Firan Tech (FTG) AI Stock Analysis

• Market Cap: C$507.50M
• Dividend Yield: N/A
• Average Volume (3M): 92.34K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.53
• Revenue Growth: 15.09%
• EPS Growth: 31.55%
• Country: CA
• Employees: 697
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.14
• Shares Outstanding: 25,173,390
• 10 Day Avg. Volume: 175,050
• 30 Day Avg. Volume: 92,336
• PEG Ratio: 1.39
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 21.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.50
• Price Target Upside: -8.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): C$208.10M

• Rating: 74 Outperform
• Price Target: C$23.50 ▲(16.57% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 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 bookings & backlog

A large, high-conversion backlog provides durable revenue visibility and supports capacity planning. With ~80% of $148.5M backlog expected to convert in 2026, FTG can better schedule ramp, secure supply lines, and reduce near-term revenue cyclicality, improving predictability for 12–24 months.

Improving profitability and margins

Material margin expansion and EBITDA growth indicate stronger unit economics and pricing or mix improvements. Sustained operating leverage across growing revenue can fund reinvestment, support higher free cash generation over time, and validate competitive positioning in high-reliability PCB niches.

Defense program wins & tailwinds

Defense qualifications create multi-year, higher-barrier contracts with sticky demand. Combined with rising NATO/U.S./Canadian defense budgets and OEM ramp plans, these programs provide structural revenue upside and diversification away from commercial cyclicality, improving long-term utilization.

Negative Factors

Rising leverage trend

Debt increased materially due to acquisition activity, raising leverage and reducing financial flexibility. While absolute leverage remains moderate versus EBITDA, the upward trend heightens sensitivity to integration hiccups, tariff shocks, or cash-conversion setbacks, constraining strategic optionality.

Moderate cash conversion & FCF dip

Subpar cash conversion and a decline in free cash flow signal working-capital drag and timing risks. Persistent gaps between accounting earnings and cash reduce internal funding for capex, acquisitions or debt paydown, increasing reliance on external liquidity during multi-year growth and ramp periods.

Tariff and acquisition-related cost pressure

Persistent tariff exposure plus higher SG&A from acquisitions and start-up sites compress margins structurally until cost pass-through or operational synergies are realized. This raises the breakeven for new sites and slows margin normalization across the medium term.

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 Circuits and FTG Aerospace. The company offers printed circuit boards, standard rigid, high-density interconnect, RF circuitry, thermal management, and rigid flex and assembly products. It also provides avionic sub-system hardware products, such as backlit control panels and assemblies, integrated switch panels, MCDU keyboards, primary display bezels, cursor control devices, and advanced control panel assemblies/line replaceable units. The company was formerly known as Circuit World Corporation and changed its name to Firan Technology Group Corporation in May 2004. Firan Technology Group Corporation was founded in 1983 and is headquartered in Toronto, Canada.

How the Company Makes Money

Firan Tech generates revenue primarily through the sale of its high-reliability printed circuit boards and related electronic manufacturing services. The company's revenue model relies on multiple key streams, including direct sales to original equipment manufacturers (OEMs) and subcontracting services for larger defense and aerospace projects. Significant partnerships with major players in the aerospace and defense industries contribute to consistent revenue through long-term contracts and repeat business. Additionally, FTG benefits from a reputation for quality and reliability, allowing it to command premium pricing for its specialized products.

Firan Tech Financial Statement Overview

Summary

Strong multi-year revenue growth and sustainably positive profitability, but tempered by margin compression from 2023 to 2025, rising leverage trend, and only moderate cash conversion with a dip in 2025 free-cash-flow growth.

Income Statement

Revenue has expanded strongly since 2022, with 2025 revenue up meaningfully versus 2024 and well above prior years. Profitability has also improved materially from the near-break-even period in 2021–2022 to solid results in 2023–2025 (2025 net margin ~6.9% and operating margin ~9.9%). The main weakness is some margin compression from 2023 to 2025 (gross margin down from ~33.9% in 2023 to ~30.2% in 2025, and net margin down from ~8.6% to ~6.9%), suggesting costs/pricing pressure despite growth.

Balance Sheet

The company has built a larger equity base over time (equity rising from ~C$48M in 2022 to ~C$96M in 2025), supporting a bigger asset base. Leverage remains moderate, with debt at ~0.55x equity in 2025 (up from ~0.49x in 2024 and ~0.28x in 2022), indicating increased reliance on debt as the business scaled. While not excessive, the upward leverage trend is the key balance-sheet risk to monitor.

Cash Flow

Cash generation is positive, with operating cash flow improving from ~C$11.3M (2023) to ~C$17.5M (2025) and free cash flow positive in 2023–2025. However, cash conversion is only moderate: in 2025, free cash flow is about 0.74x net income, and operating cash flow is less than half of net income (similar pattern in prior years), which can signal working-capital or timing drag. Free cash flow growth also turned negative in 2025 (down ~10%), after strong gains in 2023–2024.

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

• Technical Analysis Sentiment: Positive
• Last Price: 20.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTG, the sentiment is Positive. The current price of 20.16 is above the 20-day moving average (MA) of 17.62, above the 50-day MA of 14.98, and above the 200-day MA of 12.20, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 67.22 is Neutral, neither overbought nor oversold. The STOCH value of 82.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FTG.

Firan Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	74 Outperform	C$507.50M	21.66	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.45B	18.44	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$5.12B	44.55	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.A	60 Neutral	C$26.76B	18.12	―	―	6.60%	-1.71%
CAE	57 Neutral	C$12.98B	30.69	7.63%	―	9.12%	―
DPRO	52 Neutral	C$215.16M	-11.28	-48.12%	―	26.74%	53.14%

Firan Tech Corporate Events

Firan Technology Group Posts Strong 2025 Growth as Aerospace and Defence Programs Ramp Up

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 improved, as adjusted EBITDA grew 27% to $32.7 million and adjusted net earnings rose 31% to $13.5 million, while the company maintained a solid balance sheet with modest net debt.

Fourth-quarter revenue climbed 14.2% to $51.7 million and gross margin reached 30.5%, though adjusted net earnings slipped slightly due to higher amortization from the FLYHT acquisition and foreign exchange losses. Operationally, FTG advanced key strategic initiatives, including qualifying for major classified defence programs, ramping deliveries for the C919 and DHC-515 aircraft, bringing FLYHT’s AFIRS Edge+ into in-house production, and strengthening its leadership and board, positioning the company for continued growth in aerospace and defence markets.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Firan Technology Group Sets February 18 Date for 2025 Year-End Results

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 aerospace and defence electronics markets. Management will discuss the results on a conference call the following morning, with a replay available by phone and on the company’s website, giving shareholders and analysts structured access to insight on performance and strategic direction.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.