Filtronic – yet another contract proves customer confidence, shares up to 194p, SQC TP 232p

Mark Watson-Mitchell – 01.04.2026  

Following on from the announcement last Thursday, 26^th March, when Filtronic (LON:FTC) reported that it had secured an $8.0m (£6.0m) contract with a US company, the group has announced further contract news.

Last week’s contract is to develop, manufacture, and qualify high-performance system-level products, specifically amplifiers utilising proprietary GaN and MMIC technology for satellite communications.

That contract, which started in March and is expected to conclude in 2027, will expand Filtronic's offerings in the satellite communications sector.

This morning’s announcement states that the group has secured a new £0.4m contract from a major European defence prime for the initial phase of a new technology program, with expected volume production in the future.

The order extends the company's engagement into an additional business unit and is for the design, development, and delivery of a wide-bandwidth solution to be produced at Filtronic's new secure microelectronics facility.

The contract, scheduled for delivery in FY2027, demonstrates continued customer confidence in Filtronic's advanced RF solutions for the defence market.

Management Comment

CEO Nat Edington stated that:

"This latest award from an existing major European defence customer demonstrates continued confidence in our technology and ability to deliver high-quality programmes.

The Company is increasingly well positioned to address long-term demand for complex, high-performance wideband solutions, reinforcing Filtronic's strategic position in the expanding defence sector."

Analyst View

Edward Stacey, at Cavendish Capital Markets, last week stated that:

“Filtronic has announced a new $8.0m/£6m contract to develop and manufacture a range of high-performance system level products for satellite-based communications.

The contract underpins reiterated forecasts and is set to commence by the end of March 2026 for completion in 2027.

The new customer is undisclosed, and we understand this initial development order could potentially lead to further contracts over time.

Following development of high power GaN-based products, we believe development of GaN-based system level products represents execution of the system-level strategy which also expands the addressable market into Medium Earth Orbit (MEO) and Geostationary Earth Orbit (GEO) applications as well as Low Earth Orbit (LEO).

After a record order book reported at interims, commencement of manufacturing at its £200m revenue capacity state of the art facility, and major new orders in European satellite and defence programmes announced in the fiscal year to date, we believe that the company is positioned for strong revenue growth in FY27E and over the next 3-5 years.

We reiterate expectations and our 225p target price.”

SQC Research View

This group is a real ‘winner in the making’ and continues to maintain our confidence in its ability to secure even more business for its already record Order Book.

Despite its very high rating, with its shares now at 194p, on over 57 times prospective earnings, they are destined to rise a great deal higher yet.

(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*)

(Profile 04.02.26 @ 186p set a Target Price of 232p)

mark@sqcresearch.com

Into infinity?