solutions. Backed by more than 225 years of industrial experience and a global team of 18,500 professionals close to customers, we are uniquely positioned to transform industries toward a regenerative tomorrow.

In 2025, Valmet’s net sales totaled approximately EUR 5.2 billion. Our head office is in Espoo, Finland, and we have experts in approximately 40 countries around the world. Valmet’s shares are listed on Nasdaq Helsinki.

Follow us on valmet.com | X | LinkedIn | Facebook | YouTube | Instagram |

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Securitas AB Interim Report Q2 2026 | January-June

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STOCKHOLM, July 24, 2026 /PRNewswire/ — 

APRIL–JUNE 2026

Total sales MSEK 37 843 (38 564)Organic sales growth 0 percent (5)Adjusted organic sales growth, 3 percent*Real sales growth within technology and solutions 5 percent (4)Operating income before amortization MSEK 2 824 (2 798)Operating margin 7.5 percent (7.3)Adjusted operating margin, 7.6 percent (7.5)*Items affecting comparability (IAC) MSEK –46 (–166) Earnings per share, SEK 2.88 (2.56)Earnings per share before IAC, SEK 2.94 (2.79)Cash flow from operating activities 87 percent (106)

JANUARY–JUNE 2026

Total sales MSEK 74 054 (78 170)Organic sales growth 0 percent (4)Adjusted organic sales growth, 2 ­percent*Real sales growth within technology and solutions 4 percent (5)Operating income before amortization MSEK 5 283 (5 323)Operating margin 7.1 percent (6.8)Adjusted operating margin, 7.3 ­percent (7.1)*Items affecting comparability (IAC) MSEK 138 (–243) whereof MSEK 213 (–5) related to divestitures Earnings per share, SEK 5.68 (4.86)Earnings per share before IAC, SEK 5.40 (5.15)Cash flow from operating activities 65 percent (56)Net debt/EBITDA ratio 2.2 (2.4) 

*A new key ratio, operating margin adjusted for the government business within SCIS in the process of being closed down, was added as of the second quarter 2025. A new key ratio, organic sales growth adjusted for the same business, was added as of the third quarter 2025. Refer to note 5 for further information.

Comments from the President and CEO

“Continued profitability improvement”

Organic sales growth in the second quarter, adjusted for the close-down of the SCIS government business, was 3 percent. Organic sales growth in North America was supported by both the Guarding and Technology business units, while active portfolio management had a hampering effect on organic sales growth in Europe. 

Real sales growth in technology and solutions reached 5 percent in the second quarter, supported by good performance in Technology in North America. Commercial activity remained healthy in the global technology business with strong growth in installation order intake and backlog.

We execute on our strategy with the share of technology and solutions increasing across all segments but we are not fully satisfied with the overall growth. We have built a strong and differentiated technology-led offering and we are intensifying our efforts to commercialize the capabilities we have built.

We delivered an improved adjusted operating margin in the second quarter, reaching 7.6 percent (7.5), driven by both the technology and solutions and the security services business lines. Operating income increased 3 percent and earnings per share 7 percent. For the first six months earnings per share increased 11 percent.

Cash generation was good, cor­re­spond­ing to 87 percent (106) of oper­at­ing income in the quarter, and 65 per­cent (56) for the first six months of the year. The net debt to EBITDA ratio was 2.2 (2.4).

THE TRUSTED PARTNER IN INTELLIGENCE-LED SECURITY

Our recently announced 2030 strategy positions Securitas as the trusted partner in intelligence-led security, combining global presence and deep security expertise with advanced data, analytics and technology. By leveraging actionable risk intelligence and a more consultative approach, we aim to move further up the value chain, delivering proactive, insight-driven security and strengthening our role as a strategic advisor to clients. In an increasingly complex risk environment, growing demand for professional security ­ser­vices supports our continued growth and competitive position.

The close-down of the SCIS govern­ment business is progressing accord­ing to plan and is expected to be concluded by year-end. As no further activities remain, the strategic as­sess­­­ment program was concluded in the second quarter of 2026.

The shift toward technology and solutions continues to drive prof­itabil­ity improvements. We are also strength­en­ing the performance of our security services business and, as of the second quarter of 2026, have completed portfolio management actions related to underperforming contracts in Europe. Going forward, portfolio optimization will continue as part of normal business operations, with a sustained focus on contract profitability.

CREATING LONG-TERM SHAREHOLDER VALUE

In conjunction with the launch of our strategy, we have updated the Group’s financial targets for the period through 2030. The revised targets include a new headline target of achieving 10 percent average annual earnings per share growth over a business cycle, alongside targets for cash flow, leverage and dividend policy. With a strong focus on quality and innovation, we are accelerating our transformation and remain confident in our ability to deliver sustainable earnings growth and create long-term shareholder value.

Magnus Ahlqvist
President and CEO

PRESENTATION OF THE INTERIM REPORT

Analysts and media are invited to participate in a telephone ­conference on July 24, 2026, at 9.30 a.m. (CEST) where President and CEO Magnus Ahlqvist and CFO Matteo Dall’Ora will present the report and answer questions. The ­telephone conference will also be audio cast live via Securitas’ website www.securitas.com

To follow the audio cast of the telephone conference via the web, please follow the link
www.securitas.com/en/investors/financial-reports-and-presentations/

A recorded version of the audio cast will be available at www.securitas.com/en/investors/financial-reports-and-presentations/
after the ­telephone conference.

For further information, please contact:
Micaela Sjökvist, Vice President, Investor Relations +46 76 116 7443

ABOUT SECURITAS

Securitas is a world-leading safety and security solutions partner that helps make your world a safer place. Nine decades of deep experience means we see what others miss. By leveraging technology in partnership with our clients, ­combined with an innovative, holistic approach, we’re transforming the security ­industry. With approximately 322 000 employees in 44 markets, we see a ­different world and ­create sustainable value for our clients by protecting what matters most – their people and assets.

Group financial targets

Securitas has the following financial targets:

Average annual earnings per share growth of 10 percent over a business cycle, excluding items affecting comparability and adjusted for changes in exchange rates, with a >10 percent operating margin ambition long-termOperating cash flow of 80–90 percent of operating income before amortizationNet debt to EBITDA below 2.5xDividend policy of 50–60 percent of annual net income over a business cycle, with excess capital returned to shareholders once stra-tegic growth priorities are met

Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address:
Lindhagensplan 70
Telephone: +46 10 470 30 00
Corporate registration number: 556302-7241

www.securitas.com

This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact person set out above,
at 8.00 a.m. (CEST) on Friday, July 24, 2026.

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