Alithya Group (TSE:ALYA) Posts Earnings Results

Alithya Group (TSE:ALYA) posted its quarterly earnings results on Thursday. The company reported C$0.04 EPS for the quarter, FiscalAI reports. The firm had revenue of C$105.05 million during 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:

• 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 Stock Down 2.7%

Shares of TSE ALYA opened at C$1.07 on Friday. 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 business has a 50-day moving average of C$1.06 and a 200-day moving average of C$1.29. The firm has a market capitalization of C$103.54 million, a price-to-earnings ratio of -2.67, a PEG ratio of 2.38 and a beta of -0.71. Alithya Group has a 12 month low of C$0.94 and a 12 month high of C$2.20.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ALYA shares. Ventum reduced their target price on Alithya Group to C$2.00 and set a “buy” rating for the company in a report on Monday, June 15th. Desjardins downgraded shares of Alithya Group from a “buy” rating to a “hold” rating and lowered their price target for the stock from C$1.55 to C$1.15 in a report on Friday. Barrington Research lowered shares of Alithya Group from an “outperform” rating to a “market perform” rating in a research report on Friday. Scotiabank lowered shares of Alithya Group from a “sector outperform” rating to a “sector perform” rating and decreased their target price for the stock from C$2.00 to C$1.50 in a report on Friday, April 24th. Finally, ATB Cormark Capital Markets downgraded shares of Alithya Group from an “outperform” rating to a “sector perform” rating and cut their price target for the company from C$1.60 to C$1.35 in a report on Friday. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of C$1.80.

Alithya Group News Summary

Here are the key news stories impacting Alithya Group this week:

• Positive Sentiment: ATB Cormark lowered its rating to “sector perform” from “outperform” but set a C$1.35 price target, implying potential upside from the recent C$1.06 level. Tickerreport analyst rating article
• Positive Sentiment: Desjardins downgraded Alithya to “hold” from “buy,” while its C$1.15 target remains above the recent market price. However, the target was reduced substantially from C$1.55. BayStreet.CA analyst ratings article
• Neutral Sentiment: Alithya reported quarterly revenue of C$105.05 million and adjusted? reported EPS of C$0.04. The company nevertheless posted a negative net margin of 8.12% and negative return on equity of 24.36%, highlighting ongoing profitability concerns. Alithya Group earnings report
• Negative Sentiment: Barrington Research cut its rating from “outperform” to “market perform,” adding to the broader shift toward more cautious expectations for Alithya. BayStreet.CA analyst ratings article
• Negative Sentiment: The overall message from the analyst actions is bearish: ratings were reduced by Desjardins, ATB Cormark and Barrington, and both firms providing targets lowered them. This suggests concerns about Alithya’s earnings quality, profitability and near-term growth outlook.

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.