Filtronic – LEO still roaring, group wins €7m RF assemblies contract from recent customer, shares at 129.89p offer 50% upside!

Mark Watson-Mitchell – 06.11.2025

This morning Filtronic (LON:FTC) has announced yet more contract business to add to its growing Order Book.

Based in Sedgefield, the £306m-capitalised group is involved in the design and manufacture of advanced RF solutions for the space, aerospace and defence, and telecoms infrastructure markets.

It announced that it has secured a contract with a leading European aerospace manufacturer, to supply RF assemblies for integration into a major Low Earth Orbit satellite constellation programme.

Valued in excess of €7m, the contract represents a significant commitment to be delivered over the next three years.

Produced ‘in-house’ by Filtronic, the complex assemblies are engineered to withstand the demanding conditions of the space environment at LEO, delivering high-reliability performance across a wide range of communication applications.

The contract demonstrates Filtronic's technical expertise and position at the forefront of RF and mmWave innovation and deepens the Company's engagement with a relatively new customer, marking further business with another major LEO constellation.

Management Comment

CEO Nat Edington stated that:

“This contract highlights our increasing diversification across customers within the space markets and reflects the trust placed in Filtronic's capability to deliver at scale for the most demanding space applications.

As demand for satellite connectivity continues to grow, this is another milestone in Filtronic's mission to support the growing satellite market for Non-Terrestrial Networks, Mobile Satellite Services, and Direct-to-Device connectivity."

The Business

Filtronic 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 the group’s ongoing drive for innovation and technological leadership.

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

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

Its expertise enables seamless data transmission, delivering greater bandwidth, lower latency and enhanced connectivity.

The group 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 Filtronic can add significant value, realise long-term sustainable margins and deliver shareholder value.

Broker’s View

On today’s news, analysts Edward Stacey and Kimberley Carstens, at Cavendish Capital Markets, have reiterated their Target Price of 194p.

They have listed out the group’s recent contract wins:

European Space Agency (ESA) and Viasat:

On 24 April 2025, Filtronic announced a new contract to develop cutting-edge feeder link technology for ESA and Viasat’s Direct-to-Device initiative, contract size unspecified.

Airbus Defence and Space:

On 15 May 2025, the company announced a contract to supply filter and diplexer assemblies to Airbus Defence and Space for the supply of additional satellites to Eutelsat OneWeb, contract size unspecified.

Leonardo:

On 29 May 2025, the company announced a £0.8m contract to supply high-performance modules for an airborne radar application for Leonardo.  

Defence contract for £13.4m:

On 14 July 2025, the company announced a contract to supply high-performance modules for an electronic sensor system for an unnamed defence prime.

Further contracts with SpaceX:

The company announced further contracts with its largest customer SpaceX on 10 February 2025 and 10 July 2025, and on 26 August 2025 announced a record order valued at $62.5m for the company’s new gallium nitride E-band product.

In their Conclusion the analysts state that:

“Newsflow from Filtronic in recent months has reinforced the company’s strategic objective to expand its markets and customer base.

The latest contract announcement reinforces this trend. Filtronic also continues to build on its relationship with SpaceX.

Our target price is based on a conservative FY29E scenario analysis, and we maintain our 194p target which represents 50% upside to the current price.”

My View

50% Upside

The shares, which are now only 129.89p, I still think could beat my 165p aim within weeks and certainly before the Interims in early February next year.

(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 19.10.25 @ 130p sets a new Target Price of 165p)