Firan Technology Group Corporation

FTG reported Q2 2026 revenue of $52.7 million, up 8.2% from $48.7 million in Q2 2025. Gross margin was $19.2 million, or 36.5%, versus $15.9 million, or 32.6%, last year. Adjusted EBITDA was $10.5 million, up from $8.7 million, and adjusted net earnings were $5.1 million, up 44% year over year; CFO Drew Knight also reported net earnings of $5.0 million, or $0.20 per diluted share, versus $3.5 million, or $0.14 per diluted share. Free cash flow was $2.7 million, net debt was $2.9 million, and leverage was about 0.09x trailing 12-month EBITDA. Q2 bookings were $86.7 million, backlog was $193.5 million, and management said about 66% of backlog is expected to convert to revenue over the next 12 months. No formal next-quarter or full-year revenue/EPS guidance was given; management did say Q3 is seasonally softer by about 1 week, Hyderabad should contribute more meaningfully in 2027, and CapEx should move closer to the long-term target of 3% of revenue.

Brad Bourne framed the quarter as a record period across nearly every metric and said the company is benefiting from broad-based aerospace and defense demand. He emphasized defense growth, new classified programs, commercial aerospace ramping at Airbus and Boeing, and FTG’s strategy to diversify outside the U.S. to reduce tariff exposure. His tone was upbeat and confident, but he repeatedly noted that execution still depends on staffing, certifications, customer approvals, and equipment availability.

Drew Knight focused on the financial quality of the quarter: gross margin improved to 36.5% on stronger throughput and better operating performance at Aero-Calgary and several U.S. sites, despite unfavorable FX. SG&A rose to $8.4 million from $6.8 million, mainly from performance compensation, deferred financing cost amortization, and corporate admin costs tied to the new leadership team; R&D was $2.8 million versus $2.4 million last year. He highlighted a solid balance sheet with net debt of $2.9 million, $85 million in total liquidity sources, free cash flow of $2.7 million, and CapEx of $0.9 million, adding that CapEx should trend toward 3% of revenue and that FTG continues to have substantial tax loss carryforwards.

Analysts pressed on whether FTG can convert the higher backlog into shipments given staffing and capacity limits. Management said most sites are improving, especially Minnetonka, but Toronto still has equipment bottlenecks and Hyderabad needs certifications and customer approvals before it can contribute meaningfully. Questions on the new classified defense programs focused on timing and scale; management said the programs are multiyear, early in their ramp, and could represent annual circuit board spend of roughly $50 million to $100 million across the opportunity, though FTG will only capture a portion.