Alithya Group (TSE:ALYA) Posts Earnings Results

Alithya Group (TSE:ALYA) issued its quarterly earnings results on Thursday. The company reported C$0.04 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$105.05 million during the quarter. Alithya Group had a negative net margin of 8.12% and a negative return on equity of 24.36%.

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

• Q1 performance weakened materially: revenue fell 15.4% year over year to CAD 105.1 million, while adjusted EBITDA declined 53% to CAD 5.4 million as delayed project starts reduced utilization and margins.
• Bookings were CAD 89.0 million, producing a 0.85 book-to-bill ratio, with the Industry Services and Solutions segment particularly weak at 0.64. Management cited prolonged client decision cycles, lower Quebec financial-services and government activity, and delayed Salesforce projects.
• Management said the late-stage pipeline is growing and remains healthy, with more than 70% of quarterly bookings from new business and 28% from new customers. Enterprise Transformation performed comparatively better, with a 0.99 book-to-bill ratio and a US$11.7 million Oracle HCM contract win.
• Alithya reported continued momentum in AI and cloud services, including involvement in more than 300,000 Microsoft 365 Copilot license deployments, expanding industry-specific AI agents, stronger AWS activity, and a rising mix of fixed-price or fixed-fee work that management views as more scalable.
• The board launched a broad strategic review, advised by Scotiabank, to assess alternatives including a merger, privatization, sale, recapitalization, strategic investment, or remaining public. Management believes the company is undervalued, but provided no details on potential parties or outcomes and said operations continue as usual.

Alithya Group Trading Down 11.3%

Shares of TSE:ALYA opened at C$1.10 on Friday. The company has a 50 day moving average of C$1.06 and a 200-day moving average of C$1.29. The company has a current ratio of 1.25, a quick ratio of 1.32 and a debt-to-equity ratio of 88.81. The firm has a market cap of C$106.44 million, a P/E ratio of -2.75, a P/E/G ratio of 2.38 and a beta of -0.71. Alithya Group has a twelve month low of C$0.94 and a twelve month high of C$2.31.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on ALYA shares. Desjardins reduced their price target on shares of Alithya Group from C$1.75 to C$1.55 and set a “buy” rating for the company in a report on Tuesday, July 21st. ATB Cormark Capital Markets raised shares of Alithya Group from a “sector perform” rating to an “outperform” rating and set a C$1.60 price objective on the stock in a report on Tuesday, July 28th. Ventum cut their price objective on shares of Alithya Group to C$2.00 and set a “buy” rating on the stock in a research report on Monday, June 15th. Finally, Scotiabank downgraded shares of Alithya Group from a “sector outperform” rating to a “sector perform” rating and cut their price objective for the company from C$2.00 to C$1.50 in a research report on Friday, April 24th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Alithya Group currently has an average rating of “Moderate Buy” and an average target price of C$1.93.

Alithya Group Company Profile

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.