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Alithya Group inc.
6/12/2025
Good morning. Welcome to Alithea's fourth quarter and fiscal 2025 results conference call. I would now like to turn the meeting over to Alithea's management team. Please go ahead.
Thank you. Thank you for being here today for Alithea's fourth quarter fiscal 2025 results call. The press release along with the MD&A containing complete financial statements and related notes was published this morning and is now accessible on our website. The webcast presentation can also be found on our website in the investor section. Please be advised that this call will contain forward-looking statements which are subject to various risks and uncertainties that may cause actual results to differ materially from those anticipated. These statements include our estimates, plans, expectations, and statements regarding future growth operational results, performance, and business prospects that do not solely relate to historical facts. These statements may also refer to future events, including expectations around client demand, business opportunities, leveraging our services, IP, AI, expertise to meet client needs, excelling in a competitive market, achieving our three-year strategic plan, and deploying our smart sharing capabilities. For more information, please refer to the cautionary notes included in our presentation and the forward-looking statements and risks and uncertainty sections of our MD&A, which are accessible on our website. All figures discussed on today's calls are in Canadian dollars, unless otherwise stated, and we may refer to certain indicators that are a non-IFRS measure. Please refer to the cautionary notes included in our presentation and to the non-IFRS and other financial measures section of our MD&A for more details. Presenting this morning are Paul Edamon, OHS President and Chief Executive Officer, Bernal Ducrot, Chief Operating Officer, and David DiGregorio, Interim Chief Financial Officer. I'll turn the call over to Paul Edamon. Paul?
Thank you, Nathalie, and good morning everyone. Thank you for joining us today. I'm very proud to be here to present our team's achievements for our fourth quarter and full 2025 fiscal year. We will also discuss our latest acquisition and this morning's announcement about our new CFO. I will start with a few notable highlights before turning things over to Bernard Dockrell, our Chief Operating Officer, for more color on our operations, followed by Debbie DiGregorio, our Interim Chief Financial Officer, who will provide the financial highlights. So back to the results. First, with the Q4 results, the Alethea team delivered another quarter of ongoing improvements in many key areas. Our disciplined approach and commitment to our long-term strategy are bearing fruit. we delivered another sequential and year-over-year quarterly improvement of our adjusted EBITDA largely due to our continued focus on higher value business growth, ongoing operational efficiencies, and a few positive one-time events tied to successful project completions. Of note, we would still be showing improvements without these one-time events, which resulted in an adjusted EBITDA of 14.4% for the quarter and 10.1% for the fiscal year. Secondly, Q4 was also a high watermark for gross margin as a percentage of revenue at 36.8%. Again, this is the result of our focus on delivering higher value services to our clients, improve utilization, and leveraging our IP and SmartShore business model, in addition to the positive items previously mentioned. Thirdly, I'd like to highlight our sequential and year-over-year growth in quarterly revenues. That growth is mostly derived from our higher value service offerings in all our geographies. These offerings designed to help clients achieve greater efficiency and flexibility in their mission critical systems by leveraging the cutting edge technologies such as AI and our proprietary IP accelerators continue to be highly sought after even during periods of economic uncertainty. Decisions to start these projects can sometimes be delayed, but given their business value, and demonstrable benefits, they are viable investments for our clients during these turbulent times. Finally, our strong cash flow allowed us to conclude the year with a net debt to adjusted EBITDA ratio of less than two times. This financial position provides us with the flexibility to pursue high-quality acquisition should promising opportunities arise. That brings me to our recent announcement of the eVerge acquisition. So again, I'd like to publicly welcome Esteban Neely, who is on the call listening this morning, and the eVerge team to the Aletheia family. I will let Bernard give you more color, but we feel eVerge checks all the boxes when we look for high-quality, accretive, complementary acquisitions with similar cultures. I will now turn things over to Bernard to provide some specifics on our four-quarter performance, as well as our latest acquisition. Bernard? Thank you, Paul.
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