Overview

* GDI Q2 2025 revenue declines 5%, missing analyst expectations, per LSEG data

* Adjusted EBITDA remains flat at C$34 mln, missing analyst estimates

* Company records C$1 mln net loss, impacted by C$5 mln forex loss

Outlook

* GDI sees challenges in Canada due to real estate sector softness

* Company implementing strategic initiatives to align costs and enhance client retention

* Technical Services segment outlook remains positive

Result Drivers

* BUSINESS SERVICES USA - Organic revenue decline of 11% due to paring down low-margin accounts and loss of major client

* TECHNICAL SERVICES - Improved margins in project revenues led to a 17% increase in adjusted EBITDA

* BUSINESS SERVICES CANADA - Softness in demand due to higher contract churn and economic uncertainty impacting customer budgets

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$610 C$649

Revenue mln mln (4

Analysts

)

Q2 Net -C$1 mln

Income

Q2 Miss C$34 mln C$39.20

Adjusted mln (4

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for GDI Integrated Facility Services Inc ( GDIFF ) is C$44.25, about 23.7% above its August 6 closing price of C$33.78

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)