CGI Inc Stock Price, News & Analysis

CGI (NYSE: GIB) has announced a share purchase agreement to acquire BJSS, a major UK-based technology and engineering consultancy. The transaction, announced on January 29, 2025, is expected to close in February 2025, subject to regulatory approvals.

The acquisition will add over 2,400 skilled professionals to CGI's workforce, strengthening its UK presence across key sectors including retail, health, government, financial services, and energy & utilities. Founded in 1993, BJSS specializes in technology strategy, customer experience design, managed services, software engineering, AI, data and insights, cloud solutions, and cybersecurity services.

Following the acquisition, CGI will operate across 26 locations in the UK, implementing a proximity-based model while leveraging its international presence. The merger aims to enhance service delivery capabilities and create new opportunities for employees, with BJSS staff gaining access to CGI's employee ownership culture.

CGI (NYSE: GIB) announced that Julie Godin has been appointed Executive Chair of the Board of Directors, while founder Serge Godin transitions to the role of Board Co-Chair. Julie Godin, who currently serves as Co-Chair and Executive Vice-President of Strategic Planning and Corporate Development, will lead the company's evolution after 15 years of incrementally assuming leadership responsibilities across enterprise functions.

The succession plan has been carefully designed over nearly two decades to ensure CGI's long-term profitable growth. In her new role, Julie Godin will work alongside CEO François Boulanger and the company's 91,000 CGI Partners. Serge Godin will continue to focus on transformational acquisitions and large-scale client engagements, emphasizing that he is not retiring and remains committed to ensuring CGI's continued success.

CGI (NYSE: GIB) reported strong Q1 fiscal 2025 results with revenue reaching $3.79 billion, up 5.1% year-over-year. The company demonstrated solid financial performance with net earnings of $438.6 million, up 12.5%, and diluted EPS of $1.92, increasing 15.0% compared to the previous year.

Key highlights include cash from operations of $646.4 million (17.1% of revenue), bookings of $4.16 billion with a book-to-bill ratio of 109.8%, and a backlog of $29.76 billion. The company maintains a strong financial position with net debt of $1.57 billion and a net debt-to-capitalization ratio of 13.7%.

The Board 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. The company also initiated restructuring actions in Europe, mainly in Germany, expecting to incur approximately $42 million in costs by Q3-F2025.

CGI (TSX: GIB.A) (NYSE: GIB) announced the renewal of its Normal Course Issuer Bid (NCIB), pending Toronto Stock Exchange approval. The company plans to purchase and cancel up to 20,196,413 Class A subordinate voting shares, representing 10% of its public float as of January 23, 2025.

Under the renewed NCIB, which will run from February 6, 2025, to February 5, 2026, daily purchases on the TSX will be to 81,125 shares. The company will purchase shares at market price through TSX, NYSE, and alternative trading systems in Canada.

Under the current NCIB ending February 5, 2025, CGI has already repurchased 7,088,507 Class A shares at a weighted average price of $145.37 per share, totaling $1,030,487,393.

CGI (TSX: GIB.A) (NYSE: GIB) has announced its upcoming Annual General Meeting of Shareholders and first quarter fiscal 2025 results release, both scheduled for Wednesday, January 29, 2025. The Annual General Meeting will be held virtually at 11:00 a.m. (EST) via live webcast, allowing shareholders to participate and vote online regardless of location.

The company will release its Q1 FY2025 results before markets open on the same day, followed by a conference call at 9:00 a.m. (EST). The call will feature François Boulanger, President and CEO, and Steve Perron, Executive VP and CFO, discussing the financial results for the quarter ended December 31, 2024.

Only shareholders of record as of December 2, 2024, and authorized proxyholders will be eligible to vote at the meeting. The company has distributed meeting materials through Notice and Access rules, with documents available on CGI's website.

CGI (TSX: GIB.A) (NYSE: GIB) has been recognized as a Leader in the IDC MarketScape Report for Worldwide Service Providers for Utilities Customer Operations. The company's strong capabilities in utilities' customer operations and business innovation were highlighted in the assessment.

With over four decades of experience in the utilities sector, CGI offers comprehensive services including business consulting, IP, and business process outsourcing (BPO). The company's innovation integrates AI, robotic automation, and machine learning into core solutions like OpenGrid, u@cloud, and RMS.

CGI's portfolio includes 24 industry solution offerings across various utility operations, including established systems like Kolibri, BFUS, IS Suite, and efluid. According to CGI's recent research involving 174 energy and utilities executives, the sector's top priorities include optimizing investments, securing operations, and improving data quality for AI implementation.

CGI (TSX: GIB.A) (NYSE: GIB) has filed its 2024 Management Proxy Circular for the Annual General Meeting of Shareholders, scheduled for January 29, 2025. The company has also submitted its 2024 Annual Information Form to Canadian securities regulators and the SEC as part of its Annual Report on Form 40-F. Due to recent postal service disruptions in Canada following a national strike, there may be delays in the physical delivery of meeting materials to shareholders. Electronic versions are available on CGI's website and www.sedarplus.ca. Shareholders can request paper copies through Computershare Investor Services or Broadridge Investor Communications before January 15, 2025.

CGI (TSX: GIB.A) (NYSE: GIB) and SkyAlyne have signed a 25-year agreement for Canada's Future Aircrew Training (FAcT) program. CGI will provide comprehensive IT services including cybersecurity, cloud computing, end-user services, and infrastructure management to support SkyAlyne's military pilot and aircrew training operations.

The partnership aims to consolidate three aircrew training operations under SkyAlyne and the Government of Canada's joint management, enhancing operational capabilities for the Royal Canadian Air Force (RCAF). The collaboration combines CGI's IT expertise with SkyAlyne's training capabilities to deliver innovative solutions in military aviation training.

CGI (NYSE: GIB) has signed an equity purchase agreement to merge with Daugherty, a St. Louis-based professional services firm. The merger will add over 1,100 consultants to CGI's workforce and strengthen its presence in key U.S. markets including St. Louis, Atlanta, Minneapolis, Chicago, Columbus, Dallas, and New York. The transaction, agreed upon on November 29, 2024, is expected to close in December 2024.

The merger enhances CGI's capabilities in artificial intelligence, data analytics, strategic IT consulting, and business advisory services for Fortune 500 clients across various sectors. Daugherty clients will maintain local relationships while gaining access to CGI's global capabilities and delivery centers. The deal also includes CGI's support of The Daugherty Foundation, promoting education and career opportunities in technology.