Filtronic Shares Soar After Securing Major SpaceX Contract For Starlink Programme

British electronics specialist Filtronic has witnessed a remarkable 10% surge in its share price following the announcement of a significant £20.9 million contract with Elon Musk’s SpaceX enterprise. The AIM-quoted organisation’s shares climbed 9¼p to 102p during Monday’s trading session, propelling its market capitalisation beyond £225 million—a level not seen in 16 years.

The Durham-based company, which maintains facilities across Leeds, Manchester, and Cambridge, specialises in manufacturing sophisticated communications equipment for aerospace, defence, and telecommunications sectors. The latest agreement centres on supplying radio-frequency power amplifiers for SpaceX’s revolutionary Starlink satellite constellation.

This strategic partnership, initially established in April 2024 with a £15.8 million contract, has proven instrumental in Filtronic’s growth trajectory. The company’s half-year financial results reflect this success, reporting revenue of £25.6 million—a substantial increase from £8.5 million—alongside an operating profit of £6.8 million.

Starlink’s satellite network currently serves more than 50,000 British customers, providing crucial internet connectivity to remote regions such as the Scottish Highlands. The system has also demonstrated its strategic value in military operations in Ukraine and disaster relief efforts globally.

Despite Filtronic’s optimistic outlook, industry analysts note growing competition in the satellite broadband sector. Amazon’s Project Kuiper, backed by Jeff Bezos with a £10 billion investment, aims to launch 3,000 satellites, potentially challenging Starlink’s market position. The UK government’s recent funding initiatives for domestic satellite broadband companies further intensify the competitive landscape.

Nat Edington, Filtronic’s chief executive, expressed confidence in the company’s trajectory, stating the new contract reinforces their position in delivering high-performance radio frequency solutions. The firm’s share value has demonstrated remarkable growth, recording a 150% increase over the past 12 months.