British satellite communications company Filtronic has expanded its strategic partnership with Elon Musk’s SpaceX, solidifying its role in the deployment of SpaceX’s Starlink satellite constellation.
Under the new agreement, Filtronic will increase its supply of advanced E-band Solid State Power Amplifier (SSPA) modules, crucial components used to support Starlink’s broadband services. These modules play a vital role in transmitting data between the satellites and Earth, ensuring that the constellation continues to operate efficiently as it expands its coverage.
As part of the deal, Filtronic will also issue 11 million equity warrants at an exercise price of 92.8 pence per share. This gives SpaceX the option to purchase up to 5% of Filtronic’s share capital, further deepening their business ties.
Starlink, SpaceX’s satellite internet service, has become a vital resource for providing broadband connectivity in remote and underserved areas around the world. The system is frequently deployed in disaster zones, helping people regain internet access when traditional infrastructure is damaged.
In the UK, where Starlink has been available since 2021, the service now boasts approximately 87,000 subscribers, including Scotrail, which uses Starlink’s technology to provide Wi-Fi access for passengers traveling through the Scottish Highlands.
Filtronic and SpaceX first teamed up in April 2024, with an initial order worth £15.8 million for SSPA modules, which are used in low Earth orbit satellites like those in the Starlink constellation. As part of that agreement, Filtronic issued over 21.7 million equity warrants, allowing SpaceX to purchase up to 10% of Filtronic’s shares.
Filtronic has since secured an additional £16.8 million contract from SpaceX to deliver radio frequency solutions through 2025 and 2026. The company’s CEO, Nat Edington, expressed confidence in the partnership, noting that the new agreements give Filtronic greater visibility and optimism for exceeding market expectations in the upcoming financial year, ending May 31, 2026.
“We’re trading marginally ahead of market expectations, and this continues to be an exciting time for the business,” Edington said, looking forward to future collaborations with SpaceX.
Filtronic’s shares saw a 5.2% increase to 109.4p on Wednesday afternoon, marking a significant rise in the company’s value, which has more than tripled in the last 12 months. This partnership signals further growth opportunities for both Filtronic and SpaceX as they continue to develop and expand satellite-based internet services globally.