Firan Tech (TSE:FTG)
TSX:FTG
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Firan Tech
(TSX:FTG)
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Rating:74Outperform
Price Target:
C$18.50
▲(8.38% Upside)
Action:ReiteratedDate:02/21/26
The score is driven by solid underlying financial performance (growth with improving profitability, though with margin/cash-conversion and leverage-trend risks) and strong bullish technicals. This is partially offset by a less attractive valuation (P/E ~31) and near-term execution/cost headwinds noted on the earnings call (tariffs, integration SG&A, and capacity ramp constraints).
Positive Factors
Strong backlog and bookings
A large, high-conversion backlog (~80% guide) provides durable revenue visibility and smooths near-term cyclicality typical in aerospace/defense. Predictable build rates support capacity planning, staffing investments, and phased margin improvements as fixed costs are absorbed over higher volumes.
Negative Factors
Rising leverage trend
An upward leverage trajectory and acquisition‑driven net debt increase reduce financial flexibility versus prior years. Even if still moderate relative to EBITDA, rising reliance on debt raises refinancing and interest exposure risk and constrains capacity for future inorganic investments if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong backlog and bookings
A large, high-conversion backlog (~80% guide) provides durable revenue visibility and smooths near-term cyclicality typical in aerospace/defense. Predictable build rates support capacity planning, staffing investments, and phased margin improvements as fixed costs are absorbed over higher volumes.
Read all positive factors
Firan Tech (FTG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$429.71M
Dividend YieldN/A
Average Volume (3M)92.34K
Price to Earnings (P/E)21.7
Beta (1Y)1.68
Revenue Growth15.09%
EPS Growth31.55%
CountryCA
Employees697
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.14
Shares Outstanding25,173,390
10 Day Avg. Volume175,050
30 Day Avg. Volume92,336
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)2.94
Price to Sales (P/S)1.50
P/FCF Ratio21.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$18.50Price Target Upside8.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.66
Revenue Forecast (FY)C$208.10M
Firan Tech Business Overview & Revenue Model
Company Description
Firan Technology Group Corporation manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards primarily in Canada, the United States, Asia, Europe, and rest of Americas. It operates in two segments, FTG Circui...
How the Company Makes Money
FTG makes money by selling engineered electronic products and manufacturing services to customers—primarily in aerospace and defense—under customer purchase orders and longer-term supply arrangements. Key revenue streams include: (1) PCB-related r...
Firan Tech Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 08, 2026
Earnings Call Sentiment Positive
The call emphasizes multiple positive operating and financial developments: record revenue, backlog, improved gross margins (+430 bps), strong adjusted EBITDA growth (+27%), progress integrating FLYHT with product certifications and initial deliveries, geographic diversification, and defense program qualifications with expected ramping revenue in 2026–2027. Offsetting items include tariff-driven input cost headwinds (expected in the millions in 2026), Q4 operational disruption at Toronto, higher SG&A from acquisitions (Aero‑Calgary), increased net debt from the acquisition, and near‑term ramp and hiring constraints (Minnetonka and new India site). Overall, the positives (strong top‑line and margin gains, backlog, cash flow, and strategic wins) materially outweigh the manageable operational and cost challenges described.Positive Updates
Record Revenue and Bookings Growth
Full-year revenue of $191.0M, up 18% vs 2024; bookings of $209.9M for the year, up 14% vs 2024; year-end backlog of $148.5M, up 21% vs 2024 with ~80% expected to convert to revenue in 2026.
Negative Updates
Tariff and Input Cost Pressure
U.S. tariffs and supply chain routing increased input costs for circuit-board manufacturing; company estimates the cost impact will be 'in the millions' in 2026 and is negotiating cost pass-through with customers.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Bookings Growth
Full-year revenue of $191.0M, up 18% vs 2024; bookings of $209.9M for the year, up 14% vs 2024; year-end backlog of $148.5M, up 21% vs 2024 with ~80% expected to convert to revenue in 2026.
Read all positive updates
Company Guidance
FTG entered 2026 with record bookings of ~$210.0M and a year‑end backlog of $148.5M, of which management expects ~80% to convert to revenue in 2026; key guidance items include defense program deliveries beginning in 2026 and ramping through 2027 (program demand described in the “millions to tens of millions”), continued commercial aerospace/FLYHT ramp (Aero‑Calgary/STC activity and Edge+/SATCOM/WVSS product rollouts), and a target to scale Aero‑Calgary to profitability while mitigating U.S. tariff risk by growing non‑U.S. sales and adding international sales staff. Financial and operating targets/context cited: 2025 revenue $191M (+18%), adjusted EBITDA $32.7M (17.1% of sales, +27%), adjusted net earnings ~$13.5M, gross margin $60.6M (31.7%, +430 bps), revenue per employee $254k, net debt $8.3M (0.3x trailing‑12‑month EBITDA, incl. $11.2M government loans), operating cash flow less lease payments ~$13.7M (cash from operations $18.1M), year‑end liquidity $78M (working capital $58M + $20M unused facilities), capex $4.6M in 2025 with a long‑term target of ~3% of revenue, and working‑capital metrics AR 55 days / inventory 105 days / AP 58 days; management also expects Hyderabad aerospace site ready around Q2 2026 with ~ $2M investment and negligible 2026 revenue while pursuing continued backlog conversion and operational efficiencies.Firan Tech Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 189.04M | 162.10M | 135.20M | 89.62M | 79.36M |
| Gross Profit | 57.01M | 44.18M | 45.83M | 21.31M | 17.13M |
| EBITDA | 29.48M | 25.73M | 22.26M | 7.92M | 8.42M |
| Net Income | 13.08M | 10.81M | 11.62M | 698.00K | 170.00K |
Balance Sheet | |||||
| Total Assets | 172.81M | 134.98M | 125.71M | 83.75M | 79.45M |
| Cash, Cash Equivalents and Short-Term Investments | 10.25M | 9.96M | 6.62M | 15.67M | 20.20M |
| Total Debt | 52.96M | 35.31M | 35.18M | 13.59M | 12.94M |
| Total Liabilities | 75.78M | 62.14M | 65.38M | 34.45M | 28.41M |
| Stockholders Equity | 96.47M | 72.15M | 59.53M | 48.33M | 50.10M |
Cash Flow | |||||
| Free Cash Flow | 12.88M | 6.88M | 4.77M | -1.05M | 4.73M |
| Operating Cash Flow | 17.48M | 14.13M | 11.30M | 11.26M | 7.63M |
| Investing Cash Flow | -10.87M | -7.24M | -23.77M | -12.02M | -2.95M |
| Financing Cash Flow | -6.54M | -4.34M | 3.57M | -1.73M | -2.70M |
Firan Tech Technical Analysis
Negative
17.07
Price Trends
17.19
Negative
14.26
Positive
12.93
Positive
Market Momentum
-0.04
Positive
43.48
Neutral
36.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTG, the sentiment is Negative. The current price of 17.07 is below the 20-day moving average (MA) of 18.95, below the 50-day MA of 17.19, and above the 200-day MA of 12.93, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 36.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FTG.
Firan Tech Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$429.71M | 21.66 | 14.42% | ― | 15.09% | 31.55% | |
72 Outperform | C$1.18B | 18.44 | 5.52% | 0.93% | 8.84% | 131.58% | |
71 Outperform | C$4.67B | 30.51 | 8.88% | ― | 57.77% | 57.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$11.71B | 30.69 | 7.50% | ― | 9.12% | ― | |
60 Neutral | C$23.73B | 18.12 | -61.55% | ― | 6.60% | -1.71% | |
45 Neutral | C$152.82M | -6.53 | -48.00% | ― | 26.74% | 53.14% |
* Industrials Sector Average
TSE:FTG
Firan Tech
17.07
9.43
123.43%
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Firan Tech Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Firan Technology Group Posts Strong 2025 Growth as Aerospace and Defence Programs Ramp Up
Positive
Feb 18, 2026
Firan Technology Group reported strong 2025 results, with revenue up 18% to $191 million, bookings rising 14% to $209.9 million, and backlog increasing 21% to $148.5 million, reflecting robust demand across its programs. Profitability also improve...
Financial Disclosures
Firan Technology Group Sets February 18 Date for 2025 Year-End Results
Neutral
Feb 5, 2026
Firan Technology Group Corporation will release its full-year and fourth-quarter 2025 financial results on February 18, 2026, after markets close, underscoring the company’s continued communication with investors as it navigates the aerospac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.