TLDR
- Filtronic shares jumped as much as 14% after securing a record $68.1 million follow-on order from SpaceX.
- The deal is for Cerus E-band gallium nitride amplifiers, delivered mostly in FY2028.
- It’s the largest SpaceX order Filtronic has landed, beating a $62.5 million deal from 2025.
- Broker Cavendish reiterated its “buy” rating with a 290p price target.
- Cavendish says over 90% of Filtronic’s projected FY2028 revenue is now locked in by firm orders.
Filtronic stock rose sharply on Thursday, climbing as much as 14% to an intraday high of 270p. The move came after the company announced a record $68.1 million follow-on order from SpaceX.
The order is for Filtronic’s Cerus E-band gallium nitride solid-state power amplifier units. It’s the largest single contract SpaceX has placed with the company so far.
This latest deal builds on a $62.5 million order from 2025 for the same technology. Together, the two contracts show a deepening relationship between Filtronic and the satellite giant.
Deliveries for the new order are expected mostly during Filtronic’s 2028 financial year. The company said the contract supports its existing FY2028 expectations rather than changing them.
What The Order Covers
The amplifiers use Filtronic’s gallium nitride, or GaN, technology. The company says GaN offers higher power output, better efficiency, and improved thermal performance compared to older gallium arsenide solutions.
This equipment gets used in ground stations that support SpaceX’s Starlink network. Starlink relies on a large web of low Earth orbit satellites for broadband service.
Filtronic builds high-frequency radio frequency products for space, defence, and telecom infrastructure customers. SpaceX has become one of its most important clients in recent years.
Broker Cavendish responded to the news by reiterating its “buy” rating on the stock. It kept its price target at 290p, unchanged from before.
Cavendish noted that the order locks in more than 90% of Filtronic’s projected revenue for FY2028. That’s a high level of coverage for a company this size.
Broker Forecasts Hold Steady
The broker left its financial forecasts untouched following the announcement. It still expects £75 million in FY2028 revenue.
Adjusted earnings before interest, tax, depreciation and amortisation are forecast at £17 million for that year. Cavendish said it expects SpaceX to keep investing in its global ground-station network well beyond 2028.
The broker also pointed to other potential uses for Filtronic’s GaN technology. This includes other satellite communications customers and defence market applications.
Filtronic has posted several years of rising revenue alongside improving profitability. Operating cash generation has also been steady, giving the company a stronger base to fund new projects.
That said, the business isn’t without risk. A recent pullback in revenue, thinner profit margins, and uneven free cash flow point to some exposure to the timing of large contracts.
Filtronic’s year-to-date share price performance stands at close to 35%. Average trading volume sits at roughly 1.4 million shares.
The stock currently carries a “buy” technical sentiment signal. Filtronic’s market capitalization is approximately £519.1 million at last check.
The $68.1 million order marks the company’s biggest SpaceX contract to date, confirmed Thursday alongside Cavendish’s reiterated price target of 290p.
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