Slide 1: Firan Technology Group Corporation Second Quarter Report
FIRAN TECHNOLOGY GROUP CORPORATION Second Quarter Report For the period ended May 29, 2026 July 8, 2026
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Slide 3: Management's Discussion and Analysis
Management’s Discussion and Analysis July 8, 2026 MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION (dollar amounts stated in thousands of Canadian dollars unless otherwise specified) This Management’s Discussion and Analysis (“MD&A”) for the three months ended Ma
Slide 4: Management's Discussion and Analysis
Management’s Discussion and Analysis With these facilities in place in North America and Asia, FTG has completed some key strategic goals including expanding its presence in the large U.S. aerospace and defence market, penetrating the rapidly growing Asian aerospace market, and becoming a more strat
Slide 5: Results of Operations for the Second Quarter and Year-to-Date
Management’s Discussion and Analysis RESULTS OF OPERATIONS FOR THE SECOND QUARTER and YEAR-TO-DATE FISCAL 2026 Second Quarter Year-to-Date (in thousands of dollars except per share 2026 2025 2026 2025 amounts) $ $ $ $ Sales 52,735 48,729 100,039 91,603 Gross margin 19,226 15,867 33,810 29,193 Net ea
Slide 6: Operational Analysis
Management’s Discussion and Analysis Operational Analysis The following tables provide the operating results for the Corporation’s segments for the first quarter of fiscal years 2026 and 2025: Second Quarter Year-to-Date 2026 2025 2026 2025 $ $ $ $ Revenue: Circuits 34,327 33,676 65,390 62,355 Aeros
Slide 7: Aerospace Results and Sales by Customer Location
Management’s Discussion and Analysis Revenue for Q2 2026 was $19.2 million, an increase of $3.3 million or 21.0% compared to Q2 2025. Organic growth contributed $3.7 million offset by $0.4 million of unfavourable foreign exchange rates compared to Q2 2025. Adjusted net earnings for Q2 2026 were $1.9
Slide 8: Gross Margin and SG&A
Management’s Discussion and Analysis Gross Margin Second Quarter Year-to-Date 2026 2025 Change Change 2026 2025 Change Change $ $ $ % $ $ $ % Gross profit 19,226 15,867 3,359 21.2 33,810 29,193 4,617 15.8 % of net sales 36.5% 32.6% 33.8% 31.9% In Q2 2026, gross margin dollars improved by $3.4 millio
Slide 9: Depreciation, Amortization and Foreign Exchange
Management’s Discussion and Analysis Second Quarter Year-to-Date 2026 2025 Change Change 2026 2025 Change Change $ $ $ % $ $ $ % Depreciation 2,371 2,413 (42) (1.7) 4,742 4,723 19 0.4 Amortization of intangible assets 324 302 22 7.3 657 610 47 7.7 Total 2,695 2,715 (20) (0.7) 5,399 5,333 66 1.2 The
Slide 10: Foreign Exchange Effect and Income Tax Expense
Management’s Discussion and Analysis The table below shows the effect of the net realized gain (loss) on foreign exchange forward contracts on net sales and gross margin: Second Quarter Year-to-Date 2026 2025 2026 2025 $ $ $ $ Sales before adjustment for net realized gain (loss) on f/x forward contr
Slide 11: Reconciliation of Non-IFRS Measures
Management’s Discussion and Analysis RECONCILIATION OF NON-IFRS MEASURES Second Quarter Year-to-Date Adjusted Net Earnings 2026 2025 2026 2025 $ $ $ $ Net earnings to equity holders of FTG 5,036 3,480 8,520 6,647 Add back (subtract): Acquisition expenses - - - 107 Startup expenses 36 62 107 125 Inco
Slide 12: Overview of Historical Quarterly Results
Management’s Discussion and Analysis OVERVIEW OF HISTORICAL QUARTERLY RESULTS (thousands of dollars except per share amounts and exchange rates) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Circuit segment sales $30,848 $31,604 $28,479 $33,676 $32,149 $30,918 $31,064 $34,327 Aerospace segment sal
Slide 13: Liquidity and Contractual Obligations
Management’s Discussion and Analysis Q2 2026 Q4 2025 $ $ Accounts receivables days outstanding1 60 55 Inventory days outstanding 112 105 Accounts payable days outstanding 57 58 1 Includes contract assets and contract liabilities All of the Corporation’s credit facilities with its primary lender are
Slide 14: Derivative Financial Instruments
Management’s Discussion and Analysis DERIVATIVE FINANCIAL INSTRUMENTS The Corporation follows hedge accounting on its derivative financial instruments and as a result, has designated certain derivative financial instruments as cash flow hedges. The fair value of the Corporation’s foreign exchange fo
Slide 15: Backlog
Management’s Discussion and Analysis BACKLOG Second Quarter Year-to-Date 2026 2025 2026 2025 $ $ $ $ Backlog1, beginning of the period 157,936 142,463 148,463 122,369 Bookings1 86,713 45,834 146,729 97,340 Adjustments to backlog 1,559 (6,057) (1,680) 5,405 Less: Sales (52,735) (48,729) (100,039) (91
Slide 16: Risk Factors and Outlook
Management’s Discussion and Analysis RISK FACTORS FTG operates in a dynamic and rapidly changing environment and industry, which exposes the Corporation to numerous risk factors. Additional information about the Corporation, including risks and uncertainties about FTG’s business, is provided in the
Slide 17: Tariffs and Controls and Procedures
Management’s Discussion and Analysis Tariffs remain a significant uncertainty within the global aerospace and defence sector, although the products manufactured by the Corporation for shipment from Canada to U.S. based customers and/or from the U.S. to Canada, generally fall under the provisions of
Slide 18: Forward-Looking Statements
Management’s Discussion and Analysis results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: impact or unanticipated impact of general economic, political and market factors in North America and internationa
Slide 19: Non-IFRS Measures Definitions
Management’s Discussion and Analysis The Corporation calculates Free Cash Flow (FCF) as the total net cash flow from operating and investing activities during the period, deducting lease liability payments, then finally adjusting for the effects of foreign exchange rate changes on cash flow. FCF is
Slide 20: Notice of No Auditor Review
Management’s Discussion and Analysis FIRAN TECHNOL OGY GROUP CORPORATION Notice of No Auditor Review of Interim Condensed Consolidated Financial Statements The accompanying unaudited interim condensed consolidated financial statements of the Corporation have been prepared by management and approved
Slide 21: Interim Condensed Consolidated Statements of Financial Position
Interim Condensed Consolidated Statements of Financial Position As at (Unaudited) May 29, November 30, (in thousands of Canadian dollars) Notes 2026 2025 ASSETS Current assets Cash and cash equivalents $ 10,829 $ 10,254 Accounts receivable 43,805 41,185 Contract assets 1,314 2,176 Inventories 40,726
Slide 22: Interim Condensed Consolidated Statements of Comprehensive Income
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) Three months ended Six months ended (Unaudited) May 29, May 30, May 29, May 30, (in thousands of Canadian dollars, except per share amounts) Notes 2026 2025 2026 2025 Sales $ 52,735 $ 48,729 $ 100,039 $ 91,603 Cost of sales Cos
Slide 23: Interim Condensed Consolidated Statements of Changes in Equity
Interim Condensed Consolidated Statements of Changes in Equity Six months ended May 29, 2026 Attributed to the equity holders of FTG Accumulated other Non- (Unaudited) Common Retained Contributed comprehensive controlling Total (in thousands of Canadian dollars) shares earnings surplus income (loss)
Slide 24: Interim Condensed Consolidated Statements of Cash Flows
Interim Condensed Consolidated Statements of Cash Flows Three months ended Six months ended (Unaudited) May 29, May 30, May 29, May 30, (in thousands of Canadian dollars) Notes 2026 2025 2026 2025 Net inflow (outflow) of cash related to the following: Operating activities Net earnings $ 5,093 $ 3,58
Slide 25: Nature of Operations
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) 1. NATURE OF OPERATIONS Firan Technology Group Corporation (“FTG”) was formed as a result of the amalgamation between Circuit World Corporation and Firan Techn
Slide 26: Share Capital
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) developments may change due to market changes or circumstances arising beyond the control of the Corporation. 3. SHARE CAPITAL 3.1 Authorized Authorized share
Slide 27: Earnings per Share
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) 3.2 Earnings per share Three months ended Six months ended May 30, May 30, May 30, May 30, 2025 2025 2025 2025 Numerator Net earnings $ 5,093 $ 3,581 $ 8,628 $
Slide 28: Managed Capital
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) The Corporation’s managed capital is as follows: November 30, May 29, 2026 2025 $ $ Total equity attributable to FTG’s shareholders 103,108 96,467 Bank loans 4
Slide 29: FLYHT Acquisition Purchase Price Allocation
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) The following table sets out the allocation of the purchase price to assets acquired and liabilities assumed related to the FLYHT acquisition: FLYHT Fair value
Slide 30: Acquisition Costs, Income Tax and Working Capital
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) In connection with the FLYHT acquisitions, during the year ended November 30, 2025, the Corporation recognized $107 in acquisition-related costs which were exp
Slide 31: Fair Value of Financial Instruments
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) There were no transfers between levels during the period. The estimated fair value amounts approximate the amounts at which financial instruments could be exch
Slide 32: Foreign Exchange and Gold Forward Contracts
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) Forward value at Forward Currency Currency Notional transaction current Unrealized As at sold bought value date value loss May 29, 2026 USD CAD US$85,800 $115,
Slide 33: Financial Risks
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) 8. FINANCIAL RISKS 8.1 Interest rate risk Interest rate risk arises because of the fluctuation in interest rates. The Corporation’s interest rate and cash flow
Slide 34: Balance Sheet Exposure
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) Balance sheet exposure, excluding financial derivatives 12,459 1,286 683 With all variables remaining constant, a 1% strengthening of the Canadian dollar versu
Slide 35: Currency Effect and Credit Risk
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) decrease as follows in the tables below. An assumed 1% weakening of the Canadian dollar would have had an equal but opposite effect on the amounts shown below.
Slide 36: Liquidity Risk
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) 8.4 Liquidity risk Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they come due. The Corporation manages
Slide 37: Government Loan Contribution Agreements
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) January 1, 2020. Contract amendments in 2020 adjusted the payment dates, with the final payment date pushed back to September 2025; while an amendment in March
Slide 38: Segment Information: Three Months Ended May 29, 2026
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) Corporate Circuits Aerospace Total Three months ended May 29, 2026 Office $ $ $ $ Gross segment sales 34,327 19,153 - 53,480 Inter-segment sales - - (745) (745
Slide 39: Segment Information: Six Months Ended May 29, 2026
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) Corporate Circuits Aerospace Total Six months ended May 29, 2026 Office $ $ $ $ Gross segment sales 65,390 36,226 - 101,616 Inter-segment sales - - (1,577) (1,
Slide 40: Segment Assets, Liabilities and Net Sales by Location
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) The following table details the total assets, intangible assets, additions to plant and equipment and total liabilities of the Corporation by operating segment
Slide 41: Revenue Disaggregation and Largest Customers
Notes to the Interim Condensed Consolidated Financial Statements (unless otherwise stated, all amounts are in thousands of Canadian dollars) May 29, 2026 May 30, 2025 May 29, 2026 May 30, 2025 $ $ $ $ Sale of goods 48,094 44,218 90,737 84,116 Licensing 1,175 606 2,299 624 Services 3,466 3,905 7,003
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Slide 44: Head Office and Facilities
HEAD OFFICE: Firan Technology Group Corporation 250 Finchdene Square Toronto, Ontario M1X 1A5 Canada Tel: 416-299-4000 Fax: 416-299-1140 Toll free: 1-800-258-5396 Website: www.ftgcorp.com CIRCUITS FACILITIES: FTG Circuits – Toronto FTG Circuits – Chatsworth FTG Circuits – Fredericksburg 250 Finchden