EarningsQ3 2026 Earnings Report
DE:22F Q3 2026 EPS Results
Actual EPS€0.26
Consensus EPS€0.11
Beat/MissBeat by +€0.15
One Year Ago EPS€0.08
DE:22F Q3 2026 Revenue Results
Actual Revenue€40.90M
Expected Revenue€33.12M
Beat/MissBeat by +€7.77M
YoY Revenue Growth+34.16%
Earnings Announcement Details
QuarterQ3 2026
Date10/07/2026
TimeAfter Close
Conference CallWednesday, October 7, 2026
DE:22F Upcoming Earnings
Firan Tech's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, led by record bookings, revenue, backlog, margins, EBITDA, earnings, free cash flow, and a move to net cash. Demand across aerospace and defense remains strong, classified defense programs are ramping, and international diversification and new product initiatives are progressing. The principal cautions were tariff- and AI-driven input cost increases, short-term visibility on expedited pricing, equipment and order-timing delays, higher working-capital and investment requirements, customer concentration, and execution challenges associated with the pace of growth.Company Guidance
Record Third-Quarter Results
FTG reported record revenues, earnings, bookings, and backlog in Q3 2026, supported by continued strong end-market demand. Bookings were $90 million, up 75% versus Q3 2025, with a 1.41:1 book-to-bill ratio. Revenue was $64 million, up 34.3%, adjusted EBITDA was $15.1 million, up 97% from $7.5 million, net earnings were $10 million, and free cash flow was positive $7.1 million.
Record Backlog and Strong Revenue Visibility
Quarter-end backlog was $221 million, up 49% from 2025 year-end. Approximately 84.8% of the backlog is expected to convert to revenue through Q3 2027, or in the next 12 months.
Improved Gross Margin and Profitability
Gross margin increased to $27.5 million, or 42.9% of sales, from $14.5 million, or 30.3%, in Q3 2025. The improvement was attributed to top-line growth, improved profitability at Aero Calgary and several U.S. sites, increased throughput, limited added resources, and pricing premiums for quick-turnaround deliveries.
Strong Adjusted EBITDA and Net Earnings Growth
Adjusted EBITDA was $15.1 million, or 23.6% of sales, compared with $7.7 million, or 16.1%, in Q3 2025. Net earnings were $10 million, or $0.39 per diluted share, compared with $2.8 million, or $0.11 per diluted share. The earnings comparison benefited from a 12% tax rate in Q3 2026 versus 30% in Q3 2025.
Debt Repayment and Positive Net Cash
FTG repaid all interest-bearing bank debt in Q3 and ended the quarter with net cash of $3.9 million, compared with net debt of $2.9 million in Q2 2026 and $8.1 million at 2025 year-end. Primary liquidity totaled $94 million, consisting of $66 million of working capital and $28 million of unused credit facilities.
Defense Program Orders and Ramp-Up
FTG received significant orders and began ramping deliveries for two large-scale classified defense programs qualified in 2025. The programs contributed materially to Q3 sales and earnings, represented an estimated 10% of quarterly revenue, are both multi-year programs, and are expected to ramp through next year before sustaining for several years.
Strong Circuits Segment Performance
Circuits sales were $45.1 million in Q3, up 40% from Q3 2025. Minnetonka and Fredericksburg each increased sales by between 75% and 80%, while the Minnetonka site achieved the highest sales in its history in Q3.
Aerospace Segment Growth and Product Progress
Aerospace sales increased 18% to $19.8 million in Q3. Aero Calgary again delivered profitable results, supported by licensing revenue, hardware sales, product certification, and weather-data revenue. The company also certified and shipped the first WVSS weather sensors and obtained its first STC to install WVSS-II on a Boeing 737 MAX 8.
Aero Calgary Revenue Plan Advancing
Licensing revenue for the SATCOM radio returned and is expected to be consistent year to year. FTG is now confirmed as the manufacturer for the licensee and expects to capture additional margin. First shipments manufactured in Chatsworth are expected in Q4 2026, while Edge+ WQAR production in Tianjin is also expected to begin shipping in Q4.
Recurring Weather Data Revenue Opportunity
The first WVSS-II unit was installed on a WestJet aircraft, with further installations expected through the balance of the year. Each approved and installed unit provides a recurring revenue stream from real-time weather and water-vapor readings supplied to NOAA.
International Diversification Progress
Sales in Canada increased 61% year over year in Q3, while sales to Asia increased 40%, supported by C919 shipments and other activity. FTG qualified new customers in Europe and Australia, and sales outside the U.S. are being expanded to reduce exposure to U.S. tariff risks.
Hyderabad Facility Opened
FTG opened its aerospace facility in Hyderabad, India, during Q3. The facility is intended to add capacity, support Western customers, and provide access to Indian aerospace and defense markets. FTG expects to complete certification to key aerospace standards by year-end and begin shipping to external customers thereafter.
Operational Improvements Across Sites
Strategic leadership appointments made at several sites contributed to stronger operating performance and throughput. Fredericksburg and Chatsworth achieved 30% to 100% revenue increases without adding headcount, while Minnetonka added approximately 25 to 30 employees, improved retention, and reduced turnover.
Pricing Premiums for Expedited Delivery
Many Q3 orders included price increases and significant price premiums for quick delivery. The two classified defense programs drove significant expedite fees, and all FTG Circuits plants were able to provide the high-margin quick-turnaround service during the quarter.
Commercial Aerospace Market Tailwinds
Management cited strong market demand, including Airbus targeting 870 aircraft deliveries in 2026, about 10% above the prior year, with a backlog of over 8,000 orders. Boeing had a backlog of about 6,000 planes and plans to increase 737 deliveries from 42 to 47 per month and 787 deliveries from eight to 10 per month. Bell Helicopters reported a 12% increase in deliveries in its latest quarter.
Defense Market Expansion Opportunities
FTG is pursuing additional defense programs in Canada, the U.S., NATO countries, and India. Management cited a U.S. budget request for a 45% increase in spending to about $1.45 trillion and new NATO commitments to reach 3.5% of GDP for defense plus another 1.5% for defense infrastructure.
FLYHT Integration and Tax-Loss Potential
FTG legally amalgamated FLYHT into FTG Aerospace Calgary and renamed the business. The amalgamation may enable FTG to use FLYHT tax losses beyond the Calgary operation, although management stated there is no certainty this will be possible. FTG continues to have substantial U.S. and Canadian tax losses available to offset future income.
Growth Capacity and Corporate Development Options
If Q3 revenue is annualized, FTG's run rate is over $250 million. Management said the company is not capacity constrained overall and can add people at many sites. FTG is evaluating acquisitions and greenfield construction opportunities, including a possible European footprint, increased India Circuits presence, and additional technology.
Union Agreement Ratified
The FTG Circuits Toronto union agreement was completed and ratified as a new four-year agreement. Management stated that the wage increases are fair and will not impact the site's profitability.
DE:22F Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed