GDI Integrated Facility Services (GDI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was CND 610 million, down 29.5% year-over-year, mainly due to a 4% organic decline and the impact of client churn and contract losses.

• Adjusted EBITDA for Q2 was CND 34 million, flat year-over-year, with margin improving to 6% from 5% in Q2 2024.

• Year-to-date revenue reached CND 1.23 billion, a 4% decrease from the same period in 2024, while adjusted EBITDA rose 10% to CND 67 million.

• Reported net loss of CND 1 million (CND 0.04/share) versus net income of CND 2 million (CND 0.07/share) last year; excluding a CND 5 million unrealized FX loss, net income would have been CND 3 million (CND 0.12/share).

• Strategic focus remains on margin discipline, client retention, and investment in sales resources to drive sustainable growth.

Financial highlights

• Business Services Canada Q2 revenue was CND 147 million (+1% YoY), with adjusted EBITDA of CND 10 million (down CND 1 million YoY), and margin at 7%.

• Business Services USA Q2 revenue was CND 204 million (-8% YoY), with adjusted EBITDA of CND 14 million and margin up to 7% (+1% YoY).

• Technical Services Q2 revenue was CND 262 million (flat YoY), adjusted EBITDA rose to CND 14 million (+CND 2 million YoY), margin at 6% (+1% YoY).

• Corporate and Other segments had revenue of CND 7 million and negative adjusted EBITDA of CND 4 million.

• Net finance expense increased by CND 11 million in the six-month period, including a CND 5 million unrealized FX loss.

Outlook and guidance

• Expect continued softness in Business Services Canada due to high client churn and economic uncertainty, but anticipate stabilization as market conditions improve.

• Business Services USA expected to return to normalized organic growth by late 2025, supported by new contract wins and a strong sales approach.

• Technical Services segment outlook remains positive, with a near-record project backlog and higher margins.

• Management remains focused on margin discipline, sustainable growth, and cash efficiency.

• Strategic initiatives underway to align cost structure and enhance client retention in response to softness in the Canadian market.