Firan Technology Group is flying, this analyst says

Firan Technology Group (Firan Technology Group Stock Quote, Chart, News, Analysts, Financials TSXV:FTG) took a key step forward in monetizing its recent acquisition of FLYHT after receiving Transport Canada certification for its next-generation aircraft data recorder, a move Beacon Securities analyst Russell Stanley says strengthens the company’s position in a high-margin aftermarket segment.

In his May 16 investors note, he maintained his “Buy” rating and $12.00 target, noting the stock remains undervalued relative to peers and pointing to near-term catalysts, including contract wins, M&A activity and Q2 results.

Firan Technology makes electronics for the aerospace and defence industries, including circuit boards and cockpit display panels. The company has facilities in Canada, the U.S., and China, is headquartered in Toronto, and employs about 750 people.

Firan Technology announced that its subsidiary, FLYHT Aerospace Solutions, has received certification from Transport Canada for its AFIRS Edge+ product on Boeing’s 737NG aircraft, a key step in turning its recent acquisition into revenue.

“The Edge+ approval for the Boeing 737NG paves way for global installations of the industry’s first 5G Wireless QAR plug-and-play solution, and it is a pivotal achievement for our subsidiary FLYHT and a key part of our plan to create value from the FLYHT acquisition,” said Brad Bourne, President & CEO of FTG, said in a May 15 press release. “Edge+ replaces aging 2G and 3G recorders with a true 5G platform, ensuring airlines can continue to leverage real-time aircraft data for safety, operational efficiency, and innovation. We look forward to working closely with our airline partners to integrate Edge+ seamlessly into their fleets.”

Calgary-based FLYHT, acquired by Firan in December 2024 for $14-million, provides real-time data solutions to the aviation industry. Its AFIRS (Automated Flight Information Reporting System) product line enables aircraft to collect and transmit flight data, enhancing operational safety and efficiency. The newly certified AFIRS Edge+ is the industry’s first 5G wireless quick access recorder, designed to replace outdated 2G and 3G systems and support growing demand in the high-margin aftermarket segment.

“While this approval is specific to Canada, we expect it to pave the way for similar approvals in other jurisdictions (e.g. Europe and China) and other aircraft models,” Stanley said in his investor’s note. “Edge + is the industry’s first 5G wireless quick access recorder (QAR) plug-and-play solution.

“Moreover, FLYHT had made considerable investments in its product suite that Firan has since worked to monetize. This certification represents a strong step in that direction.”

Firan’s main customers in the commercial and defence sectors are sticking to their 2025 plans, with Boeing and Airbus reporting order backlogs that will keep them busy for more than a decade. The Boeing 737NG series, including the 737-600, -700, -800, and -900 models, represents a significant opportunity because of the large number of these aircraft still in service.

“There are currently 5,300 to 5,600 Next Generation planes in service, and another 3,200+ in Boeing’s backlog, representing approximately 57% of BA’s total commercial airplane backlog by units,” Stanley said. “While one of the features of the FLYHT acquisition is the expanded presence with Boeing’s chief rival, Airbus … this is a nice win given the volume potential. We understand installation time/cost are very low, particularly by airplane standards, significantly limiting the sales friction.”

Stanley thinks Firan will do $32-million in Adjusted EBITDA on revenue of $194-million in fiscal 2025. ANALYST thinks those numbers will improve to $37-million on revenue of $212-million in fiscal 2026.

He said FTG’s stock remains undervalued relative to peers.

“FTG is now trading at 7.1x our F2026 adj EBITDA forecast, representing a 24% discount to the 9.4x average amongst PCB companies and a 59% discount to the 17.5x average amongst aerospace suppliers. Potential company-specific catalysts include contract wins, M&A activity and the Q2 results in July.”

-30-