Alithya Group (TSE:ALYA) Announces Quarterly Earnings Results

Alithya Group (TSE:ALYA) announced its earnings results on Thursday. The company reported C$0.08 earnings per share (EPS) for the quarter, FiscalAI reports. Alithya Group had a negative net margin of 4.51% and a negative return on equity of 13.00%. The business had revenue of C$113.78 million during the quarter.

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

• Alithya said it is shifting toward higher-value services, with revenues and gross margin up for the full year and adjusted net earnings stable, reflecting its focus on improving business quality and margin profile.
• The company reported Q4 revenue of CAD 113.8 million, down 9.2% year over year, with management noting the comparison was against an unusually strong prior-year quarter driven by a high number of project go-lives.
• Management emphasized U.S. momentum, citing organic growth in Oracle and Microsoft practices, stronger demand for enterprise transformation, and larger deal opportunities created by the eVerge acquisition.
• Canada remains a near-term headwind, as revenue fell 24% in Q4 due to reduced government work and the deliberate exit from lower-margin contracts, especially in Quebec, while the company rebuilds the business on better margins.
• Alithya highlighted growing AI, modernization, and cloud demand, along with wins such as Microsoft Copilot specialization, AWS Migration and Modernization Competency, and expanding SmartShore and AI-enabled delivery capabilities.

Alithya Group Trading Down 13.3%

Shares of Alithya Group stock opened at C$1.04 on Friday. Alithya Group has a 1 year low of C$0.97 and a 1 year high of C$2.62. The firm has a market cap of C$103.68 million, a PE ratio of -4.52, a PEG ratio of 2.38 and a beta of -0.79. The company has a debt-to-equity ratio of 80.95, a current ratio of 1.34 and a quick ratio of 1.32. The company has a 50 day simple moving average of C$1.33 and a two-hundred day simple moving average of C$1.49.

Wall Street Analyst Weigh In

Separately, Scotiabank lowered shares of Alithya Group from a “sector outperform” rating to a “sector perform” rating and dropped their target price for the company from C$2.00 to C$1.50 in a research report on Friday, April 24th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of C$2.67.

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.