In the past couple of years a few new defence related companies have been listed on the Toronto Stock Exchange (TSX).Companies such as MDA (2021),Magellan Aerospace (2024), Volutas Aerospace (2025) and Firan Technology(2004).This is because both the Canadian defence budget and the NATO defence budget have increased dramatically in the last 3 years.Consequently as part of their total budget they have given contracts to some of these new,smaller companies.These small and technologically adept companies often have faster response times than their traditional suppliers.In addition, traditional suppliers often sub-contract to small providers such as Firan.FTG is especially useful as it manufactures several sub systems.Specializing in the manufacturing of sub systems can be profitable.Sub systems can be made quickly and speed up the total time taken for a contract by a traditional supplier. Reducing the total time taken for a supplier ensures a hefty backlog of business for small defence contractors such as Firan.And parts will not be standard as with a traditional supplier.In fact often the parts will be of higher quality.
Financials
FTG released its Q3 financial results on October7 and it was a success.Revenues were $64 million which was a 35% increase from Q3 in 2025.And adjusted EBITDA was $15 million for a 97% increase over 2025.More importantly e.p.s. was $.39 for a $262% increase over 2025.And free cash flow was 52% above the 2025 figures.All of these figures were ahead of the estimates.And this is partly because FTG showed price increases in most of it's important products.
Firan announced that it repaid $5.2 million of debt leaving only government loans to be repaid.This prepares FTG for 2027.Analysts estimate that annual revenues will be approximately $247 million in 2027 while annual adjusted EBITDA will be $53 million.Consequently most analysts have an average target price of $38-$40.
In 2024 Firan Technology traded at about $5 a share.But it experienced a 577% share price increase over the next 3 years.During that period there was a $500 million market cap creation .Consequently it now trades in the $35 price range with a roughly 38 P/E ratio.Q3 showed substantial increases,from Q3 in 2025 for revenues,adjusted EBITDA, earnings per share and free cash flow per share.In addition, it repaid $5 million in debt so that only government loans remain.Forecasts estimate adjusted EBITDA of $50-$55 million for 2027 and revenues of $240-$260 million for 2027.But it is expected that year over year growth will be slightly less than for 2026.This could bring the P/E ratio down slightly.It is now about 35 times earnings but it could fall to the 30-31 area.And the share price has risen substantially in 2026 already.So this blog sees a near term price target of $38 as a ceiling for Firan Technology.
