Filtronic - still shooting into Space, its shares are up over 16 times in under four years!

Mark Watson-Mitchell
2 hours ago
4 min read

Mark Watson-Mitchell - 18.01.2026

The shares of Filtronic (LON:FTC), which were down to 72p in April last year, hit 197p at one stage last week.

They closed at 190p on Friday night, valuing the Sedgefield-based RF components and systems group at a significant £416m.

I say significant because its valuation makes a lot of analysts and investors smart in reaction.

That is because it is expected to show only £54.0m in its sales for the year to end-May 2026.

Furthermore, estimates suggest the company could make between £6.2m to £8.3m this year in adjusted pre-tax profits.

Such profits would see its earnings shading out between 2.6p to 3.2p per share for this period.

So that puts the group out on a valuation of some 7.7 times sales, some 57 times its profits and 65 times earnings.

On the face of it - a totally gross rating, that must be hard to justify.

However!

I actually take the view that this little company is still in the 'early stages' of what should turn out to be a massive development phase.

An expansion period that could, in due course, help to much more than justify its current ratings and then some on top.

Please take a look at my previous Profiles on the group for so much more information about its prospects.

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', Filtronic'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.

It 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.

Latest Trading Update

On Friday 12th December, the group reported that it had made significant strategic progress in the first half of FY2026, securing its largest-ever contract with SpaceX for next-generation E-band GaN products, alongside a €7m contract for LEO satellite constellation RF assemblies and a £13.4m defence contract.

The company ended the period with £10.5m in cash and £8.5m net cash excluding leases, self-financing a headquarters relocation.

Filtronic is advancing its high-frequency GaN product roadmap, with £1.2m in funding secured for a Ka-Band amplifier, and remains confident in full-year expectations, with market expectations for FY2026 revenue at £55.5m and EBITDA at £10.9m.

Management Comment

CEO Nat Edington stated that:

"Demand for high-frequency, secure and resilient communications continue to strengthen across our core space, aerospace and defence markets, creating long-term structural drivers for Filtronic.

The first half saw us make significant strategic progress, including landmark contract wins and continued advances in our technology roadmap.

With strong commercial momentum, a robust order book and an organisation scaling effectively to meet a growing pipeline of opportunities, we remain confident in delivering against market expectations for the full year."

Broker's View

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, while stating that:

"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.

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

With the way that the market is viewing the opportunites within the 'space sector' I do feel that these shares are destined to climb considerably higher over the next two to three years.

On Tuesday 3rd February it will announce its Interim Results to end-November 2025, which should be an ideal occasion to inform investors of the latest developments and the prospects for its Order Book over the coming three years.

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.

But,