Filtronic - confident H1 Trading Update highlights opportunities for shares, now 140p, brokers TP 194p

Mark Watson-Mitchell - 12.12.2025

This morning Filtronic (LON:FTC) reported significant strategic progress in the first half of FY2026, securing its largest-ever contract with SpaceX for next-generation E-band GaN products, alongside a €7m contract for LEO satellite constellation RF assemblies and a £13.4 million defence contract.

The company ended the period with £10.5m in cash and £8.5m net cash excluding leases, self-financing a headquarters relocation.

Filtronic, which is advancing its high-frequency GaN product roadmap, has secured £1.2m in funding for a Ka-Band amplifier and remains confident in full-year expectations, with market expectations for FY2026 revenue at £55.5m and EBITDA at £10.9m.

Management Comment

CEO Nat Edington stated that:

“Demand for high-frequency, secure and resilient communications continue to strengthen across our core space, aerospace and defence markets, creating long-term structural drivers for Filtronic.

The first half saw us make significant strategic progress, including landmark contract wins and continued advances in our technology roadmap.

With strong commercial momentum, a robust order book and an organisation scaling effectively to meet a growing pipeline of opportunities, we remain confident in delivering against market expectations for the full year.”

Broker's View

Analysts Edward Stacey and Kimberley Carstens, at Cavendish Capital Markets, rate the group's shares a Buy, with a 194p Target Price.

They noted that Filtronic indicated that the business is performing well and the company remains confident of meeting market expectations for the year ending May 2026.

"During 1H the company secured significant new orders and has made further progress advancing its technology innovation strategy to support future growth.

It secured its largest contract to date from key customer SpaceX.

It also continued to expand its customer base in the space segment, with orders including a €7m multi-year contract from a leading European aerospace manufacturer for RF assemblies to be utilised in a Low Earth Orbit satellite constellation programme.

Outside the space segment, new orders included a £13.4m contract from a European defence prime."

The analysts are estimating that the year to end-May 2026 will show revenues of £54.0m, with adjusted pre-tax profits of £8.3m.

For the coming year, they see sales of £60.0m and £10.0m of profits.

This group is still at such an early stage in its development; even so, I see its shares moving strongly ahead over the next year or so.

The current growth fund-raising rumours for its biggest client could well be a pointer to even more business from SpaceLink in 2026.

These shares, which have been up to 175p this year, are now trading at 140p, which looks to be an opportunistic pricing for risk-tolerant investors.

(Profile 04.02.22 @ 11.6p set a Target Price of 14.5p*)

(Profile 04.01.24 @ 21p set a Target Price of 24p*)

(Profile 26.06.24 @ 67p set a Target Price of 80p*)

(Profile 10.02.25 @ 103p set a Target Price of 150p*)