Electronics manufacturer Filtronic has toasted “exciting opportunities ahead” despite reporting falling profits and revenues in its full year results.
Financial performance
The leading tech firm – which acts as a main supplier to Elon Musk’s SpaceX satellite programme – has posted revenues of £55.5m, down from £56.3m, while operating profits more than halved from £13.4m to £4m, on the back of large investments. Cash at bank, meanwhile, was £12.9m, down from £14.5m.
During the financial year Filtronic's sizeable investments have included a move to a new self-funded headquarters and manufacturing facility in Sedgefield, a huge 44,000sqft site it says gives it the capacity to support annual revenues of £200m. In results for the year ended May 2026 Filtronic highlighted the expansion of its strategic relationship with SpaceX, for its next-generation E-band technology at $62.5m, the group’s largest single order to date.
Customer diversification
However, CEO Nat Edington highlighted how it has been important to diversify, and not be reliant on one major customer. So other big wins included an $8m contract with a US-based customer for the development high-performance amplifier systems, followed by a further contract after the year end.
It also sealed new multi-year contract wins. including a €7m agreement with a European space customer and a £13.4m contract with a leading European defence customer, strengthening the company’s position across space, aerospace and defence markets.
Mr Edington said: “We recognised that whilst our strategic relationship with our primary customer represented a transformational opportunity, long-term shareholder value would ultimately be created through broadening our customer base and applying our technologies across multiple markets and applications.
“During FY2026 we made significant progress against this objective. Revenue from our largest customer reduced to 68% of group revenue (FY2025: 83%).”
Future outlook
Mr Edington said that the 2026 financial year “reflects the continued evolution of Filtronic into a business operating at greater scale, with stronger visibility, a growing product-led offering and an expanding opportunity across our core markets.”
He continued: “We have continued to strengthen strategic customer relationships, progress our technology roadmap and invest in the capabilities required to support long-term growth. With a strong order book already providing substantial coverage for FY2027 revenues and growing engagement across key programmes, we are excited about the opportunities ahead.
“While FY2026 reflects a year of continued investment, customer diversification and operational scaling, I believe the fundamental strength of the business has never been greater. We enter FY2027 with enhanced visibility, broader market opportunities and significantly improved strategic positioning.
"Over the past 12 months we have continued to broaden our customer base, expand our technology leadership, invest in manufacturing capacity and strengthen the organisation for the next phase of growth. As a result, we enter FY2027 with greater strategic momentum, improved visibility and a business that is materially stronger than it was a year ago.”
He added: “Despite the significant progress made over recent years, I believe we are still in the early stages of our journey. The markets in which we operate continue to expand rapidly, our technology roadmap is strengthening, and our ambition remains unchanged: to establish Filtronic as a globally recognised leader in advanced RF solutions for the world’s most demanding communications applications.”
