GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2025

Aug 06 2025 23:14 BST

Q2 2025 revenue of $610 million, a decrease of $29 million, or 5%, over Q2 2024.
Q2 2025 Adjusted EBITDA* of $34 million, representing an Adjusted EBITDA* margin of 6%, compared to $34 million and 5% in Q2 2024.
Q2 2025 net loss of $1 million or $0.04 per share compared with net income of $2 million or $0.07 per share for the second quarter of 2024. Adjusting for the net of tax effect of a $5 million unrealized foreign exchange loss during the quarter, net income would have been $3 million or $0.12 per share.

LASALLE, QC , Aug. 6, 2025 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the second quarter ended June 30, 2025.

Financial Highlights
For the second quarter of 2025:

Revenue reached $610 million, a decrease of $29 million, or 5%, over the second quarter of 2024 mainly attributable to the organic decline of 4%.
Adjusted EBITDA* amounted to $34 million, representing an Adjusted EBITDA* margin of 6% compared to $34 million and 5% in Q2 2024.
Net loss was $1 million or $0.04 per share compared to $2 million or $0.07 per share in Q2 2024. During Q2 2025, the Company recorded a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations. The offsetting gain is recorded in Other comprehensive income through the currency conversion of our U.S. subsidiary, creating an accounting mismatch with no cash flow impact. Without this expense and considering the related income tax benefit of $1 million, net income would have been $3 million or $0.12 per share.

For the second quarters of 2025 and 2024, the business segments performed as follows:

(in millions of Canadian dollars)	Business Services Canada		Business Services USA		Technical Services⁽¹⁾		Corporate and Other⁽¹⁾		Consolidated
(in millions of Canadian dollars)	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Revenue	147	145	204	221	252	264	7	9	610	639
Organic Growth (Decline)	1 %	1 %	(11 %)	1 %	(1 %)	(5 %)	(33 %)	14 %	(4 %)	(1 %)
Adjusted EBITDA^*	10	11	14	14	14	12	(4)	(3)	34	34
Adjusted EBITDA Margin^*	7 %	8 %	7 %	6 %	6 %	5 %	N/A	N/A	6 %	5 %

Note:

The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025; and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments.

For the six-month period ended June 30, 2025:

Revenue reached $1.23 billion, a decrease of $57 million, or 4%, over the corresponding period of 2024, comprised of 5% organic decline and 1% decrease from acquisitions and disposals, partially offset by 2% growth attributable to the currency translation.
Adjusted EBITDA* amounted to $67 million, an increase of $6 million, or 10%, over the corresponding period of 2024.
Net income was $5 million or $0.22 per share compared to $2 million or $0.09 per share over the corresponding period of 2024. The increase is mainly due to higher operating income of $14 million mainly attributable to the increase in Adjusted EBITDA* and to the decrease in amortization and depreciation expense. Last year included additional amortization expense due to the significant reduction of an important customer contract. The increase in 2025 was partially offset by higher net finance expense of $11 million which includes a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations.

For the first two quarters of 2025 and 2024, the business segments performed as follows:

(in millions of Canadian dollars)	Business Services Canada		Business Services USA		Technical Services⁽¹⁾		Corporate and Other⁽¹⁾		Consolidated
(in millions of Canadian dollars)	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Revenue	294	290	421	446	498	524	13	23	1,226	1,283
Organic Growth (Decline)	1 %	1 %	(13 %)	6 %	(3 %)	(3 %)	(9 %)	10 %	(5 %)	1 %
Adjusted EBITDA^{* (2)}	21	21	28	27	26	18	(8)	(5)	67	61
Adjusted EBITDA Margin^*	7 %	7 %	7 %	6 %	5 %	3 %	N/A	N/A	5 %	5 %

Note:

The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025 and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments

Financial results for the second quarter 2025

GDI's Business Services Canada segment recorded $147 million in revenue while generating $10 million in Adjusted EBITDA^*, representing an Adjusted EBITDA margin^* of 7%. GDI's Business Services USA segment recorded revenue of $204 million and Adjusted EBITDA^* of $14 million, representing an Adjusted EBITDA margin^* of 7%. Business Services USA organic decline in Q2 reflects the paring down of low margin accounts from our Atalian acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the large client lost during Q1 fiscal 2024. In addition, revenue generated by one customer fluctuated based on the volume of recurring project work which was lower in the second quarter of 2025.

The Technical Services segment recorded revenue of $252 million and Adjusted EBITDA^* of $14 million, up by $2 million compared to Q2 2024, representing an Adjusted EBITDA margin^* of 6% compared to 5% in Q2 2024, mainly attributable to higher margins in project revenues compared to previous year.

GDI's Corporate and Other segment recorded revenue of $7 million and negative Adjusted EBITDA* of $4 million compared to $9 million and negative $3 million in Q2 2024, respectively.

"I am relatively pleased with GDI's Q2 2025 performance," stated Claude Bigras, President & CEO of GDI. "Our Business Services Canada delivered results in-line with historic, with 1% organic growth and a slight decline in Adjusted EBITDA. We are experiencing a degree of softness in our Business Services Canada segment due to a higher levels of contract churn and margin pressure on existing accounts. These trends reflect broader challenges in the Canadian real estate sector, where higher vacancy rates and economic uncertainty from tariffs are weighing on customer operating budgets. In response, we are actively implementing strategic initiatives to align our cost structure, enhance client retention, and preserve margins in this evolving environment.

GDI's Business Services USA segment delivered solid results with an Adjusted EBITDA margin of 7%, an increase over the prior year's quarter. As previously announced, the business recorded an organic revenue decline in Q2 reflecting the paring down of low margin accounts from our Atalian USA acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the business' largest client lost in Q1 fiscal 2024. The Business Services USA segment has secured several new contracts wins which are expected to be starting in Q3 and we expect this business to perform well for the remainder of the year.

Our Technical Services business had a very good quarter compared to Q2 last year, generating $252 million in revenue and a 6% Adjusted EBITDA margin which represents a 17% increase in Adjusted EBITDA over Q2 2024. Our Ainsworth business is continuing to perform well. It is generating higher than historic profitability and the outlook remains positive," stated Mr. Bigras.

"GDI's balance sheet management initiatives continue to deliver results with a slight decrease in long-term debt over Q1 2025 and stability in working capital levels. Our leverage ratio remains comfortably below three times Adjusted EBITDA, our balance sheet is strong, and we are well positioned to continue to execute on our growth through M&A strategy," concluded Mr. Bigras.

_________________________________

* The terms "Adjusted EBITDA", "Adjusted EBITDA Margin", Long-term debt, net of cash, and net operating working capital do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. "Adjusted EBITDA" is defined as operating income before depreciation and amortization, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's Management Discussion & Analysis ("MD&A"). Long-term debt, net of cash, and net operating working capital details and calculation is descripted in the section "consolidated financial position" of the MD&A.

ABOUT GDI

GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance, and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Risk Factors" section) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with Strategic IT projects, increases in interest rates, exchange rate fluctuations, deterioration in economic conditions, Government Policies on International trade and Investment, including sanctions and actions in respect to global trade, tariffs, and trade agreement, increase in competition, influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, disputes with franchisees, environmental, social and governance ("ESG") considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, and public perception of our environmental footprint, many of which are beyond the Company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.

Analyst Conference Call:

August 7, 2025 at 9:00 A.M. (ET)

Kindly note that Investors and Media representatives may attend as listeners only.

Please use the following dial-in numbers to have access to the conference call by dialing 10 minutes before the beginning of the conference:

North America Toll-Free: 1-800-990-4777

Local: 289-819-1299 (Toronto)

514-400-3794 (Montreal)

RapidConnect URL: https://emportal.ink/3YFDxga

A rebroadcast of the conference call will be available until August 14, 2025 by dialing:

North America Toll-Free: 1-888-660-6345

Local: 289-819-1450 (Toronto)

Confirmation Code: 28072#

June 30, 2025 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedarplus.ca.

GDI INTEGRATED FACILITY SERVICES INC.
SEGMENTED INFORMATION
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

	Three-months period ended June 30, 2025
	Business Services Canada	Business Services USA	Technical Services	Corporate and Other	Total

Recurring/contractual services	129	193	42	–	364
On-call services	10	11	69	–	90
Projects	–	–	141	–	141
Manufacturing and distribution	–	–	–	10	10
Other revenues	5	–	–	–	5

Total external revenues	144	204	252	10	610
Inter-segment revenues	3	–	–	(3)	‒
Revenues	147	204	252	7	610

Income (loss) before income taxes	8	8	5	(23)	(2)
Net finance expense	–	–	2	10	12
Operating income (loss)	8	8	7	(13)	10
Depreciation and amortization	2	6	7	3	18
Transaction, reorganization, and other costs	–	–	–	2	2
Share-based compensation ⁽¹⁾	–	–	–	3	3
Strategic information technology projects configuration and customization costs	–	–	–	1	1
Adjusted EBITDA	10	14	14	(4)	34

Total assets	251	362	525	100	1,238
Total liabilities	67	91	248	334	740
Additions to property, plant and equipment	3	8	2	–	13
Additions to intangible assets	–	–	–	1	1
Goodwill recorded on business acquisitions	–	–	2	–	2

(1)	Includes stock option, performance share unit and restricted share unit plans.

GDI INTEGRATED FACILITY SERVICES INC.
SEGMENTED INFORMATION (CONTINUED)
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

	Three-months period ended June 30, 2024
	Business Services Canada	Business Services USA	Technical Services	Corporate and Other⁽³⁾	Total

Recurring/contractual services	127	200	36	‒	363
On-call services	10	21	69	‒	100
Projects	‒	‒	159	‒	159
Manufacturing and distribution	‒	‒	‒	12	12
Other revenues	5	‒	‒	‒	5

Total external revenues	142	221	264	12	639
Inter-segment revenues	3	‒	‒	(3)	‒
Revenues	145	221	264	9	639

Income (loss) before income taxes⁽⁴⁾	8	8	1	(12)	5
Net finance expense	‒	1	2	2	5
Operating income (loss)	8	9	3	(10)	10
Depreciation and amortization	3	5	9	2	19
Transaction, reorganization, and other costs	‒	‒	‒	2	2
Share-based compensation ⁽¹⁾	‒	‒	‒	2	2
Strategic information technology projects configuration and customization costs	‒	‒	‒	1	1
Adjusted EBITDA	11	14	12	(3)	34

Total assets⁽²⁾	254	416	526	89	1,285
Total liabilities⁽²⁾	72	114	246	357	789
Additions to property, plant and equipment	1	5	8	2	16
Additions to intangible assets	–	1	3	–	4
Goodwill recorded on business acquisitions	–	7	2	–	9

(1)	Includes stock option, performance share unit and restricted share unit plans.
(2)	As at December 31, 2024.
(3)	The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Serviced segment as opposed to Corporate and Other as published in 2024.
(4)	The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability.

GDI INTEGRATED FACILITY SERVICES INC.
SEGMENTED INFORMATION (CONTINUED)
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

	Six-months period ended June 30, 2025
	Business Services Canada	Business Services USA	Technical Services	Corporate and Other	Total

Recurring/contractual services	258	399	80	–	737
On-call services	18	22	133	–	173
Projects	–	–	285	–	285
Manufacturing and distribution	–	–	–	19	19
Other revenues	12	–	–	–	12

Total external revenues	288	421	498	19	1,226
Inter-segment revenues	6	–	–	(6)	‒
Revenues	294	421	498	13	1,226

Income (loss) before income taxes	16	18	7	(34)	7
Net finance expense	–	1	3	11	15
Operating income (loss)	16	19	10	(23)	22
Depreciation and amortization	5	9	16	6	36
Transaction, reorganization, and other costs	–	–	–	3	3
Share-based compensation ⁽¹⁾	–	–	–	5	5
Strategic information technology projects configuration and customization costs	–	–	–	1	1
Adjusted EBITDA	21	28	26	(8)	67

Total assets	251	362	525	100	1,238
Total liabilities	67	91	248	334	740
Additions to property, plant and equipment	4	18	4	1	27
Additions to intangible assets	–	–	–	1	1
Goodwill recorded on business acquisitions	–	–	2	–	2

(1)	Includes stock option, performance share unit and restricted share unit plans.

GDI INTEGRATED FACILITY SERVICES INC.
SEGMENTED INFORMATION (CONTINUED)
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

	Six-month period ended June 30, 2024
	Business Services Canada	Business Services USA	Technical Services	Corporate and Other⁽³⁾	Total

Recurring/contractual services	253	403	72	‒	728
On-call services	18	43	143	‒	204
Projects	‒	‒	309	‒	309
Manufacturing and distribution	‒	‒	‒	29	29
Other revenues	13	‒	‒	‒	13

Total external revenues	284	446	524	29	1,283
Inter-segment revenues	6	‒	‒	(6)	‒
Revenues	290	446	524	23	1,283

Income (loss) before income taxes⁽⁴⁾	15	11	(2)	(20)	4
Net finance expense	‒	1	1	2	4
Operating income (loss)	15	12	(1)	(18)	8
Depreciation and amortization	6	14	19	6	45
Transaction, reorganization, and other costs	‒	1	‒	2	3
Share-based compensation ⁽¹⁾	‒	‒	‒	4	4
Strategic information technology projects configuration and customization costs	‒	‒	‒	1	1
Adjusted EBITDA	21	27	18	(5)	61

Total assets⁽²⁾	254	416	526	89	1,285
Total liabilities⁽²⁾	72	114	246	357	789
Additions to property, plant and equipment	3	6	16	3	28
Additions to intangible assets	–	1	3	1	5
Goodwill recorded on business acquisitions	–	10	2	–	12

(1)	Includes stock option, performance share unit and restricted share unit plans.
(2)	As at December 31, 2024.
(3)	The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Services segment as opposed to Corporate and Other as published in 2024.
(4)	The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability.

GDI INTEGRATED FACILITY SERVICES INC.
CONSOLIDATED FINANCIAL POSITION
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

	June 30,	December 31,
(in millions of Canadian dollars)	2025	2024
Net operating working capital:
Trade and other receivables and contract assets	529	565
Inventories	32	33
Prepaid expenses and other	22	16
Other financial assets	‒	15
Trade and other payables	(274)	(306)
Provisions	(26)	(32)
Contract liabilities	(35)	(33)
Net operating working capital	248	258

Long-term debt, including current portion, net of Cash (bank indebtedness):
Cash, net of bank indebtedness	25	12
Long-term debt, including current portion	(378)	(383)
Long-term debt, including current portion, net of cash	(353)	(371)

Other financial position accounts:
Property, plant and equipment	120	119
Intangible assets	104	115
Goodwill	370	378
Other long-term assets	22	20
Assets held for sale	6	6
Other long-term liabilities	(6)	(9)
Net current tax (liabilities) assets	(2)	(5)
Net deferred tax (liabilities) assets	(11)	(15)

GDI INTEGRATED FACILITY SERVICES INC.
SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION
THREE-MONTH PERIODS
(UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS)

Period ended	June	March	December	September
(in millions of Canadian dollars, except per share data) ⁽¹⁾	2025	2025	2024	2024
Revenue	610	616	634	640
Operating income	10	12	15	15
Depreciation and amortization	18	18	22	20
Transaction, reorganization and other costs	2	1	(2)	1
Share-based compensation	3	3	2	3
Strategic information technology projects configuration and customization costs	1	‒	1	‒
Adjusted EBITDA	34	34	38	39
Net (loss) income for the period	(1)	6	23	7
Earnings per share
Basic	(0.04)	0.26	1.00	0.28
Diluted	(0.04)	0.26	0.99	0.28
Period ended	June	March	December	September
(in millions of Canadian dollars, except per share data) ⁽¹⁾	2024	2024	2023	2023
Revenue	639	644	622	615
Operating (loss) income	10	(2)	9	16
Depreciation and amortization	19	26	22	19
Transaction, reorganization and other costs	2	1	2	‒
Share-based compensation	2	2	2	2
Strategic information technology projects configuration and customization costs	1	1	2	2
Adjusted EBITDA	34	28	37	39
Net income for the period	2	‒	6	8
Earnings per share
Basic	0.07	0.02	0.26	0.35
Diluted	0.07	0.02	0.25	0.35

⁽¹⁾	The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment and also reflect the timing of certain projects.

SOURCE GDI Integrated Facility Services Inc.

Company Announcements

GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2025