TORONTO, April 08, 2026 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for first quarter of 2026.
First Quarter Financial Highlights:
- Bookings: $60.0 million, marking a 17% increase over Q1 2025 and a book-to-bill ratio of 1.27:1
- Backlog: The quarter-end backlog stood at $157.9 million, an 11% rise from the previous year end.
- Revenue: $47.3 million, a 10.3% increase over Q1 2025.
- Adjusted EBITDA: $7.3 million, down from $8.4 million in Q1 2025.
- Adjusted Net Earnings: $3.5 million, up from $3.3 million in Q1 2025.
- Free Cash Flow: Generated free cash flow of $4.9M in Q1 2026.
- Net Debt: Maintained a strong balance sheet with net debt of $4.0 million, or 0.1X trailing 12 months EBITDA, including $9.9 million of government loans.
Business Highlights:
In Q1 2026, the Corporation grew organically. 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 Q1 2026 demonstrate this commitment, laying a strong foundation for future growth.
- Growing FTG's defence business: FTG Circuits qualified for two significant classified defence programs in 2025. Initial orders have been placed for these programs and deliveries are expected to take place in Q3 2026 and beyond.
- Creating value from FTG Aerospace Calgary: FTG Aerospace Calgary, formerly FLYHT, achieved record profitability in Q1 2026. The newest site of FTG continues to benefit from efforts to obtain certifications, sell its existing product portfolio and the restarting of licencing revenues related to their Satcom radio for Airbus.
- Diversifying and reducing exposure to U.S. tariff risks: In Q1 2026, deliveries to China's C919 program continued. In addition, deliveries to the new De Havilland Canadair 515 (DHC-515) aerial firefighting aircraft started to ramp up. More deliveries on both programs are expected for the remainder of 2026.
- Participation in space programs: FTG is proud to support the Artemis mission by supplying Switch Interface Panels (SIPs) to the Orion spacecraft. Although space represents a small portion of FTG's business, space is a growing sector and FTG has activities with other customers in the sector.
First Quarter Financial Summary:
| (in thousands of dollars except per share amounts) | Q1 2026 | Q1 2025 | % Change |
| Sales | 47,304 | 42,874 | 10.3% |
| Gross Margin | 14,584 | 13,326 | 9.4% |
| Gross Margin (%) | 30.83- | 31.08% | (25bps) |
| Adjusted EBITDA (1) | 7,281 | 8,375 | (13.06%) |
| Net Earnings to FTG Equity Holders | 3,484 | 3,167 | 10.0% |
| Adjusted Net Earnings (1) | 3,537 | 3,294 | 7.4% |
| Free Cash Flow (1) | 4,850 | 8,173 | (40.7%) |
| Earnings Per Share (Basic) | 0.14 | 0.13 | 7.7% |
| Earnings Per Share (Diluted) | 0.14 | 0.13 | 7.7% |
| (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) | Q1 2026 | Q1 2025 |
| Revenue: | ||
| Circuits | 31,064 | 28,679 |
| Aerospace | 17,073 | 15,183 |
| Corporate and eliminations | (833- | (988) |
| Total revenue | 47,304 | 42,874 |
| Adjusted EBITDA1)- | ||
| Circuits | 4,028 | 5,525 |
| Aerospace | 2,639 | 2,696 |
| Corporate and eliminations | 614 | 154 |
| Total Adjusted EBITDA1) | 7,281 | 8,375 |
| Adjusted Net Earnings1)- | ||
| Circuits | 1,213 | 2,188 |
| Aerospace | 1,969 | 1,361 |
| Corporate and eliminations | 355 | (255) |
| Total Adjusted Net Earnings1) | 3,537 | 3,294 |
| (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 Q1 2026 was $31.1 million, an increase of $2.4 million or 8.3% due to operational improvements at several U.S. sites. This revenue growth occurred despite a decrease of $1.3M caused by less favourable foreign exchange rates. Adjusted net earnings for Q1 2026 was $1.2 million, a decrease of $1.0 million year-over-year mainly due to a $0.7 million increase in foreign exchange loss. In addition, Q1 2025 included a large, realized gain on the Corporation's existing gold forward contracts, which was not repeated in 2026 and contributed a $0.4 million unfavourable variance.
FTG Aerospace
For Q1 2026, Aerospace revenue was $17.1 million, an increase of $1.9 million or 12%. As the acquisition of FLYHT Aerospace Solutions Ltd. and its subsidiaries ("FLYHT") occurred during Q1 2025, the acquisition timing difference contributed $0.7 million, offset by $0.6M of decline due to unfavourable foreign exchange rates. Organic growth added $1.8 million. Adjusted net earnings were $2.0 million, an increase of $0.6 million year-over-year despite an increase of $1.0 million in foreign exchange loss.
CEO Commentary:
"Our first quarter was a great start to 2026," stated Brad Bourne, President and CEO of FTG. "We achieved many strategic and operational improvements to Aerospace Calgary and legacy sites. This allowed us to deliver robust financial results despite significant foreign exchange headwinds during the quarter. We continue to see strong end market demand and remain focused on delivering long-term value to our shareholders."
Adjusted EBITDA:
| (in thousands of dollars except per share amounts) | Q1 2026 | Q1 2025 |
| Net earnings to equity holders of FTG | 3,484 | 3,167 |
| Add back: | ||
| Finance costs | 648 | 618 |
| Income tax expense | 192 | 1,591 |
| Depreciation and amortization | 2,680 | 2,575 |
| EBITDA1 | 7,004 | 7,951 |
| % of net sales | 14.8- | 18.5% |
| Add back: | ||
| Stock based compensation | 206 | 254 |
| Acquisition expenses | - | 107 |
| India startup cost | 71 | 63 |
| Adjusted EBITDA1 | 7,281 | 8,375 |
| % of net sales | 15.4- | 19.5% |
| (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 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 Thursday, April 9, 2026, at 8:30am (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 289-514-5100 or 1-800-717-1738, Conference ID 33073. A replay of the call will be available until May 11, 2026, and can be accessed by dialing 289-819-1325 or 1-800-660-6264, Playback Passcode 33073. The replay will also be available on the FTG website at www.ftgcorp.com.
Forward-Looking Statements:
Certain statements in this MD&A 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.com - Drew 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
