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.

Filtronic’s H126 results reflected stable revenues and the ongoing investment in manufacturing, engineering and business development. The company has started H226 with a record order book and efforts to diversify the business are paying off. Filtronic is working with five companies in the space market and has a growing pipeline of business in the defence sector. We maintain our revenue and EBITDA forecasts for FY26 and FY27, with a small revenue decline this year reflecting the phasing of the largest customer’s orders before a return to growth in FY27 as new customers make more material contributions.

Filtronic has won another material contract with a major European defence prime, with the initial tranche of the contract worth c £7m and the total value of the contract worth £11m over two years. The contract highlights the company’s growing exposure to the defence industry and ongoing efforts to diversify the business. We maintain our forecasts.