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.

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