CGI Inc. Reports Strong Q1 Earnings Surge of 12.5%, Bolstered by Strategic BJSS Acquisition

---

CGI Inc. has reported impressive financial results for the first quarter of fiscal 2025, showcasing robust growth and strategic acquisitions that position the company for continued success.

The Montreal-based technology and consulting firm announced a net profit of $438.6 million, marking a 12.5% increase from the $389.8 million reported during the same quarter last year.

This translates to a diluted earnings per share (EPS) of $1.92, up 15% from the previous year’s figure of $1.67.

Strong Revenue Growth

For the quarter ending December 31, 2024, CGI’s revenue reached $3.79 billion, reflecting a 5.1% year-over-year increase.

This growth is attributed to strong demand across various sectors, with cash generated from operations hitting a notable $646.4 million, or 17.1% of total revenue.

Additionally, CGI reported bookings of $4.16 billion, achieving a book-to-bill ratio of 109.8%, which indicates a healthy demand for its services and projects.

Strategic Acquisition

In conjunction with its financial results, CGI announced its acquisition of BJSS, a prominent UK-based technology and engineering consultancy known for its innovative IT solutions.

This strategic move is expected to bolster CGI’s workforce by adding over 2,400 skilled professionals, enhancing its capabilities in key markets.

Tara McGeehan, President of CGI’s UK and Australia operations, emphasized the value this acquisition brings, stating it will strengthen their ability to deliver measurable outcomes for clients across both private and public sectors.

Financial Position and Future Outlook

CGI’s financial health remains strong, with a backlog of approximately $29.76 billion, which is about twice its annual revenue, providing a solid foundation for future growth.

The company’s net debt stands at $1.57 billion, reflecting a net debt-to-capitalization ratio of 13.7%.

The Board of Directors has also authorized a renewal of its Normal Course Issuer Bid for up to 20,196,413 Class A shares and declared a quarterly dividend of $0.15 per share.

François Boulanger, President and CEO of CGI, remarked on the company’s performance, stating that their disciplined execution has led to strong results despite challenges in some client industries.

He highlighted the importance of their focus on digitization and artificial intelligence as key drivers for future growth.

As CGI continues to navigate the evolving landscape of technology services, its recent achievements signal a promising trajectory for fiscal 2025 and beyond.

Also Read