Firan Technology Group Corporation
TORONTO, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for the third quarter of 2026.
Third Quarter Financial Highlights:
Bookings: $90.2 million, marking a 75% increase over Q3 2025 and a book-to-bill ratio of 1.41:1
Backlog: The quarter-end backlog stood at $220.7 million, a 49% rise from the previous year end.
Revenue: $64.1 million in Q3 2026, a 34.3% increase over Q3 2025.
Adjusted EBITDA: $15.1 million in Q3 2026, a 96.9% increase from $7.7 million in Q3 2025; Adjusted EBITDA was $40.8 million for the trailing twelve months.
Net Earnings: $10.0 million in Q3 2026, an increase of $7.2 million from Q3 2025.
Free Cash Flow: Generated $7.1M in Q3 2026.
Net Cash: maintained a strong balance sheet with net cash of $3.9 million, including $8.9 million of government loans. Extinguished all commercial loans during Q3 2026 with cash generated from operations.
Business Highlights:
In Q3 2026, the Corporation realized significant value from its ongoing strategic initiatives. FTG is investing its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. The company's achievements in Q3 2026 demonstrate this commitment, laying a strong foundation for future growth as evidenced by the record financial metrics, bookings and backlog.
Growing FTG's defence business: FTG Circuits qualified for two large-scale classified defence programs in 2025. Significant orders have been placed for these programs and deliveries have ramped up, contributing materially to sales and earnings in Q3 2026.
Operational improvements: Strategic leadership appointments made in 2025 are delivering stronger operating performance and throughput.
Customer demand: Bookings continued at a record pace and many orders included significant pricing premiums for expedited delivery.
International diversification: The Corporation recently qualified with new customers in Europe and Australia, further diversifying its customer base and reducing exposure to global tariff risks.
Opening of FTG Aerospace Hyderabad: In Q3 2026, the Corporation opened its new aerospace facility in Hyderabad, India. The new footprint in India reduces the Corporation's exposure to U.S. tariff risk and provides access to India's emerging domestic aerospace and defence market.
FTG Circuits Toronto union agreement: In Q3 2026, a new four-year collective agreement with represented employees at the Corporation's Circuits Toronto facility was negotiated and ratified. The agreement expires in July 2030.
Appointment of new auditor: In Q3 2026, the Corporation appointed Deloitte LLP as its new external auditor.
Third Quarter Financial Summary:
(in thousands of dollars except per share amounts) | Q3 2026 | Q3 2025 | YTD | YTD |
Sales | 64,096 | 47,737 | 164,135 | 139,340 |
Gross Margin | 27,492 | 14,486 | 61,302 | 44,800 |
Gross Margin (%) | 42.9% | 30.3% | 37.3% | 32.2% |
Adjusted EBITDA(1) | 15,126 | 7,683 | 32,885 | 24,761 |
Adjusted Net Earnings(1) | 10,290 | 2,994 | 18,899 | 9,815 |
Free Cash Flow(1) | 7,054 | 4,632 | 14,633 | 7,326 |
Adjusted Earnings Per Share (Basic) | 0.41 | 0.12 | 0.75 | 0.39 |
(1) Measures not recognized under International Financial Reporting Standards ("IFRS"). Management believes that these measures are important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management's Discussion and Analysis for reconciliations of non-IFRS measures.
Operational Analysis:
(in thousands of dollars except per share amounts) | Q3 2026 | Q3 2025 | YTD | YTD |
Revenue: | ||||
Circuits | 45,096 | 32,148 | 110,486 | 94,503 |
Aerospace | 19,838 | 16,781 | 56,065 | 47,788 |
Corporate and eliminations | (838) | (1,192) | (2,416) | (2,951) |
Total revenue | 64,096 | 47,737 | 164,135 | 139,340 |
Adjusted EBITDA(1): | ||||
Circuits | 10,689 | 5,378 | 21,935 | 17,438 |
Aerospace | 3,971 | 2,062 | 9,723 | 6,821 |
Corporate and eliminations | 466 | 243 | 1,227 | 502 |
Total Adjusted EBITDA(1) | 15,126 | 7,683 | 32,885 | 24,761 |
Adjusted Net Earnings(1): | ||||
Circuits | 7,616 | 2,276 | 12,819 | 7,675 |
Aerospace | 2,756 | 895 | 6,717 | 2,994 |
Corporate and eliminations | (82) | (177) | (637) | (854) |
Total Adjusted Net Earnings(1) | 10,290 | 2,994 | 18,899 | 9,815 |
(1) Measures not recognized under International Financial Reporting Standards ("IFRS"). Management believes that these measures are important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management's Discussion and Analysis for reconciliations of non-IFRS measures.
FTG Circuits
Revenue for Q3 2026 was $45.1 million, an increase of $12.9 million or 40.3% compared to Q3 2025. The revenue increased primarily due to operational improvements at several U.S. sites, short-term pricing premiums and $0.9 million driven by favourable exchange rates. As a result of the factors noted above, adjusted net earnings for Q3 2026 increased by $5.3 million to $7.6 million, compared to Q3 2025.
Revenue for the year-to-date period of 2026 was $110.5 million, an increase of $16.0 million or 16.9% as compared to 2025 due to organic growth including short-term pricing premiums offset by $1.8 million of unfavourable foreign exchange rates.
FTG Aerospace
Revenue for Q3 2026 was $19.8 million, an increase of $3.0 million or 18.2% compared to Q3 2025. The increase is driven by $2.2 million of organic growth, $0.5 million of a contract cancellation charge and $0.3 million of favourable foreign exchange variance. Adjusted net earnings for Q3 2026 were $2.8 million, an increase of $1.9 million compared to Q3 2025 due to the above factors and operational improvements.
Revenue for the year-to-date period of 2026 was $56.1 million, an increase of $8.3 million or 17.3% as compared to 2025. Organic growth contributed $8.9 million offset by $0.6 million due to unfavourable foreign exchange rates compared to 2025.
CEO Commentary:
"Q3 2026 was an exceptional quarter for FTG," stated Brad Bourne, President and CEO of FTG. "We exceeded the record financial performances just set last quarter and we saw continued operational improvements at many Circuits and Aerospace sites. The many strategic initiatives in 2025 have positioned us well to capture significant value from the current industry tailwinds. As we celebrate our success, we continue to see robust end-market demand with record bookings and backlog and remain focused on delivering long-term value to our shareholders."
Adjusted Net Earnings and EPS:
(in thousands of dollars except per share amounts) | Q3 2026 | Q3 2025 | YTD | YTD | Trailing |
Net earnings to equity holders of FTG | 10,000 | 2,768 | 18,520 | 9,415 | 22,182 |
Add back: | |||||
Acquisition expenses | - | - | - | 107 | - |
India startup cost | 290 | 44 | 397 | 169 | 433 |
Restructuring cost | - | 212 | - | 212 | - |
Income taxes related to the above items | - | (30) | (18) | (88) | (27) |
Adjusted net earnings(1) | 10,290 | 2,994 | 18,899 | 9,815 | 22,588 |
% of net sales | 16.1% | 6.3% | 11.5% | 7.0% | 10.5% |
Weighted average number of common shares | 25,173,390 | 25,173,390 | 25,173,390 | 25,088,081 | 25,088,081 |
Adjusted Earnings Per Share (Basic) | 0.41 | 0.12 | 0.75 | 0.39 | 0.90 |
(1) Measures not recognized under International Financial Reporting Standards ("IFRS"). Management believes that these measures are important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management's Discussion and Analysis for reconciliations of non-IFRS measures.
Adjusted EBITDA:
(in thousands of dollars except per share amounts) | Q3 2026 | Q3 2025 | YTD | YTD | Trailing |
Net earnings to equity holders of FTG | 10,000 | 2,768 | 18,520 | 9,415 | 22,182 |
Add back: | |||||
Finance costs | 543 | 755 | 1,796 | 2,110 | 2,424 |
Income tax expense | 1,395 | 1,232 | 3,305 | 4,416 | 4,010 |
Depreciation and amortization | 2,696 | 2,536 | 8,257 | 7,799 | 11,017 |
EBITDA(1) | 14,634 | 7,291 | 31,878 | 23,740 | 39,633 |
% of net sales | 22.8% | 15.3% | 19.4% | 17.0% | 18.4% |
Add back: | |||||
Stock based compensation | 202 | 136 | 610 | 533 | 736 |
India startup cost | 290 | 44 | 397 | 169 | 433 |
Restructuring cost | - | 212 | - | 212 | - |
Adjusted EBITDA(1) | 15,126 | 7,683 | 32,885 | 24,761 | 40,802 |
% of net sales | 23.6% | 16.1% | 20.0% | 17.8% | 18.9% |
(1) Measures not recognized under International Financial Reporting Standards ("IFRS"). Management believes that these measures are important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management's Discussion and Analysis for reconciliations of non-IFRS measures.
About Firan Technology Group Corporation:
FTG is an aerospace and defence electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation and defence industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia, Minnetonka, Minnesota, Haverhill, Massachusetts and a joint venture in Tianjin, China.
FTG Aerospace designs, certifies, manufactures and provides in-service support for illuminated cockpit products, electronic assemblies and avionics products for original equipment manufacturers and operators of aerospace and defence equipment. FTG Aerospace has operations in Toronto, Ontario, Calgary, Alberta, Chatsworth, California, Tianjin, China and Hyderabad, India.
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG, and on the OTCQX Exchange under the symbol FTGFF.
Conference Call Details:
FTG will host a live conference call on Thursday, October 8, 2026, at 8:30 am (Eastern) to discuss the financial results. The call will be chaired by Mr. Brad Bourne, President and CEO of FTG. Participants can join the call by dialing 1-289-514-5100 or 1-800-717-1738, Conference ID 96492. A replay of the call will be available until November 13, 2026, and can be accessed by calling 1-289-819-1325 or 1-800-660-6264, Playback Passcode 96492#. The replay will also be available on the FTG website at www.ftgcorp.com.
Forward-Looking Statements:
Certain statements in this press release other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the current expectations of FTG. These statements include without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of FTG, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "considers", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward-looking statements are provided for the purpose of conveying information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.
For further information please contact:
Bradley C. Bourne, President and CEO
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.comDrew Knight, Executive Vice President, CFO, and Corporate Secretary
Tel: (416) 299-4000 x264
drewknight@ftgcorp.com
Head Office: 250 Finchdene Square, Toronto, Ontario, M1X 1A5
Additional information can be found at the Corporation's website www.ftgcorp.com.