RF communications specialist Filtronic (FTC) announced a record H1 order book and reiterated its FY financial guidance. The firm makes customised, mission-critical communications equipment for the defence, space and telecoms industries.
| Share price: 179.2 (-1.9%) | PE: 31x |
| Market cap: £395m | Yield: n/a |
ORDERS HIT NEW RECORD
Sales for the six months to November 2025 were in line with forecasts and the previous year at £25.3 million. Bearing in mind the prior year benefited from peak delivery on major space programmes, this is a creditable performance.
Sales displayed a ‘more balanced delivery profile’, while profitability reflected increased investment to help grow the business. As a result, EBITDA was £5.1 million vs £8.7 million and operating profit was £2.6 million vs £6.8 million.
However, cash generation increased allowing the firm to keep investing to support its growing order book. The AIM-listed firm has begun H2 with a record order book and 90% of FY revenue already covered.
Importantly, while key relationships with customers like SpaceX remain strong the firm, has broadened its client base outside the US. H1 orders include €7 million for a European space customer and £13.4 million for a European defence customer.
The company confirmed its targets for FY revenue of around £55 million and EBITDA of around £11 million. Both figures are in line with the range of analysts’ estimates.
‘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,’ said CEO Net Edington.
We are fans of the defence sector and particularly smaller and mid-cap firms whose shares haven’t gone ballistic. In fairness, Filtronic shares have risen 10-fold since late 2023 but they were way too cheap back then.
As the company is finding out, winning a big contract from SpaceX cuts both ways. It shows it is capable of securing high-profile orders, but to a degree it ties the firms’ fortunes together.
If it doesn’t win more SpaceX orders, some investors will put it down as a flash in the pan. For our part, we are quite happy to see the firm continue to diversify its revenue base, particularly in Europe.
Read the press release here: https://filtronic.com/investors/
Read related news here: https://sharesify.com/filtronic-takes-flight-on-european-defence-order/
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