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

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* Q3 2025 revenue of $615 million, a decrease of $25 million, or 4%, over Q3 2024.

* Q3 2025 Adjusted EBITDA* of $38 million, representing an Adjusted EBITDA* margin of 6%, compared to $39 million and 6% in Q3 2024.

* Q3 2025 net income of $14 million or $0.58 per share compared with net income of $7 million or $0.28 per share in Q3 2024.

* Q3 2025 decrease in long-term debt, net of cash*, of $26 million.

LASALLE, QC, Nov. 5, 2025 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX:GDI) is pleased to announce its financial results for the third quarter ended September 30, 2025.

Financial Highlights

For the third quarter of 2025:

* Revenue reached $615 million, a decrease of $25 million, or 4%, over the third quarter of 2024 mainly attributable to an organic decline of 2% primarily due to lower revenue in the Business Service USA segment, and 2% from the business disposal in the prior year.

* Adjusted EBITDA* amounted to $38 million, representing an Adjusted EBITDA* margin of 6% compared to $39 million and 6% in Q3 2024.

* Net income was $14 million or $0.58 per share compared to $7 million or $0.28 per share in Q3 2024. The increase is mainly due to higher operating income of $3 million and to the $5 million gain on disposal of an asset held for sale recorded in the quarter, while the lower net finance expense was offset by higher income tax expense.

* Q3 2025 decrease in long-term debt, net of cash*, of $26 million. The reduction is partially attributable to the disposal of an asset held for sale for proceeds of $8 million, and $11 million generated from a reduction in net operating working capital*.

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

For the nine-month period ended September 30, 2025:

* Revenue reached $1.84 billion, a decrease of $82 million, or 4%, over the corresponding period of 2024, comprised of 4% organic decline and 1% decrease from acquisitions and disposals, partially offset by 1% growth attributable to the currency translation.

* Adjusted EBITDA* amounted to $105 million, an increase of $5 million, or 5%, over the corresponding period of 2024.

* Net income was $19 million or $0.80 per share compared to $9 million or $0.37 per share over the corresponding period of 2024. The increase is mainly due to higher operating income of $17 million mainly attributable to the increase in Adjusted EBITDA*, to the decrease in amortization and depreciation expense and a gain of $5 million for the disposal of an asset held for sale. The prior corresponding period 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 $5 million.

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

Financial results for the third quarter 2025

GDI's Business Services Canada segment recorded $144 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 $198 million and Adjusted EBITDA* of $13 million, representing an Adjusted EBITDA margin* of 7%. Business Services USA organic decline in Q3 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 third quarter of 2025.

The Technical Services segment recorded revenue of $270 million and Adjusted EBITDA* of $19 million, up by $1 million compared to Q3 2024, representing an Adjusted EBITDA margin* of 7% compared to 7% in Q3 2024, mainly attributable to higher margins in project revenues compared to previous year.

GDI's Corporate and Other segment recorded revenue of $3 million and negative Adjusted EBITDA* of $4 million in Q3 2025 compared to $4 million of revenue and negative $4 million in Adjusted EBITDA* in Q3 2024.

"I am relatively pleased with how our business is performing in the face of headwinds in the commercial real estate sector," stated Claude Bigras, President & CEO of GDI. "As we announced last quarter, the commercial real estate sector in Canada and to a lesser degree in the United States is under pressure due to economic uncertainty. Our Business Services Canada segment performed well in the face of this, with a slight organic revenue decline while generating a satisfactory 7% Adjusted EBITDA margin. Our Business Services USA segment experienced an organic revenue decline due to previously announced client losses and a lower level of recurring project work from a large client. Despite that, our continued focus on profitability led to an increase in adjusted EBITDA margin in the segment in the quarter as compared to Q3 last year. Our Technical Services segment had another record quarter, with $19 million of adjusted EBITDA representing an EBITDA margin of 7% as we continue to benefit from higher margins in our project backlog, and the backlog remains near all-time highs."

"I am convinced that we are weathering the storm well," continued Mr. Bigras. "While revenue churn has increased in Canada due to the economic uncertainty, we remain focussed on working with clients to identify operating efficiencies at their facilities while also seeking efficiencies within GDI's cost structure, all with the ultimate goal to preserve our margins. Our Business Services USA segment is going through a temporary client realignment which should be completed by the first half of next year. Moreover, we're seeing exceptional execution across our Technical Services group. We have been using free cash flow to reduce our long-term debt, net of cash, which now sits $44 million below F2024 year end, and our leverage ratio is currently sitting in the low range of our comfort zone which positions us well to continue to focus on our growth through acquisition strategy. We are focused on creating value over the long term at GDI and remain confident in our ability to do so," concluded Mr. Bigras.

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.

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