CGI (GIB) Q1 2025 earnings summary

Executive summary

• Revenue grew 5.1% year over year to CAD 3.8 billion ($3.79B), or 2.7% in constant currency, with strong North American and U.S. Federal segment growth and continued positive momentum despite a dynamic client environment.

• Bookings reached CAD 4.2 billion ($4.2B), with a book-to-bill ratio of 109.8%, and global backlog of CAD 29.8 billion ($29.76B), providing strong revenue visibility.

• Net earnings were CAD 439 million ($438.6M) (11.6% margin), with diluted EPS up 15% year over year to CAD 1.92; adjusted net earnings were CAD 449 million (11.9% margin), and adjusted diluted EPS was CAD 1.97, up 7.7%.

• Major acquisitions included Daugherty in the U.S. and a pending agreement to acquire BJSS in the U.K., expanding commercial sector presence.

• High client satisfaction (9.5/10) and increased employee share ownership (87% of staff) reflect strong stakeholder engagement.

Financial highlights

• Adjusted EBIT was CAD 612 million ($611.7M) (16.2% margin), with margin improvements offset by temporary acquisition impacts and lower utilization in parts of Europe.

• Cash from operations was CAD 646 million ($646.4M) (17.1% of revenue), with DSO improving to 38 days.

• Return on invested capital reached 16.2%, up 30 basis points year over year.

• Cash and cash equivalents rose to $1.80 billion, and net debt fell to $1.57 billion, with net debt-to-capitalization at 13.7%.

• EBIT was $591.7 million, up 12.3% year-over-year, with a margin of 15.6%.

Outlook and guidance

• Pipeline of opportunities is up 20% year over year, with strong demand for managed services, IP, and AI-driven solutions.

• Margins expected to remain stable as integration of recent acquisitions is balanced by cost actions, especially in Germany, with ~$42 million in additional costs by Q3-F2025.

• Long-term cash flow conversion target remains at 15% of revenue.

• Continued focus on accretive acquisitions, digital transformation, and investment in business growth.