Filtronic - selected by Major European defence prime for next phase of electronic sensor programme, shares 140p, TP 194p

Mark Watson-Mitchell - 15.12.2025

This morning, the Sedgefield-based group has announced that a Major European defence prime has selected Filtronic (LON:FTC) for the next phase of its electronic sensor programme.

It is yet another signal of long-term customer confidence in its high-performance technology for the defence market.

Today's News

Filtronic the designer and manufacturer of advanced RF solutions for the space, aerospace and defence, and telecoms infrastructure markets, announces that it has received an Authorisation to Proceed ("ATP") for approximately £7m, from a major European defence prime, for the supply of high-performance active components for the next phase of a long-standing electronic sensor programme for a defence project.

The ATP authorises Filtronic to commence work on the project, ahead of purchase order conversion in Q1 2026.

The total value of the contract is expected to be £11m, for a two-year programme.

Production will take place at Filtronic's new secure, automated microelectronics facility in Sedgefield, supporting efficient, high-volume manufacture of complex RF modules for mission-critical defence applications.

Management Comment

CEO Nat Edington stated that:

"This latest win deepens our engagement with a key European defence customer and strengthens Filtronic's position in the defence sector, a growing market for the Group.

As we invest in capability and capacity, Filtronic is increasingly well positioned to support long-term demand for advanced RF solutions in the defence market."

The Business

Filtronic designs and manufactures RF-to-mmWave components and subsystems for mission-critical communication networks.

The group develops products for telecommunications infrastructure, aerospace and defence, space, test & measurement, and critical communications.

Recent NSIP Award

Recently, the group announced that it had been awarded £1.2m in funding from the UK Space Agency's National Space Innovation Programme to develop a 550W Ka-Band Solid-State Power Amplifier, designed to offer leading linear power performance and enable a seamless transition from older Travelling Wave Tube Amplifier technology for future satellite systems.

This development is strategically important for the expansion of non-geostationary constellations and next-generation services, supporting high-throughput Satcom and enhancing the commercialisation of UK space technologies.

Broker's Views

This morning, analysts Edward Stacey and Kimberley Carstens, at Cavendish Capital Markets, have issued a Buy note on the news, with a Target Price of 194p for the group's shares.

They state:

"Filtronic has announced that it has been selected to supply high-performance active components for the next phase of an electronic sensor programme with a major European defence prime.

The contract is expected to convert to a purchase order in 1Q26 (calendar year) with a total value of £11m over two years.

We anticipate that the revenue will be weighted towards FY28E and we make no change to our forecasts.

The news follows a positive trading update issued by Filtronic on 12 December 2025 that highlighted the ongoing expansion of the customer base, and we believe that this latest contract underlines the progress that is being made.

We maintain our 194p target price."

The analysts conclude their note:

"During CY25, Filtronic has made significant investments in new capabilities including the opening of a new technology centre in Cambridge and investment in the company’s custom-built facility in Sedgefield.

The company continues to build on its position as a leading supplier of RF technologies to a customer base of global leaders in space and defence.

We maintain our 194p target price, which represents 36% upside to the current price."

My View

The flow of positive corporate news continues at Filtronic.

The shares, which have been up to 175p this year, are currently just 140p - a level from which I expect to see a significant uplift during 2026.

(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)