Filtronic – AGM Trading Update due this Friday and note the Elon Musk options, shares just 245p, destined to rise again
Mark Watson-Mitchell – 26.10.2026
“Every major leap in communications capability begins with innovation at the edge of what is technically possible. From expanding global connectivity and enabling next-generation satellite networks to supporting advanced defence and security applications, Filtronic’s technologies help make the future achievable.”
Watch out this coming Friday, 30th October, for the AGM Trading Update from the £539m-capitalised Filtronic (LON:FTC) the Sedgefield-based designer and manufacturer of advanced radio frequency solutions for the space, aerospace, defence and telecoms infrastructure markets.
The Musk Connection
I think that Elon Musk and his colleagues will also be looking out for any interesting comments from the fast-growing preferred supplier to his SpaceX enterprise.
Musk has a chunk of share options upon the equity.
In April 2024, the Group stated that as part of the Strategic Partnership, the Company was issuing a total of 21,712,109 warrants to SpaceX across two tranches, to enable SpaceX to subscribe for up to a maximum of 10% of the company's existing share capital, with such warrants expected to vest, on a variable basis, with full vesting of the warrants once approximately $60m (£48m) of orders have been placed by SpaceX.
The two warrant tranches, which were split equally, are detailed below:
Tranche 1: a maximum of 5% vesting on a variable basis from order flow of the E-band SSPA platform; and
Tranche 2: a maximum of a further 5%, also vesting on a variable basis, for order flow of products developed at alternative frequency bands which would involve partnering with SpaceX on new product development.
In March 2025, the Group stated that in recognition of the increased business levels, the Company had issued a total of 10,949,079 warrants to SpaceX at an exercise price of 92.8p, which enables SpaceX to subscribe for up to a maximum of 5% of the Company's existing share capital, with such warrants expected to vest, on a variable basis, based on the receipt of irrevocable purchase orders.
The Business
Filtronic is a leading designer and manufacturer of advanced high-frequency solutions that enable the next generation of space, defence and telecommunications networks.
Combining proprietary technology, deep engineering expertise and advanced manufacturing capabilities, the company develops mission-critical products that deliver exceptional performance in the world's most demanding operating environments.
Founded in 1977, Filtronic has been at the forefront of RF innovation, developing core intellectual property and transforming it into highly engineered solutions that power advanced communications, connectivity and sensing applications.
Its technologies support critical satellite infrastructure, defence platforms and high-capacity communications networks, helping customers solve increasingly complex engineering challenges.
Trusted by many of the world's leading space, defence and telecommunications organisations, Filtronic works from concept development through to full-scale manufacturing, combining specialist engineering capability with precision production to deliver high-performance products at volume.
The Company's vertically integrated model, investment in next-generation technologies and long-standing customer relationships position it as a strategic partner in markets benefiting from long-term structural growth.
With manufacturing operations and engineering centres of excellence in the UK and a global customer base, Filtronic is helping shape the future of secure, resilient and high-capacity communications on Earth and in space.
Recent SpaceX Order
On Thursday,1st October, the Group announced that it had secured a $68.1m (£51.3m) follow-on order from SpaceX for the supply of its Cerus E-band gallium nitride (“GaN”) Solid State Power Amplifier (“SSPA”) units.
This represents the largest order received from SpaceX and follows the $62.5m order announced in August 2025 for the Company’s next-generation, proprietary GaN E-band technology.
The new order is expected to be materially fulfilled during FY2028, underpinning the Board’s expectations for FY2028, providing stronger visibility over future revenues.
The follow-on order demonstrates the continued commercial adoption of Filtronic’s proprietary GaN technology and further strengthens Filtronic’s strategic partnership with SpaceX.
GaN enables higher output power, improved efficiency and enhanced thermal performance compared with traditional gallium arsenide (“GaAs”) solutions, providing important performance advantages for demanding applications including low Earth orbit satellite communications.
Management Comment
On the Contract announcement CEO Nat Edington stated that:
“This follow-on order from SpaceX, is another significant milestone for Filtronic, providing extended order visibility and coverage over the next couple of years.
This order provides further evidence of the growing importance of GaN technology in high-frequency communications and reinforces Filtronic’s position at the leading edge of this transition.
This order also provides significant revenue visibility into FY2028 and beyond, representing another important step for the business but also the continued development of our partnership with SpaceX.”
Chairman’s Comment
In the latest Report & Accounts, Chairman Jonathan Neale states that:
“Looking ahead, the Board believes Filtronic is entering its next five years from a position of strength.
The Group has established strong relationships with world-leading customers, expanded its addressable market, significantly enhanced its manufacturing capacity and developed a technology roadmap aligned with some of the most attractive growth themes across space, defence and advanced communications.
Together, these factors underpin our confidence in the Company’s long-term prospects.
Supported by a strong balance sheet and net cash position, the Group retains the flexibility to continue investing in technology, capacity and capability while maintaining appropriate financial discipline.
The Group enters FY2027 with a strong order book and multi-year customer commitments which gives the Board a high level of confidence to deliver the current market expectation.
To address a key strategic priority, the customer concentration of our lead client is expected to reduce further whilst increasing revenue, reflecting the progress we are making on new customer acquisition.
The market phasing and timing of our product road maps will mean that revenue and profitability are expected to be weighted towards the second half of the year as we ramp to volume on our next-generation E band Gallium Nitride monolithic microwave integrated circuit technology (“GaN”) programme.
We look to the future with confidence while remaining committed to the disciplined governance and long-term stewardship that will continue to underpin the Company’s success.”
The Equity
There are some 219.94m shares in issue.
The larger holders include David & Monique Newlands (7.98%),Schroder Investment Management (4.96%), Legal & General Investment Management (4.82%), Titan Settlement & Custody (4.75%), Morgan Stanley (4.66%), Dowgate Wealth (4.29%), Mark & Diana Dixon (3.64%), Charles Schwab Investment Management (3.11%), Harwood Capital (2.96%), Driehaus Capital Management (2.94%) and Rathbones Investment Management (2.89%).
Broker’s Views
There are three firms closely following the Group, two of whom rate the shares as a Buy, the other as a Hold.
The analyst consensus average Target Price is 335p, the Lowest at 275p, while the Highest goes for 440p.
The analysts of Joint Broker Berenberg Bank have made the highest Buy call, while Cavendish Capital Markets, the NOMAD and other Joint Broker, have a 290p a share Target Price on their latest Buy note.
For the current year to end-May 2027, the CCM analysts, Edward Stacey and Kimberley Carstens, have estimates out for revenues of £60.0m (£55.5m) and adjusted pre-tax profits of £8.9m (£8.1m), lifting earnings up to 3.4p (3.2p) per share.
For the 2028 year, the analysts look for £75.0m revenues, £10.9m profits and 4.2p earnings.
Reasons to Invest
· Market leading expertise in high-performance RF technology;
· Strategically positioned at the intersection of Space and Aerospace & Defence;
· Established and growing relationships with tier-one global customers;
· Strong financial position and operational discipline;
· Innovation roadmap driving next-generation connectivity; and
· Scalable infrastructure ready to support growth.
My View
Having followed the Company over the last five years, I have to say that I am pleased with my early identification of the Group’s potential.
Within the last year alone, Filtronic shares have ranged in price from 120p to 480p, but they are now trading at just 245p each.
It is still very early days in the inevitable build-up of the group, its sales, profits and balance sheet – but I have no doubt that the shares are destined for very much greater price heights.
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(Profile 26.10.26 @ 245p set a Target Price of 320p)
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