Key Takeaways Filtronic stock surged up to 14% following confirmation of a $68.1 million follow-on contract from SpaceX. The contract covers Cerus E-band gallium nitride amplifier units, with
Shares of Filtronic experienced a significant rally on Thursday, jumping as much as 14% to reach an intraday peak of 270p. The surge followed the company’s announcement of a record-breaking $68.1 million repeat order from SpaceX.
The contract centers on Filtronic’s Cerus E-band gallium nitride solid-state power amplifier modules. It represents the single largest order SpaceX has awarded to the British technology firm to date.
This new agreement follows a $62.5 million contract secured in 2025 for identical technology. The two deals collectively demonstrate an expanding commercial partnership between Filtronic and Elon Musk’s aerospace company.
Product deliveries under the fresh contract will primarily occur throughout Filtronic’s fiscal 2028. Management emphasized that the order aligns with, rather than alters, its existing FY2028 financial guidance.
The amplifier units leverage Filtronic’s gallium nitride (GaN) semiconductor technology. According to the company, GaN delivers superior power output, enhanced efficiency, and better thermal management versus legacy gallium arsenide alternatives.
These components are deployed in ground infrastructure that facilitates SpaceX’s Starlink broadband network. Starlink operates through an extensive constellation of low Earth orbit satellites providing internet connectivity.
Filtronic specializes in manufacturing high-frequency radio frequency components serving aerospace, defense, and telecommunications infrastructure markets. SpaceX has emerged as a critical customer for the firm in recent years.
Investment bank Cavendish responded to Thursday’s announcement by confirming its “buy” recommendation on Filtronic shares. The firm maintained its 290p price objective without adjustment.
Cavendish highlighted that confirmed orders now represent more than 90% of Filtronic’s expected FY2028 turnover. This represents unusually strong revenue visibility for a company of this scale.
The investment firm kept its earnings estimates unchanged after reviewing the contract announcement. Cavendish continues projecting £75 million in revenues for fiscal 2028.
Adjusted EBITDA is forecasted at £17 million for the same period. The broker indicated expectations that SpaceX will continue expanding its worldwide ground station infrastructure beyond 2028.
Cavendish also identified additional growth opportunities for Filtronic’s GaN platform. These include serving other satellite communication providers and penetrating defense sector applications.
Filtronic has delivered consecutive years of revenue growth coupled with profitability improvements. Operating cash flow has remained consistent, providing the business with enhanced capacity to finance expansion initiatives.
However, the company faces certain challenges. A recent revenue decline, compressed margins, and inconsistent free cash flow generation highlight some vulnerability to large contract timing fluctuations.
Filtronic’s share price has climbed approximately 35% year-to-date. Daily trading volume averages around 1.4 million shares.
The stock currently registers a “buy” signal based on technical analysis indicators. Filtronic’s market value stands at roughly £519.1 million based on recent pricing.
The $68.1 million contract represents Filtronic’s largest SpaceX agreement on record, disclosed Thursday alongside Cavendish’s reaffirmed 290p price objective.
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