Firan Technology Group (FTG) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 sales and EBITDA, with revenue up 25.6% year-over-year to CAD 48.7 million, driven by strong demand and the FLYHT acquisition, which became profitable ahead of expectations.

• Net earnings grew 36% to CAD 3.5 million; balance sheet remains strong with net debt at 0.4x trailing 12-month EBITDA.

• Backlog at quarter-end was CAD 133.5 million, up 9% year-over-year, supporting future growth.

• Expanded leadership team and board, including new appointments, and continued global diversification and operational improvements.

• Strategic capital investments include a new aerospace facility in Hyderabad, India, and qualification orders for US defense programs.

Financial highlights

• Q2 2025 revenue reached CAD 48.7 million, up 25.6% year-over-year; gross margin improved to 32.6% from 27.9%.

• Adjusted EBITDA was CAD 8.7 million (17.9% of sales), up from CAD 6.5 million (16.7%) in Q2 2024.

• Net earnings rose 36.3% to CAD 3.5 million; year-to-date net earnings to equity holders grew 84.5% to CAD 6.65 million.

• Backlog at quarter-end was CAD 133.5 million, a 9% increase from the previous year end.

• Operating cash flow less lease payments for H1 2025 was CAD 5.8 million.

Outlook and guidance

• Backlog entering H2 2025 exceeds CAD 133 million, with over CAD 60 million due in Q3.

• Management expects continued strong demand and ongoing ramp-up in throughput, driven by FLYHT integration and organic expansion.

• India facility expected to contribute revenue for Western customers by mid-2026.

• Ongoing focus on mitigating tariff risks and expanding non-U.S. sales.

• Exchange rate volatility impacted Q2 but is expected to have minimal effect going forward as rates stabilize.