Filtronic – encouraged by record Order Book and expanded production site, broker increases Target Price to 225p (194p)

Mark Watson-Mitchell – 03.02.2026

This morning Filtronic (LON:FTC), the £402m-capitalised Sedgefield-based designer and manufacturer of products and sub-systems for the aerospace, defence, telecoms infrastructure, space and critical communications markets, has reported its Interim Results to end-November 2025.

The group’s CEO Nat Edington stated that:

"The first half of the year demonstrated the strength of Filtronic's positioning in markets where performance, reliability and security are mission critical.

Demand across our space,During the first-half aerospace and defence markets remains robust, and our focus on high-frequency RF technologies continues to differentiate us with customers operating in the most demanding environments. 

With a record order book, increasing customer diversification and the business now operating at greater scale, we have entered the second half confident of continuing our planned growth."

The Interim Results

The results for the six months to end-November 2025, showed revenue of £25.3m, slightly down from £25.6m in the prior period, while adjusted EBITDA decreased to £5.1m from £8.7m due to strategic investments in people, facilities, and product development.

Despite lower profitability, cash generation from operations increased to £3.4m, and net cash strengthened to £6.8m.

The company secured significant new contracts, including its largest ever with SpaceX valued at $62.5m, and a £13.4m contract with a European defence prime, contributing to a record order book entering the second half of the fiscal year.

Filtronic remains confident in meeting full-year revenue and EBITDA expectations.

Relocation To Larger HQ

The first half saw the completion of the group’s self-funded relocation to a larger headquarters and manufacturing facility, providing materially increased production capacity and capability to support demand.

The group’s investment in the technology and product roadmap has continued at pace, reflecting the Board's confidence in medium- and long-term opportunities.

It has also enhanced its programme management and organisational capability to support a growing number of concurrent major customer programmes.

Outlook

The group has entered the second half of FY2026 with a record order book, increasing customer diversification and strong engagement across its core markets.

Growing visibility and quality of revenues, with approximately 90% of FY2026 revenues covered by contracted orders, providing strong visibility into H2 and beyond.

After a good first half, with strong momentum in the business, the Board remains confident in meeting current market expectations for revenues and EBITDA for FY2026.

The market is looking for the full year revenues of £55.5m, within a range of £54m to £56.9m and EBITDA of £10.9m, within a range of £10.1m to £12.0m.

Broker View

Analysts Edward Stacey and Kimberley Carstens, at Cavendish Capital Markets, have continued their bullish view of the group and its prospects by raising their Target Price for the group’s shares from 194p to 225p.

They note that:

“Forward-looking indicators have been particularly strong during the period, with a record order book in hand and with significant progress on new technology developments covering new bandwidths and new applications.

The company has completed its move to a new headquarters and manufacturing facility, which provides substantial headroom for growth.

Order intake was very encouraging during the period as previously reported.

We believe that the new contract wins underline the strength of Filtronic’s position with its largest customer SpaceX, as well as broadening the growth opportunity with new wins in defence and space.

Our increased target price is based on an EV/EBITDA multiple of 29.0x applied to a conservative EBITDA scenario for FY29E and discounted backwards to give a current year target price.”

My View

The group's shares, now 190p, have been a magnificent performer since I first featured them four years ago at just 11.6p - and as far as I am concerned Filtronic's future is more than galactic.

(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*)

(Profile 03.12.25 @ 135p set a Target Price of 175p*)