The following is a summary of the Alithya Group Inc. (ALYAF) Q2 2025 Earnings Call Transcript:
Financial Performance:
Alithya reported a year-over-year revenue decrease to CAD 111.5 million, a 5.9% drop from CAD 118.5 million.
Gross margin percentage improved to 30.6% from 29.4% due to higher billing rates and better utilization of permanent staff over subcontractors.
Adjusted EBITDA increased by 44% year-over-year to CAD 9.3 million, primarily driven by enhanced cost management and focus on high-value services.Adjusted net earnings significantly improved, reaching CAD 5.3 million, up from CAD 0.3 million.
Business Progress:
Alithya has enhanced its smart-shoring capabilities and focus on higher-margin services.
The company is positioning to capitalize on the growing demand in the renewable energy sector and continues to solidify its partnerships with major tech providers like Oracle and Microsoft.
Significant developments include the acquisition of Alithya-developed Alithya EDGE by Microsoft and the ongoing success with the AWS Blu Age technology in Canada.
Opportunities:
The company sees potential in developing higher margin service offerings and leveraging their strong partnerships with industry leaders such as Microsoft and Oracle.
Engagement in clean energy projects and technology-driven initiatives like Microsoft Dynamics and Oracle Cloud Services offers new growth avenues.
Risks:
The slower commencement of new projects and delayed closures, particularly in the Quebec region, poses a risk to immediate revenue growth.
Economic conditions contributing to reduced discretionary technology spending impact project bookings and pipeline progression.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
