CGI (GIB) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $4.02 billion (CAD 4 billion), up 7.6% year-over-year, driven by acquisitions and strong managed services demand, with 3.3% growth in constant currency.

• Adjusted EBIT was $666 million (16.5% margin), and adjusted net earnings were $481 million (11.9% margin); diluted EPS rose 3.3% to $1.89, and adjusted diluted EPS increased 7.6% to $2.12.

• Bookings totaled $4.5 billion for a book-to-bill ratio of 111.5%, with a global backlog of $31 billion.

• Restructuring efforts expanded, mainly in continental Europe, with $50.9 million in Q2 costs and an additional $137 million expected.

• 94,000 professionals employed globally, with 87% participating in the share purchase plan.

Financial highlights

• Revenue grew 7.6% year-over-year (3.3% in constant currency); North America up 6.4%, Europe up 0.7%.

• Adjusted EBIT increased 5.9% year-over-year; adjusted EBIT margin was 16.5% (down 30 bps); diluted EPS was $2.12 (up 7.6% adjusted, 3.3% GAAP).

• Cash from operations was $438 million (10.9%–11% of revenue), impacted by restructuring and acquisition payments.

• Return on invested capital was 15.4%, down 50 bps year-over-year due to recent acquisitions.

• Net debt increased to $3.24 billion, with a net debt-to-capitalization ratio of 24.1%.

Outlook and guidance

• Demand for digital transformation, modernization, data, cybersecurity, and AI remains strong across geographies and industries.

• Managed services pipeline is up over 15% year-over-year; bookings for managed services exceeded $5 billion in the first half, up 21%.

• Management is increasing the scope of restructuring, mainly in Continental Europe, with $137 million in additional costs expected.

• No formal guidance provided due to dynamic macroeconomic conditions.