Elon Musk-linked Filtronic 'not just a one-trick pony' as new £13.4m contract revealed
Communications technology company Filtronic winning a new £13.4m contract with an unnamed company in the defence sector demonstrates the Elon Musk-linked firm is “not just a one-trick pony”, an analyst has said,
The company, which was founded by Leeds University professor David Rhodes in the 1970s and has an office in Yeadon but is now headquartered in County Durham, has announced a new deal to supply high-performance modules for an electronic sensor system.
Delivery is expected to commence in the middle of next year, with the modules being built and tested at Filtronic's new hybrid microelectronics facility in Sedgefield.
It follows the company recently announcing a new £24m deal with Mr Musk’s SpaceX, building on its existing partnership with the company.
Filtronic has been supporting the ongoing deployment of SpaceX’s Starlink constellation, which provides high-speed, low-latency internet to users all around the world. SpaceX is one of the world’s largest companies, valued at around $350bn.
When the firm’s latest financial results were announced last month, CEO Nat Edington said one of the company’s current aims was “broadening the customer base”.
Following the new defence contract announcement on Monday morning, Mr Edington said: "We are proud to continue strengthening our defence portfolio, which highlights the market's ongoing confidence in our ability to execute complex programmes to the highest standards.
"Aerospace and defence remains a key sector in our growth strategy, and this latest order reflects Filtronic's proven track record of successful project delivery, collaborative partnerships, and manufacturing excellence."
Shares in Filtronic were up by more than two per cent in early Monday trading following the announcement.
AJ Bell investment analyst Dan Coatsworth said that builds on extensive gains in recent times for the company.
He said: “Radio frequency solutions firm Filtronic has surged higher in the last 18 months, largely propelled by contracts secured with Elon Musk’s Space X, so news of a fresh contract win with a different client was well received.
"The deal with a defence contractor helps demonstrate that Filtronic is not just a one-trick pony.”
Last month, Filtronic said it expects to report revenue of £52.6m for the year to May 31, 2025 – more than double the £25.4m recorded the previous year.
It has had recent contract wins with Viasat and the European Space Agency, as well as an £800,000 order from helicopter company Leonardo.