Firan Technology Group Corporation (“FTG”) Announces Q3 2026 Financial Results

Defence-program deliveries and expedited-order pricing premiums contributed to the quarter’s sales and earnings.

Rhea-AI Summary

Firan Technology Group (FTGFF) reported Q3 2026 revenue of $64.1 million, with higher earnings, bookings and cash generation than a year earlier. Revenue rose 34.3%, while net earnings attributable to shareholders reached $10.0 million from $2.768 million. Gross margin increased to 42.9% from 30.3%. Adjusted EBITDA, an adjusted earnings measure before interest, taxes, depreciation and amortization, rose to $15.126 million from $7.683 million.

Bookings increased 75% to $90.2 million, and backlog reached $220.7 million, up 49% from the previous year-end. Free cash flow was $7.054 million versus $4.632 million. FTG extinguished all commercial loans using operating cash and reported $3.9 million in net cash, including $8.9 million of government loans. The company opened its Hyderabad aerospace facility and ratified a four-year Toronto collective agreement expiring in July 2030.

27 points · 0 major

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0 major · 5 points

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Positive

• Moderate pointQ3 2026 revenue increased 34.3% to $64.1 million versus Q3 2025.
• Moderate pointQ3 shareholder net earnings rose to $10.000 million from $2.768 million a year earlier.
• Moderate pointQ3 gross margin improved to 42.9% from 30.3% in Q3 2025.
• Moderate pointQ3 adjusted EBITDA rose to $15.126 million from $7.683 million; margin increased to 23.6% from 16.1%.
• Moderate pointQ3 adjusted basic earnings per share increased to $0.41 from $0.12 a year earlier.
• Moderate pointQ3 bookings increased 75% to $90.2 million, with a 1.41:1 ratio of bookings to revenue.
• Moderate pointQuarter-end backlog reached $220.7 million, up 49% from the previous year-end.
• Moderate pointQ3 free cash flow increased to $7.054 million from $4.632 million in Q3 2025.
• Moderate pointCommercial loans were fully extinguished during Q3 2026 using cash generated from operations.
• Moderate pointClassified defence programs generated orders and ramped-up deliveries, contributing materially to Q3 sales and earnings.

17 minor points

• Minor pointBalance sheet retained $3.9 million in net cash, including government loans.
• Minor pointYear-to-date revenue increased to $164.135 million from $139.340 million in the comparable 2025 period.
• Minor pointYear-to-date gross margin improved to 37.3% from 32.2% in the comparable 2025 period.
• Minor pointYear-to-date shareholder net earnings rose to $18.520 million from $9.415 million in the comparable 2025 period.
• Minor pointYear-to-date adjusted EBITDA increased to $32.885 million from $24.761 million; margin improved to 20.0% from 17.8%.
• Minor pointYear-to-date adjusted basic earnings per share rose to $0.75 from $0.39 in the comparable 2025 period.
• Minor pointYear-to-date free cash flow increased to $14.633 million from $7.326 million in the comparable 2025 period.
• Minor pointTrailing-twelve-month adjusted EBITDA totaled $40.802 million.
• Minor pointCircuits Q3 adjusted net earnings increased to $7.616 million from $2.276 million in Q3 2025.
• Minor pointAerospace Q3 adjusted net earnings increased to $2.756 million from $0.895 million in Q3 2025.
• Minor pointCircuits year-to-date adjusted net earnings rose to $12.819 million from $7.675 million in the comparable 2025 period.
• Minor pointAerospace year-to-date adjusted net earnings rose to $6.717 million from $2.994 million in the comparable 2025 period.
• Minor pointExpedited-delivery orders included pricing premiums; Circuits benefited from short-term premiums and operational improvements.
• Minor pointNew customer qualifications in Europe and Australia diversified FTG’s customer base.
• Minor pointHyderabad aerospace facility opened in Q3 2026; FTG says it reduces U.S. tariff exposure and provides Indian market access.
• Minor pointCircuits Toronto employees ratified a four-year collective agreement expiring in July 2030.
• Minor pointQ3 finance costs declined to $543,000 from $755,000 in Q3 2025.

Negative

• Minor pointGovernment loans remained at $8.9 million despite the elimination of commercial loans.
• Minor pointIndia startup costs increased to $290,000 in Q3 2026 from $44,000 in Q3 2025.
• Minor pointYear-to-date India startup costs increased to $397,000 from $169,000 in the comparable 2025 period.
• Minor pointCircuits year-to-date revenue growth was offset by $1.8 million of unfavourable foreign exchange effects.
• Minor pointAerospace year-to-date revenue growth was offset by $0.6 million of unfavourable foreign exchange effects.

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TORONTO, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for the third quarter of 2026.

Third Quarter Financial Highlights:

• Bookings: $90.2 million, marking a 75% increase over Q3 2025 and a book-to-bill ratio of 1.41:1
• Backlog: The quarter-end backlog stood at $220.7 million, a 49% rise from the previous year end.
• Revenue: $64.1 million in Q3 2026, a 34.3% increase over Q3 2025.
• Adjusted EBITDA: $15.1 million in Q3 2026, a 96.9% increase from $7.7 million in Q3 2025; Adjusted EBITDA was $40.8 million for the trailing twelve months.
• Net Earnings: $10.0 million in Q3 2026, an increase of $7.2 million from Q3 2025.
• Free Cash Flow: Generated $7.1M in Q3 2026.
• Net Cash: maintained a strong balance sheet with net cash of $3.9 million, including $8.9 million of government loans. Extinguished all commercial loans during Q3 2026 with cash generated from operations.

Business Highlights:

In Q3 2026, the Corporation realized significant value from its ongoing strategic initiatives. FTG is investing its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. The company's achievements in Q3 2026 demonstrate this commitment, laying a strong foundation for future growth as evidenced by the record financial metrics, bookings and backlog.

• Growing FTG’s defence business: FTG Circuits qualified for two large-scale classified defence programs in 2025. Significant orders have been placed for these programs and deliveries have ramped up, contributing materially to sales and earnings in Q3 2026.
• Operational improvements: Strategic leadership appointments made in 2025 are delivering stronger operating performance and throughput.
• Customer demand: Bookings continued at a record pace and many orders included significant pricing premiums for expedited delivery.
• International diversification: The Corporation recently qualified with new customers in Europe and Australia, further diversifying its customer base and reducing exposure to global tariff risks.
• Opening of FTG Aerospace Hyderabad: In Q3 2026, the Corporation opened its new aerospace facility in Hyderabad, India. The new footprint in India reduces the Corporation’s exposure to U.S. tariff risk and provides access to India’s emerging domestic aerospace and defence market.
• FTG Circuits Toronto union agreement: In Q3 2026, a new four-year collective agreement with represented employees at the Corporation’s Circuits Toronto facility was negotiated and ratified. The agreement expires in July 2030.
• Appointment of new auditor: In Q3 2026, the Corporation appointed Deloitte LLP as its new external auditor.

Third Quarter Financial Summary:

(in thousands of dollars except per share amounts)	Q3 2026	Q3 2025	YTD Q3 2026	YTD Q3 2025
Sales	64,096	47,737	164,135	139,340
Gross Margin	27,492	14,486	61,302	44,800
Gross Margin (%)	42.9%	30.3%	37.3%	32.2%
Adjusted EBITDA(1)	15,126	7,683	32,885	24,761
Adjusted Net Earnings(1)	10,290	2,994	18,899	9,815
Free Cash Flow(1)	7,054	4,632	14,633	7,326
Adjusted Earnings Per Share (Basic)	0.41	0.12	0.75	0.39

(1) Measures not recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management’s Discussion and Analysis for reconciliations of non-IFRS measures.

Operational Analysis:

(in thousands of dollars except per share amounts)	Q3 2026	Q3 2025	YTD Q3 2026	YTD Q3 2025
Revenue:
Circuits	45,096	32,148	110,486	94,503
Aerospace	19,838	16,781	56,065	47,788
Corporate and eliminations	(838)	(1,192)	(2,416)	(2,951)
Total revenue	64,096	47,737	164,135	139,340
Adjusted EBITDA(1):
Circuits	10,689	5,378	21,935	17,438
Aerospace	3,971	2,062	9,723	6,821
Corporate and eliminations	466	243	1,227	502
Total Adjusted EBITDA(1)	15,126	7,683	32,885	24,761
Adjusted Net Earnings(1):
Circuits	7,616	2,276	12,819	7,675
Aerospace	2,756	895	6,717	2,994
Corporate and eliminations	(82)	(177)	(637)	(854)
Total Adjusted Net Earnings(1)	10,290	2,994	18,899	9,815

(1) Measures not recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management’s Discussion and Analysis for reconciliations of non-IFRS measures.

FTG Circuits

Revenue for Q3 2026 was $45.1 million, an increase of $12.9 million or 40.3% compared to Q3 2025. The revenue increased primarily due to operational improvements at several U.S. sites, short-term pricing premiums and $0.9 million driven by favourable exchange rates. As a result of the factors noted above, adjusted net earnings for Q3 2026 increased by $5.3 million to $7.6 million, compared to Q3 2025.

Revenue for the year-to-date period of 2026 was $110.5 million, an increase of $16.0 million or 16.9% as compared to 2025 due to organic growth including short-term pricing premiums offset by $1.8 million of unfavourable foreign exchange rates.

FTG Aerospace

Revenue for Q3 2026 was $19.8 million, an increase of $3.0 million or 18.2% compared to Q3 2025. The increase is driven by $2.2 million of organic growth, $0.5 million of a contract cancellation charge and $0.3 million of favourable foreign exchange variance. Adjusted net earnings for Q3 2026 were $2.8 million, an increase of $1.9 million compared to Q3 2025 due to the above factors and operational improvements.

Revenue for the year-to-date period of 2026 was $56.1 million, an increase of $8.3 million or 17.3% as compared to 2025. Organic growth contributed $8.9 million offset by $0.6 million due to unfavourable foreign exchange rates compared to 2025.

CEO Commentary:

“Q3 2026 was an exceptional quarter for FTG,” stated Brad Bourne, President and CEO of FTG. “We exceeded the record financial performances just set last quarter and we saw continued operational improvements at many Circuits and Aerospace sites. The many strategic initiatives in 2025 have positioned us well to capture significant value from the current industry tailwinds. As we celebrate our success, we continue to see robust end-market demand with record bookings and backlog and remain focused on delivering long-term value to our shareholders.”

Adjusted Net Earnings and EPS: 

(in thousands of dollars except per share amounts)	Q3 2026	Q3 2025	YTD Q3 2026	YTD Q3 2025	Trailing 12 Months
Net earnings to equity holders of FTG	10,000	2,768	18,520	9,415	22,182
Add back:
Acquisition expenses	-	-	-	107	-
India startup cost	290	44	397	169	433
Restructuring cost	-	212	-	212	-
Income taxes related to the above items	-	(30)	(18)	(88)	(27)
Adjusted net earnings(1)	10,290	2,994	18,899	9,815	22,588
% of net sales	16.1%	6.3%	11.5%	7.0%	10.5%
Weighted average number of common shares	25,173,390	25,173,390	25,173,390	25,088,081	25,088,081
Adjusted Earnings Per Share (Basic)	0.41	0.12	0.75	0.39	0.90

(1) Measures not recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management’s Discussion and Analysis for reconciliations of non-IFRS measures.

Adjusted EBITDA:

(in thousands of dollars except per share amounts)	Q3 2026	Q3 2025	YTD Q3 2026	YTD Q3 2025	Trailing 12 Months
Net earnings to equity holders of FTG	10,000	2,768	18,520	9,415	22,182
Add back:
Finance costs	543	755	1,796	2,110	2,424
Income tax expense	1,395	1,232	3,305	4,416	4,010
Depreciation and amortization	2,696	2,536	8,257	7,799	11,017
EBITDA(1)	14,634	7,291	31,878	23,740	39,633
% of net sales	22.8%	15.3%	19.4%	17.0%	18.4%
Add back:
Stock based compensation	202	136	610	533	736
India startup cost	290	44	397	169	433
Restructuring cost	-	212	-	212	-
Adjusted EBITDA(1)	15,126	7,683	32,885	24,761	40,802
% of net sales	23.6%	16.1%	20.0%	17.8%	18.9%

(1) Measures not recognized under International Financial Reporting Standards (“IFRS”). Management believes that these measures are important to many of the Corporation’s shareholders, creditors and other stakeholders. The Corporation’s method of calculating these non-IFRS measures may differ from other corporations and accordingly may not be comparable to measures used by other corporations. See Management’s Discussion and Analysis for reconciliations of non-IFRS measures.

About Firan Technology Group Corporation:

FTG is an aerospace and defence electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation and defence industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia, Minnetonka, Minnesota, Haverhill, Massachusetts and a joint venture in Tianjin, China.

FTG Aerospace designs, certifies, manufactures and provides in-service support for illuminated cockpit products, electronic assemblies and avionics products for original equipment manufacturers and operators of aerospace and defence equipment. FTG Aerospace has operations in Toronto, Ontario, Calgary, Alberta, Chatsworth, California, Tianjin, China and Hyderabad, India.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG, and on the OTCQX Exchange under the symbol FTGFF.

Conference Call Details:

FTG will host a live conference call on Thursday, October 8, 2026, at 8:30 am (Eastern) to discuss the financial results. The call will be chaired by Mr. Brad Bourne, President and CEO of FTG. Participants can join the call by dialing 1-289-514-5100 or 1-800-717-1738, Conference ID 96492. A replay of the call will be available until November 13, 2026, and can be accessed by calling 1-289-819-1325 or 1-800-660-6264, Playback Passcode 96492#. The replay will also be available on the FTG website at www.ftgcorp.com.

Forward-Looking Statements:

Certain statements in this press release other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the current expectations of FTG. These statements include without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of FTG, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “considers”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. Forward-looking statements are provided for the purpose of conveying information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.

For further information please contact:

• Bradley C. Bourne, President and CEO
  Tel: (416) 299-4000 x314
  bradbourne@ftgcorp.com
• Drew Knight, Executive Vice President, CFO, and Corporate Secretary
  Tel: (416) 299-4000 x264
  drewknight@ftgcorp.com

Head Office: 250 Finchdene Square, Toronto, Ontario, M1X 1A5

Additional information can be found at the Corporation’s website www.ftgcorp.com.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Firan Technology Group’s Q3 2026 revenue and earnings?

FTG reported $64.1 million in revenue and $10.0 million in net earnings attributable to shareholders for Q3 2026. Revenue increased 34.3% from Q3 2025, when shareholder net earnings were $2.768 million.

How much did FTG’s Q3 2026 bookings and backlog grow?

Q3 bookings increased 75% to $90.2 million, while quarter-end backlog reached $220.7 million, up 49% from the previous year-end. The ratio of bookings to revenue was 1.41:1.

What drove FTG Circuits’ Q3 2026 revenue growth?

Circuits revenue growth primarily reflected operational improvements at several U.S. sites, short-term pricing premiums and $0.9 million from favourable exchange rates. Q3 2026 revenue was $45.096 million, compared with $32.148 million in Q3 2025.

What contributed to FTG Aerospace’s Q3 2026 revenue increase?

Aerospace’s revenue increase included $2.2 million of organic growth, $0.5 million from a contract cancellation charge and $0.3 million of favourable foreign exchange variance. Q3 2026 revenue was $19.838 million, compared with $16.781 million in Q3 2025.

Are FTG’s adjusted earnings and free cash flow IFRS measures?

Adjusted net earnings, adjusted EBITDA and free cash flow are not recognized under IFRS, the financial reporting standards used for the results. FTG’s calculation methods may differ from other companies’ methods, so these measures may not be comparable across companies.