Firan Technology Group TSE: FTG used its fourth-quarter fiscal 2025 earnings call to highlight a record year across several key financial metrics and to outline priorities tied to defense growth, commercial aerospace ramp-ups, and integration work related to the FLYHT acquisition.
Record year for revenue, profitability, and backlog
President and CEO Brad Bourne said fiscal 2025 was “another successful year” for FTG, citing record revenue, EBITDA, and earnings. The company reported bookings of CAD 209.9 million, up 14% from 2024, and ended the year with backlog of CAD 148.5 million, up 21% year over year.
Revenue rose to CAD 191 million, an 18% increase from 2024. Adjusted EBITDA was CAD 32.7 million, up 27% from CAD 25.8 million, and adjusted net earnings were CAD 13.5 million, up 31% from the prior year. Operating cash flow less lease payments was CAD 13.7 million, and net debt was CAD 8.3 million (0.3x trailing twelve-month EBITDA), including CAD 11.2 million of government loans.
Chief Financial Officer Drew Knight added that gross margin improved to CAD 60.6 million, or 31.7% of sales, compared with 27.3% in 2024, attributing the margin gains to scale benefits on fixed costs, operational improvements, the addition of the new Aero Calgary business, and favorable foreign exchange. Adjusted EBITDA margin improved to 17.1% of sales in 2025 from 15.9% in 2024.
Segment performance and customer diversification
Management said growth came from both acquisition and organic sources. Bourne noted that about two-thirds of FTG’s 2025 revenue growth was driven by the acquisition of FLYHT, with the remainder from organic growth.
- Aerospace segment: Sales increased 43% year over year, with about 90% of the increase attributed to the FLYHT acquisition. Sales were up in Toronto and Tianjin, while activity in Chatsworth declined due to timing of orders. Management cited a significant ramp in C919 shipments and increased assemblies for Boeing and Airbus aircraft in Q4.
- Circuits segment: Sales increased 6% year over year, described as entirely organic. Growth was strongest in the joint venture in China, followed by the Haverhill and Chatsworth sites. Minnetonka demand was described as strong, but the ramp was constrained by hiring and training new production staff.
FTG also highlighted improved customer concentration: the top five customers accounted for 51.7% of total revenue in 2025 versus 58.4% in 2024. Airlines became two of the top 20 customers due to the FLYHT acquisition. FTG also noted that six of its top 10 customers are shared between the Circuits and Aerospace businesses, which management views as an opportunity to deepen relationships by selling both cockpit products and circuit boards.
Geographic mix shifts and tariff considerations
Management emphasized a reduction in exposure to U.S.-based customers. Bourne said 69.9% of 2025 sales were to U.S.-based customers, down from 78.3% in 2024, while sales grew outside the U.S. in several regions. He said U.S. sales grew 5% year over year, while sales increased 46% in Asia, 140% in Europe, and 35% in Canada, aided by efforts such as C919 content in China and FLYHT’s global sales.
Tariffs were a recurring topic. Bourne said tariffs are now impacting input costs in the circuits business because many raw materials originate outside North America, with the largest impact at U.S. sites and some impact in Toronto when materials ship through the U.S. He estimated the overall cost impact “in the millions of dollars” in 2026 and said FTG has begun working with customers to pass through increased costs.
FLYHT integration and product milestones
FTG described progress in turning the FLYHT acquisition into value. Bourne said the company obtained supplemental type certificates (STCs) for the AFIRS Edge+ program for Boeing 737 in Canada, the U.S., and China, and for Airbus A320 in Canada, Europe, and China. He said the transition of AFIRS Edge to in-house production is underway and that FTG delivered its first units to an airline in Asia.
Management also provided updates on FTG Aerospace Calgary (formerly FLYHT). Bourne said the business was renamed effective Dec. 1, 2025, following a legal amalgamation into FTG. He said the amalgamation was done to “possibly” enable use of FLYHT tax losses beyond Calgary, while noting there is no certainty this will be possible. Later, management said the company intends to seek a pre-ruling from the Canada Revenue Agency to support the use of those losses, and that the process could extend into early 2027.
On product demand, Bourne said licensing revenue for the SATCOM radio product returned in Q4 and should be consistent going forward, with the licensed product ending up on Airbus aircraft. He also said FTG is quoting multiple opportunities for the Edge+ WQAR product across jurisdictions and is starting to manufacture that product in Tianjin to capture margin. For the WVSS-II weather product, he said sales are expected to ramp in 2026 with contracts in place with NOAA in the U.S. and the U.K. Met Office, and that FTG is looking to manufacture both SATCOM radio and WVSS-II in Chatsworth in 2026.
Outlook: defense wins, backlog conversion, and India expansion
FTG entered fiscal 2026 with record backlog of CAD 148.5 million, and Knight said approximately 80% is expected to convert to revenue in 2026. Management said new business activity in aerospace and defense is strong and accelerating, with both segments winning their share of RFPs, including “a couple of substantial classified defense programs.” Bourne said FTG Circuits qualified for two significant classified defense programs, with deliveries expected to start in 2026 and ramp through 2027, and he described demand on those programs as “huge,” in the tens of millions of dollars, while noting that actual allocation and FTG’s ability to support the ramp are not yet clear.
In Q&A, Bourne said he could not provide an exact backlog split between defense and commercial, but indicated FTG has historically been about 40% defense and 60% commercial. He also said FTG is looking for ways to increase activity with Airbus and continues to explore establishing a footprint in Europe, citing Airbus exposure, rising NATO defense spending, and reduced tariff risk as factors.
FTG also discussed the planned opening of an aerospace facility in Hyderabad, India, in 2026. Bourne said the facility is under construction and now expected to be completed in Q2 2026, with a forecast total investment of about CAD 2 million. He described 2026 revenue impact as “negligible,” as efforts will focus on staffing, training, and certifications, with potential benefits expected to begin in 2027.
On the commercial side, Bourne discussed the COMAC C919 program, saying COMAC’s lower-than-expected deliveries had not impacted FTG’s demand and that the existing contract should complete later in 2026. He said he expects a follow-on purchase order against the existing contract to carry production into subsequent years, and noted a spares contract signed “a few months ago” that will be delivered in 2026. He also said COMAC is pursuing design changes as part of efforts to achieve European certification through EASA, which could expand demand beyond China and the Far East.
Management also addressed operational issues in Q4, including a production challenge at the Circuits Toronto facility that shut down part of production for nearly two weeks due to water contamination, impacting revenue and profitability during the quarter. Bourne said the issue was resolved by November and was “behind us” by year-end.
Finally, Bourne noted FTG’s Toronto union contract is up for renewal mid-2026, with negotiations not yet started, and characterized it as a potential risk, while pointing to a history of successful renewals without disruption aside from one instance a few years ago.
About Firan Technology Group TSE: FTG
Firan Technology Group Corp is a supplier of aerospace and defense electronic products and subsystems. It has two operating segments namely FTG Circuits and FTG Aerospace. FTG Circuits manufactures printed circuit boards within the global marketplace. FTG Aerospace designs and manufactures illuminated cockpit panels, keyboards, bezels, subassemblies, and assemblies for original equipment manufacturers of avionics products and for airframe manufacturers. The company operates in Canada, the United States, Asia, and Europe and generates substantial sales from the United States.
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