Alithya Group (TSE:ALYA) Posts Earnings Results

Alithya Group (TSE:ALYA) posted its earnings results on Friday. The company reported C$0.05 EPS for the quarter, FiscalAI reports. The company had revenue of C$115.16 million for the quarter. Alithya Group had a negative return on equity of 1.88% and a negative net margin of 0.69%.

Here are the key takeaways from Alithya Group’s conference call:

• Bookings were over CAD 130.9 million in Q3 with a book-to-bill of 1.14, driven by renewals and new AI- and cloud-focused engagements, supporting a healthy pipeline.
• The company reported positive net earnings (CAD 0.7M), operating cash flow of CAD 25.5 million, trailing‑12‑month Adjusted EBITDA of CAD 52.6 million, and reduced leverage to 1.9x, reflecting progress on deleveraging and financial discipline.
• U.S. revenue grew 12.7% to CAD 55 million (now 48% of total revenue), with the eVerge integration proceeding well and notable wins including a US$9 million Oracle Cloud engagement at University Hospital Newark.
• Canada revenues declined 12.5% to CAD 54 million as public‑sector contracts matured and the company shifts away from lower‑margin work toward higher‑value services, creating near‑term revenue headwinds despite improved gross margins.
• Alithya signed a deal to spin off Datum’s AI‑based IP into a new venture (Alithya to retain just under 25% equity) and will repurchase ~2.5M Class A shares from a shareholder to fund that entity; the company will not receive cash proceeds from the transaction.

Alithya Group Stock Down 8.8%

Alithya Group stock traded down C$0.14 during mid-day trading on Friday, hitting C$1.45. The company had a trading volume of 199,205 shares, compared to its average volume of 72,955. The company has a quick ratio of 1.32, a current ratio of 1.39 and a debt-to-equity ratio of 68.27. Alithya Group has a 1 year low of C$1.40 and a 1 year high of C$2.62. The business has a fifty day moving average of C$1.69 and a 200 day moving average of C$1.81. The stock has a market cap of C$144.55 million, a price-to-earnings ratio of -5.37, a PEG ratio of 2.38 and a beta of -0.17.

Analyst Ratings Changes

A number of brokerages recently commented on ALYA. Ventum Financial raised their target price on Alithya Group from C$2.85 to C$3.00 and gave the company a “buy” rating in a report on Tuesday, January 27th. Scotiabank set a C$40.00 price objective on shares of Alithya Group and gave the company an “outperform” rating in a report on Tuesday, January 27th. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Alithya Group currently has a consensus rating of “Buy” and an average target price of C$12.25.

About Alithya Group

Alithya Group Inc is a leader in Strategy and digital transformation, with professionals in Canada, the us, and Europe. Its integrated offering is laid out as follows: Strategy, custom solutions, Microsoft solutions, and Oracle solutions. Clients entrust the company with their strategic projects across Banking, Investment and Insurance, Energy, Manufacturing, Retail and Distribution, Telecommunications, Transportation, Professional Services, Healthcare, and Government sectors. Geographically, it derives a majority of revenue from Canada.