Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom Signature reinforces the company's commitment to responsible and ethical AI practices BRUSSELS, Sept. 25, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's largest business and IT consulting firms, announced today that it has signed the European Union's (EU) Artificial Intelligence (AI) Act Pledge as part of its engagement with the European Commission's AI Pact. The signature reinforces CGI's commitment globally to uphold the hi ...

Stock Market Symbols GIB (NYSE) GIB.A (TSX) www.cgi.com/newsroom 20-year agreement supports Themis Program aim to modernize the justice system BELFAST, Northern Ireland, Sept. 23, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, has been selected by the Department of Justice, Northern Ireland Courts and Tribunals Service (NICTS) as the delivery partner for its flagship business transformation program, Themis. The 20-year ...

Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom Modernized solution will introduce a seamless, AI-enabled financing journey for Harley-Davidson customers and enhanced flexibility for dealers FAIRFAX, Va., Sept. 23, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced its selection by HarleyDavidson Financial Services (Harley-Davidson) to modernize their loan origination system. By replacing dispa ...

FAIRFAX, Va., Sept. 11, 2024 /PRNewswire/ -- CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced its selection by Forbes as one of America's Best Employers for Women, placing it alongside those U.S. companies achieving the highest scores by 150,000 women surveyed at companies with at least 1,000 employees for Forbes' annual ranking. "At CGI, we are committed to sharing our progress in growing the representation of women at all ...

Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom MONTRÉAL, Sept. 5, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the world's largest business and IT consulting firms, has been named a Leader in Everest Group's Guidewire Services PEAK Matrix® Assessment 2024 for property and casualty (P&C) insurance. CGI was recognized for expanding Guidewire Services into growing markets, building local and offshore delivery capabilities, and adopting geospecific strategies in line with the company's ...

FAIRFAX, Va., Aug. 28, 2024 /PRNewswire/ -- CGI Federal Inc. (CGI), the wholly-owned U.S. operating subsidiary of CGI Inc. (NYSE: GIB) (TSX: GIB.A), today announced two contract awards from the U.S. Patent and Trademark Office (USPTO). Under these contracts, which have a combined total potential value of US$119 million, CGI will deliver operational, maintenance and security solutions and expertise in support of the global innovation community operated by USPTO. Under one of the awarded contracts, a 5-year B ...

Stock Market Symbols GIB.A (TSX) GIB (NYSE) cgi.com/newsroom NEW YORK, Aug. 13, 2024 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced its selection by the City of New York for maintenance of the STARS parking violation system, which runs on CGI Advantage Collections platform. CGI will partner with the city's Department of Finance under a new five-year contract with an optional two-year renewal to administer th ...

Stock Market Symbols GIB (NYSE) GIB.A (TSX) www.cgi.com/newsroom FAIRFAX, Va., Aug. 6, 2024 /PRNewswire/ - CGI Federal Inc. (CGI), the wholly-owned U.S. operating subsidiary of CGI Inc. (NYSE: GIB) (TSX: GIB.A), today announced a 2-year, US$378M extension of its contract with the U.S. Department of State (DoS) for end-to-end passport application processing services supporting the Bureau of Consular Affairs. By extending its longstanding collaboration with DoS, CGI will continue to deliver process efficienci ...

Luis Alvarez Please note all $ figures in $CAD, not $USD, unless otherwise noted. Introduction CGI Inc. (NYSE:GIB) (TSX:TSX:GIB.A:CA) is an IT consulting company with worldwide operations, employing close to 100,000 consultants globally. With global operations across various sectors including banking, communications, life sciences, manufacturing, energy, retail, and transportation, CGI is a well-diversified IT company that's demonstrated a track record of profitable and steady growth. The company has annual ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $3.7 billion, up 1.3% YoY or 0.2% excluding foreign exchange impact [3] - Earnings before income taxes were $594 million, with a margin of 16.2%, up 80 basis points YoY [6] - Adjusted EBIT was $603 million, representing a margin of 16.4%, up 30 basis points YoY [6] - Net earnings were $440 million, with a margin of 12%, up 50 basis points YoY [7] - Diluted EPS was $1.91, an increase of 9% YoY [7] - Cash provided by operating activities was $497 million, representing 13.5% of total revenue [7] - Global backlog reached $27.6 billion, or 1.9 times revenue [5] Business Line Performance - Strongest segments were Northwest and Central East Europe with 10% constant currency growth, Asia Pacific at 5.4%, Finland, Poland, and Baltics at 3.2%, and US commercial and state government at 2% [3] - IP grew at 5.2% constant currency, representing 22.5% of total revenue, up 120 basis points YoY [5] - Bookings were strong at $4.3 billion, with a book-to-bill ratio of 117% [5] - Managed services and IP engagements drove bookings, with managed services book-to-bill at 139% and IP book-to-bill at 129% [12] Market Performance - Government sector showed the highest growth at 4.1% constant currency, followed by manufacturing, retail, and distribution at 2.2% [4] - US federal bookings were particularly strong with a book-to-bill ratio of 209%, followed by UK and Australia at 153%, and Western and Southern Europe at 123% [5] - Asia Pacific, Canada, and US Federal segments showed strong margins at 31%, 22%, and 17% respectively [7] Strategic Direction and Industry Competition - The company is focusing on managed services and IP engagements to drive growth, with a strong emphasis on government sector contracts [12][13] - CGI is investing in AI and generative AI technologies, with a 20% sequential increase in AI-related projects [22] - The company is pursuing accretive acquisitions, such as the recent purchase of Aeyon, which expands its US federal capabilities [24][68] Management Commentary on Business Environment and Outlook - Management noted signs of stabilization in the macro business environment, with clients beginning to solidify future plans [17] - The company expects continued delays in decision-making for stand-alone SI&C projects but remains optimistic about the demand for managed services and IP solutions [18] - CGI is enhancing its managed services delivery approach through the expansion of its CGI DigiOps platform, which leverages AI technologies [21] Other Important Information - CGI announced a dividend program, with a quarterly cash dividend of $0.15 per share starting in Q1 2025 [9] - The company completed two strategic acquisitions, adding 875 consultants and professionals to its workforce [8] - CGI's effective tax rate for the quarter was 25.9%, with future quarters expected to be in the range of 25% to 26.5% [7] Q&A Session Summary Question: Why initiate a dividend now? - The dividend was initiated as an additional mechanism to return value to shareholders while maintaining financial flexibility for investments and acquisitions [27] Question: What is the M&A environment like? - The M&A environment is active, with reasonable valuations and increased inbound calls, particularly from smaller companies [29] Question: How is the demand environment shaping up? - The demand environment is showing signs of stabilization, with managed services offsetting softness in SI&C projects [32] Question: What does the Aeyon acquisition bring? - Aeyon brings new avenues in the national security space and complementary government-wide contract vehicles, enhancing CGI's US federal capabilities [33][34] Question: What drives margin expansion? - Margin expansion is driven by the mix of managed services and IP, leveraging global delivery and cost optimization programs [35] Question: How is AI integrated into CGI's strategy? - AI is increasingly integrated into CGI's engagements, with a focus on proprietary solutions like CGI Pulse AI and partnerships with hyperscalers [38][39] Question: What is the outlook for consulting? - Consulting remains important, particularly in AI-related data and business transformation, though recovery will be slower [48] Question: How is pricing pressure affecting the market? - Pricing pressure is more about outcomes and efficiencies rather than unit price, with clients seeking quality and operational improvements [60][61] Question: What are the geographic growth variances? - Europe is performing better than North America, with smaller geographies like Finland and Poland showing more agility and growth [65][66] Question: What is the focus of M&A? - M&A focuses on building out metro markets across verticals, with an emphasis on new client relationships and capabilities [68]