Facility services provider GDI's Q3 revenue misses expectations

GDI Integrated Facility Services

05/11/2025 23:12

Overview

GDI Q3 2025 revenue falls 4% yr/yr, missing analyst expectations

Adjusted EBITDA for Q3 2025 misses estimates, remains at 6% margin

The Montreal-headquartered firm's Q3 net income doubles to C$14 mln, aided by asset disposal gains

Outlook

GDI expects client realignment in USA to finish by mid-next year

Company focuses on operational efficiencies amid economic uncertainty

GDI continues to reduce long-term debt, focusing on growth via acquisitions

Result Drivers

REVENUE DECLINE - Revenue decreased 4% due to a 2% organic decline in Business Service USA and 2% from prior year business disposals

ASSET DISPOSAL GAIN - Net income increase partly due to C$5 mln gain on asset disposal

TECHNICAL SERVICES GROWTH - Higher project margins drove growth in Technical Services segment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$615 mln
C$638.40 mln (4 Analysts)
Q3 Net Income
C$14 mln
Q3 Adjusted EBITDA
Miss
C$38 mln
C$39.30 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 is C$33.00, about 11.8% above its November 5 closing price of C$29.10

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nCNW47gVva

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(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.)