Filtronic’s Record Order Book Overshadowed by Profit Dip; Shares Slide

Filtronic plc (AIM: FTC), a specialist in RF technologies, announced its half-year results for the period ending November 30, 2025 (H1 2026).

While the company boasts a record order book, profitability has taken a hit due to strategic investments. The company's share price fell around 1.8% following the report.

Revenue remained relatively stable at £25.3 million compared to £25.6 million in H1 2025, a period that benefited from peak deliveries on major space programs.

Adjusted EBITDA decreased significantly, falling from £8.7 million to £5.1 million. Operating profit also declined from £6.8 million to £2.6 million, with profit for the period mirroring this trend, dropping from £6.7 million to £2.6 million. Basic earnings per share decreased to 1.20p from 3.08p.

Despite the profit dip, cash generation remained strong, with cash generated from operating activities increasing from £2.1 million to £3.4 million. The Group's net cash position, including right-of-use property leases, improved to £6.8 million from £4.3 million. This financial strength is enabling Filtronic to continue its strategic investments in people, facilities, and product development.

The decrease in profitability is attributed to deliberate and targeted investment aimed at positioning the business for accelerated growth. This includes the relocation to a larger headquarters and manufacturing facility, completed during H1 FY2026, and investment in technology and product roadmaps. These investments are expected to provide materially increased production capacity and capability to support future demand.

Driver Breakdown:

• Contract Momentum: The company secured its largest-ever contract with SpaceX, valued at $62.5 million.
• Customer Diversification: New multi-year contracts include a €7.0 million agreement with a European space customer and a £13.4 million contract with a leading European defense prime.
• Strategic Investment: Significant capital outlay in new facilities and product development to support long term growth.

Filtronic is experiencing strong order levels, entering the second half of FY2026 with a record order book. Approximately 90% of FY2026 revenues are covered by contracted orders, providing strong visibility into H2 and beyond.

This order book includes significant contracts in the space and defence sectors, including the large SpaceX contract and new agreements with European partners.

The company is actively broadening its addressable markets, with development underway on additional frequency bands, including a 550W Ka-band solid-state power amplifier, supported by a £1.2 million UK Space Agency NSIP award received post period end.

Next-generation GaN amplifier systems remain on track for launch in calendar year 2026, including expansion into V-band, and are expected to be a key driver of growth over the next three to five years.

Nat Edington, Chief Executive Officer, commented: “The first half of the year demonstrated the strength of Filtronic's positioning in markets where performance, reliability and security are mission critical… With a record order book, increasing customer diversification and the business now operating at greater scale, we have entered the second half confident of continuing our planned growth.”