#Canada #Montreal #revenue growth #Fiscal 2025 #CGI

CGI Reports Impressive Financial Results for Q2 FY 2025

On April 30, 2025, CGI announced its financial results for the second quarter of Fiscal 2025, showcasing a noteworthy revenue growth trajectory despite the tumultuous market conditions. The company achieved a revenue of CAD 4.02 billion, marking an increase of 7.6% from the previous year, when adjusted for constant currency variations, this growth stands at 3.3%. This performance highlights CGI's adeptness in executing its growth strategy during challenging times.

Key Financial Highlights

The second quarter registered significant financial metrics:

• - Revenue: CAD 4.02 billion, a rise of 7.6% year-over-year.
• - Earnings before income taxes: CAD 582.6 million, a marginal increase of 0.9%, achieving a 14.5% margin.
• - Adjusted earnings before interest and taxes: CAD 665.7 million, reflecting an increase of 5.9%, with a margin of 16.5%.
• - Net earnings: CAD 429.7 million, up 0.7% year-over-year, resulting in a margin of 10.7%.
• - Diluted EPS: CAD 1.89, up 3.3% compared to last year.
• - Bookings: Totaled CAD 4.48 billion, representing a robust book-to-bill ratio of 111.5%, demonstrating CGI's ability to secure new business, despite a challenging economic landscape.

CGI's backlog also continued to grow, reaching CAD 30.99 billion, which equates to 2.0 times their annual revenue, underscoring a strong demand for their services in the upcoming quarters.

Executive Insight

François Boulanger, the President and CEO of CGI, remarked on the results, stating, "Our second-quarter results reflect our disciplined execution of a profitable growth strategy, even as our clients navigate a complex business landscape. The financial strength and capital deployment strategy of CGI enhance our resilience and future positioning. The strong bookings indicate sustained client trust in our expertise and engagement in helping them realize their operational goals."

Investment in Future Growth

During this quarter, CGI made significant investments, amounting to CAD 99.7 million reinvested in its business. They also spent CAD 1.56 billion on acquisitions, illustrating a commitment to growth through strategic expansions. Furthermore, the company repurchased and cancelled shares amounting to CAD 344.6 million under its Normal Course Issuer Bid, alongside paying CAD 34.1 million in dividends to shareholders.

As of March 31, 2025, CGI's global workforce comprised approximately 94,000 consultants, demonstrating the firm’s widespread operational capacity.

Long-Term Financial Outlook

CGI noted an increase in long-term debt due to the issuance of senior unsecured notes, now totaling CAD 4.37 billion. This rise in debt highlights the company’s continued strategic borrowing to finance growth and operations; however, net debt has also increased to CAD 3.24 billion. The net debt-to-capitalization ratio stood at 24.1%, signaling prudent fiscal management amid expansion.

Conclusion

CGI’s second quarter results for Fiscal 2025 not only reflect impressive growth in a competitive market but also establish a foundation for future success. The company remains committed to enhancing client partnerships and adapting to evolving market demands while ensuring consistent shareholder value growth. As they engage proactively with clients and stakeholders, CGI is poised well for sustained resilience and performance in the forthcoming periods.