Filtronic plc (LON:FTC) has delivered an outstanding set of interim results for the first half of FY25, demonstrating significant revenue and profit growth. According to a research note by Cavendish, the company achieved revenue of £25.6 million, marking a remarkable 202% increase from £8.5 million in 1H24. Adjusted EBITDA surged to £8.7 million, up from just £0.2 million in the previous period, reflecting Filtronic’s expanding presence in the space sector and its ongoing partnership with SpaceX.
Strong Financial Performance and Growth Prospects
The results confirm the strength of Filtronic’s business strategy, with the space segment playing a crucial role in revenue expansion. The company’s involvement in SpaceX’s Low Earth Orbit (LEO) satellite network programme has been a major driver of its success. Filtronic’s partnership agreement with SpaceX, signed in April 2024, has significantly contributed to revenue growth, particularly through the supply of E-band Solid State Power Amplifiers (SSPAs) for ground stations.
Cavendish maintains its FY25 revenue forecast at £48.4 million and expects adjusted EBITDA of £13.7 million. Despite anticipating a normalisation of revenue in the second half of the fiscal year, the broker remains confident in Filtronic’s long-term growth trajectory. The firm’s net cash position remains strong at £5.1 million, reinforcing its financial stability.
Investment in Capacity and Innovation
Filtronic is making strategic investments to support its growth. The company has expanded its production capacity with a new manufacturing site in County Durham and a newly opened design facility in Cambridge. These investments will enhance its ability to meet future demand across its key market segments, including aerospace and defence, critical communications, and telecommunications.
Price Target Raised to 110p
Cavendish has raised its target price for Filtronic from 91.9p to 110.0p, representing a 9% upside from the current share price of 100.5p. The valuation is based on a 21x EV/EBITDA multiple applied to a conservative EBITDA scenario for FY28, adjusted to reflect Filtronic’s recent performance and future growth potential.
Edward Stacey, Director of Research at Cavendish, commented: “Filtronic has reported a strong set of 1H25 results in line with expectations following positive trading updates and raised guidance in December 2024 and again in January 2025.”
On a Final Note
Filtronic’s robust interim performance underlines its ability to capitalise on high-growth markets, particularly within the space sector. With a strong order book, increasing production capacity, and a promising long-term outlook, the company is well-positioned for sustained success. Cavendish’s positive assessment reflects the confidence in Filtronic’s strategic direction and execution.
