TORONTO, July 08, 2025 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for the second quarter 2025.
Second Quarter Financial Highlights:
- Bookings: Total bookings reached $45.8 million for Q2
- Backlog: The quarter-end backlog stood at $133.5 million, a 9% rise from the previous year end.
- Revenue: Recorded at $48.7 million, a 25.6% increase over Q2 2024.
- Adjusted EBITDA: Achieved $8.7 million in the quarter, up from $6.5 million in Q2 2024.
- Net Earnings: Rose by 36.3% to $3.5 million.
- Net Debt: Maintained a strong balance sheet with net debt of $13.5 million, including $12.8 million of government loans, or 0.4X trailing 12 months EBITDA
- Operating Cash Flow Less Lease Payments: Generated operating cash flow less lease payments of $5.8 million for the 1st half of 2025
Business Highlights:
In Q2 2025, the Corporation continued to grow organically while integrating the FLYHT acquisition from earlier in the year. FTG is strategically 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 Q2 2025 demonstrate this commitment, laying a strong foundation for continued growth.
- FLYHT Profitability: FLYHT achieved profitability in Q2 2025.
- AFIRS Edge+ Boeing 737NG Certification: FTG, through its subsidiary FLYHT, has received a Supplemental Type Certificate (STC) from Transport Canada Civil Aviation (TCCA) for its AFIRS Edge+ product on the Boeing 737NG family of aircraft, one of the world's most widely used commercial airframes. More STCs for this product are underway for additional aircraft types and geographic regions.
- New Facility - FTG finalized the facility design and signed a lease for its planned Aerospace facility in Hyderabad India with target completion date of late 2025. Initial start up capital has also been invested in the new operation - FTG Aerospace Hyderabad.
- Qualification Orders - FTG completed qualification orders for some high-volume US defence programs and received new qualification orders on further US defence programs.
- New Board Member - Effective today, Russell David has been appointed to the FTG Board of Directors. Russell has had unique experience as a board member of privately-held companies including Davie Shipbuilding Canada Inc., as a senior executive in public and private corporations and as a senior partner in financial services firm Deloitte in corporate finance and M&A advisory.
Table 1: Key Financial Metrics (Quarterly)
| Metric | Q2 2025 | Q2 2024 | % Change | ||
| Sales | $48,729,000 | $38,789,000 | 25.6% | ||
| Gross Margin | $15,867,000 | $10,808,000 | 46.8% | ||
| Gross Margin (%) | 32.56% | 27.86% | 470bps | ||
| Net Earnings to FTG Equity Holders | $3,480,000 | $2,553,000 | 36.3% | ||
| Adjusted Net Earnings (1) | $3,526,500 | $2,553,000 | 38.1% | ||
| Earnings Per Share (Basic) | $0.14 | $0.11 | 27.3% | ||
| Earnings Per Share (Diluted) | $0.13 | $0.11 | 18.2% | ||
| Adjusted Earnings Per Share (Basic) (1) | $0.14 | $0.11 | 31.0% | ||
| Adjusted Earnings Per Share (Diluted) (1) | $0.14 | $0.11 | 30.9% | ||
(1)Adjusted Net Earnings is not a measure recognized under International Financial Reporting Standards ("IFRS"). Management believes that this measure is important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating Adjusted Net Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations.
Table 2: Key Financial Metrics (Year-to-Date)
| Metric | YTD Q2 2025 | YTD Q2 2024 | % Change | ||
| Sales | $91,603,000 | $73,764,000 | 24.2% | ||
| Gross Margin | $29,193,000 | $19,737,000 | 47.9% | ||
| Gross Margin (%) | 31.87% | 26.76% | 511bps | ||
| Net Earnings to FTG Equity Holders | $6,647,000 | $3,603,000 | 84.5% | ||
| Adjusted Net Earnings (1) | $6,821,000 | $3,603,000 | 89.3% | ||
| Earnings Per Share (Basic) | $0.27 | $0.15 | 80.0% | ||
| Earnings Per Share (Diluted) | $0.26 | $0.15 | 73.3% | ||
| Adjusted Earnings Per Share (Basic) (1) | $0.27 | $0.15 | 80.2% | ||
| Adjusted Earnings Per Share (Diluted) (1) | $0.27 | $0.15 | 80.0% | ||
(1)Adjusted Net Earnings is not a measure recognized under International Financial Reporting Standards ("IFRS"). Management believes that this measure is important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating Adjusted Net Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations.
Table 3: EBITDA
| Metric | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | Trailing 12 Months Ended Q2 2025 | |||||
| Net Earnings to Equity Holders | $3,480,000 | $2,553,000 | $6,647,000 | $3,603,000 | $13,859,000 | |||||
| Add: Interest, Accretion | $737,000 | $585,000 | $1,355,000 | $1,112,000 | $2,453,000 | |||||
| Add: Income Taxes | $1,593,000 | $1,122,000 | $3,184,000 | $1,811,000 | $5,466,000 | |||||
| Add: Depreciation and Amortization | $2,688,000 | $2,085,000 | $5,263,000 | $4,125,000 | $9,483,000 | |||||
| EBITDA (2) | $8,498,000 | $6,345,000 | $16,449,000 | $10,651,000 | $31,261,000 | |||||
| Adjustments | ||||||||||
| Stock Based Compensation | $143,000 | $138,000 | $397,000 | $386,000 | $750,000 | |||||
| Acquisition and Divestiture Expenses | - | - | $107,000 | - | $511,000 | |||||
| India Startup Costs | $62,000 | - | $125,000 | - | $235,000 | |||||
| Change in Fair Value of Contingent Consideration | - | - | - | - | ($829,000) | |||||
| Adjusted EBITDA (2) | $8,703,000 | $6,483,000 | $17,078,000 | $11,037,000 | $31,928,000 | |||||
| Adjusted EBITDA Margin (2) | 17.9% | 16.7% | 18.6% | 15.0% | 17.7% | |||||
(2) EBITDA and Adjusted EBITDA are not measures 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 EBITDA and Adjusted EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations
CEO Commentary:
"Our second quarter set another sales record for FTG," stated Brad Bourne, President and CEO of FTG. "We continued to see strong end market demand from all market segments and we continue to ramp our throughput in support of this demand. Our FLYHT acquisition was profitable in the quarter which was sooner than anticipated and shows the potential for our new business in the commercial aerospace aftermarket segment. The uncertainty around US tariffs remains but we have not seen any material impact so far. During 2025, we have seen significant movements in the value of the Canadian dollar versus the US dollar which benefited our Q1 results and negatively impacted Q2. The current exchange rate is in line with where it was in 2024 so going forward it should not have a material impact on FTG's results."
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: A manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defence, and high technology 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 and electronic assemblies for original equipment manufacturers and operators of aerospace and defence equipment. FTG Aerospace has operations in Toronto, Ontario, Calgary, Alberta, Chatsworth, California, and Tianjin, China.
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 Wednesday, July 9, 2025, at 8:30 a.m. (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 and using Conference ID 20585. A replay of the call will be available until August 9, 2025, and can be accessed by dialing 1-289-819-1325 or 1-888-660-6264, Playback Passcode# 20585. The replay will also be available on the FTG website at www.ftgcorp.com.
Forward-Looking Statements:
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
- Bradley C. Bourne, President and CEO
Firan Technology Group Corporation
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.com - Jamie Crichton, Vice President and CFO
Firan Technology Group Corporation
Tel: (416) 299-4000 x264
jamiecrichton@ftgcorp.com
Additional information can be found at the Corporation's website www.ftgcorp.com.
