[Image credit: SpaceX]
Filtronic (FTC) , a leading designer and manufacturer of aerospace, defence, and telecom infrastructure products, announced a major new contract with its main customer SpaceX, worth US$20.9m (£16.8m). Revenues from the contract will be realised across FY25 and FY26.
Following the contract win, FTC's board expressed confidence that the group will exceed current market expectations for revenue and profit in both FY25 and FY26. Markets welcomed the news, sending FTC shares 13.2% higher in early trade. FTC shares are up c. 180% in the past 12 months.
Nat Edington, CEO commenting: "We are delighted to have secured this substantial order, which underscores Filtronic's reputation for delivering high-performance RF solutions to our market leading customer. This contract, alongside our growing momentum in strategic markets, provides us with increased confidence in our ability to exceed our growth targets for FY2025 and FY2026".
The announcement comes on the heels of last week's strong H1 2024 results where FTC reported a 200% surge in revenues and an operating profit of £6.8m, reversing the -£0.4m loss recorded in H1 2023. Adjusted EBITDA soared to £8.7m from £0.2m the prior year. The surge in revenues was driven by strong order inflow from SpaceX, following Filtronic’s commercial and strategic partnership agreement with the aerospace giant in April 2024.
The positive sales cadence carried into H2, driving two significant upgrades to market expectations in December and January, with today’s announcement further solidifying FTC's revenue momentum. To support this rapid growth, Filtronic added two new production lines in H1 2024. With a robust cash position of £7.2m on November 30, the company is well-positioned to continue investment in capacity and product development.
The low earth orbit market remains a driving force for FTC, offering significant growth potential as SpaceX and competitors deploy thousands of satellites for global low-latency internet access. FTC's deal with SpaceX, signed in April 2024, was a major value inflection point for the company. The relationship has strong momentum into H2 aligned with the success of SpaceX's Starlink, enabling FTC to deliver at high-volume through its supply chain, with significant upside potential for FY25, FY26 and beyond.
FTC is also working with the European Space Agency in low earth orbit on a lead-in project expected to complete over the next year, with significant revenues to be recognised in FY26. Additionally, FTC's defence pipeline continues to grow, supporting the group's sales momentum, orderbook, and recent guidance upgrades.
The low earth orbit satellite market is projected to grow at a CAGR of c. 9% by 2031, with the overall market size growing to US$310bn by 2031, while the defence market for electronic warfare is expected to grow at 7% to 2031 to US$35bn.
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