Firan Technology Group (FTG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenues, earnings, and backlog, driven by strong end-market demand and strategic investments in defense and aerospace, despite FX headwinds from the Canadian to U.S. dollar exchange rate.

• Bookings reached CAD 60 million, up 17% year-over-year, with a book-to-bill ratio of 1.27:1 and backlog at CAD 157.9 million, up 11% from year-end.

• Revenue grew 10.3% year-over-year to CAD 47.3 million; adjusted net earnings rose to CAD 3.5 million from CAD 3.3 million.

• Free cash flow was CAD 4.9 million; net debt reduced to CAD 4 million, or 0.1x trailing 12-month EBITDA.

• FTG Circuits qualified for two classified defense programs, with initial orders placed and deliveries expected in Q3 and beyond.

Financial highlights

• Gross margin was CAD 14.6 million (30.9%), consistent with prior year despite a CAD 1.5 million FX headwind and CAD 400,000 gold variance.

• SG&A expense was CAD 6.9 million (14.5% of sales), up due to the Aero Calgary acquisition and India startup costs.

• R&D costs increased to CAD 2.3 million (4.9% of sales), reflecting ongoing product and process improvements.

• Adjusted EBITDA was CAD 7.3 million (15.4% of sales), down from CAD 8.4 million (19.5%) last year, mainly due to FX and prior year gold contract gain.

• Net earnings were CAD 3.5 million (CAD 0.14/diluted share), up from CAD 3.2 million (CAD 0.13/diluted share); effective tax rate dropped to 5.2% from 32.9%.

Outlook and guidance

• Backlog at quarter-end was CAD 157.9 million, with 80% expected to convert to revenue in 2026.

• Book-to-bill ratio of 1.27:1 signals continued strong demand in both Aerospace and Defense.

• New classified defense programs will see modest revenue in 2026, with significant ramp-up expected in 2027 and beyond.

• Focus remains on operational efficiency, cash flow management, and Aero Calgary integration.

• Management expects continued strong end-market demand and is focused on long-term value creation.