Q2 2025 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a 7.6% year-over-year increase in revenue, reaching $4 billion, driven by recent business acquisitions.
- The company achieved a strong book-to-bill ratio of 112%, with North America at 124% and Europe at 101%, indicating robust demand for their services.
- Managed services bookings exceeded $5 billion in the first half of the year, up 21% year-over-year, highlighting strong client interest in this area.
- CGI Inc (GIB) completed three acquisitions in the quarter, expanding its presence in key markets such as the UK, Germany, and Quebec City.
- The company maintained a strong return on invested capital at 15.4%, despite recent acquisitions, demonstrating effective capital management.
- Earnings before income taxes were down 90 basis points year-over-year, primarily due to restructuring and acquisition-related costs.
- The company incurred $44 million in restructuring costs in the quarter and expects to incur an additional $137 million in the coming quarters.
- Revenue growth in Europe was only 0.7% due to softer market conditions, particularly in the manufacturing sector.
- IP revenue represented 21.5% of total revenue, down 90 basis points year-over-year due to the dilutive impact of recent business acquisitions.
- The company is facing challenges in the Continental Europe operations, leading to an expanded restructuring program impacting approximately 1.5% of employees.
Morning, ladies and gentlemen. Welcome to CGI's second quarter fiscal 2025 conference call. And I would like to turn the meeting over to Mr. Kevin Linder, SVP of Investor relations. Please go ahead, sir.
Thank you, Sylvia, and good morning. With me to discuss CGI's second quarter fiscal 2025 results are Francois Boulanger, our President and CEO; and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9 AM. Eastern Time on Wednesday, April 30, 2025.
Supplemental slides as well as the press release we issued earlier this morning are available for download along with our Q2 MD&A, financial statements and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR.
Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking
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