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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$13.50
▲(10.57% Upside)
Firan Tech's strong financial performance and impressive earnings call results are the primary drivers of its stock score. The company's robust revenue growth and successful integration of acquisitions are significant strengths. However, technical analysis shows a lack of momentum, and valuation metrics suggest moderate attractiveness. Potential risks from tariff uncertainties and cash flow challenges also weigh on 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 primarily through the sale of its printed circuit boards and flexible circuits, which are essential components in various electronic devices used in aerospace, defense, and medical sectors. The company operates on a project-based revenue model, where it engages in long-term contracts with customers for the production of customized solutions. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and subcontracting arrangements with larger defense contractors. Additionally, FTG benefits from partnerships with industry leaders that enhance its market presence and expand its customer base. The company's focus on research and development also allows it to offer innovative products that command premium pricing, further contributing to its earnings.

Firan Tech Earnings Call Summary

Earnings Call Date:Jul 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
FTG demonstrated strong financial performance with record-breaking revenue, successful integration of FLYHT, and global expansion efforts. However, challenges such as U.S. tariff uncertainties, production delays, and elevated working capital levels present some risks.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
FTG set another sales record in Q2 2025 with revenue of $48.7 million, a 25.6% increase over Q2 last year, and record adjusted EBITDA of $8.7 million, up from $6.5 million in Q2 last year. Net earnings rose 36% to $3.5 million.
Strong Backlog and Bookings
Total bookings in Q2 2025 reached $45.8 million, and the quarter-end backlog stood at $133.5 million, a 9% rise from the previous year-end.
FLYHT Acquisition Success
The recent acquisition, FLYHT, achieved profitability in Q2 2025 and received its first supplemental type certificate from Transport Canada for its AFIRS Edge product.
Aerospace Business Growth
Aerospace segment sales increased by 56% in Q2 2025 compared to Q2 2024, primarily due to the acquisition of FLYHT.
Global Expansion Efforts
FTG finalized the facility design and signed a lease for a planned aerospace facility in Hyderabad, India, with a target completion date of late 2025. Sales grew by 120% in Asia and 170% in Europe.
Expansion of Leadership Team
FTG strengthened its leadership with the addition of Bill Sezate as Executive Vice President of FTG Circuits and Marko Viinikka as Executive Vice President of FTG Aerospace.
Negative Updates
Tariff Uncertainties
FTG faces challenges due to U.S. tariffs on its China operations, although the impact is currently minimal.
Delayed Product Qualification
Gross margin within the Aerospace segment constrained by delayed qualification of a new product line, delaying related revenue.
Complexity in In-Sourcing FLYHT Production
The in-sourcing of FLYHT production has been delayed due to complexities and tariff uncertainties, affecting the original timeline.
Working Capital Elevation
FTG reported elevated working capital levels due to day-to-day issues in inventories and receivables, expected to normalize in coming quarters.
Company Guidance
During the FTG Q2 2025 Analyst Call, the company reported several key metrics indicating a robust financial performance. FTG achieved record revenue of $48.7 million, which marks a 25.6% increase compared to Q2 last year. The adjusted EBITDA also reached a record $8.7 million, up from $6.5 million in the previous year, while net earnings rose by 36% to $3.5 million. The company's total bookings for the quarter stood at $45.8 million, and the quarter-end backlog increased by 9% year-over-year to $133.5 million. FTG maintained a strong balance sheet with net debt of $13.5 million, representing approximately 0.4x trailing 12-month EBITDA. Additionally, the company highlighted a significant geographical sales expansion, with sales to U.S.-based customers accounting for 67.5% of the total, and noted substantial growth in regions like Canada, Asia, and Europe.

Firan Tech Financial Statement Overview

Summary
Firan Tech demonstrates strong financial performance with significant revenue growth and robust profit margins. The income statement, balance sheet, and cash flow statement indicate solid financial health, although operational cost efficiency could be improved.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue179.94M162.10M135.20M89.62M79.36M102.44M
Gross Profit55.65M44.18M45.83M21.31M17.13M26.42M
EBITDA31.58M25.73M22.26M7.92M8.42M10.69M
Net Income13.86M10.81M11.62M698.00K170.00K1.39M
Balance Sheet
Total Assets165.53M134.98M125.71M83.75M79.45M86.68M
Cash, Cash Equivalents and Short-Term Investments7.09M9.96M6.62M15.67M20.20M19.03M
Total Debt45.83M35.31M35.18M13.59M12.94M18.86M
Total Liabilities75.39M62.14M65.38M34.45M28.41M35.39M
Stockholders Equity89.29M72.15M59.53M48.33M50.10M50.28M
Cash Flow
Free Cash Flow13.42M6.88M4.77M-1.05M4.73M12.56M
Operating Cash Flow18.41M14.13M11.30M11.26M7.63M15.78M
Investing Cash Flow-11.07M-7.24M-23.77M-12.02M-2.95M-2.87M
Financing Cash Flow-5.70M-4.34M3.57M-1.73M-2.70M-1.17M

Firan Tech Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.21
Price Trends
50DMA
11.67
Positive
100DMA
10.75
Positive
200DMA
9.15
Positive
Market Momentum
MACD
0.06
Negative
RSI
56.93
Neutral
STOCH
78.79
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 12.21 is above the 20-day moving average (MA) of 11.78, above the 50-day MA of 11.67, and above the 200-day MA of 9.15, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$301.45M21.5218.05%17.52%54.86%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
$8.56B28.858.73%
64
Neutral
C$919.93M24.264.85%0.76%6.58%121.23%
24
Underperform
C$6.81M174.16%424.78%43.86%
$24.52M-125.28%
79
Outperform
C$5.52B46.929.64%57.21%136.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FTG
Firan Tech
12.21
6.33
107.65%
CAE
CAE
26.62
8.60
47.72%
TSE:MAL
Magellan Aerospace
16.37
7.41
82.70%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
DPRO
Draganfly
4.36
2.34
115.84%
TSE:MDA
MDA Space Ltd
44.01
28.69
187.27%

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: Sep 05, 2025