Filtronic wins $500k US satellite repeat order as FY27 order book covers 90% of revenue

Filtronic has started its new financial year with an order book that already covers most of the year's expected revenue, including a new $500,000 (£400k) repeat order from an existing US customer.

The order comes from an unnamed US satellite customer and pays for the first development stage of a high-frequency module that will form part of a satellite payload. The same customer signed an $8.0m (£6.0m) deal in March.

Based in Sedgefield, the company designs advanced RF products for telecoms, aerospace, defence and space customers, and has a Manchester design centre focused on satellite communications (SatCom).

In a market update it said revenue for the year to 31 May 2026 should be no less than £55.5m, matching forecasts, with adjusted EBITDA of £11.1m or more, a little ahead of expectations.

In the year to 31 May 2024 the business made EBITDA of £4.9m on revenue of £25.4m. Cash stood at £13.4m, or net cash of £11.3m excluding property leases.

Less reliance on SpaceX

A wider customer base, built on a run of contract wins, supported growth in FY2026. Dependence on the group's largest customer, Elon Musk's SpaceX, fell again during the year as relationships in space and defence deepened and order visibility improved.

The SpaceX relationship is still growing, and the multi-year, $62.5m contract for next-generation GaN E-band technology, announced previously, is still a key growth driver.

During the year Filtronic also finished its self-funded headquarters and manufacturing site in Sedgefield. The site is now fully up and running and has been built to handle more than £200m of annual revenue.

Orders already in hand for FY2027 account for 90% of consensus revenue, supported by multi-year cover from its biggest customer and increasing work with other large clients in aerospace, defence and space. The board called the latest win “further evidence of the customer momentum building behind the business.”

Chief executive Nat Edington said: “The additional US contract announced today reflects the strength of our customer relationships.”

“Alongside our recent design wins, which we believe have the potential to be transformational for the business over time, and a strong order book, we are building increasing visibility across key programmes and entering FY2027 with real momentum and confidence.”

Filtronic will publish its full-year results on 4 August.