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Firan Tech (TSE:FTG)
TSX:FTG
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Firan Tech (FTG) AI Stock Analysis

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TSE:FTG

Firan Tech

(TSX:FTG)

Rating:77Outperform
Price Target:
C$13.00
▲(11.97%Upside)
Firan Tech's strong financial performance, coupled with positive earnings call insights, positions it well in the aerospace & defense industry. Technical indicators are generally supportive, although valuation metrics suggest limited upside. Strategic initiatives and recent achievements contribute positively to the overall score.

Firan Tech (FTG) vs. iShares MSCI Canada ETF (EWC)

Firan Tech Business Overview & Revenue Model

Company DescriptionFiran 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 MoneyFTG generates revenue through the sale of its high-reliability PCBs and precision enclosures. The company's primary revenue streams include contracts and orders from aerospace and defense companies, which require specialized, durable, and precise products. FTG's business model is heavily reliant on building long-term relationships with clients in these sectors, leveraging its expertise and reputation to secure repeat business. Additionally, FTG partners with various suppliers and technology firms to enhance its product offerings and expand its market reach, further contributing to its revenue.

Firan Tech Earnings Call Summary

Earnings Call Date:Jul 08, 2025
(Q2-2025)
|
% Change Since: -6.52%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong revenue growth and strategic expansion through acquisitions, particularly FLYHT, which has shown early profitability. However, challenges remain due to uncertainties around U.S. tariffs and delays in product qualifications impacting the Aerospace segment. Overall, the positive achievements slightly outweigh the concerns, indicating a generally favorable outlook.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
FTG achieved record revenue of $48.7 million, a 25.6% increase over Q2 last year. Record adjusted EBITDA of $8.7 million was also reported, up from $6.5 million in Q2 last year. Net earnings rose by 36% to $3.5 million.
Strong Backlog and Bookings
Total bookings for the quarter reached $45.8 million, with a quarter-end backlog of $133.5 million, a 9% rise from the previous year-end.
FLYHT Acquisition Success
FLYHT achieved profitability in Q2 and obtained its first supplemental type certificate from Transport Canada for its AFIRS Edge product on the Boeing 737.
Geographic Sales Expansion
Sales grew by 5% into the U.S., 58% in Canada, 120% in Asia, and 170% into Europe, showing successful global expansion.
Aerospace Business Growth
Aerospace business sales were up 56% in Q2 compared to last year, primarily due to the acquisition of FLYHT.
Negative Updates
Tariff Uncertainty
The potential impact of U.S. tariffs on FTG's operations, especially concerning its sites in China, remains a significant concern.
Delays in Aerospace Segment
Gross margin within the Aerospace segment was constrained by delayed qualification of a new product line, impacting related revenue.
Working Capital Challenges
There was a buildup of working capital levels to support sales growth, reflecting a negative cash flow of $2.3 million for Q2.
Company Guidance
During the FTG Q2 2025 Analyst Call, Brad Bourne provided comprehensive guidance on the company's recent performance and future outlook. FTG set a new sales record in Q2 2025, achieving revenues of $48.7 million, which marked a 25.6% increase over the same period last year. The company also reported a record adjusted EBITDA of $8.7 million, up from $6.5 million in Q2 2024, and net earnings that rose by 36% to $3.5 million. Bookings during the quarter reached $45.8 million, with a quarter-end backlog of $133.5 million, up 9% from the previous year-end. The company's operating cash flow less lease payments was $5.8 million for the first half of 2025, and FTG maintained a strong balance sheet with net debt of $13.5 million. The acquisition of FLYHT contributed significantly, with Aerospace sales up 56% year-over-year, partly due to its impact. The call also highlighted strategic initiatives, including expansion plans in Hyderabad, India, and insights into market conditions, such as Airbus and Boeing's production forecasts and the geopolitical landscape affecting defense spending.

Firan Tech Financial Statement Overview

Summary
Firan Tech shows strong financial performance with impressive revenue growth and efficient cash flow management. While the income statement and balance sheet are solid, there is room for improvement in operational efficiency to enhance EBIT margins.
Income Statement
82
Very Positive
Firan Tech has demonstrated strong revenue growth, increasing from $79.37 million in 2021 to $170.63 million TTM (Trailing-Twelve-Months). The gross profit margin has also improved, reflecting efficient cost management. Net profit margins are robust at 7.58% TTM, indicating profitability. However, the EBIT margin has slightly decreased, suggesting increased operational costs. Overall, the income statement reflects a positive trajectory with room for operational improvement.
Balance Sheet
75
Positive
The balance sheet shows a healthy equity ratio of 50.29% TTM, indicating a strong capital structure. The debt-to-equity ratio is manageable at 0.53, suggesting reasonable leverage. Return on equity stands at 15.28% TTM, showcasing effective utilization of equity. The company's balance sheet is stable, though attention to debt levels could further enhance financial health.
Cash Flow
78
Positive
Firan Tech has exhibited impressive free cash flow growth, with a significant increase in recent periods. The operating cash flow to net income ratio of 1.81 TTM indicates solid cash generation efficiency. The free cash flow to net income ratio is strong at 1.45 TTM, highlighting effective cash management. The cash flow statement is robust, supporting ongoing investments and debt servicing.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue162.10M135.20M89.62M79.36M102.44M
Gross Profit44.18M45.83M21.31M17.13M26.42M
EBITDA25.73M22.26M7.92M8.42M10.69M
Net Income10.81M11.62M698.00K170.00K1.39M
Balance Sheet
Total Assets134.98M125.71M83.75M79.45M86.68M
Cash, Cash Equivalents and Short-Term Investments9.96M6.62M15.67M20.20M19.03M
Total Debt35.31M35.18M13.59M12.94M18.86M
Total Liabilities62.14M65.38M34.45M28.41M35.39M
Stockholders Equity72.15M59.53M48.33M50.10M50.28M
Cash Flow
Free Cash Flow6.88M4.77M-1.05M4.73M12.56M
Operating Cash Flow14.13M11.30M11.26M7.63M15.78M
Investing Cash Flow-7.24M-23.77M-12.02M-2.95M-2.87M
Financing Cash Flow-4.34M3.57M-1.73M-2.70M-1.17M

Firan Tech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.61
Price Trends
50DMA
10.95
Positive
100DMA
9.45
Positive
200DMA
8.47
Positive
Market Momentum
MACD
0.11
Positive
RSI
56.23
Neutral
STOCH
62.54
Neutral
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 11.61 is above the 20-day moving average (MA) of 11.54, above the 50-day MA of 10.95, and above the 200-day MA of 8.47, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FTG.

Firan Tech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$292.87M20.4618.05%17.52%54.86%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
$9.19B31.688.87%
73
Outperform
C$1.01B25.145.12%0.71%8.59%242.80%
24
Underperform
C$13.62M174.16%130.45%6.25%
$33.75M-978.94%
74
Outperform
C$5.08B50.748.54%49.98%108.76%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FTG
Firan Tech
11.69
5.29
82.66%
CAE
CAE
28.50
10.83
61.29%
TSE:MAL
Magellan Aerospace
17.50
8.42
92.73%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
DPRO
Draganfly
6.18
1.82
41.74%
TSE:MDA
MDA Ltd
40.64
27.46
208.35%

Firan Tech Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Firan Technology Group Secures EASA Certification for 5G WQAR on Airbus Aircraft
Positive
Jul 21, 2025

Firan Technology Group has achieved a significant milestone by obtaining the European Aviation Safety Agency (EASA) certification for its AFIRS Edge+™ product on the Airbus A319/320/321 family of aircraft. This certification allows for the global deployment of the industry’s first 5G Wireless Quick Access Recorder (WQAR), replacing outdated 2G and 3G systems with a more advanced 5G platform. This development not only enhances real-time data capabilities for airlines but also positions FTG for broader market access and regulatory compliance expansion, thereby strengthening its market position and operational efficiency.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Firan Technology Group Reports Strong Q2 2025 Results and Strategic Expansions
Positive
Jul 8, 2025

Firan Technology Group Corporation reported strong financial results for the second quarter of 2025, with a significant increase in revenue and net earnings. The company achieved a 25.6% rise in revenue to $48.7 million and a 36.3% increase in net earnings to $3.5 million. FTG’s strategic initiatives, including the integration of FLYHT and the certification of its AFIRS Edge+™ product for Boeing 737NG, are expected to bolster its market position. Additionally, FTG is expanding its operations with a new aerospace facility in Hyderabad, India, and has secured qualification orders for US defense programs, indicating a robust growth trajectory.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Firan Technology Group Reports Strong Q2 2025 Financial Results and Strategic Growth Initiatives
Positive
Jul 8, 2025

Firan Technology Group Corporation reported strong financial results for Q2 2025, with a 25.6% increase in revenue to $48.7 million and a 36.3% rise in net earnings to $3.5 million. The company is strategically investing in growth, highlighted by the profitability of its subsidiary FLYHT and the certification of its AFIRS Edge+™ product for Boeing 737NG aircraft. FTG is also expanding its operations with a new aerospace facility in Hyderabad, India, and securing qualification orders for US defense programs, positioning itself for long-term shareholder returns.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Financial Disclosures
Firan Technology Group to Announce Q2 2025 Financial Results
Neutral
Jul 2, 2025

Firan Technology Group Corporation announced that it will release its second quarter 2025 financial results on July 8, 2025, followed by a live conference call on July 9, 2025, to discuss the results. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

Product-Related AnnouncementsRegulatory Filings and Compliance
Firan Tech’s FLYHT Achieves 5G Certification for Boeing 737NG
Positive
May 15, 2025

Firan Technology Group’s subsidiary, FLYHT, has secured a Supplemental Type Certificate from Transport Canada Civil Aviation for its AFIRS Edge+™ product on the Boeing 737NG aircraft. This certification allows for the global deployment of the industry’s first 5G Wireless Quick Access Recorder, replacing outdated 2G and 3G systems, and enhancing real-time data capabilities for airlines. This milestone is expected to strengthen FTG’s market position and expand its regulatory compliance, facilitating broader market access for the Edge+ product.

The most recent analyst rating on (TSE:FTG) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Firan Tech stock, see the TSE:FTG Stock Forecast page.

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.Date of analysis: Jul 22, 2025