TORONTO, ONTARIO – (October 11, 2023) – Firan Technology Group Corporation (TSX: FTG) today announced financial results for the third quarter of 2023.

  • Third quarter bookings of $35.7M were up 28% over Q3 2022.
  • FTG third quarter revenues of $36.6M were up 59% over Q3 2022, as FTG ramps up production to meet customer demand. Revenue included $9.2M from the newly acquired Circuits sites.
  • FTG achieved Net Earnings in Q3 2023 of $1.3M, which was up $0.6M from Q2 2022.
  • Net debt on the balance sheet as of Q3 2023 is $5.7M, which is 0.36x Adjusted EBITDA for the trailing 12 months.

Business Highlights

FTG continued to play offence through the first three quarters of 2023. The company has invested in technology in existing sites, grown the business organically, and completed two acquisitions. Through all these actions, 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.

Specifically, FTG accomplished many goals in Q3 2023 that continue to improve the Corporation and position it for the future, including:

  • Backlog at the end of Q3 2023 is $98.0M compared to $65.5M at the end of 2022. Backlog as of Q3 2023 includes $18.2M at the newly acquired sites.
  • FTG employs approximately 700 people across its nine operating sites after adding additional staff in Q3 2023, including executive leadership at the Circuits Minnetonka site. FTG staffing is essentially in line with customer demand as reflected by the parity between bookings and shipments in the quarter.
  • FTG received funding of $0.7 million in the quarter for a total of $4.4M received to-date under the Canadian Aerospace Regional Recovery Initiative (ARRI) program.
  • During Q3 2023, FTG bought back 6,200 Common Shares.

For FTG overall sales increased by $13.5M or 58.5% from $23.1M in Q3 2022 to $36.6M in Q3 2023. Increased revenue in Q3 2023 is the result of organic growth, acquisitions and favourable foreign exchange rates. The average foreign exchange rate in Q3 2023 was 3% (4.2 cents) higher than in Q3 2022, with a positive impact on sales of $0.8M. On a year-to-date basis, sales increased by $29.3M or 44.5% from 2022.

The Circuits segment sales in Q3 2023 were up $12.7M, or 86.8% compared to last year. The sales increase included a $9.2M contribution from the newly acquired Circuits sites in Minnetonka and Haverhill. On a year-to-date basis, the Circuits segment sales were up $19.8M or 44.7%.

For the Aerospace segment, sales in Q3 2023 were up $0.3M or 3.9% compared to last year. On a year-to-date basis, the Aerospace segment sales were up $8.4M or 32.9%, which included incremental Simulator revenue of $7.2M primarily delivered in the first half of 2023.

Gross margin in Q3 2023 was $8.8M or 24.0% as compared to $5.7M or 24.7% in Q3 2022. The decrease in the gross margin rate is due to increased sales volumes offset by lower gross margins in the Circuits Minnetonka site. Margins at that site are expected to increase over time as it ramps up throughput, achieve material cost savings and adjust pricing.

Net earnings after tax at FTG in Q3 2023 was $1.3 million or $0.05 per diluted share compared to a net income of $0.7M or $0.03 per diluted share in Q3 2022. Adjusted net earnings was $1.4M or $0.06 per diluted share in Q3 2023 as compared to an adjusted net earnings of $0.8M or $0.03 per diluted share in the prior year quarter. The $0.6M increase in adjusted net earnings is the result of higher sales volume, operational improvements and a more favourable foreign exchange rate. On a year-to-date basis, adjusted net earnings was $4.7M or $0.19 per diluted share compared to a net loss of ($0.3M) or ($0.01) per diluted share in the prior year period.

The Circuits segment earnings before interest and income taxes was $2.2M in Q3 2023 as compared to $0.8M in Q3 2022. Higher sales and improved pricing drove the increase in earnings. The Minnetonka and Haverhill acquisitions did not materially impact earnings before interest and income taxes for this segment.

The Aerospace segment earnings before interest and income taxes was $1.6M in Q3 2023 versus $1.4M in Q3 2022. The increase in earnings was driven by higher sales and improved pricing on a range of products.

The trailing twelve-month earnings before interest, tax, depreciation and amortization (EBITDA) was $18.9M or $15.9M for adjusted EBITDA as compared to approximately $9M for the full year 2022.

EBITDA for FTG in Q3 2023 was $4.9M or 13.4% of sales compared to $2.8M or 11.9% of sales in Q3 2022. On a year-to-date basis, EBITDA in 2023 was $16.5M or 17.3% compared to $6.2M or 9.4% in 2022.

Adjusted EBITDA for Q3 2023, which excludes government assistance, and expenses related to the acquisitions, was $5.0M or 13.6% of net sales, as compared to $2.8M or 12.1% of net sales in Q3 2022. The increase in profitability is driven by increased operating leverage from higher sales, operational improvements and a favourable foreign exchange impact. For the trailing twelve months period ended September 1, 2023, adjusted EBITDA was $15.9M or 15.1% of sales.

As at September 1, 2023, the Corporation’s net working capital was $35.2M, compared to $30.5M at year-end in 2022.

Net debt at the end of Q3 2023 was ($5.7M) compared to net cash of $12.3M at the end of 2022, after the combined impact of a net cash outlay of $26.3M for acquisitions, net proceeds of $8.5M from the Aerospace Chatsworth facility sale leaseback transaction, and receiving $3.8M from the U.S. Employment Retention Credit program (“ERC”). In addition, FTG has access to committed credit lines of approximately $22.3M.

The Corporation will host a live conference call on Thursday, October 12, 2023, at 8:30am (Eastern) to discuss the results of Q3 2023.

Anyone wishing to participate in the call should dial 416-764-8658 or 1-888-886-7786 and identify that you are calling to participate in the FTG conference call. The Chairperson is Mr. Brad Bourne. A replay of the call will be available until November 12 , 2023 and will be available on the FTG website at The number to call for a rebroadcast is 416-764-8692 or 1-877-674-7070, Playback Passcode 572945 #.


FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia and a joint venture in Tianjin, China.

FTG Aerospace manufactures and repairs illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China.

The Corporation’s shares are traded on the Toronto Stock Exchange under the symbol FTG.


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

Jamie Crichton, Vice President and CFO
Firan Technology Group Corporation
Tel: (416) 299-4000 x264

Additional information can be found at the Corporation’s website