Filtronic reports encouraging first-half performance

(Sharecast News) - Filtronic reported an encouraging first-half performance for the six months ended 30 November on Tuesday, with results in line with board expectations and strong momentum in new business, underpinned by a record order book heading into the second half of the financial year.

The AIM-traded designer and manufacturer of RF and microwave products posted revenue of £25.3m, broadly flat on the £25.6m generated in the prior period, which had benefited from peak deliveries on major space programmes.

Adjusted EBITDA fell to £5.1m from £8.7m, while operating profit declined to £2.6m from £6.8m, reflecting a more balanced delivery profile and deliberate investment in people, facilities and product development to support future growth.

Profit for the period was £2.6m, compared with £6.7m a year earlier, with basic earnings per share of 1.2p.

Cash generation remained robust, with £3.4m generated from operating activities, up from £2.1m a year earlier.

Net cash including right-of-use leases increased to £6.8m at the period end, from £4.3m at 30 November 2024, while net cash excluding leases rose to £8.2m from £5.1m.

The group reported significant contract momentum and further diversification of its revenue base during the period.

That included its largest-ever contract with SpaceX, valued at $62.5m, alongside new multi-year agreements such as a €7m contract with a European space customer and a £13.4m deal with a leading European defence prime.

Filtronic said execution of its five-year growth strategy continued, with deployment of GaN E-band products opening up new opportunities in space ground systems and high-capacity data links.

Development was also underway on additional frequency bands, including a 550W Ka-band solid-state power amplifier, supported by a £1.2m UK Space Agency award received after the period ended.

Next-generation GaN amplifier systems, including expansion into V-band, remained on track for launch in calendar 2026 and are expected to drive growth over the medium term.

Operationally, the company completed the self-funded relocation to a larger headquarters and manufacturing facility during the half year, increasing production capacity, while continuing to invest in its technology roadmap and programme management capabilities.

Looking ahead, Filtronic said it entered the second half of the 2026 financial year with a record order book and increasing customer diversification, with around 90% of full-year revenues covered by contracted orders.

The board said it remained confident of meeting current market expectations for full-year revenue and EBITDA.

"The first half of the year demonstrated the strength of Filtronic's positioning in markets where performance, reliability and security are mission critical," said chief executive Nat Edington.

"Demand across our space, aerospace and defence markets remains robust, and our focus on high-frequency RF technologies continues to differentiate us with customers operating in the most demanding environments.

"With a record order book, increasing customer diversification and the business now operating at greater scale, we have entered the second half confident of continuing our planned growth," he added.

At 1040 GMT, shares in Filtronic were down 0.16% at 182.7p.

Reporting by Josh White for Sharecast.com.

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