Filtronic – mega-order from SpaceX could prove game-changing, shares react very positively, is 200p in sight?

Mark Watson-Mitchell
4 hours ago
3 min read

26.08.2025

The shares of Filtronic (LON:FTC) are on the run upwards again this morning.

After the recent market reaction to its record end-May Final Results declared in late July, the group’s shares eased back from 156.78p to around 126p, on the back of profit-taking.

By last Friday night they had climbed back to 148p, prior to closing at 135p.

However, this morning’s good bit of corporate news has them running ahead again – now up 8% at 145.78p, after hitting 152p at one stage.

So, what has got them on the run?

The Sedgefield-based designer and manufacturer of advanced RF solutions for the space, aerospace and defence, and telecoms infrastructure markets, this morning announced that it has secured its largest single order to date.

For some $62.5m (£47.3m) it will be supplying SpaceX with its next generation, proprietary gallium nitride E-band product.

The first production units are expected to be shipped in FY2027, with its revenues from the contract to show through in 2027 and 2028.

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 Filtronic's ongoing drive for innovation and technological leadership.

With a track record of over 45 years', the group’s 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.

Filtronic's 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.

The SpaceX Contract

The mega-contract is the first GaN product from Filtronic's next generation product lines, delivering more than double the output power of the existing gallium arsenide product line.

GaN processes enable higher power, improved efficiency, and greater thermal performance-critical advantages for satellite communications and aerospace and defence applications.

The successful development of this solution reflects Filtronic's technical leadership and ability to overcome complex design and manufacturing challenges associated with high-power mmWave systems, including advanced packaging and thermal management.

The result is a high-performance product that sets a new benchmark for size, weight, power, and cost in this frequency domain.

Management Comment

CEO Nat Edington stated that:

"We are extremely proud to announce this landmark contract, which not only sets a new commercial record for Filtronic, but also reflect the success of our partnership with world-leading satellite company SpaceX, supporting the Starlink constellation. GaN represents a transformative opportunity for the ground segment of LEO communications, and this contract is further testament to the world-class engineering talent of both teams working together."

While Mike Nicholls, VP Engineering Starlink, commented that:

"Filtronic is a valuable partner to SpaceX, and has been an important contributor to the rollout and success of the Starlink constellation.

This next generation technology will provide further benefits to our system and our customers' experience, and we're excited to enter this next phase with Filtronic."

The Equity

There are some 219m shares in issue.

The larger holders include David Newlands (9.58%), Canaccord Genuity Wealth (9.36%), Mark Hollingsworth Dixon (6.96%), KW Investment Management (5.04%), Schroder Investment Management (5.03%), Dowgate Wealth (5.02%), Legal & General Investment Management (4.84%), Hargreaves Lansdown Asset Management (3.65%), Driehaus Capital Management (3.22%) and Harwood Capital (2.97%).

Broker’s Views

As I write, no broker’s analysts have stated their views or their re-rating of the group’s prospects.

However, I do feel that they will be more than positive in their fresh outlines.

At the end-of July analysts Edward Stacey and Kimberley Carstens, at Cavendish Capital Markets, had current year to end-May 2026, estimates out for £54.0m sales, £8.3m adjusted pre-tax profits, with 3.2p of earnings per share.

They looked for £60.0m sales in 2027, with £10.0m profits and 3.9p earnings.

My View

After analysing the potential from this mega-contract, I am sure that the new figures will help to outline the group’s prospects over the next two to three years.

Hopefully, that will bring about an even higher Target Price than the analysts recently raised 194p level.

They are heading even higher yet!