Filtronic plc has announced its largest single order to date, worth £47.3m ($62.5m), from SpaceX for next-generation gallium nitride (GaN) E-band technology.
Initial production units will ship in FY2027, with material revenues expected across FY2027 and FY2028.
Revenue recognition will commence upon product delivery rather than order placement, following amendments to the original Strategic Partnership agreement.
Filtronic shares jumped over 8% in early trade on Tuesday following the announcement.
The contract covers Filtronic’s first commercial GaN product, delivering more than double the output power of existing gallium arsenide alternatives. Filtronic say the product’s enhanced power efficiency and thermal performance make the technology particularly suited to satellite communications and aerospace applications.
SpaceX’s commitment to Filtronic’s new offering and the company as a whole has prompted an extension of related warrants under Tranche 2 of the partnership agreement between Filtronic and SpaceX. The vesting criteria now require double the original product volumes for full vesting.
One would expect additional orders from SpaceX to add to the long list already announced since their partnership began.
The GaN solution addresses complex design challenges in high-power millimetre wave systems, including advanced packaging and thermal management requirements. This positions the product as a new benchmark for size, weight, power and cost performance in the E-band frequency domain.
“We are extremely proud to announce this landmark contract, which not only sets a new commercial record for Filtronic, but also reflect the success of our partnership with world-leading satellite company SpaceX, supporting the Starlink constellation,” said Nat Edington, Chief Executive Officer.
“GaN represents a transformative opportunity for the ground segment of LEO communications, and this contract is further testament to the world-class engineering talent of both teams working together.”