- Highest order to date of £24m
- Revenue seen above expectations
- Order triggers exercise of warrants
Designer and manufacturer of advanced RF (radio frequency) solutions Filtronic (FTC:AIM) was the biggest gainer in the FTSE AIM 100 index, surging by 10% to 141p after announcing its largest order to date from SpaceX.
The shares are up 88% so far in 2025 and a staggering 16-fold over the last five years, reflecting strong growth in revenues and profit.
REVENUE TO EXCEED EXPECTATIONS
Filtronic has received an irrevocable order from Elon Musk’s SpaceX worth $32.5 million (£24 million) to supply its ‘market leading’ E-band Cerus 32 Solid State Power Amplifier.
The modules provide high speed, low-latency internet to users worldwide and support the ongoing deployment of SpaceX’s Starlink constellation.
The company said it expected the order to be ‘materially’ fulfilled in the 2026 financial year ending 30 May 2027. Consequently, the board is confident the company will exceed current revenue expectations for 2026.
The consensus analyst revenue forecast for the year to May 2026 currently sits at £50 million.
Chief executive Nat Edington commented: ‘We are delighted to have secured our largest order to date with SpaceX, reinforcing Filtronic's growing reputation for delivering high-performance RF solutions to the high-growth space market.
‘This milestone builds on the momentum of recent contract awards and highlights the progress we are making as we expand in key strategic markets.’
SHARE DILUTION
The order triggers the exercise of 10.9 million warrants issued as part of an extension agreement with SpaceX announced in March 2025.
This will result in SpaceX receiving 10.9 million shares in Filtronic at 92.8p per share, representing around £10.2 million or 5% of its share capital.
In total, warrants over 21,805,054 ordinary shares have now vested representing 9.96% of the Company's issued share capital, with a further 4.96% of the issued share capital remaining unvested.
DOUBLE-EDGED SWORD
Investment director Russ Mould at AJ Bell pointed out that the string of contract awards with SpaceX could prove to be a double-edged sword.
‘One on hand, it shows considerable momentum in the business and that Filtronic has something significant to offer.
‘On the other hand, the more contracts it wins with SpaceX, the more Filtronic is stuck in the crossfire between Musk and Donald Trump as their relationship falls apart,’ added Mould.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine, The author (Martin Gamble) and the editor (Ian Conway) own shares in AJ Bell.
