UK-based company Filtronic reaping profits from the space race competition

UK-based company Filtronic reaping profits from the space race competition

Filtronic Reports Transformative Year, Secures Major Contracts and Launches Innovative Technology

Filtronic, a British company with roots dating back to the 1970s, has reported a remarkable year in 2025, marked by a surge in sales and profits. The company, listed on London's Aim small-cap market, has seen its revenue more than double to £56.3 million, with pretax profit rising to £13.4 million[1][4].

This significant growth is attributed to several major contract wins in the space and defense sectors. Among these, a landmark agreement with SpaceX forms a part of Filtronic's expanding engagement in the space sector[1]. Additional new contracts were awarded by notable customers such as Viasat, the European Space Agency (ESA), and Airbus SE. In defense, Filtronic won a radar contract with Leonardo and advanced programs with QinetiQ and BAE Maritime Systems[1][2][4].

One of the most notable contracts secured by Filtronic is a £32.5 million order from SpaceX, to be fulfilled in the year ending May 2026[3]. The company has also issued warrants to SpaceX, allowing it to buy up to 10% of its share capital once $60 million of orders had been placed by SpaceX[2].

Looking ahead, Filtronic is advancing technology with the launch of Prometheus, the highest-power V-band solid-state power amplifier (SSPA) on the market[2]. The company is also transitioning from GaAs to GaN semiconductor technology ahead of a 2026 product rollout[2]. To meet the growing demand, Filtronic is expanding its UK manufacturing capacity with a new custom-built facility in Sedgefield expected to be operational in the first half of FY2026[2].

Investors are optimistic about Filtronic's future, with management suggesting seven tonnes of satellites are expected to be launched every day over the next 10 years[5]. Filtronic's shares are trading on a price/earnings ratio of 55 times forecasts for the year ending May 2026[6].

Despite a 40% decrease in the Aim small-cap market since mid 2021, Filtronic's shares have bucked the trend, increasing 28-fold since May 2021[1]. Notable investors include Driehaus Capital, which announced a disclosable stake just above 3% in Filtronic's shares[1]. Richard Staveley of the Rockwood Strategic investment trust bought into Filtronic in May 2023, seeing space as a huge opportunity for the company[7].

Filtronic's products include transceivers, amplifiers, and duplexers, used for sending and receiving communication signals. The top three customers accounted for 84% of revenue for Filtronic in the previous year[6]. The company has three design sites in the north of England (Manchester, Leeds, and Sedgefield), and an assembly and testing center in the US[1].

In recognition of its innovative technology, Filtronic was awarded the King's Award for Enterprise in Innovation for its monolithic microwave integrated circuit, used in 5G networks[8]. The company's shares have been listed since the mid 1990s but were demoted from the main market to Aim in 2015[9].

Despite the overall downturn in the Aim market, Filtronic's story is one of resilience and growth. With its significant contract wins, innovative technology, and expanding manufacturing capacity, the company is well-positioned for substantial future growth in communication components for ground stations and satellite applications[1][2][4].

1. Filtronic, having recently launched innovative technology like Prometheus, the highest-power V-band solid-state power amplifier (SSPA) on the market, is poised to benefit greatly from the increasing demand in satellite communications.
2. The company's foray into cutting-edge GaN semiconductor technology ahead of a 2026 product rollout further underscores their commitment to technological advancement and position in the competitive technology landscape.

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