Filtronic has entered its new financial year on a positive note, with an order book already covering most of the year’s revenue including a new, half-million dollar (£400k) repeat order with an existing US customer, after a year in which earnings came in slightly better than the City had expected.
The latest order with an unnamed US satellite customer covers an initial development phase to design a high-frequency module for satellite payload, and follows the $8.0m (£6.0m) deal struck with the same customer in March.
The Sedgefield-based designer of advanced RF solutions for the space, defence, aerospace and telecoms markets, which also operates a dedicated satellite communications (SatCom) design centre in Manchester, told the market it expects to report revenue of at least £55.5m for the year ended 31 May 2026, in line with forecasts, alongside adjusted EBITDA of at least £11.1m, slightly ahead of expectations.
This is up from revenues of £25.4m and EBITDA of £4.9m in the year to 31 May 2024, while cash in bank stood at £13.4m, with net cash of £11.3m after stripping out property leases.
Growth during FY2026 was underpinned by a broadening customer base following a series of contract wins that diversified it. Reliance on the group’s largest customer, Elon Musk’s SpaceX, fell again over the course of the year, helped by deeper relationships across the space and defence sectors and improving order visibility.
The relationship with SpaceX nonetheless continues to expand, and the previously announced multi-year $62.5m next-generation GaN E-band contract with SpaceX remains a key driver of the business.
The year also saw Filtronic complete its self-funded headquarters and manufacturing facility in Sedgefield, now fully operational and designed to support annual revenues north of £200m.
Filtronic now begins FY2027 with an order book already covering 90% of consensus revenue for the year, supported by multi-year cover with its primary customer and growing engagement across other major space, defence and aerospace clients.
The latest win, the board said, is “further evidence of the customer momentum building behind the business.”
Chief executive Nat Edington added: “The additional US contract announced today reflects the strength of our customer relationships and reinforces the expanding opportunity landscape for our specialist complex RF technologies.
“Alongside our recent design wins, which we believe have the potential to be transformational for the business over time, and a strong order book, we are building increasing visibility across key programmes and entering FY2027 with real momentum and confidence.”
Filtronic issued its latest trading update ahead of publishing FY results on August 4.
