CGI(GIB) - 2025 Q4 - Annual Report

Financial Performance - Revenue for the year ended September 30, 2025, was CAD 15,912,673, an increase of 8.4% from CAD 14,676,152 in 2024[28] - Operating expenses totaled CAD 13,670,483 for 2025, compared to CAD 12,385,201 in 2024, reflecting an increase of 10.4%[28] - Net earnings for 2025 were CAD 1,658,285, a decrease of 2.0% from CAD 1,692,715 in 2024[28] - Basic earnings per share for 2025 were CAD 7.45, slightly up from CAD 7.42 in 2024[28] - Comprehensive income for 2025 was CAD 2,209,376, an increase of 11.3% from CAD 1,984,993 in 2024[30] - Cash provided by operating activities was CAD 2,234,197, an increase from CAD 2,204,983 in the previous year[36] - The company declared cash dividends of CAD 135,052, compared to none in the previous year[36] Assets and Liabilities - Total current assets increased to CAD 5,053,179, up from CAD 4,817,306, representing a growth of 4.9% year-over-year[32] - Total liabilities rose to CAD 9,239,496, compared to CAD 7,257,478 in 2024, marking an increase of 27.3%[32] - Total equity reached CAD 10,282,332, up from CAD 9,427,990, indicating a growth of 9.1%[34] - The company reported an increase in intangible assets to CAD 888,006 from CAD 718,575, a rise of 23.6%[32] - Trade accounts receivable increased to CAD 1,343,282 thousand as of September 30, 2025, up from CAD 1,117,712 thousand in 2024, representing a growth of 20.2%[153] - Funds held for clients rose to CAD 978,436 thousand as of September 30, 2025, compared to CAD 506,780 thousand in 2024, marking an increase of 93.1%[154] Business Acquisitions and Costs - The company incurred restructuring, acquisition, and related integration costs of CAD 285,031 in 2025, significantly higher than CAD 96,929 in 2024[28] - Business acquisitions net of cash acquired amounted to CAD 1,829,965, significantly higher than CAD 380,313 in 2024[36] - Apside-Advance SAS, acquired on August 28, 2025, represented 0.2% of revenue and 1.8% of total assets as of September 30, 2025[10] Revenue Recognition - The company recognizes revenue from managed IT and business process services over time as services are provided, aligning with contractual billings[61] - Revenue from business and strategic IT consulting and systems integration services is recognized over time, with fixed-fee arrangements using the percentage-of-completion method[63] - Revenue from software licenses is recognized at a point in time upon delivery, while maintenance services are recognized straight-line over the maintenance period[64] Taxation and Deferred Taxes - Current income tax expense for the year ended September 30, 2025, was $583,280,000, down from $744,336,000 in 2024, reflecting a decrease of 21.6%[169] - The effective income tax rate for the company was 26.0% for the year ended September 30, 2025, slightly lower than 26.1% in 2024[169] - As of September 30, 2025, the Company reported deferred tax assets of $239,284,000 and deferred tax liabilities of $(71,673,000), resulting in net deferred taxes of $167,611,000[171] Pension and Employee Benefits - The actuarial valuation of the CMG U.K. Pension Scheme reported a surplus of $38,071,000, with no supplementary contributions required[183] - The Logica U.K. Pension & Life Assurance Scheme reported a surplus of $94,000, with the Company contributing $367,000 during fiscal 2025[183] - The total defined benefit obligations amounted to $851,271,000, a decrease from $897,948,000 as of September 30, 2024, representing a reduction of approximately 5.2%[186] - The current service cost for the year ended September 30, 2025, was $16,290,000, an increase from $14,165,000 in 2024, representing a rise of about 15.0%[190] Financial Instruments and Provisions - Financial instruments are initially measured at fair value and classified based on management's model and cash flow characteristics[120] - Provisions are recognized for legal obligations, restructuring, and onerous contracts, with estimates reviewed regularly[104] - Total provisions rose to $183,996,000 as of September 30, 2025, compared to $46,422,000 in 2024, indicating a significant increase driven by additional provisions[166]