Shares in Filtronic dropped by over 11% despite the group announcing a second contract win, worth £400,000, with a pre-existing US-based customer.

The designer and manufacturer of advanced RF solutions for the space, aerospace, defence and telecoms infrastructure markets said the award follows the £6m contract announced in March with the same customer and deepens its relationship with a new technology offering for use on satellite payload.

The firm also announced that it expects to deliver earnings slightly ahead of market expectations of at least £11.1m, with revenue remaining in line at £55.5m in the year to 31 May.

Furthermore, it said its customer concentration with its largest customer has reduced further during the year, supported by expanding and deepening relationships across the space and defence sectors.

In its outlook, Filtronic stated that it has entered the current financial year with a strong order book, which already covers 90% of its full-year consensus revenue.

By increasing visibility, it expects to witness continued momentum in its defence and aerospace sectors.

The group will announce its results for the year to 31 May on 4 August.

CEO at Filtronic, Nat Edington, concluded: "The additional US contract announced today reflects the strength of our customer relationships and reinforces the expanding opportunity landscape for our specialist complex RF technologies. Alongside our recent design wins, which we believe have the potential to be transformational for the business over time, and a strong order book, we are building increasing visibility across key programmes and entering FY2027 with real momentum and confidence.

"FY2026 marked another year of strong strategic progress, with continued investment in technology, operational capability and customer diversification strengthening our foundations for long-term growth. Together, these actions are positioning the group to capture the significant opportunities ahead and convert growing market demand into sustained value creation."

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