CGI (GIB) Q4 2024 earnings summary

Executive summary

• Q4 revenue reached $3.66 billion, up 4.4% year-over-year, with diluted EPS up 8.5% to $1.91 and strong profitability driven by managed services and IP-based offerings.

• Fiscal 2024 revenue totaled $14.7 billion, up 2.7% year-over-year; net earnings for the year were $1.69 billion, up 3.8%.

• Bookings for Q4 were $3.82 billion (book-to-bill ratio 104.4%), and backlog at year-end was $28.72 billion, or 1.9x annual revenue.

• CEO highlighted continued revenue growth, earnings expansion, and strong cash generation, with a positive outlook for 2025.

• Client satisfaction and employee engagement reached record highs, supporting business resilience and growth.

Financial highlights

• Q4 adjusted EBIT was $600.2 million, up 4.7% year-over-year, with a margin of 16.4%.

• Q4 net earnings were $435.9 million (11.9% margin), with diluted EPS of $1.91, up 8.5% year-over-year.

• Fiscal 2024 adjusted EBIT was $2.42 billion, up 4.5% year-over-year, with a margin of 16.5%.

• Cash from operations in Q4 was $629 million (17.2% of revenue); for the year, $2.2 billion (15.0% of revenue); DSO improved to 41 days.

• Book-to-bill ratio for Q4 was 104.4%; last 12 months at 109.3%.

Outlook and guidance

• Management expects continued opportunities for growth in fiscal 2025, leveraging full offerings, with investments in end-to-end services, AI, and M&A.

• Managed services and IP expected to remain growth drivers; pipeline up 20% year-over-year.

• Demand for managed services remains strong, while business consulting (SI&C) is still soft but expected to recover as financial sector spending rebounds.

• Forward-looking statements note risks from economic, political, and industry factors, as well as execution of growth and integration strategies.