Canada · Delayed Price · Currency is CAD Alithya Group Earnings Call Transcripts
Fiscal Year 2027
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Q1 revenue and profitability declined year-over-year due to lower utilization and delayed project starts, but the pipeline remains healthy and demand for digital transformation and AI services is strong. A strategic review is underway to unlock shareholder value, with increased focus on fixed-price contracts and U.S. market growth.
Fiscal Year 2026
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Q4 revenue declined 9.2% year-over-year due to a tough prior-year comparison, but gross margin improved to 37.8% with support from tax credits. U.S. and international segments grew, while Canada saw lower revenue amid a shift to higher-margin services. Net loss was $8.7 million, with stable pipeline and continued focus on AI and modernization.
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Q3 saw strong bookings over CAD 130 million, positive net earnings, and robust cash flow, with U.S. revenue up 12.7% and a strategic spin-off of Datum assets to focus on AI in healthcare. The company continues its shift to higher-value services and maintains a healthy pipeline.
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Revenue grew 11.5% year-over-year to CAD 124.3 million, with U.S. operations up 34.8% and gross margin rising to 34.4%. Adjusted EBITDA improved to CAD 12.8 million, while a CAD 38 million impairment charge led to a net loss. Pipeline and U.S. growth remain strong.
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Year-over-year revenue and adjusted EBITDA grew, led by 17.3% organic U.S. growth and higher gross margins. Acquisitions expanded capabilities, while the business mix shifted toward higher-value services and AI-driven transformation.
Fiscal Year 2025
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The meeting confirmed strong financial growth, with rising margins and successful acquisitions driving performance. All director nominees and the auditor were elected with overwhelming support. Strategic initiatives focus on industry expertise, AI solutions, and global talent expansion.
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Sequential and year-over-year improvements in revenue, gross margin, and adjusted EBITDA were driven by higher-value services, operational efficiencies, and successful acquisitions. Strong cash flow and reduced leverage position the company for future growth despite market uncertainty.
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Record gross margin and adjusted EBITDA margin achieved, with strong sequential growth and robust bookings, especially in financial services. The XRM Vision acquisition enhanced smart shoring and Microsoft capabilities, while the company remains focused on higher-value services and disciplined cost management.
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Double-digit Adjusted EBITDA growth and improved margins were achieved despite a 5.9% revenue decline, with strong U.S. and international performance offsetting softness in Quebec. Cost optimization and a shift to higher-margin services drove profitability, while a healthy pipeline and reduced net debt position the company for future growth.
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Adjusted EBITDA rose 11.1% year-over-year to over CAD 10 million, with gross margin up to 31.9% and strong operating cash flow driving net debt reduction. U.S. revenues grew, Canadian revenues declined, and the backlog remains robust, supporting a stable outlook.
Fiscal Year 2024
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The company aims for 5%-10% annual organic growth and CAD 150 million in acquisitions over three years, targeting 11%-13% EBITDA margin. Margin expansion will be driven by higher-value services, proprietary IP, and smart shoring, while strong client retention and employee engagement support sustainable growth.
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Q4 delivered record gross margin and adjusted EBITDA margin, with strong bookings from major healthcare and cybersecurity contracts. U.S. revenues grew, while Canadian revenues declined, but operational efficiencies and smart shoring drove profitability. The new three-year plan targets 5%-10% organic growth and CAD 150 million in acquisitions.