Filtronic (AIM:FTC) reported full-year revenue of £55.5 million for the 12 months to 31 May, down marginally from £56.3 million a year earlier.
Earnings (adjusted EBITDA) fell to £11.3 million from £17.0 million in FY2025, which the AIM-listed designer and manufacturer of RF products for aerospace, defence, space and telecoms markets attributed to a deliberate period of investment following several years of rapid growth.
Stripping out a £3.5 million amortisation charge tied to the SpaceX share warrant agreement and a £2.0 million currency drag from a weaker dollar, underlying organic sales grew 6% to £59.7 million.
Revenue from Filtronic's largest customer fell to 68% of group revenue from 83% in FY2025, as new contracts with customers including Airbus, Viasat and a confidential US space customer diversified the base.
Aerospace and defence revenue grew 135%, driven by contracts including airborne radar systems for its lead defence customer, while space revenue declined 12% on FX headwinds and pricing strategy. The group's largest single order to date came from an expanded SpaceX relationship, worth $62.5 million, covering deployment of next-generation Gallium Nitride E-band technology.
"With a strong order book already providing substantial coverage for FY2027 revenues and growing engagement across key programmes, we are excited about the opportunities ahead", said chief executive Nat Edington.
Filtronic enters FY2027 with an order book covering approximately 90% of current market expectations for the year's revenue, with the Board expecting performance to be weighted toward the second half as GaN production ramps up.
News Intelligence what this means for the company
Filtronic's FY2026 adjusted EBITDA fell 33% to £11.3m on deliberate investment spending, but the company enters FY2027 with 90% of expected revenue already covered by orders—a substantial forward visibility cushion. Stripping out one-time charges and currency drag, underlying organic sales grew 6%, and customer concentration risk has eased sharply: the largest customer dropped from 83% to 68% of revenue as new wins from Airbus, Viasat, and a confidential US space customer took hold. The $62.5 million SpaceX GaN E-band order anchors a diversifying revenue base.
The EBITDA decline is cyclical, not structural—tied to R&D and production ramp for next-generation GaN technology rather than margin compression. A 90% order book for FY2027 and a shift away from SpaceX concentration (68% vs 83%) materially reduce execution risk and customer dependency, though the board's expectation of second-half weighting means near-term revenue visibility remains uneven.
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