CGI Inc.

Good morning, ladies and gentlemen. Welcome to CGI's second quarter fiscal 2025 conference call. And I would like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, sir.

Thank you, Sylvie, and good morning. With me to discuss CGI's second quarter fiscal 2025 results are Francois Boulanger, our president and CEO, and Steve Perron, executive vice president and CFO. This call is being broadcast on cgi.com and recorded live at 9 a.m eastern time on Wednesday, April 30th, 2025. Supplemental slides as well as a press release we issued earlier this morning are available for download along with our Q2 MD&A financial statements and accompanying notes all of which have been filed with both Cedar Plus and EDGAR. Please note that some statements made on the call may be forward-looking Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The complete safe harbor statement is available in both our MD&A and press release, as well as on CGI.com. We recommend our investors read it in its entirety. We're reporting our financial results in accordance with international financial reporting standards, or IFRS. As always, we will also discuss non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian, unless otherwise noted. Now I'll turn the call over to Steve to review our Q2 financial results. Steve.

Thank you, Kevin, and good day, everyone. CGI continued to operate with discipline in our second quarter of fiscal 2025. In Q2, we delivered $4 billion of revenue, up 7.6% year over year, or up 3.3% when excluding the impact of foreign exchange. Growth was mainly driven by recent business acquisitions, partially offset by one less available day to bill in most segments, equating to approximately 0.8%. In constant currency, the CGI client proximity segments with strongest growth were UK and Australia at 12.1%, which includes just over one month of BJSS revenue. And across our US segments, combined growth was 7.2%, primarily driven by our Aon and Doherty merger investments. Geographically, our North American operation grew at 6.4%. In Europe, our operation grew at 0.7% given softer market conditions, particularly in the manufacturing sector. And demand remains strong for global delivery, specifically our Asia-Pacific operation with revenue up 6.8%. From an industry perspective, Constant currency revenue growth was led by government at 6.5% and financial services at 6.1%, partially offset by continued softness in continental Europe, particularly in the MRD and telecommunications sectors. IP revenue grew in five of our eight proximity segments on the strength of continued client interest for our business solution. IP represented 21.5% of total revenue, down 90 basis points year-over-year due to the dilutive impact of recent business acquisitions. In Q2, bookings were $4.5 billion for a book-to-bill ratio of 112%. Book-to-bill was strong in North America at 124%. Europe was 101%. When looking at service type, book-to-bill ratios were 122% for managed services and 98% for business and strategic IT consulting and system integration. On a trading 12-month basis, book-to-bill ratios for North America and Europe were 111% and 110% respectively. On the same basis, Managed services had a book-to-bill ratio of 122% and the SINC book-to-bill ratio was 97%. Our global backlog reached $31 billion, or two times revenue. Turning to profitability. Adjusted EBIT in the quarter was $666 million, up 5.9% year over year, for a margin of 16.5%. Earnings before income taxes were $583 million, for a margin of 14.5%, down 90 basis points year over year, mainly due to restructuring and acquisition-related costs. Our effective tax rate in the quarter was 26.2%, stable compared to last year, and we expect our tax rate for future quarters to be in the range of 25.5% to 26.5%. Adjusted net earnings were $481 million, up $21 million year over year, for a margin of 11.9%. On the same basis, diluted EPS was $2.12, an accretion of 7.6% when compared to Q2 last year. Net earnings were $430 million for a margin of 10.7%. Diluted EPS was $1.89, representing an increase of 3.3% year over year. We remain in constant dialogue with our clients regarding the evolving business dynamics they are facing. To remain strong, we regularly assess these dynamics and take proactive actions to expand shareholder value for the benefit of our stakeholders, namely our shareholders. As such, CGI increased the scope of our previously announced restructuring program, most of which continues to be targeted within our continental Europe operations. In the quarter, we incurred $44 million of costs and we expect to incur an additional $137 million to implement these actions over the next few quarters. These actions will impact approximately 1.5% of CGI employees. As always, we will treat those impacted fairly and with respect. Turning to cash, we generated $438 million in our cash from operation representing 11% of total revenue unfavorably impacted by $101 million in restructuring and business acquisition-related payments. DSO was 40 days in the quarter, identical to last year. In Q2, we invested $100 billion into our business, including in AI, $1.56 billion for business acquisitions, $345 million to buy back our stock and return $34 million to our shareholders under our dividend program. We continue to deliver a strong return on invested capital at 15.4%, down 50 basis points year over year, mainly as a result of the capital allocated to recent business acquisitions, which are in the process of being integrated. Yesterday, our Board of Directors approved a quarterly cash dividend of 15 cents per share. This dividend is payable on June 20, 2025 to shareholders of records as of the close of business on May 16, 2025. As communicated in the past and consistent with our profitable growth strategy, CGI's capital allocation priorities remain focused on investing back in the business and pursuing accretive acquisitions. Now, I will turn the call over to Francois to further discuss the insights on the quarter, as well as the outlook for our business and markets. Francois?