Aerospace is considered a powerful industry due to its five sub-sectors, each one rapidly growing. Two of the prominent players, Firan Technology Group (TSX: FTG) and Magellan Aerospace (TSX: MAL), are Canadian companies. Both are exciting investment prospects and potential multi-baggers.
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PCB champion
Firan Technology has delivered a market-beating return (+51.9%) thus far in 2025 and monster gains of 492% over the last three years. The $278.7 million global company provides technology-driven solutions. Its two operating units, FTG Circuits and FTG Aerospace, generate revenues. At $11.02 per share, the stock is a steal.
FTG Circuits manufactures high-technology, high-reliability printed circuit boards (PCBs). This unit caters to the aviation, defence, and space industries. PCB is the core business and it is the primary platform for mounting computer chips.
On the other hand, FTG Aerospace designs and manufactures Avionic subsystem hardware. Its products are used in flight and simulated devices in commercial aero and defence platforms.
In December 2024, the company acquired FLYHT, a leading supplier of aerospace and defence electronic products. This acquisition not only increases the presence in the commercial aerospace aftermarket. It will also help Firan achieve its goals: dominate the PCB industry and be a leader in aerospace and defence electronics.
In the first three quarters of 2025, sales and adjusted earnings rose 19.2% and 54.2%, respectively, to $139.3 million and $9.8 million compared to the same period in 2024. The backlog at the end of the third quarter reached $137.1 million, 12% higher than in Q3 2024.
According to FTG’s President and CEO, Brad Bourne, the company has laid a strong foundation for continued growth in the third quarter. His outlook is upbeat due to the robust end-market demand from all market segments. “We remain focused on managing external factors and have not seen any material impact from the US tariffs so far, though uncertainties remain,” he said.
Management’s wish list is as follows: achieve 15% annual compounded growth; double the growth every five years through organic growth and acquisitions; and hit a debt-to-EBITDA ratio below 1:1.
Revenue visibility
Magellan Aerospace is more than twice the size of Firan Technology. Performance-wise, MAL is up 80.7% and pays a modest 1.2% dividend. If you invest today, the share price is $18.05.
The global customer base of this $986 million integrated aerospace company includes aircraft and engine manufacturers, and space agencies. It designs, engineers, and manufactures aeroengine and aerostructure assemblies and components. Other offerings for the aerospace and space markets include engine and component repair and overhaul services.
In the first half of 2025, revenue and net income increased 6.8% and 17.7% year-over-year to $510.7 million and $16.2 million, respectively. But more than the financial results, Magellan boasts long-term revenue visibility.
In addition to new manufacturing program awards, the company signed contract extensions and legacy agreements with Pratt & Whitney Canada. In its Revenue Sharing Agreement (RSA) with GE Aerospace, Magellan will deliver F414 engine frames over a seven-year period.
A growth year ahead
Industry experts see 2026 as another year of growth for the global aerospace sector. Firan Technology and Magellan Aerospace will definitely be part of the growth, given their respective strengths.
