Firan Technology Group (FTG) Q4 2025 earnings summary

Executive summary

• Achieved record revenues, EBITDA, and earnings in 2025, driven by strong organic growth and successful FLYHT integration, with expansion in defense and aerospace markets.

• Bookings reached CAD 209.9 million, up 14% year-over-year; backlog at year-end was CAD 148.5 million, up 21%.

• Strategic investments in leadership and long-term programs, including new CFO, EVPs, and board members, position the company for continued growth.

• Diversified revenue sources, reduced U.S. tariff exposure, and ramped up deliveries for key aerospace programs.

• FLYHT acquisition contributed to new product certifications and first deliveries of AFIRS Edge+ to an Asian airline.

Financial highlights

• Revenue grew 18% to CAD 191 million, with significant contributions from FLYHT and organic growth; Q4 revenue was CAD 51.7 million, up 14.2%.

• Adjusted EBITDA rose 27% to CAD 32.7 million; adjusted net earnings increased 31% to CAD 13.5 million.

• Gross margin improved to 31.7% from 27.3% year-over-year, driven by scale, operational improvements, and FX.

• Net debt stood at CAD 8.3 million (0.3x trailing EBITDA), including $11.2 million in government loans.

• Operating cash flow (less lease payments) was CAD 13.7 million; CapEx was CAD 4.6 million.

Outlook and guidance

• Entering 2026 with a record backlog of CAD 148.5 million, 80% expected to convert to revenue in 2026.

• Long-term development programs are entering production, with significant defense program deliveries starting in 2026 and ramping up through 2027.

• CapEx expected to align with long-term target of 3% of revenue, barring major expansions.

• Focus on expanding in defense (U.S., NATO, India), growing Airbus exposure, and diversifying non-U.S. revenue.

• India facility to open in Q2 2026, with negligible revenue impact in 2026 and ramp expected in 2027.