Filtronic Secures Largest Contract to Date with SpaceX
Why we think this is very good
This RNS announcement from Filtronic is very positive, as it highlights the company's growing reputation and success in the high-growth space market. The $32.5 million contract with SpaceX, Filtronic's largest to date, is a significant win that is expected to contribute materially to the company's revenue in FY2026. The contract reinforces Filtronic's strategic partnership with a leading player in the space industry, and the multi-year revenue visibility is a key positive. While there is some shareholder dilution due to the vesting of warrants, the overall impact is not overly concerning. The company's strong track record and execution capabilities also suggest the contract will be delivered successfully.
Key Points
- Largest contract award to date with SpaceX, worth $32.5 million (£24.0m)
- Contract expected to be materially fulfilled in FY2026
- Reinforces Filtronic's growing reputation within the high-growth space market
- Contract awarded under the framework of Filtronic's Strategic Partnership with SpaceX
- Vests all 10,949,079 warrants relating to the Strategic Partnership agreement, representing 5% of the current share capital
Summary
Filtronic plc, the designer and manufacturer of advanced RF solutions, has announced the award of a follow-on order from SpaceX for the supply of its market-leading E-band Cerus 32 Solid State Power Amplifier (SSPA). The $32.5 million (£24.0m) contract is the largest in value to date for Filtronic and is expected to be materially fulfilled in FY2026. This award reflects the strength and continued success of Filtronic's Strategic Partnership with SpaceX, the leading Low Earth Orbit technology provider. Consequently, the Board is now confident the Company will exceed current revenue expectations for FY2026.