Firan Technology Group Corporat (FTGFF) research, news, and more from GeoInvesting

Company description

Thu, 12 Oct 2023 11:13:00 GMT

Firan Technology Group Corporation manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards primarily in Canada, the United States, Asia, Europe, and rest of Americas. It operates in two segments, FTG Circuits and FTG Aerospace. The company offers printed circuit boards, standard rigid, high-density interconnect, RF circuitry, thermal management, and rigid flex and assembly products. It also provides avionic sub-system hardware products, such as backlit control panels and assemblies, integrated switch panels, MCDU keyboards, primary display bezels, cursor control devices, and advanced control panel assemblies/line replaceable units. The company was formerly known as Circuit World Corporation and changed its name to Firan Technology Group Corporation in May 2004. The company was founded in 1983 and is headquartered in Toronto, Canada.

Research

Thu, 09 Apr 2026 20:16:38 GMT

Firan Technology Group Corporat (OTC:FTGFF) (TSX:FTG) ($22.14; $557.3M market cap) announced Q1 2026 results:

Q1 sales of $47.3 million vs. $42.9 million in the prior year and ahead of analyst estimates of $44.9 million
Q1 2026 adjusted EPS: $0.14 vs. $0.13 in the prior year and ahead of analyst estimates of $0.10
Bookings were $60.0 million, up 17% year-over-year with a book-to-bill ratio of 1.27:1.
Backlog increased to $157.9 million, up 11% from the previous year end.
Defence programs secured initial orders with deliveries expected starting Q3 2026.
Aerospace Calgary achieved record profitability and resumed licensing revenues tied to Airbus programs.
Deliveries continued for China’s C919 and ramped for the De Havilland Canadair 515 aircraft program.
FTG supported Artemis space mission programs, expanding presence in the growing space sector.

Management Commentary:

“Our first quarter was a great start to 2026,” stated Brad Bourne, President and CEO of FTG.

“We achieved many strategic and operational improvements to Aerospace Calgary and legacy sites. This allowed us to deliver robust financial results despite significant foreign exchange headwinds during the quarter. We continue to see strong end market demand and remain focused on delivering long-term value to our shareholders.”

Our Quick Take:

FTG is now up 330.82% since we added it to the Select Coverage Universe. At a 2026 P/E of 33.0x, the stock is not cheap anymore, but we’ll be watching for sharp pullbacks

Solid results, demand in Firan's end markets remains strong. The Q1 2026 conference call had some valuable insights on their customers:

Airbus is targeting 870 deliveries in 2026 (+10% YoY), ramping to 1,000+ annually, with a 10,000+ aircraft backlog. Boeing shipped 600 planes last year (vs. 348 prior year), targeting 800+ annually, with a 6,000-plane backlog, over a decade of orders. Bell's revenue was up 20% last year, driven by defense programs. Add in the U.S. budget request to increase defense spending by up to 50% and rising NATO defense budgets.

Additionally, management stated:

“We saw a strong demand across the company, and it's coming from both sides of the business, both commercial and aerospace and defense… Without trying to delve down into a site level stuff, I am expecting still a strong ramp in demand plus some new programs in the coming quarters.”

Firan Technology Group Corporation designs and manufactures electronic products and subsystems for aerospace and defense, including high-performance circuit boards, cockpit control panels, lighting systems, and integrated electronic assemblies.

Research

Thu, 19 Feb 2026 18:17:51 GMT

Firan Technology Group Corporat (OTC:FTGFF) (TSX:FTG) ($16.55; $416.6M market cap) announced Q4 and full-year 2025 results:

Q4 sales of $51.7 million vs. $45.2 million in the prior year, ahead of analyst estimates of $51.05 million
Q4 2025 adjusted EPS: $0.14 vs. $0.16 in the prior year, ahead of analyst estimates of $0.13
FY 2025 sales of $191.0 million vs. $162.1 million in the prior year, ahead of analyst estimates of $190.36 million
FY 2025 adjusted EPS: $0.53 vs. $0.43 in the prior year, ahead of analyst estimates of $0.51

Management Commentary:

“2025 was a transformational year for FTG defined by exceptional operational progress and the achievement of several critical milestones across our long-term strategic programs.” stated Brad Bourne, President and CEO of FTG. “We achieved record performance across nearly all financial metrics. We have strategically bolstered both our leadership team and Board of Directors with high-caliber industry expertise to guide our next phase of growth. In 2025, multiple long-term development programs at FTG Aerospace entered production. FTG Circuits closed the year with awards of multiple significant defence programs while legacy defence programs continued to ramp up. We remain focused on delivering long-term value to shareholders as these strategic programs move into full-scale manufacturing.”

Our Quick Take:

While the Q4 EPS results were not lights out, management had clearly telegraphed that growth would be muted for a couple of quarters, before.

Overall, management continues to prove its ability to execute consistently and has been meeting its goal of doubling the business every five years.

On the conference call, the company noted that Airbus delivered 793 aircraft in 2025 and is targeting production of 1,000 aircraft annually over the next few years, supported by a backlog of more than 8,000 aircraft, roughly a decade of production visibility.

Another customer, Boeing, is also increasing production and has a backlog equivalent to about ten years.

Additionally, Firan should benefit from increased defense spending across NATO countries. As a reminder, management has stated they will double the company every five years.

This is one of our favorite companies in the aerospace sector. We encourage you to view our 3 conversations with the CEO:

Research

Thu, 09 Oct 2025 04:00:00 GMT

Firan Technology Group Corporation (TSX:FTG) (OTC:FTGFF) (C$11.74; C$295.5M market cap) announced Q3 2025 results:

Q3 2025 sales of C$47.7 million vs. C$43.1 million in the prior year, slightly below analyst estimates of C$48.26 million
Q3 2025 adjusted EPS: C$0.12 vs. C$0.11 in the prior year, ahead of analyst estimates of C$0.11
Bookings of C$51.5 million with a book-to-bill ratio of 1.08
Quarter-end backlog of C$137.1 million, up 12% from prior year-end

“We are pleased with our third quarter results which showed improvement in nearly all financial metrics comparing to last year, sustaining our strong year-over-year growth for 2025.” stated Brad Bourne, President and CEO of FTG. “Following an exceptional first half of the year, our revenue moderated in Q3 but we still see robust end-market demand from all market segments and are making operational improvements to support this demand. Our FLYHT acquisition remained profitable in the quarter as we continue integration efforts and capitalize on new product sales. We remain focused on managing external factors and have not seen any material impact from the US tariffs so far, though uncertainties remain.”

Research

Wed, 09 Jul 2025 17:20:53 GMT

Firan Technology Group Corporation (TSX:FTG) (OTC:FTGFF) ($12.42; $313.3M market cap) announced Q2 2025 results (figures in Canadian dollars):

Q2 2025 sales of $48.7 million vs. $38.8 million in the prior year, ahead of analyst estimates of $47.87 million
Q2 2025 adjusted EPS: $0.14 vs. $0.11 in the prior year, ahead of analyst estimates of $0.11

Disclosures:

Bookings: $45.8 million in Q2
Backlog: $133.5 million, up 9% from year-end
FLYHT achieved profitability in Q2 2025
FTG received STC from Transport Canada for AFIRS Edge+™ on Boeing 737NG
New Aerospace facility in Hyderabad, India leased and designed; operations expected late 2025
New qualification orders received for US defence programs
Russell David appointed to Board of Directors

Management Commentary:

“Our second quarter set another sales record for FTG,” stated Brad Bourne, President and CEO of FTG. “We continued to see strong end market demand from all market segments and we continue to ramp our throughput in support of this demand. Our FLYHT acquisition was profitable in the quarter which was sooner than anticipated and shows the potential for our new business in the commercial aerospace aftermarket segment. The uncertainty around US tariffs remains but we have not seen any material impact so far. During 2025, we have seen significant movements in the value of the Canadian dollar versus the US dollar which benefited our Q1 results and negatively impacted Q2. The current exchange rate is in line with where it was in 2024 so going forward it should not have a material impact on FTG’s results.”

Research

Fri, 16 May 2025 14:37:54 GMT

Firan Technology Group (OOTC:FTGFF) (TSX:FTG) ($6.23; $158.6M market cap) announced its FLYHT subsidiary received a Supplemental Type Certificate from Transport Canada for its AFIRS Edge+™ product on the Boeing 737NG, clearing the way for global deployment and future expansion into additional regulatory jurisdictions.

“...This milestone certification clears the path for global deployment of FLYHT’s 5G Wireless Quick Access Recorder (WQAR) on one of the world’s most widely used commercial airframes…

…With TCCA approval in hand, FTG will expand regulatory compliance to additional jurisdictions in the coming months, enabling broader market access for Edge+ across Boeing 737NG operators worldwide.”

Research

Thu, 10 Apr 2025 14:02:49 GMT

Firan Technology Group (OOTC:FTGFF) (TSX:FTG) ($5.00; $125.7M market cap) reported Q1 2025 results: (Financials are in CAD)

Sales of $42.9 million vs $35.0 million
EPS of $0.13 vs $0.04

“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.”

Q4 Conference Call Comments (Tariffs & Supply Chain

"We have two sites which are now subject to high US tariffs. For aerospace Tianjin, this should have minimal impact as the site ships completed product to Canadian and Chinese customers. They ship some components of subassemblies to our Toronto sites to then make the final product for shipment to US customers. None of the work from aerospace Tianjin should attract US tariffs. For our circuit board joint venture, a small amount of work ships directly to The US and will be subject to the high tariff. But over the past five years, they've already been subject to a 25% tariff on their exports to the But they also work from Canada and Europe that will not be subject to any US tariffs.

Our growth plans for this business is to focus on customers in China, Europe and Canada, and we're and we're making good progress on all of these plans. As of yesterday, our US sites shipped almost exclusively to US customers, so there will not be any tariff on shipments to customers. As of yesterday, they would have seen tariffs on input costs or raw materials they buy. But as of this morning, those tariffs have been paused for ninety days. And so the US site at this moment looks like they are not subject to input cost tariffs or tariffs in shipping to customers. And in Canada, it's the same situation. The FTG sites are well positioned. They are not subject to any tariffs on input costs. And at this moment, they're not subject to any tariff on shipments to US customers. All of FTG products are USMCA compliant. But every day is a new day, so all this can change at any point in time. As a reminder, we estimate about 55,000,000 of sales to customers located in The US originate at FTG sites in Canada or China. While we are not exposed to tariffs between Canada and the US at this moment, if they did happen, we do not believe the impact would be immediate.

It will take time for the aerospace and defense supply chain to react to tariffs and find alternate sources of supply. But we are concerned and we are taking actions to mitigate any impact to FTG. First, our recent acquisitions in The US have reduced our exposure as they are inside the wall and would not be subject to tariffs or on sales. Going along with this, our long term strategy to be a global player has resulted in sales inside North America of over 26,000,000 last year and was almost 12,000,000 in Q1 this year. We are taking additional steps. In 2024, we made a conscious decision to find ways to increase our exposure to Airbus, not because of tariffs, but because they are the stronger performer in the air transport market. But whatever we do in this regard can also help mitigate U. S. Tariffs. And more recently, we have made a conscious decision to pivot away from The U. S. Market for our sites based in Canada and China. Obviously, the focus on Airbus is part of this."

Maj has interviewed the CEO twice, once on a Skull Session Fireside chat on GEO and also during the MS Microcaps virtual conference.

Research

Wed, 19 Feb 2025 15:58:37 GMT

Firan Technology Group Corporation (TSX: FTG) (OTCQX: FTGFF) today announced financial results for the full year and fourth quarter of 2024.

Financial Highlights (in CAD):

Q4 2024 Sales of $45.2 million vs $39.9 million in the prior year, and vs. analyst est. of $42.3 million
Q4 2024 EPS of $0.16 vs $0.10, and vs. analyst est. of $0.10
Third quarter bookings of $184.5M were up 25% over Q4 2023

Press release commentary:

“We are thrilled with FTG’s performance in 2024, which reflects our strategic focus on growth and operational excellence," said Bradley C. Bourne, President and CEO of FTG. "Our investments in technology and acquisitions have positioned us well for future success, and we are excited about the opportunities ahead, including our expansion into the Indian market."

Additional information that the company provided discusses how Firan continued its growth in 2024 through investments and acquisitions. The company successfully integrated its 2023 acquisitions, improving throughput, pricing, and cost savings at Circuits Minnetonka and Circuits Haverhill. It secured a $17 million contract to supply cockpit interface assemblies for COMAC’s C919 aircraft, with production running from late 2024 to Q3 2026.

Following year-end, FTG acquired FLYHT Aerospace Solutions Ltd., expanding its presence in the commercial aerospace aftermarket and enhancing product offerings on Airbus aircraft. Plans include ramping up sales and insourcing manufacturing. The company also secured a contract with De Havilland Aircraft of Canada Ltd. to supply updated cockpit control assemblies for the DHC-515 aerial firefighting aircraft.

FTG announced plans to open an aerospace facility in Hyderabad, India, to support growth and expand its market presence. Additionally, it completed a new three-year banking agreement with BMO Corporate Finance, providing improved financial flexibility and cost savings to support growth and corporate development.

We are obviously going to keep an eye on further updates on integration progress, financial impact from contract wins, and any signs of execution challenges with the India expansion.

And as always, we will be contacting FTGFF for a potential Management Briefing Skull Session so we can learn more about the quarter and what’s ahead. To refresh your understanding of how we feel about the company, as well as get up to speed on our last conversation, reference our last update, where we noted:

“In early March 2024, on the heels of a bullish live Skull Session call with management, we added FTGFF to our Select Coverage Universe Model Portfolio. We also shared a Cliff Note on the company from MS Microcaps.”

Brad Bourne, the company’s CEO, will also be participating in The Starting Five Virtual Conference #4, and as of now is slated to give a fresh presentation to the GeoInvesting premium community on Friday, March 7, 2025.

Research

Wed, 12 Feb 2025 16:02:06 GMT

Firan Technology Group (OOTC:FTGFF) (FTG.TO) ($5.82; $146.4M market cap) announced a new Aerospace facility in India.

“FTG will support customers around the world as well as in India from this new site. After evaluating numerous locations, the selected site is located at the Hyderabad Airport, in a Special Economic Zone (SEZ) which facilitates tariff free trade between India and the rest of the world. The facility construction is underway and is being built to suit FTG’s requirements. As part of the agreement, FTG has an option to expand the facility by over 200%.”

Brad Bourne, President and CEO, FTG Corporation, commented, “this new manufacturing facility is a significant milestone for FTG, reinforcing our commitment to India’s ‘Make in India’ initiative. India is a growth market for FTG, and this expansion will enhance our ability to deliver high-quality, innovative solutions to the aviation and defence sectors. The Hyderabad facility will mark FTG's fourth country for Aerospace manufacturing, after Canada, the US and China. We will continue to focus on commercial aerospace and defence avionics, with a special emphasis on Human Machine Interface (HMI) devices.”

In early March 2024, on the heels of a bullish live Skull Session call with management, we added FTGFF to our Select Coverage Universe Model Portfolio. We also shared a Cliff Note on the company from MS Microcaps.

Research

Wed, 09 Oct 2024 16:03:22 GMT

Firan Technology Group (OOTC:FTGFF) (TSX:FTG) ($4.25; $106.9M market cap)

Reported Q3 2024 results:

Sales of $43.0 million vs $36.1 million
EPS of $0.11 vs $0.06
Third quarter bookings of $45.9M were up 29% over Q3 2023

“During Q3 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term.”

In early March 2024, on the heels of a bullish live Skull Session call with management we added FTGFF to our Open Forum Focus Model Portfolio. We also shared a Cliff Note on the company from MS Microcaps.

Research

Thu, 11 Jul 2024 15:06:55 GMT

Firan Technology Group (OOTC:FTGFF) (TSX:FTG) ($4.34; $103.5M market cap)

Reported Q2 2024 results:

Sales of $38.8 million vs $33.9 million
EPS of $0.11 vs $0.09
Second quarter bookings of $58.7M were up 46% over Q2 2023

“During Q2 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term.”

In early March 2024, on the heels of a bullish live Skull Session call with management we added FTGFF to our select long model portfolio. We also have published a Cliff Note from MS Microcaps.

Although near-term growth could be muted as the company invests in expansion and accommodates higher expenses from new union worker terms, the long-term currents, driven by acquisition integrations, a substantial backlog, and potential acquisition opportunities, potentially positions the stock as a candidate for significant long-term multibagger gains.

Research

Fri, 12 Apr 2024 13:43:06 GMT

Firan Technology Group (OOTC:FTGFF) (FTG.TO) ($4.16; $99.8M market cap)

Reported Q1 2024 results:

Sales of $35.0 million vs $24.6 million
EPS of $0.04 vs $0.04
The six-week strike at Aerospace Toronto had an estimated negative impact on Q1 2024 net earnings of $1M or $0.04 per share. (we also believe the quarter was impacted by higher expenses related to the strike settlement which resulted in higher salaries for union workers).

“During Q1 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term.”

In early March, on the heels of a bullish call with management we added FTGFF to our select long model portfolio. We also have published a Cliff Note from MS Microcaps.

Research

Wed, 06 Mar 2024 19:08:46 GMT

Adding FTGFF To Our Model Portfolio, Skull Session Fireside Chat Replay Available

On the heels of a bullish Fireside Chat with management yesterday, where we have concluded that analyst estimates are too conservative, we are adding Firan Technology Group Corporat (OOTC:FTGFF) to our Select Coverage Universe portfolio. We also have published a Cliff Note from MS Microcaps.

In the discussion, Brad Bourne, the company’s CEO, provided Maj with insights into the company and its future prospects. FTG specializes in manufacturing cockpit products for aircraft and printed circuit boards for the defense and commercial aerospace industries. Brad discussed FTG's strategic focus on aerospace and defense, emphasizing the company's two main product lines: cockpit products (FTG Aerospace) and printed circuit boards (FTG Circuits). He outlined the company's growth, driven by strong market demand and strategic acquisitions, including the recent 2023 additions of IMI and Holiday Circuits to expand their U.S. footprint and capabilities in high-technology circuit boards and RF circuitry, respectively.

Brad also highlighted the company's emphasis on maintaining a high level of operational strength and the importance of continued strong performance to secure and grow business with their sophisticated aerospace and defense customers. He shared FTG's commitment to technology investment, aiming to move up the value chain in their product offerings and seize new growth opportunities, particularly in the growing aerospace market, and through strategic acquisitions. The conversation also touched on FTG's financial performance, showing notable growth in revenue and EBITDA. Brad shared his optimistic outlook for continued expansion, underpinned by a robust aerospace market and potential for organic growth and further acquisitions.

You can listen to the full live session here.

Cliff Notes

Tue, 05 Mar 2024 05:00:00 GMT

Below is a Cliff Note that was provided to us by MS Microcaps on why they added the stock to their MSM Tier One Quality Microcap Index.

Themes:

BigCapMicrocap - GARP - InfoArb - Long-Term Industry Growth Trends

Data

Founded: 1983
Exchange: Toronto
Price: CAD$4.74
Shares Outstanding: 23.8M
Market Cap : CAD$113M
TTM Revenue: CAD$135M
LT Debt: CAD$9M
Current Portion of LT Deb t: CAD$1.2M
Cash: CAD$6.6M
P/E trailing 12 months: 16.3x
P/E 2024 est: 14.4x
EV/S trailing 12 months: 0.86x
EV/S on 2024 revenue est: 0.79x

Revenue History

EPS History

What they do :

Printed circuit boards and equipment for cockpits

Product Sales Breakdown : 70% Circuit Boards; 30% Aerospace Equipment
Industries served : Aerospace (both commercial and defense), Defense

In the company’s words:

FTG Aerospace designs and manufactures illuminated cockpit panels, keyboards, bezels, sub-assemblies and assemblies for original equipment manufacturers (“OEMs”) of avionics products as well as for airframe manufacturers.

FTG Circuits is a leading manufacturer of high technology/high reliability printed circuit boards within the global marketplace.

Circuit boards house different electronic components. These boards can be shipped directly to an OEM that will install electronic components or to companies that actually build out the boards. These companies are called electronic manufacturing service companies.

Important Acquisitions in 2023 in the circuits segment:

*Circuits Minnetonka - $30M in revenue.
*Haverhill: $3M to $4M in revenue

More on Reasons to add to the Index, Content Supporting the Overarching Themes, Valuation, and Research Tasks…

Some History:

At one point, Firan was a left for dead smaller division of another company, The current CEO, Brad Bourne, joined the company to turn that division around. Apparently, he had some experience with turnarounds. The parent company decided to cut ties with Firan, at which time the company executed a reverse merger with a company in the same industry. We believe this all occurred in the early 2000s.

Until recently, revenue growth has been stagnant, but it seems the company’s focus on new market segments and new product rollouts could lead to some predictable growth over the next few years.

Reasons to add to the Index:

High visibility into the sales pipeline for several years to come. Some of the company's major customers are significantly increasing their airplane production plans. For example, Airbus is expected to increase its annual production rate by 100% over the next few years (1000 per year), and Boeing is expected to increase its production rate by about 40% (700 per year). The backlog of orders for both of these companies will take over 10 years to satisfy. Bell Helicopter reported a 31% revenue growth in 2023 and is projecting nearly 10% growth for 2024.
The company should start to experience some operating leverage since it spent the last year increasing staffing to get to the point where it will be able to handle the higher level of demand it is experiencing. Part of the company's margin expansion will come from the aerospace division offering higher margin products within the cockpit. For several years, the company was focusing on lower-margin areas of the cockpit. Moving up the value chain will translate into selling products for thousands of dollars vs. hundreds of dollars.
The company has a goal of growing 15% a year and basically doubling its size every five years. Given the company's operating leverage, EPS should grow faster. Supported by the company's customer growth outlook, we don’t think this goal is too aggressive.
Analyst estimates are showing minimal growth in 2024. However, we think an upside exists to those estimates due to the positive outlook of FTG’s customers, and, more importantly, we don’t think analysts are baking in any growth from the 2023 acquisitions. For example, Circuits Minnetonka was generating sales of about $40 million pre-COVID and is currently running at about $30 million. The fact that Minnetonka showed a sequential increase in revenue of 12% from Q3 to Q4 gives us some confidence that revenue will continue to grow. Part of the revenue growth will come from price increases that management believes should’ve occurred before the acquisition.
The company plans to reduce annual expenses by $1.0 million a year. This is important because a new agreement with their labor union will increase annual wages by $1.5 million.
The company is experiencing an elevated level of revenues from cross-selling customers between the two business segments.
The acquisition of Circuits Minnetonka is expected to give the company more exposure to the U.S. market.
From a conversation we had with the CEO, we like that management is focused on staying in its lane in that it doesn’t really want to stray from its expertise in serving the aerospace market.
FTG is dealing with most of the top aerospace and defense prime contractors in North America and claims it’s a top 5 player in its market.

Valuation

Shares are trading at a P/E of 14.7x on 2024 EPS estimates of $0.34 (8% revenue growth). We would normally view this to be fair in the near term. However, conservative analysts estimate that there is room for upside. Overall, it can be challenging to value a company like Firan. P/Es can be as low as 5x to 10x or over 25x.

We are betting that shares will eventually trade in excess of 25x, given the company’s leading industry position and good chance that it is entering a new, predictable growth cycle phase. That would translate into a 12-month price target of $8.50 (CAD), or 70% upside.

Taking a look at a U.S. comp, ISSC, we noticed that shares are selling at a price to sales and enterprise value to sales of about 4x vs. FTGFF EV/S of around 0.8x.

Caveats :

The company's simulator business, part of the aerospace division, can be lumpy.
Even though the company resolved its union dispute, annual expenses will rise $1.5 million. Also, first-quarter revenues will come in $3 to $4 million lighter than expected due to the short-term strike. However, revenue will be pushed out into the second quarter.
China manufacturing facility.
We don’t love this Q4 conference call comment: “As always, there are possible downsides or headwinds that could impact our future performance.”

Research Tasks

Given that the aerospace segment experienced significant growth in 2023, is that where you see most of your opportunity to grow the company, especially since it's only 30% of revenue?
Does the company anticipate making more acquisitions in 2024?
Is it possible for Circuits Minnetonka revenue to get back to $40M in revenue in 2024?
The circuit business seems to be a commodity business. Explain why you think you have a competitive advantage in this business.
What top-end revenue can current facilities support?
Regarding the Haverhill acquisition, what’s the plan to expand the revenue outside its $3M to 4M historical run rate? What are the reasons why Haverhill has not been able to grow?
Prior to the pandemic, was Circuits Minnetonka growing revenue?
How much of the company’s aerospace revenue comes from the lumpy simulator business?
Given the positive outlook from the company's customers, it’s a little perplexing that the company hasn’t placed aggressive growth assumptions for 2024 outside the extra revenues from the acquisitions. We’d like to understand why.
Does the company only make circuit boards, or does it also install components as a one-stop shop?

PR/CC/Filings/Presentations Commentary

Q4 2023 Conference Call:

Our end market demand remains strong. Air travel continues to rebound. Airbus delivered about 650 aircraft in 2023. But more importantly, they're looking to ramp to almost 1,000 aircraft annually in the next few years, and this is a 50% production rate increase. Airbus has a backlog of over 8,000 orders, which is over a decade worth of production at current production rates. At Boeing, they shipped just under 500 planes in 2023 and have plans to ramp their production by about 40% to almost 700 planes in the next few years. Boeing's backlog is almost 6,000 planes, so also over a decade worth of orders at current production rates. But the FAA has told Boeing to halt their production rate increases, while they ensure there is sufficient focus on quality. But overall, it is clear why both companies are looking to ramp their production. In the business jet market, Bombardier is expected to report low-single-digit or low-double-digit shipments, production rate increases for 2023 when they report their result, which they did this morning.

Also interesting to note, of the top 10 customers, 6 are customers shared between Circuits and Aerospace. We particularly like to see the shared customers as it means we are maximizing our penetration in these customers by selling both cockpit products and circuit boards.

We are expecting to grow in 2024. The easiest aspect of our growth will be having the acquisitions for the full 12 months, that is compared to seven months in 2023. This should add an estimated CAD 12 million on sales for 2024. If we can ramp production and sales at the newly acquired sites, this would further add to the growth.

Company Goals: With each success, we could not help but move our goalposts. The following are some items on our wish list: 15% annual compounded growth; Double our growth every five years through organic growth and acquisition; Debt to EBITDA ratio below 1:1. Indeed, those are lofty goals. But we have no doubts we could achieve it by sticking to our philosophy of delivering and utilizing operational excellence at the core of our strategy.

Reference Links:

Research

Thu, 08 Feb 2024 05:00:00 GMT

Firan Technology Group Corporat (OOTC:FTGFF) (FTG.TO) ($2.42; $57.8M market cap)

Reported Q4 and full year results:

Q4 2023 sales of $39.9 million vs $23.7 million
Q4 EPS of $0.10 vs $0.05
Full year sales of $135.2 million vs $89.6 million
Full year adjusted EPS of $0.29 vs $0.04

During 2023, the Corporation has invested in technology in existing sites, grown the business organically, and completed two acquisitions. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term.

Research

Thu, 12 Oct 2023 17:27:26 GMT

Firan Technology Group Corporat (OOTC:FTGFF) (FTG.TO) ($2.42; $57.8M market cap)

Firan Technology Group manufactures and sells printed circuit boards, illuminated cockpit display panels, and keyboards. Diving into on the heels of strong financial results: Q3 2023 reported last night:

Q3 2023 sales of $36.6 million vs $23.1 million
Q3 EPS of $0.06 vs $0.03
Backlog at the end of Q3 2023 is $98.0M compared to $65.5M at the end of 2022.
Q2 2023 results from July
- Sales of $34.0 million vs $22.3 million
- EPS of $0.09 vs $0.00
- Q2 2023 resulting in increased backlog of $98.2M compared to $65.5M at

It appears analyst estimates are not taking into account some new growth tailwinds as well as revenue and profit contributions from two recent acquisitions.

Some potential InfoArb regarding the Holaday Circuits acquisition - management believes it can bring revenues to pre pandemic levels of around $40 million, which are $10 million higher than at the time of the acquisitions.

It should be noted the company has debt levels of $34 million with only $2.7 million in cash.

Listen to the PodClip pitch