IT firm Alithya's Q1 revenue beats expectations

Alithya

13/08/2025 12:26

Overview

Alithya fiscal Q1 2026 revenue grows 2.7% yr/yr, beating analyst expectations

Adjusted net earnings rise 31.8% yr/yr, driven by acquisitions

Co acquires eVerge Interests, enhancing enterprise application services

Outlook

Company aims for profitable growth and value creation

Alithya focuses on leveraging AI and digital transformation

Company expects continued synergies from recent acquisitions

Alithya targets expanding service offerings and market penetration

Result Drivers

U.S. GROWTH - Organic growth in enterprise transformation services and higher billing rates boosted U.S. revenues by 17.3%

ACQUISITIONS - Positive contributions from eVerge and XRM Vision acquisitions enhanced revenue and gross margin

COST MANAGEMENT - Decreased selling, general and administrative expenses contributed to improved net earnings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$124.16 mln
C$123.50 mln (6 Analysts)
Q1 Adjusted EPS
C$0.07
Q1 Adjusted Net Income
C$6.52 mln
Q1 Net Income
C$185,000
Q1 Adjusted EBITDA
C$11.63 mln
Q1 Adjusted EBITDA Margin
9.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Alithya Group Inc is C$3.00, about 15.3% above its August 12 closing price of C$2.54

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nCNWf3NPfa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)