Filtronic Shares Tumble Despite Upbeat Trading Update

Shares in AIM-listed RF technology specialist Filtronic (LON: FTC) plunged on Tuesday, falling from a previous close of 380p to a low of 335p intraday despite the company issuing what appeared to be a broadly positive trading update and contract announcement. The stock has recovered to around 348p, so far on Tuesday, down 8.4%.

The Sedgefield-based group said it expects to report FY2026 revenue of at least £55.5m, described as “in line” with market expectations, alongside adjusted EBITDA of at least £11.1m, flagged as “slightly ahead” of consensus. Cash at bank stood at £13.4m, with net cash of £11.3m.

Alongside the trading update, Filtronic announced a new $0.5m (£0.4m) contract with a US satellite customer for the development of a high-frequency mmWave module — a follow-on to the $8m contract secured with the same customer in March.

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The company also pointed to its landmark $62.5m multi-year GaN E-band deal with SpaceX and confirmed its new Sedgefield manufacturing facility is now fully operational, boasting capacity to support revenues exceeding £200m per annum.

Management struck a confident tone for the year ahead, noting that the order book already covers 90% of FY2027 consensus revenue, with Chief Executive Nat Edington citing “real momentum and confidence” entering the new financial year.

Analysts suggest Tuesday’s sell-off reflects classic “sell the news” dynamics. The stock had surged approximately 130% during 2026 ahead of this update, leaving the bar extremely high. Revenue merely meeting — rather than beating — expectations, combined with the modest scale of the newly announced $0.5m contract, appears to have disappointed investors who had priced in a more transformational update. Full-year results are due on 4 August 2026.