Filtronic Shares Jump 9% on Third US Satellite Order

Filtronic AIM: FTC), the AIM-listed radio-frequency and satellite-hardware specialist, jumped 9% after announcing an $8m follow-on contract with a US satellite customer to design, develop and build prototype mmWave, or millimetre-wave, units for satellites, the third order from that relationship since March.

Filtronic shares opened at 229p in Wednesday trading, dipped to an intraday low near 227p, then rallied to a high of 245p, a 13.9% intraday gain, before settling near 233p, up 9% from Tuesday’s close of 215p.

The RNS, released at 6am on Wednesday, said the $8m (£5.9m) contract covers designing, developing and building prototype mmWave units for deployment on satellites. The customer is not named, described only as a US-based company. It is the third award from this relationship since March, following an $8m amplifier order that month and a $0.5m initial development contract in June.

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Completion is expected in the first half of Filtronic’s 2028 financial year, with revenue recognised across the 2027 and 2028 financial years, so the share reaction reflects confidence in the growing customer relationship rather than near-term earnings. Filtronic carries a market capitalisation of about £472.9m and a trailing price-to-earnings ratio of 107.5 times, a rich valuation already pricing in expectations of further follow-on orders from the same customer.

Chief executive Nat Edington said the follow-on order reflects the customer’s growing trust in the company:

Being awarded this significant follow-on contract with our recently secured US customer demonstrates the growing relationship and the confidence they have in Filtronic’s technical expertise. Our ability to develop and deliver highly advanced mmWave technology at pace is enabling us to establish ourselves as a trusted partner in the rapidly growing satellite market.

Nat Edington, Filtronic

Edington added that Filtronic looks forward to continuing to support the customer as the technology progresses towards deployment, with the current contract due to complete in the 2028 financial year.