Q&A

We forecast Filtronic's revenue at £59.6m in FY27 and £75.1m in FY28 (years to May), up from £55.5m in FY26. We forecast normalised profit before tax of £5.4m in FY27 and £8.6m in FY28, against £8.1m in FY26, with normalised diluted EPS of 1.64p and 2.72p. In our 5 August 2026 note, we lowered our FY27 normalised operating profit, EPS and net cash forecasts after raising our FY27 capex forecast and increasing the amortisation of capitalised development costs to £3m per annum. We also forecast FY28 revenue growth of 26%, supported by increasing volumes from newer space customers and existing aerospace and defence customers. SpaceX has since placed a $68.1m order for GaN-based Cerus amplifiers, mostly for FY28 delivery. We estimate this lifts announced-contract coverage of our FY28 forecast from c 50% to much closer to 100%, with FY27 order coverage close to 100%.

We believe the SpaceX relationship, the widening customer base and product range in the space market, and the growing penetration of the aerospace and defence market all provide avenues for sustainable growth at Filtronic. Key growth drivers in its target markets include rapid growth in satellite communications, increases in defence spending and growing demand for secure, high-capacity communications infrastructure. In FY26 (year to May), revenue from space customers other than SpaceX rose 193% year on year, and aerospace and defence revenue rose 136%, which management believes could double again in FY27. Customer concentration also fell, with SpaceX accounting for 68% of group revenue in FY26 compared with 83% in FY25. Filtronic sees the development of V-band products as a key growth driver and has sampled its first 200W V-band solid state power amplifier (SSPA) system. At 5 August 2026, the company estimated that the V-band ground station SSPA market could be worth $3bn over the next 10 years.

Filtronic supplies SpaceX with E-band solid state power amplifiers (SSPAs) used in ground stations for the Starlink low Earth orbit (LEO) satellite constellation. SpaceX placed its first order for Cerus SSPAs based on gallium nitride (GaN), worth $62.5m, in August 2025 for delivery over FY27 and FY28 (Filtronic's financial year ends in May), and has since ordered a further $68.1m. Filtronic expects to deliver most of that order in FY28, with the remainder in FY29. SpaceX accounted for 68% of Filtronic's revenue in FY26, down from 83% in FY25, and the company expects SpaceX to account for nearer 55% of FY27 revenue.

Filtronic does not pay a dividend: its dividend per share was 0.00p in FY25 and FY26 (years to May), and we forecast 0.00p for FY27 and FY28.