The development

Filtronic (LSE:FTC) used its AGM trading update on 30 October 2026 to restate a run of contract wins since the summer, the largest being a $68.1 million, or £51.3 million, follow-on order from SpaceX first announced on 1 October. The update also disclosed a small first contract, worth $0.3 million, with a US satellite manufacturer for Ka-band development work on geostationary satellites. A separate result-of-AGM notice followed that afternoon.

The SpaceX order is mainly about the year to May 2028 rather than the current one. It is expected to be materially fulfilled during FY28 and underpins the company's expectations for that year. It therefore lengthens visibility but also deepens reliance on a single relationship.

About the company

Filtronic designs and makes radio-frequency, microwave and millimetre-wave components for space, defence and telecoms customers. It is based in Sedgefield in County Durham and has a financial year ending on 31 May. Its products include solid-state power amplifiers using gallium nitride, a semiconductor material that handles high power at high frequencies.

What Filtronic does

LSE:FTC, based in Sedgefield, County Durham, designs and makes radio-frequency, microwave and millimetre-wave components for space, defence and telecoms customers. The SpaceX order covers Cerus E-band solid-state power amplifiers built on gallium nitride, which the company describes as proprietary technology. Its financial year ends on 31 May.

Where FY26 left the business

Results for the year to 31 May 2026 showed Revenue of £55.5 million against £56.3 million and adjusted EBITDA of £11.3 million, down from £17.0 million. The year also included a move to a larger Sedgefield site, which the company said increases production capacity. The order book was said to cover about 90% of FY27 revenue expectations. During that year it had received a $62.5 million SpaceX order and a £13.4 million contract from a European defence prime.

The company said the largest customer accounted for 68% of revenue, a share described as reduced through diversification. The customer was not named although SpaceX is the company's most prominent disclosed partner.

Why it matters

Securing a large slice of FY28 Demand more than eighteen months ahead is unusual for a company of LSE:FTC's size, and it supports planning for capacity and staffing at the new site. The other wins listed on 30 October point to gradual broadening: two contracts totalling $16.0 million with a US customer for satellite prototype units, three defence contracts worth £2.1 million for airborne radar, a £2 million UK grant for chipset development and the new geostationary relationship. Those sums are small next to the SpaceX order, so Diversification is likely to remain a multi-year process.

The trading update described solid order flow and significant revenue visibility, but gave no new numerical guidance. For the current year, the relevant marker remains the order cover of about 90% of FY27 revenue expectations reported in August. Combined with the SpaceX order for FY28, that means a large part of the next two years' revenue appears contracted, subject to delivery, which reduces dependence on quick new wins without guaranteeing margins.

Risks and dependencies

Concentration is the main single exposure. Any change in one customer's satellite programme, sourcing strategy or in-house capability could affect orders disproportionately. Dollar-denominated contracts make sterling results sensitive to exchange rates, and ramping production at a new Facility carries delivery risk. Satellite programmes can also be rescheduled, shifting revenue between financial years. Margins also depend on how quickly the heavier Investment base is absorbed by higher volumes.

The scale of the SpaceX orders

The follow-on order of $68.1 million, or £51.3 million, is close to the whole of the company's FY26 revenue of £55.5 million. Together with the earlier $62.5 million order, the two orders from this customer total $130.6 million. These figures are for orders, not revenue, and are delivered over several periods, so they should not be read as annual revenue.

Concentration and diversification

The largest customer accounted for 68% of revenue in the year, so about 32% came from others, or roughly £17.8 million on revenue of £55.5 million. The other wins listed on 30 October include $16.0 million with a US customer, £2.1 million for airborne radar, a £2 million grant and a $0.3 million contract for Ka-band development. Converting the dollar amounts at the rates implied by the SpaceX order, $16.0 million is about £12 million, so the non-SpaceX orders total more than the small individual figures suggest.

Profit and capacity

Adjusted EBITDA fell to £11.3 million from £17.0 million, a decline of about 34%, on revenue down about 1.4%. The Margin fell from about 30% to about 20%, which suggests a change in mix and higher costs, including those of the move to a larger site. The new Sedgefield facility is intended to increase production capacity, which is needed to deliver the large order in FY28.

Order cover

Order cover of about 90% of FY27 revenue expectations means the company expects most of next year's revenue to be supported by orders already received. Along with the SpaceX order for FY28, this gives rare visibility, though delivery on schedule and at the expected cost remains a requirement.

Execution and capacity

Delivering large orders requires a factory able to build the amplifiers to specification and on schedule. The move to a larger site increases capacity but also brings the cost and complexity of relocating equipment and staff. Production yields, component Supply and testing all affect how quickly orders can be converted into revenue. Because the largest customer's demand depends on its own satellite programmes, the schedule for deliveries is influenced by decisions outside the company's control.

The company also reports in sterling while a large part of the orders are priced in dollars, so exchange rates influence the sterling value of revenue and margin. A stronger pound would reduce the sterling value of dollar orders, while a weaker one would raise it.

What comes next

The next scheduled disclosure is the interim report for the six months to 30 November 2026; no date has been published. Investors will watch the share of revenue from the largest customer, progress on non-SpaceX space and defence work, the conversion of the order book into FY27 revenue, and any early indication of how much of the latest order may fall into the current year.