Firan Technology Group Corporation

Thank you. Good morning.

I'm Brad Bourne, President and CEO of Firan Technology Group Corporation, or FTG. Also on the call today is Drew Knight, our Chief Financial Officer.

Before we go any further, I must caution you that this call may contain forward-looking statements. Such statements are based on the current expectations of management of the company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the company'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 company.

The listener is cautioned to consider these and other factors carefully when making decisions with respect to the company and not place undue reliance on forward-looking statements. The company does not undertake and has no specific intention to update any forward-looking statements written or oral that may be made from time to time by or on its behalf, whether as a result of new information, future events or otherwise.

We are off to a great start in 2026. We had record first quarter revenues, earnings and backlog, with some strong end market demand tailwinds offset by a big swing in the Canadian to U.S.

exchange rate that was a bit of a headwind. More specifically, in our first quarter of 2026, FTG accomplished many financial goals, including our bookings were $60 million, marking a 17% increase over Q1 2025 and a book-to-bill ratio of 1.27:1.

Our quarter end backlog stood at $157.9 million, an 11% rise from the previous year-end. Our revenue was $47.3 million, a 10.3% increase over Q1 2025.

Our adjusted EBITDA was $7.3 million, down from $8.4 million in Q1 last year. Our adjusted net earnings were $3.5 million, up from $3.3 million in Q1 last year.

We generated strong free cash flow of $4.9 million in the quarter. We maintained a strong balance sheet with net debt of $4 million or only 0.1x trailing 12-month EBITDA, including $9.9 million of government loans.

Other accomplishments in our first quarter included, after FTG Circuits qualified for two significant classified defense programs last year. Initial orders have been placed for these programs in Q1 and deliveries are expected to take place in Q3 this year and beyond.

FTG Aerospace Calgary, formerly FLYHT, achieved record profitability in Q1 2026. The newest site of FTG continues to benefit from last year's efforts to obtain certifications, sell its existing product portfolio and the rebuilding of licensing revenues related to their SATCOM radio for Airbus.

In Q1 2026, deliveries to China's C919 program continued. In addition, deliveries to the new De Havilland Canadair 515 aerial firefighting aircraft started to ramp up.

More deliveries on both programs are expected for the remainder of 2026 and beyond. FTG is proud to support the Artemis mission around the moon by supplying Switch Interface Panels to the Orion spacecraft.

Although space represents a small portion of FTG's business, space is a growing sector and FTG has activities with other customers in this area. And we continue to strengthen our team and improve our bench strength with new site leadership in our Chatsworth facilities.

Drew will provide more details on Q1 2026 results shortly. Let me turn to some external items.

Our end market remains strong. Airbus is targeting 870 aircraft deliveries in 2026, up about 10% from 2025.

But more importantly, they're looking to ramp to over 1,000 aircraft annually in the next 2 years. Airbus has a backlog of over 1,000 aircraft on order.

At Boeing, they shipped 600 planes last year, up from 348 the year before. Looking forward, Boeing has plans to ramp their production to over 800 planes annually in the next few years.

Boeing's backlog is about 6,000 planes, so over a decade's worth of orders at their current production rates. It has become clear that Airbus is outperforming Boeing in the air transport market in terms of aircraft shipped, and they hold a 60% market share based on order backlog.

This does have implications for FTG's plans going forward. In the business jet market, Bombardier reported high single-digit shipment increase for last year.

They are also pushing hard to add defense component to their business and have had some success to date in selling their business jets for defense applications, including to the Canadian military. In the helicopter market, Bell Helicopter reported a 20% revenue increase last year, driven by increase in defense programs.

All of this bodes well for us as we look to future demand in the coming years. U.S.

defense spending, including supplemental funding request is expected to increase going forward. The budget request in the U.S.

for next year is for a 50% increase in spending to about $1.5 trillion. There are new commitments from all NATO members, including Canada, to ramp up defense spending to 3.5% of GDP with another 1.5% for defense infrastructure.

Canada increased their defense spending last year to 2% of GDP. All of this indicates significant increases in defense budgets for all European countries and Canada.

The recent creation of the Defence Investment Agency in Canada to accelerate and streamline future defense procurement activity is positive for the industry here. Looking at the longer term, Boeing's most recent 20-year market forecast for commercial aerospace shows significant long-term growth, and it continued to show 20% of all new aircraft deliveries going to China and close to 40% to Asia, as has been the case in the recent forecast.

The business jet market has seen traffic recover and a recent business jet forecast from Honeywell similarly predicts growth in this market of 5% this year and 3% annually over the next decade. So as we have said for many years, FTG's goal is to participate in all segments of the aerospace and defense markets as each moves through their independent business cycles.

It is not often all segments are growing and seems to be the case now. Beyond this, let me give you a quick update on some key metrics for FTG for our first quarter of 2026.

First, as already noted, the leading indicator of our business is our bookings or new orders. Our bookings were $60 million in the quarter.

This resulted in a backlog of $158 million at the end of the quarter, even after record Q1 shipments. The Q1 sales were $47.3 million, up 10% over Q1 last year.

In our Aerospace business, sales were up 12% in Q1 to $17.1 million compared to Q1 last year. Sales in Toronto and Calgary were up, Tianjin was flat, while activity in Chatsworth was down in the quarter due to timing of some orders.

There were continuing ramp-up in C919 shipments in the quarter as well as assemblies for both Boeing and Airbus. The C919 shipments benefited both Toronto and Tianjin, while the other shipments benefited Toronto.

Calgary saw a pretty even split in revenues between hardware sales, which were mostly SATCOM radios, data sales and licensing revenues. On the Circuits side of our business, sales in the quarter were $31.1 million, up 8.3% over last year.

Our strongest growth in the quarter was our site in Fredericksburg, Virginia, which was up over 80% and followed by our Chatsworth site, which was up over 25%. Minnetonka had strong demand and was up 11%, while our Toronto facility was flat in the quarter.

Overall, at FTG, our top 5 customers accounted for 52.7% of total revenue in Q1 2026 as compared to 52.1% last year. Airlines were 3 of our top 20 customers in the quarter due to the FLYHT acquisition.

Also interesting to note that the top 10 customers, 6 are customers shared between Circuits and Aerospace. We like to see the shared customers as it means we are maximizing our penetration of these customers by selling both cockpit products and circuits boards.

Given the actions of the new administration in the U.S. of implementing tariffs, it's also good to see that 1 of our top 10 customers is outside of the U.S.

than this was in China and another 7 have some operations outside the U.S. While on this topic, 72.1% of FTG sales are to U.S.-based customers.

This includes sales by U.S. sites as well as sales from FTG sites in Canada or China.

This compares to 72.2% last year. While sales grew by 10% in the U.S.

They also grew by 10% in Asia and by 30% in Canada, as we benefited from previous efforts to expand globally, including things like our content on the C919 aircraft in China and acquiring FLYHT with sales globally. Sales decreased in Europe by about 5% in the quarter.

The increase in sales outside the U.S. are helpful in the event of tariffs, the U.S.

might impose on our non-U.S. based sites.

Our goal is to continue to grow our non-U.S. revenue for our non-U.S.

sites. In Q1, 2026, 36% of our total revenues came from our Aerospace business, compared to 35% last year.

I would now like to turn the call over to Drew, who will summarize our financial results for our first quarter of 2026. And afterwards, I will talk about some key priorities we are working on.

Drew?

Thanks, Brad. Good morning, everyone.

I would like to provide some additional detail on our financial performance for Q1. Starting with revenue and gross margin.

On sales of $47.3 million, FTG achieved a gross margin of $14.6 million or 30.9% in Q1 2026, compared to $13.3 million or 31% on sales of $42.9 million in Q1, 2025. As such, gross margin rates in 2026 were consistent with prior year.

The increase in gross margin dollars is based on top line growth, while the gross margin rate remained flat despite a $1.5 million negative variance in FX and $400,000 of gold variance. Offsetting these two anomalies was significant and due to operational improvements at several sites in the U.S.A.

and at Aero-Calgary. Moving on to SG&A.

SG&A expense was $6.9 million or 14.5% of sales in Q1 2026 as compared to $6.7 million or 15.7% and of sales in the prior year. The increase of $200,000 during Q1 2026, was primarily due to the acquisition impact of having Aero-Calgary for a full quarter in the year, and the remaining increase included Hyderabad, India start-up expenses and some corporate admin costs of the new leadership team.

R&D costs for Q1 2026 were $2.3 million or 4.9% of sales as compared to $1.6 million or 3.8% of revenue for 2025. R&D efforts include product and process improvements at the Circuits segment as well as Aerospace segment process improvements and product development.

Regarding foreign exchange, FTG is exposed to currency risk through transactions assets and liabilities and foreign currencies, primarily in U.S. dollars.

The average exchange rate experienced in Q1, 2026 was 1.375 as compared to 1.431 in Q1, 2025, which equates to a weakening of the U.S. dollar by 4% and this hurts results for FTG, as noted.

Adjusted EBITDA, as detailed in the MD&A, was $7.3 million for Q1 2026 or 15.4% of sales as compared to $8.4 million or 19.5% of sales for Q1 2025. As noted with gross margins, the year-over-year comparison of adjusted EBITDA is distorted by $1.9 million due to a $1.5 million impact from FX and a $400,000 impact from the onetime gold contract gain in 2025.

Absent the FX and gold impact, the adjusted EBITDA would have been $800,000 improved over Q1, 2025 as a result of growing the top line organically, operational improvements and managing expenses. For Q1, 2026, FTG recorded net earnings of $3.5 million or $0.14 per diluted share as compared to $3.2 million or $0.13 per diluted share in Q1, 2025.

The earnings comparison to prior year was impacted by the same FX rate issue and the onetime gold contract realization. However, this was partly offset by favorable income taxes.

The effective tax rate for Q1, 2026 was approximately 5.2% as compared to 32.9% in Q1 2025. The low rate in 2026 relates to tax-free profit of business units with historical tax losses and also prior year tax adjustments.

Also Q1, 2025 was tax inefficient with a few non-deductible losses unable to reduce taxable income in profitable business units. I would like to remind everyone that FTG continues to have substantial tax losses available to offset future income and the accounting benefit of these losses has not been recognized in our financial statements.

These tax loss carryforwards are located in both the U.S.A. and Canada, and the Canadian losses were recently acquired with the acquisition of FLYHT in December 2024.

Speaking to our financial position, FTG maintains a strong balance sheet, and our net debt position as of Q1 2026 was $4 million as compared to net debt of $8.3 million as of Q4 2025. This leverage ratio represents 0.1x trailing 12 months EBITDA.

Free cash flow in Q1 2026 was $4.9 million as compared to $8.2 million in Q1 2025. Capital expenditures were $0.7 million as compared to $0.9 million in Q1 2025.

Going forward, we expect CapEx to be closer to FTG's long-term target of 3% of revenue, notwithstanding any significant capacity increases. As at the end of Q1 2026, the corporation's primary sources of liquidity totaled $80.5 million, consisting of working capital of $60.4 million and $20.1 million of unused credit facilities.

FTG has plans to improve cash efficiency and minimize stranded cash in various business units. Accounts receivable days outstanding were 68 at the end of Q1 2026, up from 55 at the recent year-end due to timing of a couple of customer payments.

Inventory days were 111 at the end of Q1 2026 quarter end, up from 105 at 2025 year-end to address order fulfillment in upcoming months. And accounts payable days outstanding were 59 as of the Q1 2026 quarter end as compared to 58 at the 2025 year-end.

Turning to our outlook. FTG's book-to-bill ratio for Q1 2026 was 1.27:1.

As we enter Q2, 2026 with a near record backlog of $157.9 million of which approximately 80% is expected to be converted to revenue in 2026. The new business activities in both the aerospace and defense industries are strong and continue to accelerate.

Both the Circuits business and Aerospace business are increasing throughput and winning their share of new customer RFPs. Last quarter, we noted the program awards for two substantial classified defense programs, we have since received the opening POs for delivery in 2026, though these orders are only a fraction of the annualized volume.

I should note that FTG's reported backlog only includes POs received and does not include program awards with estimated volumes. As we approach the midpoint of Q2, we are focused on managing cash flow and improving operational efficiency and continuing with the Aero-Calgary integration, which is already bearing fruit.

I should note that our complete set of quarterly filings is available on sedarplus.com or on the FTG website. With that, I would like to turn things back over to Brad.

Thanks, Drew. Let me delve into some important items for the future of FTG that we'll continue to build on our accomplishments from last year and Q1 this year.

We will continue to pursue growth in the defense market. As noted previously, we expect defense spending to continue to grow in Canada, the U.S.

and NATO. We've had some good success on some new classified programs in the U.S.

last year, and we are pushing for more new programs this year. We are seeing volumes ramp up in many areas, including electronics for various weapon and electronic warfare systems.

Beyond this, we will look for opportunities outside of the U.S. as well.

The NATO defense budget was about 1/3 of the U.S. budget a decade ago, and it's 2/3s today.

So it's definitely a market of interest to us. As Canada ramps its defense spending and its commitment to NATO, we are hopeful that it will create new opportunities for FTG sites outside the U.S.

After the U.S. and NATO, the next biggest defense market of interest to us is India.

And we will -- and as we get our new site established there, we will look to capture some market share in this market as well. We will look to capture more work in the commercial aerospace market and grow as volumes ramp up.

As part of this, we will look for ways to increase our activity with Airbus as they are the stronger performer right now. To do this, we will leverage our Canadian China and Indian sites, and we will continue to investigate establishing a footprint in Europe.

Given the uncertainty regarding tariffs from the U.S., we will look to continue to diversify our revenue streams for our non-U.S. sites.

Some of the items I already mentioned will assist in this, but it will remain a priority action for us. We will increase our sales staff outside the U.S.

in 2026 to help drive this growth. Tariffs are now impacting costs in our Circuits business.

This is because a lot of materials used in our manufacturing processes originate outside of North America. The impact is largest for our U.S.

sites, but Toronto is also impacted when material shifts via the U.S. to Canada.

We estimate the overall cost impact to be in the millions of dollars in 2026. We started to work with our customers to pass these increased costs to them and to the end users.

We will continue to take steps to create value from our acquisition of FLYHT last year. As of December 1, we have renamed the business FTG Aerospace Calgary as we have amalgamated legally into FTG.

The amalgamation was done to possibly enable us to use FLYHT losses beyond just our operation in Calgary. But to be clear, we do not have certainty that this will be possible.

In the Calgary business itself, we believe we are now well positioned to have a strong year as a result of our product certification and STC efforts last year. We are seeing strong demand for all 3 products, and our pipeline looks robust.

The licensing revenue on our SATCOM radio product has returned and should be consistent going forward. The licensed product ends up on Airbus aircraft.

So we know the demand is strong. The Edge+ WQAR has the key STCs in place and with our first delivery behind us, we are quoting many new opportunities in a number of geographic jurisdictions.

And we're also starting to manufacture this product in our Tianjin plant to enable us to capture margin as well. We expect sales of their weather product to ramp in 2026 with contracts in place with both NOAA in the U.S.

and U.K. Met in England.

We are looking to manufacture our SATCOM radio product in our Chatsworth, California facility in 2026. These actions should enable FTG Aerospace Calgary to become a positive addition to FTG and further mitigate the risk from U.S.

tariffs. We will open our aerospace facility in Hyderabad, India in 2026.

First, our decision to expand geographically was partly us looking for an insurance policy against anything negative happening to our China operations. But it was also partly to expand into a new region with growth potential.

As we analyze options, we concluded India is a very cost-effective place for manufacturing, and with Prime Minister Modi's Make In India policy, coupled with significant defense spending, it will be an ideal place to operate. We selected Hyderabad as it has an aerospace hub primarily focused on manufacturing, unlike Bangalore, which is more engineering and software focused.

Our facility is well underway. It now looks like mid-2026 for its completion.

In the meantime, we will be sourcing the necessary equipment to be ready to go. Our estimated total investment is forecast to be approximately $2 million to $3 million, while, not the original intent.

We believe this initiative could also help mitigate any negative impacts from U.S. tariffs.

We continue to assess possible corporate development opportunities that could fit with either of our businesses. We have a few areas of interest, including establishing a footprint in Europe, growing our presence in India, or expanding our technology in a few areas.

With our focus on operational excellence in all parts of FTG, our strong financial performance last year and in Q1 this year, our recent acquisitions and our key sales wins, we are confident we are on a strong long-term growth trajectory. This concludes our presentation, and I thank you for your attention.

I would now like to open the phones for your questions. Jenny?

Just wanted to ask on the margin profile going forward. I appreciate the commentary regarding the FX and the gold contract issue, not repeating.

But as we think about the margin profile here going forward, I think we can all see FX. But is there anything else in last year's numbers that we should think about as being headwinds or tailwinds as we think about the balance of this year for cadence just around either Circuits or Aerospace because the margins were lower than we had anticipated.

No, I mean, for sure, the biggest impact is FX, offset by our standard reality of top line drives bottom line and top line price margin. So if revenue goes up, margins should go up, notwithstanding, you saw a little bit of a hiccup or a little bit of a downturn in Q1.

But there was nothing other onetime related from last year to this year at the margin level.

Okay. Helpful.

And as we look forward, though, is there any other headwinds that we should contemplate? Just trying to think about other things outside of FX?

No. The -- yes.

And even on FX, I mean, the biggest impact on that is below the margin line, below the gross margin line. But yes, there's nothing else that I see today going forward.

And sorry, Steve, just I think -- because I know from an operations perspective, our Q1 is always a little bit of a challenge because we had the Christmas holidays and that sort of thing in there. And for sure, the holidays had the worst possible timing this year, when the holidays actually hit at the beginning of the week or end of the week or in this case, middle of the week, just made it really painful in Q1 this year in terms of how to get through the holidays, when they operate, when they to shut down.

So that definitely hurt Q1 this year even more than what we typically see in other Q1s.

Okay. Helpful.

Just on the new program ramp up, it sounds like the first POs are in, which is encouraging relatively low volume build. How should we think about the cadence of that revenue layering in?

It sounds like this year will be modest, and we can expect a bigger pickup next year?

Yes, that's exactly true. Modest this year will be in the millions of dollars.

So it's not tiny, but the real volumes kick in 2027 and beyond.

Understood. Okay.

Helpful. And then just on FLYHT specifically, it feels like the cadence of your discussion has changed there.

It sounds like things are hitting stride maybe a little bit sooner than I was thinking. How do you think about sort of the pace of your progress there, both on the sales front and the margin front?

It sounds like it is more encouraging than we heard before.

Yes. it's definitely -- Q1 this year was great.

at FLYHT. And we are -- all three products are -- seem to be well positioned to be successful and to grow this year.

And I'll give great credit to the team there that everything we wanted to get done last year was done. And the key for year was basically get approvals or get STCs.

So we could sell the product, particularly the WQAR. That was 100% complete at the end of last year, which was a great accomplishment, really impressed that all that got done.

So now we're able to just go sell this product. That's what we're focused on.

On the QAR the SATCOM Radio has been around a long time. So it's just business as usual, but we've had some good orders, and we see a good pipeline.

And then lastly, on weather, a little bit -- I can say it's a little bit behind the other 2, but notwithstanding that, we actually have existing contracts with NOAA in the U.S. and with U.K.

Met in England. These are existing contracts.

So this is now about executing on them and converting them to revenue, and that's the key for us. And if there's anything that we did not as well as we'd like last year, but we're all over it this year is getting the production in-sourced into FTG sites.

And so I think I talked about it all last year, but it's now happening. So like there are orders in our Tianjin facility to build WQARs.

There are orders in our Chatsworth facility to build SATCOM radios. So that is further upside that we think we're going to -- we control that 100%.

So we know we're going to convert that this year.

Congrats on the record quarter. Just on FX, are you able to quantify the rough impact of a $0.01 change between the Canadian dollar and the U.S.

dollar?

Yes. It's definitely transactional is the primary issue, but then it's also as we translate our U.S.

operations back to Canadian dollars. And we estimate that a 1% change in the FX is about $800,000.

That's helpful. And then really strong book-to-bill in the quarter, it sounds like defense was part of the driver of that.

Are there any other notable orders that might have hit in the quarter?

Well, yes, I guess Calgary. So Calgary, further to what Steve had mentioned earlier.

Calgary had a strong quarter, but it is a little lumpy. And so we did get a decent order that was a little unexpected, and that definitely made Calgary's quarter a little bit outsized.

So that's probably one other thing other than those two defense programs.

Great. And then the last question is just on FLYHT.

The licensing revenue starting back up. Do you expect that to be relatively flat through the year?

Or is there a seasonality or timing of orders that we should consider?

For sure, it's a little bit uncertain, but the expectation just based on historic activity is it should happen each quarter, but no guarantee on that. But it's just the licensing revenue hits when they need to ship product to Airbus.

And so the demand at Airbus is there, for sure. I think it will be consistent in every quarter, but it could bounce around a little bit from 1 quarter to the other.

We don't control that.

Congrats on the quarter. Maybe just first on bookings following up.

You've got the new programs contributing, and you mentioned that Calgary had an outsized quarter there. Can you talk to what bookings growth look like for the rest of the business?

I'm not sure you've isolated that out, but any color on that front would be helpful.

No. No, I can't, Russ.

I don't have it in front of me. What can I say?

I mean the bookings were strong. The book-to-bill was strong, and that's against record revenues.

So we saw strong demand across the company, and it's coming on both sides of the business, both commercial aerospace and defense. For sure, there are strong defense bookings in the quarter.

And we're still working on a handful of other new programs. So without trying to delve down into a site level stuff, I am expecting still a strong ramp in demand plus some new programs in the coming quarters.

Got it. That's -- that's helpful.

And on those two, the classified programs, I think on the February call, you noted those programs may eventually require multiple suppliers given the volumes needed by the customer. I know it's only been 2 months since that call, but I'm wondering if you have a firmer sense as to how many other players you may have to share this work with eventually.

Yes. I think -- but I don't have a definitive answer on this.

What I can say, I think it's generally two, but it could be three, but not more than that. And it doesn't mean -- also to be clear on this, it doesn't mean if there's three that each one gets 1/3, it will depend on performance on initial orders, whoever is performing well, gets a bigger share.

It depends on just existing relationships with the customers will determine, who gets a bigger share. So for sure, our goal is to be getting a bigger share of these programs, not just an even split with whoever the other suppliers are.

Got it. And then just on gross margins, I just want to clarify your comments around the cost inflation from -- related to the tariffs on imports from Asia.

Did you see that evident in this quarter? Or are we still waiting to see that filter through to your financials?

It's definitely in our costs in this quarter and as I said, we're trying to pass this on to customers. We have definitely passed it on to some customers and working with the others.

So all of the cost was there. Some of the offset was there as well.

Brad, I just want to come back to the capacity question. I know you've been shuffling some work in trying to create space effectively.

Where do you feel like you're at today? Do you have any constraints?

You suggested you're still examining some new programs, but you've also got to contemplate the ramping of your existing baseload. So I mean, how do you feel about the capacity situation today?

I think you described some good progress at Fredericksburg and a few other sites, but just where do we sit today?

Yes. That's a good question.

So last year, in total, we shipped $191 million. I'd say our available capacity across FTG is north of $250 million.

So we have some room to grow. And that's based on capacity, and capacity is described as plants and equipment capacity, if we're running the plants with the equipment we have 24 hours a day, 7 days a week, we get north of $250 million.

To get there, we need to add people. And so that's what the focus has been get people in the door and keep the equipment running more hours a day.

So that's a good news. It's not -- we don't need to spend money to get at that capacity.

We just need to get people in and trained. That limits our growth rate, it doesn't limit our total capacity.

The one exception on capacity is Circuits Toronto. They are running 24/7.

As I noted in my remarks, that Circuits Toronto basically was flat year-over-year. So they need to add some actual equipment capacity to grow, but we're doing that.

And the guy running that site has put together a plan and good news in manufacturing, generally, when you run out of capacity, it's in 1 or 2 areas in the plant, it's not in every area. It's basically where your bottlenecks are.

So we've put together a plan, where we're going to expand the areas where we have the bottlenecks. And for about a $5 million investment this year, we'll add $20 million of capacity or north of $20 million.

So that's happening, and it's underway. And I believe that, that will happen.

So that will get us additional capacity that we will immediately take advantage of because we need to. And then lastly, of course, building out a facility in Hyderabad, India, this is on the cockpit product side of things, so that's going to add about a facility with about a $20 million of capacity.

Obviously, we're not going to do $20 million out of the gate. But based on the size of the facility and the equipment that we can add another $20 million.

So we're taking steps right now to get at the existing capacity and then add further capacity for both our businesses. So we need to focus on it, but it's not a constraint for our growth.

Okay. That's very helpful.

It's great color. And just one more for me and just my follow-up is on the corp dev side.

You referenced, I think, three priorities that you're looking at Europe, India and technology. How do you rank order those?

It sounds like Europe was first, but I mean, is that really the priority? I mean, how do you think about the different buckets of opportunity?

And how far along are you? Or how does the pipeline look in maybe those different buckets as you see it today?

Yes. That is correct.

For sure, my #1 choice is Europe. And for sure, at this point, I am much more knowledgeable about a lot of different factors in looking at Europe, what's the right perspective?

Does it matter EU countries, not EU countries? Does it matter NATO countries, not NATO countries.

Does it matter low cost versus high cost? Does it matter the labor laws?

All these things matter. So that kind of reduces your set of opportunities.

And then obviously, you also only look where there might be something available, so there's going to be an existing company. And so I know all of that.

I know what I'm interested in. And so we're working it.

You also need someone who's willing to talk, and that's kind of the next item for me. So no announcement this week, but it's priority for me to continue to work this and see if we can get a footprint in Europe for all the reasons I talked about and I don't think I said it all today, but why is Europe of interest?

Three reasons. First one, Airbus is there, and I'd like to do more with Airbus.

Second one, defense spending is ramping faster in Europe. So that's another reason.

And third one, there's not a risk of tariffs in Europe. So for all these reasons, it's of interest to me.

Then working it. But as I say, you got to find someone to dance with, and that's next on the list.

But I wouldn't rule out other things. As I say, we're building out our facility in India for cockpit products.

We have an option on the line next door. Could that be build out a Circuits facility?

It could be. For sure, it's not underway.

It's not planned, but it's an option I have. So that's a consideration.

And so lot's going on. And there are incoming opportunities and I'm trying to not get distracted on, to be fair.

It's easy sometimes to react to the incoming opportunities, but I'm trying to stay focused on what I think is most important for FTG on this topic right now.

Thank you. The replay of the call will be available until May 11 at the numbers listed on our press release.

The replay will also be available on our website in a few days. I thank you all for your interest and participation.

Thank you.