Filtronic (AIM:FTC) H1 2026 earnings summary

Executive summary

• Achieved commercial momentum in HY2026 with a record order book, significant contract wins in space and defence, and results in line with expectations despite lower profits due to strategic investments.

• Completed relocation to a new, advanced headquarters and manufacturing facility, increasing production capacity and supporting future revenue growth.

• Maintained strong R&D investment to drive innovation and expand product offerings in high-frequency RF technologies.

• Strong cash generation enabled continued investment, leaving the group well positioned for growth.

• Secured largest-ever contract with SpaceX ($62.5m), plus new multi-year contracts with European space and defence customers, diversifying revenue mix.

Financial highlights

• Group revenue for HY2026 was £25.3m, nearly flat compared to HY2025 (£25.6m), with adjusted EBITDA margin at 20% (£5.1m) and operating profit at £2.6m.

• Profit for the period: £2.6m (H1 2025: £6.7m); basic EPS: 1.20p (H1 2025: 3.08p); diluted EPS: 1.14p (H1 2025: 3.04p).

• Cash at bank stood at £10.5m as of 30 November 2025, with net cash (excl. leases) at £8.2m.

• Total assets at 30 Nov 2025: £55.0m; net assets: £38.6m.

• Cash generated from operations: £3.4m (H1 2025: £2.1m).

Outlook and guidance

• Entered H2 2026 with a record order book and ~90% of FY2026 revenues covered by contracted orders.

• Market expectations for FY2026: revenue £55.5m (range £54m–£56.9m), EBITDA £10.9m (range £10.1m–£12.0m), with customer diversification expected to reduce reliance on the lead customer.

• Confident in maintaining 20%+ adjusted EBITDA margins due to technology leadership and market positioning.

• Long-term growth supported by robust demand in space, aerospace, and defence markets.