Alithya Group (TSE:ALYA) Releases Earnings Results

Alithya Group (TSE:ALYA) issued its quarterly earnings data on Thursday. The company reported C$0.08 EPS for the quarter, FiscalAI reports. The company had revenue of C$113.78 million for the quarter. Alithya Group had a negative return on equity of 24.36% and a negative net margin of 8.12%.

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 Stock Performance

Shares of ALYA stock opened at C$0.98 on Friday. Alithya Group has a 12 month low of C$0.94 and a 12 month high of C$2.62. The company has a debt-to-equity ratio of 10.02, a current ratio of 1.25 and a quick ratio of 1.32. The firm has a market capitalization of C$97.70 million, a P/E ratio of -4.26, a P/E/G ratio of 2.38 and a beta of -0.79. The company’s fifty day moving average price is C$1.32 and its two-hundred day moving average price is C$1.49.

Wall Street Analyst Weigh In

Separately, Scotiabank cut Alithya Group from a “sector outperform” rating to a “sector perform” rating and reduced their price objective for the stock from C$2.00 to C$1.50 in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Alithya Group has a consensus rating of “Moderate Buy” and an average target price of C$2.25.

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.