Filtronic – high-growth space market delivers record SpaceX contract, shares 138p, brokers TP 158p

Mark Watson-Mitchell
Jun 10
4 min read

10.06.2025

This morning the shares of Filtronic (LON:FTC), the designer and manufacturer of advanced RF solutions for the space, aerospace and defence, and telecoms infrastructure markets, have bounced again up to an All-Time High of 147p before easing back to 138p as I write.

The reason for the swift climb back up again, after the dip back to 123p last Friday, is that the group has just been awarded a ‘follow-on’ contract from SpaceX for the supply of its market-leading E-band Cerus 32 Solid State Power Amplifier.

The $32.5m order is expected to be fulfilled in the current 2026 trading year.

This award reflects the strength and continued success of Filtronic's Strategic Partnership with SpaceX, the leading Low Earth Orbit technology provider.

Consequently, the Board is now confident the group will exceed current revenue expectations for FY2026, while stating that considering the cadence of orders it has received, Filtronic continues to invest in its technology roadmap, across a range of products, given the sizeable market opportunity.

Management Comment

CEO Nat Edington stated that:

"We are delighted to have secured our largest order to date with SpaceX, reinforcing Filtronic's growing reputation for delivering high-performance RF solutions to the high-growth space market.

This milestone builds on the momentum of recent contract awards and highlights the progress we are making as we expand in key strategic markets."

The Business

The group is at the leading edge of advanced microelectronics globally, specialising in the design and manufacture of mission-critical communication networks.

Operating from two global manufacturing sites and three engineering centres of excellence, the company delivers solutions that span the full RF spectrum.

An extensive patent portfolio highlights its ongoing drive for innovation and technological leadership.

With a track record of over 45 years, the company’s technology is trusted across high-performance sectors including space, aerospace, defence, telecoms infrastructure and critical communications.

It develops core IP building blocks and transforms them into highly customised solutions for high-growth target markets.

The company’s expertise enables seamless data transmission, delivering greater bandwidth, lower latency and enhanced connectivity.

Filtronic has successfully coupled this engineering expertise with investment in state-of-the-art production equipment that enables the rapid transition of a turn-key solution from product development to full scale, high-quality manufacturing, at volume.

The strategic markets of LEO space, aerospace, and defence are the focus of current product development programmes, where the company can add significant value, realise long-term sustainable margins, and deliver shareholder value.

Filtronics and LEO

Did you know that there are expected to be some 36,900 Low-Earth-Orbiting satellites by 2033?

Last year proved to be truly transformational for its business, with the SpaceX orders last Spring almost turning the group’s business on its head.

The Low Earth Orbit (LEO) satellite network programme is driving strong activity within the global space sector – and the demands of SpaceX, the private company some 44% controlled by Elon Musk, is very big news for Filtronic.

As Musk’s business rapidly develops, it is evident that Filtronic will be a big beneficiary of even more orders.

SpaceX has been creating and extending the ability of its Starship programme, with each launch able to carry up to 300 Starlink satellites.

The economics for Starship are centred around the payload ability, with current assumptions of between 1 to 5 payload links per satellite.

This really is very big business for SpaceX and little Filtronic is hanging on the coat-tail as its main customer expands.

Filtronic has already identified its requirement for advanced facilities to handle this and other lines of demand from non-SpaceX clients.

On the basis of the LEO satellite programme, it is well worth noting that there will be an average of seven tons of satellites launched per day over the next ten years.

The Equity

There are some 219m shares in issue.

The larger holders include David Newlands (10.45%), Mark Dixon (10.27%), Canaccord Genuity Wealth (9.36%), Schroder Investment Management (5.03%), KW Investment Management (4.50%), Harwood Capital (3.40%), Hargreaves Lansdown Asset Management (3.35%), Norges Bank Investment Management (2.11%), Weatherbys Bank (1.83%), and IG Markets (1.57%).

Analyst Views

At Cavendish Capital Markets, its analysts Edward Stacey and Kimberley Carstens maintained their 158p a share Target Price after the news.

For the year to end-May 2025, their estimates are for £55.0m (£25.4m) of revenues, while adjusted pre-tax profits could have jumped from £3.4m to £14.1m, raising earnings to 5.9p (1.4p) per share.

The year now underway, the analysts reckon, could see £54.0m of sales, £8.3m of profits and 3.2p of earnings per share.

My View

The good news keeps on coming, with a responsive share price gradually pushing the group’s equity into its own space.

I remain a big fan of the business and its potential to win some very significant business in due course, but no matter how big its contracts might be, it will be important for investors to see the group’s ‘bottom line’ growing in line.