Alithya Group inc.

Good morning everyone and welcome to Alithya's fourth quarter and full fiscal 2026 results conference call. Thank you for joining us this morning. The press release, along with the MD&A containing condensed financial statements and related notes, was published this morning and is now accessible on our website. The presentation can also be found on our website in the Investors 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, and expertise to meet client needs, excelling in a competitive market, achieving our three-year strategic plan, and deploying our smart shorter capabilities. For more information, please refer to the cautionary note included in our presentation and the forward-looking statements and risk and uncertainty sections of our MD&A, which are accessible on our website. All figures discussed on today's call are in Canadian dollars, unless stated otherwise. and we may refer to certain indicators that are non-IFRS measures. Please refer to the cautionary notes included in our presentation and to the non-IFRS and other financial measures section in our NDNA for more detail. The conference call will be followed by a question and answer period. Only question from the financial committee will be addressed. To raise or lower your hand, please press star followed by five. You will hear a confirmation once your hand is raised. Presenting this morning are Paul Raymond, Alesia's President and Chief Executive Officer, Bernard Dockrill, Chief Operating Officer, and Pierre Blanchette, Chief Financial Officer. I will now turn the call over to Paul Raymond. Paul?

Good morning, everyone, and thank you, Dominique. Thank you for joining us today. Before reviewing our results, I want to begin by thanking our teams for their continued discipline and commitment to our clients' success. Their expertise and dedication remains central to our ability to deliver mission-critical projects and to advance our long-term strategy. In the fourth quarter, we remained and maintained a strong focus on execution while continuing to shift our business towards higher value services and improving our gross margin profile. For the full fiscal year, we made progress in strengthening our business fundamentals. Revenues and gross margin increased year over year and adjusted net earnings remain stable. These results reflect the discipline of our teams, the continued evolution of our portfolio, the steady increase of AI activities and the integration of the recent eVIRG and XRM vision acquisitions. We remain focused on advancing our industry first approach and supporting our clients in their AI and digital transformation initiative. Demand for integrated capabilities across data, enterprise application, and Cloud continues to evolve and we are well positioned to meet these needs as a trusted advisor. In parallel, we've continued to strengthen our internal capabilities with AI and upskilling for everyone to enhance how we deliver for clients and drive efficiency across our operations. And with that, I will now turn it over to Pierre for the financial highlights of the quarter, followed by Bernard with an update on operations.

Pierre. Thank you, Paul, and good morning, everyone. Before looking at our fourth quarter, I want to provide an update on the divestiture of Datum. On March 31st, we sold all the shares of Datum in exchange for a minority equity interest, the capital of Medivra Holdings. Prior to the transaction, we recorded an impairment of intangibles of $3.1 million. In fiscal 2026, Datum represented close to $15 million in revenue, and 1.2 million in EBITDA. This transaction is aligned with our long-term strategy as we are focused on the growth of our core activities. I would also like to highlight an important update on our internal controls. As disclosed in fiscal 2025, we had identified a material weakness related to control activities in our revenue processes for fixed fee and time in material arrangement applying the input method. This weakness did not resolve in any material errors. During fiscal 2026, we enhanced the design and implementation of controls. Management completed testing of the operating effectiveness of these enhanced control during the fourth quarter, and we have concluded that the material weakness has been remediated. Now turning to financial highlights for our fourth quarter's results. In the quarter, we delivered 113.8 million of revenue, down 9.2% year-over-year, It is important to note that the fourth quarter for fiscal 2025 was unusually strong, as a higher number of project goal lives drove elevated revenue in that period, creating a tougher year-over-year comparison. Gross margin as a percentage of revenue reached 37.8% in the quarter, up from 36.8% last year. Both periods were positively impacted by the recognition of tax credits. There was a more significant contribution in Q4 2026 as $5.8 million of non-refundable tax credits were recognized as they are available for carry-forwards. While this supported a year-over-year increase of our gross margin as a percentage of revenue, Our margin remains solid at 32.7% when excluding the recognition of the tax credit in Q4. Looking at our performance by segment, revenues in the United States reached 55.6 million, up 2.6% compared to the same quarter last year. In constant currency, The revenue would have been $58.2 million in Q4 2026, up 7.5%. The increase was due primarily to revenue from eVIRG since its acquisition and organic growth in enterprise transformation services. This was achieved despite a lower contribution by Datum, which was disposed on March 31, 2026, reflecting momentum in our U.S. segment. In the US, gross margin as a percentage of revenue decreased compared to the same quarter last year, primarily due to a lower contribution by data, partially upset by the increase in use of our smart shoring capabilities. In Canada, revenues were 49.7 million, down 24% on a year-over-year basis. This change is mainly due to reduced revenue from government contracts and client projects reaching maturity, as we have chosen not to renew lower margin work awarded primarily on price. Gross margin increased as a percentage of revenue compared to the same quarter last year, mainly due to the recognition of non-refundable tax credits and proportionally larger decrease in the use of some contractors compared to permanent employees. In our international segment, we delivered $8.5 million in revenue, up 49.1%, compared to the same period last year. In constant currency, the revenue would have been $8 million in Q4, up 39.2%. Gross margin as a percentage of revenues increased compared to the same quarter last year, mainly due to additional enterprise transformation services delivered in this segment. Now looking at SG&E. In the fourth quarter, SG&E totaled $31.8 million, an increase of $2.1 million, or 7.1% year-over-year, primarily driven by SG&E related to the eVERGE acquisition, as well as higher share-based compensation, professional fees, and employee compensation costs. This resulted in SG&E as a percentage of revenue of 28% compared to 23.7% in the same period last year. Turning to adjusted EBITDA. We reported 12.7 million or 11.1% of revenue in Q4 compared to 18 million or 14.4% of revenue last year. The decrease reflects lower revenue and gross margin as well as higher SG&E expense as explained earlier. The recognition of non-refundable tax credit in the amount of $5.8 million net of the triggered variable compensation of $4.5 million had a positive net impact of $1.3 million in the adjusted EBITDA for the three years ended March 31, 2026. Net loss for the quarter was $8.7 million compared to net earnings of $8 million in the same period last year. The increased loss was mainly driven by the decreased gross margin caused by lower revenue and decreased utilization rate, partially offset by the recognition of non-refundable tax credit related to prior years available for carry forward. increased selling general and admin expenses, increased business acquisition, integration, and reorg costs, and increased income tax expense, partially offset by the decreased depreciation and amortization of intangible, and increased foreign exchange gain. To conclude on our results, adjusted net earnings came in at $7.7 million or $0.08 per share, compared to 12.2 million or 12 cents per share in the prior year. Turning to cash flow and financial position. Net cash from operating activity was 3.5 million in the quarter compared to 17.1 for the same quarter last year. The variance is explained mainly by lower cash conversion in Q4 due to unfavorable working capital variation and a lower profitability. In the fourth quarter, we pursued our normal course issuer bid which allows us to purchase shares under certain conditions set by the TSX. As at March 31, 2026, approximately 3.2 million shares were purchased for cancellation. This number includes approximately 2.5 million shares purchased for cancellation as part of the datum transaction. As of March 31st, 2026, our net debt amounted to $1.8 million, and our leverage ratio came out at 2.4 times net debt over the trailing 12 months adjusted EBITDA, all within Aletheia's targeted leverage levels. We believe this provides sufficient flexibility to support our operation and strategic priorities going forward. I will now turn things to Bernard for operational highlights.