Filtronic’s FY26 results were broadly in line with our recently upgraded estimates. During the year, the company diversified its customer base and invested to ensure the business is able to scale to meet its customers’ technology and production requirements. Filtronic is seeing a growing proportion of multi-year programmes and repeat business, resulting in good visibility entering FY27. We maintain our FY27 revenue forecast, which factors in modest growth, before factoring in accelerating growth in FY28 as we expect the wider customer base to place larger production orders.

Filtronic expects to report FY26 revenue in line with consensus and adjusted EBITDA ahead of consensus, and already has 90% order coverage of FY27 consensus revenue. We have upgraded our FY26 forecasts to reflect performance and maintain our FY27 estimates. Emphasising the company’s progress with diversifying its customer base, Filtronic has won a follow-on development contract with the new satellite customer announced in March.

Filtronic has won an $8m/£6m contract with a new US customer to develop, manufacture and qualify a range of high-performance system-level products. The contract starts this month and is expected to complete in 2027, providing support to our forecasts. The contract represents further diversification within the satellite communications market and, depending on the outcome of the development work, could lead to further orders.