“We are backstopping a significant increase in water bomber production,” Prime Minister Mark Carney told reporters at the Montreal Canada-EU summit.
Ottawa’s announcement of up to $2.5 billion in financing could help aircraft get built, with work reaching beyond the manufacturer. One TSX supplier already makes cockpit assemblies for the programme, giving investors a specific business connection to follow instead of a vague aviation theme.
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More aircraft need more parts
De Havilland’s DHC-515 waterbomber is designed for aerial firefighting. Europe has a practical need for aircraft that can respond to destructive wildfire seasons. The summit statement referred to 24 aircraft for EU member states, but those orders were announced at the previous summit. Friday added financing support for production, including a second production line in Alberta.
That distinction helps keep the investment grounded. A financing announcement isn’t the same as 24 additional orders placed that morning. It can still make an existing order book more achievable by supporting the factory capacity needed to deliver. Suppliers benefit when the aircraft move through production and their own equipment is ordered, delivered, and paid for.
A relatively small component can have a worthwhile place in a long aircraft programme. Customers need reliable, qualified equipment, and changing suppliers can involve considerable testing. Once a company is selected, successful deliveries can create repeat business across future production. The reward depends on the amount supplied per aircraft and the profit kept after making it.
Already inside the cockpit
Firan Technology Group (TSX: FTG) was selected in January 2025 to supply updated cockpit control assemblies for the DHC-515. Design, development, and production were assigned to its Toronto aerospace operation. That makes the connection unusually clear for a small listed supplier. FTG has a documented role in the aircraft and a specific product to supply as production grows.
The company also supplies electronics to other aerospace and defence customers. That wider business is helpful because waterbomber production won’t arrive evenly every month. A supplier serving several programmes can use its facilities across different orders, while still benefiting if one aircraft family expands. It also spreads the risk of a customer changing its production schedule.
Third-quarter sales reached about $64.1 million, compared with $47.7 million a year earlier. That’s roughly 34% growth. FTG reported that defence-related programmes were contributing materially to sales and earnings. The latest growth therefore gives the stock a business foundation beyond the summit, although it shouldn’t all be attributed to waterbombers or European orders.
The price already reflects progress
The shares closed recently at $35.63. A $5,000 budget buys 140 whole shares for $4,988.20 before fees. That purchase gives you exposure to the whole supplier, with no way to isolate only the cockpit contract. I’d use a modest amount because small-company shares can move sharply when orders, margins, or investor expectations change.
FTG’s current agreement doesn’t establish how much additional revenue Friday’s financing could create. No new award or quantified increase for FTG was announced at the summit. I’d value the existing growing business first and treat faster waterbomber production as an extra opportunity. That keeps a large government financing figure from turning into an exaggerated company sales forecast.
I’d consider a small position for patient growth, alongside steadier Canadian holdings. The risks include production delays, rising component costs, and the cash needed to support more work before customer payments arrive. This isn’t a substitute for predictable dividend income. The appeal is earning more from qualified electronics as customers build more aircraft and defence equipment.
Bottom line
FTG has a real seat in the waterbomber supply chain. Ottawa’s support could help its customer deliver more aircraft, making the supplier worth a closer look. I’d buy carefully for that existing role and broader growth, keeping the holding small. The next reward needs to come from delivered assemblies and profitable orders, not from assigning the company a share of $2.5 billion.
