'Strategy is working': Filtronic boss hails progress despite falls in revenue and profit for SpaceX partner
Communications technology firm Filtronic is “still in the early stages of our journey” following the expansion of work with Elon Musk’s SpaceX, the company’s chief executive officer has said.
Nat Edington said the business “has reached an important inflection point in its evolution” as the company, which moved its registered office from Yorkshire to County Durham in 2022 and designs and manufactures advanced radio frequency (RF) solutions for the space, aerospace, defence and telecoms infrastructure sectors, posted reduced revenues and profits for its last financial year.
In its results for the 12 months to the end of May 2026, Filtronic recorded revenues of £55.5m, slightly down on the £56.3m of the previous year while adjusted EBITDA was £11.3m compared to a previous £17m. Operating profit dropped from £13.4m to £4m.
Shares in the firm dropped by more than eight per cent in early Tuesday trading following the announcement.
The company said operational highlights in the last year included the expansion of its strategic relationship with SpaceX, relating to the previously announced deployment of next-generation Gallium Nitride ("GaN") E-band technology at $62.5m to support the Starlink high-speed internet service.
It said it has entered its next financial year with a strong order book and “structural growth drivers across space and defence remain supportive, underpinned by increasing demand for high-capacity communications infrastructure and resilient RF technologies”.
Mr Edington said: "While our reported revenue of £55.5 million was marginally below last year's record performance, we saw year on year organic sales growth and delivered adjusted EBITDA marginally ahead of adjusted expectations at £11.3 million (FY2025: £17.0m).
"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.
“The market backdrop for Filtronic is arguably the most compelling it has been in the company's history. Rapid growth in satellite communications, increasing defence expenditure and the escalating demand for secure, high-capacity communications infrastructure are driving sustained investment in the advanced RF technologies that sit at the core of our expertise. The convergence of the space and defence sectors is fundamentally changing the communications landscape.
"Governments are increasing defence spending at unprecedented levels, commercial space continues to scale rapidly, and both markets are demanding higher performance, greater bandwidth and more resilient communications networks. These long-term structural trends are creating a sustained increase in demand for advanced RF technology, particularly at mmWave frequencies where Filtronic has built a reputation as one of the industry's leading specialists.
“Our strategy has always been straightforward: develop technologies that solve the most difficult RF engineering challenges, build deep partnerships with world-class customers, and continually invest ahead of demand. The progress we have made during FY2026 demonstrates that this strategy is working.
“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.”