Q3 2025 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a revenue increase of 11.4% year-over-year, driven by recent business acquisitions and momentum in the financial services sector.
- The company achieved a book-to-bill ratio of 101%, with strong performance in the US commercial and state government sectors.
- Adjusted EBIT rose by 10.5% year-over-year, indicating effective management of operations and profitability.
- CGI Inc (GIB) has a robust pipeline of merger targets, indicating potential for future growth through strategic acquisitions.
- The company is actively integrating AI into its offerings, with 40% of its IP revenue now driven by AI, showcasing innovation and adaptation to market trends.
- Continental Europe experienced continued softness, particularly in the MRD sector, impacting overall growth.
- The adjusted EBIT margin decreased by 10 basis points due to the impact of recent mergers and associated restructuring costs.
- The US federal segment faced challenges with lower procurement volumes and contract values, affecting revenue.
- Macroeconomic uncertainty is impacting the timing of client decisions, particularly for larger enterprise engagements.
- CGI Inc (GIB) expects to incur approximately $100 million to complete its restructuring program over the remainder of 2025, indicating ongoing integration challenges.
Good morning, ladies and gentlemen. Welcome to CGI's third quarter fiscal 2025 conference call. I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Go ahead, Mr. Linder.
Thank you, Joelle, and good morning. With me to discuss CGI's third quarter fiscal 2025 results are François 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 9:00 AM Eastern Time on Wednesday, July 30, 2025. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our Q3 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 statements,
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