Alithya Group (TSE:ALYA) Posts Earnings Results

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

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 Performance

Shares of Alithya Group stock opened at C$1.42 on Friday. Alithya Group has a 12 month low of C$1.40 and a 12 month high of C$2.62. The company has a quick ratio of 1.32, a current ratio of 1.39 and a debt-to-equity ratio of 68.27. The stock has a market cap of C$141.56 million, a PE ratio of -5.26, a price-to-earnings-growth ratio of 2.38 and a beta of -0.17. The business has a fifty day simple moving average of C$1.69 and a 200-day simple moving average of C$1.80.

Analysts Set New Price Targets

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

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.