Filtronic boosts earnings expectations in the wake of SpaceX deal

Trading is ahead of expectations at communications tech firm Filtronic on the back of a major supply deal with Elon Musk's SpaceX.

The County Durham and Leeds-based operator told investors adjusted Ebitda has been ahead of market forecasts as it expects to report full year totals at "no less than" £4.8m, up from £1.3m last year. Revenue is expected to be £25.4m, up from £16.3m last year.

Meanwhile net cash at the end of May was £5.2m, up from £2.4m at the end of November last year. Bosses said the firm has scaled up significantly in the second half of its 2024 year thanks to strong demand - particularly across the low earth orbit satellite market in which it specialises - and thanks to increased appetite from western governments for defence tech in the midst of global threats.

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Sales to market leader SpaceX have also generated momentum for the Sedgefield firm which said it had reacted quickly to supply the California business with equipment for its Starlink satellites that beam high speed internet to users around the world. Filtronic has ramped up product development of its E-band Cerus 32 solid state power amplifier (SSPA) which is being readied for use in Starlink's ground stations.

As the Starlink constellation is increased, so too will the ground station network with Filtronic's tech being used to ensure high speeds and low-latency in the network. Bosses said there has been investment in manufacturing capabilities to make room for further growth potential and provide flexibility as more orders materialise.

Announcement of the multimillion-dollar SpaceX deal, which included an option for the rocket company to become a shareholder in Filtronic, followed the appointment of new Filtronic CEO Nat Edington who succeeded Richard Gibbs. Mr Edington joined Filtronic from 'chip-on-cell' developer Dukosi Ltd, where he was CEO after leading the business from early stage to global technology leader.

In its latest update, Filtronic also pointed to contract successes with prominent aerospace and defence firms such as BAE and QinetiQ. It now plans to expand its business development team in a bid to win more, similar work.

Mr Edington said: "The space market continues to present significant growth potential for Filtronic. The recent strategic partnership we entered with SpaceX is exciting for all of our stakeholders. It gives a platform to develop the business and puts us in a stronger position to capitalise on the plentiful opportunities in the core markets we serve. We enter the new financial year with a very strong order book, a growing list of customers, including key strategic targets that we have secured in the year, and an opportunity pipeline that continues to grow and mature."

Filtronic will publish results for the year to the end of May, on July 30.