Elon Musk’s Space Exploration Technologies Corp. has catalyzed a significant surge in the shares of Filtronic plc, a British telecom-equipment manufacturer. This unexpected leap to a 16-year pinnacle can be attributed to a lucrative order, marking the fourth contract with SpaceX.
Filtronic plc, a small-cap company based in Sedgefield, England, announced on Monday it had secured an order worth $20.9 million from SpaceX. This agreement is anticipated to propel the firm’s financial outcomes for fiscal years 2025 and 2026 beyond market predictions. The news triggered a 15% rise in Filtronic’s stock value, climbing to heights unseen since May 2008. Over the past two years, the company has experienced an impressive stock increase of nearly 700%, resulting in a market capitalization of £229 million ($284 million). This remarkable performance places it as the top performer on London’s FTSE AIM All Share Index during this period.
Renowned for providing ground-based modules that boost radio frequency signals, Filtronic entered a five-year strategic alliance with SpaceX in April of the previous year. Their technology plays a crucial role in strengthening the Starlink satellite constellation. As satellite internet becomes more vital, especially in underserved areas like rural regions, conflict zones, and locations where traditional infrastructure has been compromised, Filtronic’s contributions have proven invaluable.
Before this recent contract, Filtronic had already completed three orders for SpaceX, cumulatively valued at $37.1 million. Demonstrating further commitment, the company has offered SpaceX warrants to own up to a 10% equity stake. Filtronic was once a notable supplier to major cellular phone manufacturers such as Nokia and Motorola in the late 1990s and early 2000s, achieving a peak market value of £1.63 billion ($2 billion) in 2000.
However, post the dotcom era, the company’s market value dwindled significantly, hitting a low of £6.3 million by 2015. Despite its recent rally, the current valuation remains 86% below its zenith 25 years ago.
SpaceX’s order represents a pivotal development for Filtronic, validating its strategic direction and helping it reclaim its stature in the telecom-equipment sector. This growth trajectory, fueled by ties with leading-edge projects like Starlink, showcases a promising future.
