CGI Delivers Impressive Financial Performance in Q2 of FY2025

Author: Dylan Bailey Updated: 04-30-2025 06:40 AM

CGI Reports Strong Q2 Fiscal 2025 Financial Results

CGI (TSX: GIB.A) (NYSE: GIB) has announced impressive results for the second quarter of Fiscal 2025, highlighting its robust financial performance. Revenue exceeded $4 billion, marking a year-over-year increase of 7.6%. The results underscore the company's commitment to growth and operational excellence, even amid a challenging economic environment.

Quarterly Revenue and Earnings Performance

In the second quarter, CGI reported a revenue of $4.02 billion, reflecting a growth rate of 7.6% from the previous year. When adjusted for foreign currency variations, the growth rate rebounds to 3.3%. Earnings before income taxes increased to $582.6 million, showing a 0.9% rise, with a margin of 14.5%. Adjusted earnings before interest and taxes reached $665.7 million, or 16.5% margin, a 5.9% increase year-over-year.

Key Financial Metrics

Net earnings were $429.7 million, also up 0.7% year-on-year with a margin of 10.7%. Adjusted net earnings rose 4.6% to $480.7 million, providing a margin of 11.9%. The diluted earnings per share grew by 3.3% to $1.89, while adjusted diluted EPS saw an increase of 7.6% to $2.12.

Strong Operational Efficiency and Future Outlook

CGI's operating activities generated cash amounting to $438.2 million, reflecting 10.9% of its revenue. The company achieved bookings of $4.48 billion, exhibiting a strong book-to-bill ratio of 111.5%. This performance is indicative of CGI's ability to maintain a solid backlog of $30.99 billion, which equates to twice its annual revenue, ensuring a robust pipeline for future growth.

Investments and Shareholder Returns

During this quarter, CGI invested a total of $99.7 million back into its operations and $1,560.6 million in acquisitions. The company also maintained its commitment to returning value to shareholders, with $34.1 million distributed in dividends.

Debt Management and Financial Stability

As of March 31, 2025, CGI's total long-term debt and lease liabilities amounted to $4.37 billion, a significant increase attributed to recent debt issuances. This has led to a net debt of $3.24 billion, highlighting CGI's proactive approach to financial management in a dynamic market environment.

François Boulanger, President and CEO, remarked on the results, emphasizing CGI's ability to foster client relationships that reinforce its financial resilience. The ongoing restructuring program aims to further optimize operations, particularly across its European divisions, ensuring sustained growth and competitiveness.

Frequently Asked Questions

What were CGI's revenue figures for the second quarter of Fiscal 2025?

CGI's revenue for Q2 2025 was $4.02 billion, marking a growth of 7.6% year-over-year.

How did CGI perform in terms of earnings before income taxes?

The company reported earnings before income taxes of $582.6 million, which is a 0.9% increase compared to the previous year.

What is the book-to-bill ratio for CGI in this quarter?

CGI achieved a book-to-bill ratio of 111.5%, indicating strong demand for its services.

What was the adjusted EPS for CGI in Q2 2025?

The adjusted diluted earnings per share (EPS) for CGI was $2.12, a rise of 7.6% from the prior year.

How much did CGI return to shareholders during this period?

CGI returned $34.1 million to shareholders through dividends in this quarter.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

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In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

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