Contract win and trading update
Second contract win with US satellite customer; FY2026 EBITDA ahead of expectations; strong FY2027 order book.
vs expectations: adjusted EBITDA ahead, revenue in line
- New contract value $0.5m (£0.4m)
- FY2026 Revenue expected at least £55.5m
- FY2026 Adjusted EBITDA expected at least £11.1m
- Cash at bank £13.4m
- Net cash (ex right of use leases) £11.3m
- FY2027 order book coverage 90% of consensus revenue
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Contract win strengthens momentum as Filtronic delivers FY2026 slightly ahead of expectations on adjusted EBITDA and enters FY2027 with strong order book
Filtronic plc (AIM: FTC), the designer and manufacturer of advanced RF solutions for the space, aerospace, defence and telecoms infrastructure markets, announces a new contract win together with a Group trading update for the year ended 31 May 2026 ("FY2026").
Contract win
The Company is pleased to announce that it has secured a second contract win with a US-based customer for technology used on the satellite. The contract is valued at approximately $0.5m (£0.4m), as part of an initial development phase, to design a state-of-the-art high-frequency module. The award follows the $8.0m (£6.0m) contract announced in March 2026 with the same customer and deepens the relationship with a new technology offering for use on satellite payload, reinforcing Filtronic's growing position across the satellite communications market.
The programme supports advanced connectivity applications requiring high-performance, high-bandwidth and low latency at mmWave frequency. This design-stage engagement is a precursor to further stages in the programme and potentially leading to volume manufacture.
Revenue from this initial contract is expected to be recognised in FY2027.
Trading update
Financial highlights:
Filtronic expects to deliver adjusted EBITDA slightly ahead of market expectations and revenue in line with market expectations for FY2026, supported by robust execution across customer programmes and continued progress in broadening its customer base.
| · | Subject to audit, the Board expects to report revenue of at least £55.5m, and adjusted EBITDA of at least £11.1m. Cash at bank was £13.4m, with Net cash when excluding right of use property leases of £11.3m. |
Customer concentration with the Group's largest customer reduced further during the year, supported by expanding and deepening relationships across the space and defence sectors and increasing order visibility.
Operational highlights:
FY2026 marked a further step in Filtronic's transformation into a business operating at greater scale, with increasing customer diversification and enhanced operational capability, as demonstrated by:
| · | Expansion of Filtronic's relationship with SpaceX through the previously announced multi-year $62.5m next-generation GaN E-band contract; |
| · | Further contract wins across the US and European space and defence markets; |
| · | Completion of next-generation high power mmWave technologies; and |
| · | Completion of the Group's new self-funded headquarters and manufacturing facility in Sedgefield, which is now fully operational with capacity to support revenues in excess of £200m per annum. |
Confident outlook
Filtronic enters FY2027 with a strong order book, which already covers 90% of FY2027 consensus revenue. The Company has increasing visibility, including multi-year order coverage with Filtronic's primary customer, and engagement across additional major space customers and continued momentum in defence and aerospace.
The contract announced today also provides further evidence of continuing customer engagement and reinforces the Board's confidence in the opportunities ahead.
Notice of results
Results for the financial year ended 31 May 2026 will be announced on Tuesday, 4 August 2026.
Nat Edington, Chief Executive Officer, said: "The additional US contract announced today reflects the strength of our customer relationships and reinforces the expanding opportunity landscape for our specialist complex RF technologies. 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.
"FY2026 marked another year of strong strategic progress, with continued investment in technology, operational capability and customer diversification strengthening our foundations for long-term growth. Together, these actions are positioning the Group to capture the significant opportunities ahead and convert growing market demand into sustained value creation."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.