SpaceX Demand Propels Telecom Equipment Maker’s Profit Forecast

Filtronic Plc, a manufacturer of products for the aerospace, defense and telecommunication industry, expects its full year profit to more than triple, boosted by sales to its lead customer, Elon Musk’s SpaceX.

The British company supplies SpaceX with ground-based modules that amplify radio frequency signals for use within its Starlink constellation of satellites. It forecast adjusted earnings before interest, taxes, depreciation, and amortization of at least £4.8 million ($6.1 million) in 2024, compared with £1.3 million a year earlier, according to a statement on Thursday. It forecast revenue of about £25.4 million in the same period, up from £16.3 million a year ago.

The outlook is a reflection of the growing demand for satellite-based internet services that can provide connectivity to parts of the world that lack digital infrastructure. In April, Filtronic said it awarded SpaceX the option to take a stake of up to 10% alongside a $19.7 million contract — viewed by investors as a high-profile seal of approval for the UK company’s technology.

“A key driver of this was the emerging market of low earth orbit space and in particular, sales to our lead customer, SpaceX,” Filtronic said in the statement. “As SpaceX launch more satellites to expand their constellation, this necessitates an expansion of their ground stations to ensure high speeds and low-latency within the network.”

The London-listed company said its business operations “scaled significantly” in the second half of the fiscal year due to strong product demand within its core markets. It is now investing in manufacturing capabilities to “facilitate further growth potential,” according to the statement.