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Alithya Reports Third Quarter Fiscal 2026 Results

On February 13, 2026, Alithya Group Inc. announced its financial results for the third quarter of fiscal 2026, which ended on December 31, 2025. The company demonstrated remarkable resilience by securing $130.9 million in new bookings, focusing its efforts on more complex and valuable transformational projects despite facing a slight decline in revenues.

Financial Highlights

In its latest report, Alithya noted a marginal revenue decrease of 0.5%, showcasing revenues of $115.2 million, down from $115.8 million in the same quarter of the previous year. Notably, the revenues generated from existing clients contributed to 82.2% of the overall figure. Gross margins also exhibited a contraction, with a reduction of 2.4%, leading to gross profits of $36.5 million. This translated into a gross margin percentage of 31.7%, down from 32.3% year-over-year.

However, a significant improvement was seen in the net earnings, which climbed to $0.7 million, a stark contrast to the $3.7 million loss reported during the same quarter last year. The turnaround reflects the effectiveness of Alithya's evolving strategies during this pivotal quarter.

Bookings and Operational Performance

Despite the revenue declines, Alithya managed to achieve a Book-to-Bill ratio of 1.14 during this quarter, consistent with its strategy to enhance workflow efficiencies and target higher-value projects. The company’s backlog now represents approximately 14 months' worth of trailing revenues, providing a promising outlook for future projects.

Segment Performance

Geographically, Alithya's performance was varied:

• - United States revenues surged by 12.7%, totaling $55 million, attributed to organic growth and the recent acquisition of eVerge.
• - Canadian revenues experienced a decline of 12.5%, falling to $54 million, primarily due to revolving government contracts reaching maturity.
• - International revenues increased by 19.2%, which totaled $6.2 million, benefiting from organic growth in enterprise transformation services.

Management Commentary

Paul Raymond, President and CEO of Alithya, expressed pride in the team’s strategic focus and discipline. He remarked, “While our third quarter results didn’t match the comparative periods, we are encouraged by the healthy bookings and the momentum we are cultivating in pivotal areas. Our robust cash position provides us with the flexibility to pursue avenues for growth and strategically invest where we can deliver exceptional shareholder value.”

Alithya also made headlines with plans to spin off its equity interests related to Datum Consulting Group, a move aimed at optimizing its operational structure while pursuing innovations in AI solutions. This strategic partnership is expected to expedite growth and provide better returns from specialized areas.

Future Outlook

With a focus on higher-value transformation projects and leveraging the latest advancements in AI-driven technologies, Alithya is well-positioned for future growth. The company’s strategies align with the overarching goal to maximize value creation for its clients while ensuring a streamlined operational framework. Investors and stakeholders can remain optimistic about the company’s trajectory as it seeks to navigate through dynamic market conditions and capitalize on emerging opportunities.

In conclusion, the results from Q3 fiscal 2026 highlight the resilience of Alithya Group Inc. through a strategic shift towards specialized services and solid fiscal management, laying a robust foundation for future endeavors.