Filtronic plc (LSE:FTC) reported continued order momentum in its 2027 financial year, supported by major satellite communications contracts, expanding defence activity and the development of higher-power radio frequency (RF) technologies.
In a trading update ahead of its Annual General Meeting, the UK-based RF technology specialist announced its first contract with a US satellite manufacturer operating geostationary Earth orbit (GEO) satellites, alongside progress in medium Earth orbit (MEO) applications.
The company also highlighted its recently secured $68.1 million (£51.3 million) contract with SpaceX and confirmed that its order book provides substantial revenue visibility for the current financial year and beyond.
SpaceX Contract Strengthens Satellite Communications Order Book
Filtronic secured its largest-ever order in early October, receiving a $68.1 million (£51.3 million) contract from SpaceX.
The agreement covers the supply of Cerus E-band gallium nitride (GaN) solid-state power amplifier units, extending the company’s existing relationship with the satellite communications operator.
Filtronic also secured two additional contracts with a US-based customer during FY2027, with a combined value of $16.0 million (£11.1 million).
These agreements involve the design, development and manufacture of prototype units intended for satellite deployment.
The contracts support Filtronic’s strategy of expanding beyond individual RF components into more sophisticated integrated systems, potentially increasing the value of its contribution to customer programmes.
New GEO Satellite Contract Follows Development of 200W Amplifier
Filtronic announced its first contract with a US satellite manufacturer operating GEO satellites in the Ka-band.
The initial agreement is valued at $0.3 million and covers development activities, with the company anticipating potential follow-on orders as the programme progresses towards production.
The contract follows completion of Filtronic’s first 200-watt solid-state power amplifier system, designed for applications in MEO and GEO satellite constellations.
The new system delivers ten times the power of the company’s Cerus 32 gallium arsenide product, representing a significant increase in output capability.
Filtronic said the development is generating commercial interest and could expand its addressable market by enabling higher-power satellite communications applications.
The company has also completed its first Digital Intermediate Frequency (Di-Fi) product.
The technology was recently demonstrated at Plugfest, an industry testing event in Silicon Valley, where it attracted interest from potential customers and industry participants.
These developments form part of Filtronic’s broader technology roadmap, which aims to increase its involvement in higher-value satellite communications systems.
Defence Contracts Add £2.1 Million in New Orders
Filtronic reported further progress in its defence business, securing three contracts with a combined value of £2.1 million.
The agreements cover next-generation technology for airborne radar systems and extend the company’s participation in existing defence programmes.
The awards follow growth in defence revenue during FY2026 and support Filtronic’s objective of diversifying its customer base beyond satellite communications.
Separately, the company secured a £2 million grant from UK Defence Innovation during the first half of FY2027.
The funding will support development of Filtronic’s chipset technology for ground-based and satellite payload systems.
The company expects these investments to strengthen its technical capabilities across both the defence and space markets.
Order Book Supports Full-Year Market Expectations
Filtronic said its contracted order book provides significant revenue coverage for FY2027, alongside improved visibility for subsequent financial years.
The combination of major satellite communications contracts, new customer relationships and defence orders is supporting the company’s commercial outlook.
Development of higher-power amplifiers and integrated RF systems is also expected to create additional opportunities across different satellite orbits and applications.
The Board reiterated its confidence in delivering financial results in line with market expectations for the current financial year.
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