TORONTO, April 09, 2025 (GLOBE NEWSWIRE) -- Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for first quarter of 2025.
First Quarter Financial Highlights:
- Bookings: Total bookings reached $51.5 million, marking a 37% increase over Q1 2024.
- Backlog: The quarter-end backlog stood at $142.5 million, a 43% rise from the previous year.
- Revenue: Reached $42.9 million, a 22.6% increase over Q1 2024.
- Adjusted EBITDA: Recorded at $8.4 million, up from $4.6 million in Q1 2024.
- Adjusted Net Earnings: Rose by 214% to $3.3 million.
- Net Debt: Maintained a strong balance sheet with net debt of $8.3 million, including $13.6 million of government loans, after $6.6 million in investments in Q1 2025.
- Operating Cash Flow Less Lease Payments: Generated operating cash flow less lease payments of $9.3M in Q1 2025.
Business Highlights:
In Q1 2025, the Corporation grew through acquisition and organically. FTG is strategically 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 Q1 2025 demonstrate this commitment, laying a strong foundation for future growth.
- FLYHT Acquisition: In Q1 2025, FTG acquired FLYHT Aerospace Solutions Ltd., enhancing FTG's presence in the commercial aerospace aftermarket and expanding its product offerings on Airbus aircraft. This acquisition aligns with FTG's strategic priorities, and plans include ramping up sales of FLYHT's product lines and insourcing manufacturing to other FTG sites.
- De Havilland Contract: Also during Q1 2025, FTG announced that De Havilland Aircraft of Canada Ltd. has selected FTG to provide updated cockpit control assemblies for the new De Havilland Canadair 515 (DHC-515) aerial firefighting aircraft.
- New Facility: FTG announced plans to open an Aerospace facility in Hyderabad, India, to support strategic growth and expand market presence.
- Banking Agreement: Completed a new three-year banking agreement with BMO Corporate Finance, providing improved flexibility and reduced costs to support growth and corporate development objectives.
- Leadership Announcements: Bill Sezate has joined the Corporation as Executive Vice President, FTG Circuits reporting to Brad Bourne. Bill comes to FTG with extensive experience in all aspects in the circuit board industry. In addition, Marko Viinikka is joining the Corporation in a newly created role as Executive Vice President, FTG Aerospace reporting to Brad Bourne. Marko comes to FTG with extensive experience in all aspects of the Aerospace industry.
Financial Tables:
Table 1: Key Financial Metrics (Quarterly)
| Metric | Q1 2025 | Q1 2024 | % Change |
| Sales | $42,874,000 | $34,975,000 | 22.6% |
| Gross Margin | $13,326,000 | $8,929,000 | 49.2% |
| Gross Margin (%) | 31.08% | 25.53% | 555bps |
| Net Earnings to FTG Equity Holders | $3,167,000 | $1,050,000 | 201.6% |
| Adjusted Net Earnings (1) | $3,294,000 | $1,050,000 | 213.7% |
| Earnings Per Share (Basic) | $0.13 | $0.04 | 225.0% |
| Earnings Per Share (Diluted) | $0.13 | $0.04 | 225.0% |
| Adjusted Earnings Per Share (Basic) (1) | $0.13 | $0.04 | 225.0% |
| Adjusted Earnings Per Share (Diluted) (1) | $0.13 | $0.04 | 225.0% |
| (1) | Adjusted Net Earnings is not a measure recognized under International Financial Reporting Standards ("IFRS"). Management believes that this measure is important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating Adjusted Net Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations. |
Table 2: EBITDA
| Metric | Q1 2025 | Q1 2024 | % Change Q1 2025 vs Q1 2024 | Trailing 12 Months Ended Q1 2025 |
| Net Earnings to Equity Holders | $3,167,000 | $1,050,000 | $12,932,000 | |
| Add: Interest, Accretion | $618,000 | $527,000 | $2,301,000 | |
| Add: Income Taxes | $1,591,000 | $689,000 | $4,995,000 | |
| Add: Depreciation and Amortization | $2,575,000 | $2,040,000 | $8,880,000 | |
| EBITDA (2) | $7,951,000 | $4,306,000 | 84.65% | $29,108,000 |
| Adjustments | ||||
| Stock Based Compensation | $254,000 | $248,000 | $659,000 | |
| Acquisition and Divestiture Expenses | $107,000 | $0 | $511,000 | |
| India Startup Costs | $63,000 | $0 | $173,000 | |
| Change in Fair Value of Contingent Consideration | $0 | $0 | ($829,000) | |
| Adjusted EBITDA (2) | $8,375,000 | $4,554,000 | 83.90% | $29,622,000 |
| Adjusted EBITDA Margin (2) | 19.5% | 13.0% | 17.4% | |
| (2) | EBITDA and Adjusted EBITDA are not measures 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 EBITDA and Adjusted EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations |
CEO Commentary:
"Our first quarter was a great start to 2025," stated Brad Bourne, President and CEO of FTG. "All metrics in the quarter were positive from bookings, to sales, to margins, to net income and cash flow, showing that our investments in technology, operational performance and our acquisitions are all helping to position us for success. We are seeing strong end market demand and the current situation from tariffs levied by the US does not appear to have any direct impact on us."
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: A manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defence, and high technology 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 and electronic assemblies for original equipment manufacturers and operators of aerospace and defence equipment. FTG Aerospace has operations in Toronto, Ontario, Calgary, Alberta, Chatsworth, California, and Tianjin, China.
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, April 10, 2025, at 8:30 a.m. (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 and using Conference ID 50841. A replay of the call will be available until May 10, 2025, and can be accessed by dialing 1-289-819-1325 or 1-888-660-6264, Playback Passcode# 50841. The replay will also be available on the FTG website at www.ftgcorp.com.
Forward-Looking Statements:
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
- Bradley C. Bourne, President and CEO
Firan Technology Group Corporation
Tel: (416) 299-4000 x314
bradbourne@ftgcorp.com - Jamie Crichton, Vice President and CFO
Firan Technology Group Corporation
Tel: (416) 299-4000 x264
jamiecrichton@ftgcorp.com
Additional information can be found at the Corporation's website www.ftgcorp.com.
