County Durham-based technology specialist Filtronic has described the beginning of its financial year as "encouraging," even as the company navigated a decline in profits. The firm, which operates from NETPark in Sedgefield and focuses on designing and manufacturing products for aerospace, defence, telecommunications, and space sectors, released its half-year results for the period ending November 30.
Financial Performance Overview
The results showed revenue holding steady at £25.3 million, a slight decrease from £25.6 million in the previous year. However, operating profit saw a significant drop, falling from £6.8 million to £2.6 million. Adjusted profit also decreased to £5.1 million, compared to £8.7 million previously. On a positive note, cash generated from operating activities improved to £3.4 million, up from £2.1 million, indicating stronger liquidity.
Strategic Achievements and Contract Wins
Despite the profit challenges, Filtronic highlighted several key successes during the period. The company deepened relationships with major customers, most notably securing its largest-ever contract with SpaceX, valued at $62.5 million. This milestone underscores Filtronic's growing influence in the space industry.
Additionally, the firm made strides in diversifying its customer base. New multi-year contracts include a €7 million agreement with a European space client and a £13.4 million deal with a leading European defence customer. These wins strengthen Filtronic's position across its core markets of space, aerospace, and defence, reducing reliance on any single sector.
Record Order Book and Future Outlook
Filtronic announced that it has entered the second half of the financial year with a record order book, reflecting increased customer diversification and robust engagement in its target markets. The company noted that approximately 90% of its projected 2026 revenues are already covered by contracted orders, providing strong visibility and stability for the coming months and beyond.
The board expressed confidence in meeting current market expectations for revenues and Ebitda. Based on analyst forecasts, Filtronic anticipates revenue of around £55.5 million, within a range of £54 million to £56.9 million, and Ebitda of approximately £10.9 million, ranging from £10.1 million to £12.0 million.
Leadership Perspective
Nat Edington, Chief Executive Officer of Filtronic, commented on the results, stating, "The first half of the year demonstrated the strength of Filtronic’s positioning in markets where performance, reliability, and security are mission-critical. 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."
He added, "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." This optimistic outlook suggests that Filtronic is well-positioned to leverage its technological expertise and strategic contracts for future success, despite the temporary profit setbacks.
