Unisys (UIS) 16th Annual Midwest Ideas Conference summary

Company overview and market position

• Operates in a $1.6 trillion global IT services market with high single-digit growth rates.

• Employs 16,000 people, including 8,000 engineers, and partners with about 100 technology firms.

• Serves 700 clients across more than 50 countries, with top 50 clients averaging 20+ years of relationship.

• Generates nearly $2 billion in revenue, $300 million in adjusted EBITDA, and over $50 million in free cash flow for 2024.

• Recognized for deep client relationships and industry accolades, with recent improvements in analyst rankings.

Business segments and solutions

• Structured into three segments: cloud applications & infrastructure, digital workplace, and enterprise computing.

• Cloud segment focuses on managed cloud services, application modernization, and cybersecurity, with recurring revenue.

• Digital workplace provides outsourced IT support and unique field services, managing diverse workplace technologies.

• Enterprise computing centers on ClearPath Forward, a proprietary OS for mission-critical workloads, and specialized legacy services.

ClearPath Forward and revenue dynamics

• ClearPath Forward is used for secure, high-uptime transaction processing in sectors like banking and airlines.

• Contracts are multi-year, with 85% of license revenue recognized upfront, creating revenue lumpiness.

• Increased client consumption drives early renewals and additional revenue.

• Customization, security, and high migration costs make the business highly sticky.