Firan Technology Group (FTG) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results: highest-ever revenues, earnings, bookings of CAD 86.7 million (up 89% YoY), and backlog of CAD 193.5 million (up 30%), driven by strong demand across all end markets.

• Revenue grew 8.2% year-over-year to CAD 52.7 million, with strong performance in both Circuits and Aerospace segments.

• Adjusted EBITDA rose 20% to CAD 10.5 million, and adjusted net earnings increased 44% to CAD 5.1 million compared to Q2 2025.

• Free cash flow was positive at CAD 2.7 million; net debt reduced to CAD 2.9 million (0.1x trailing 12-month EBITDA).

• Strategic initiatives and operational improvements, including major defense and aerospace program wins, drove growth.

Financial highlights

• Gross margin improved to CAD 19.2 million (36.5% of sales), up from 32.6% year-over-year.

• Adjusted EBITDA margin: 19.9% in Q2 2026 (up from 17.9%).

• Adjusted net earnings were CAD 5.1 million, up 44% year-over-year; EPS (basic/diluted): CAD 0.20 (up from 0.14).

• Free cash flow improved from negative CAD 5.5 million to positive CAD 2.7 million year-over-year.

• Backlog at quarter-end was CAD 193.5 million, up 30% from prior year-end.

Outlook and guidance

• Entering Q3 2026 with record backlog; 66% expected to convert to revenue in next 12 months.

• Management expects continued robust end-market demand, supported by record bookings and backlog.

• Initial deliveries for large-scale classified defense programs to begin in Q3 2026.

• Ongoing ramp-up of deliveries to China’s C919 and De Havilland DHC-515 programs.

• Third quarter expected to be seasonally softer due to vacations and lost production days.