(Bloomberg) — Elon Musk’s Space Exploration Technologies Corp. has propelled the shares of a small British telecom-equipment maker to a 16-year high.
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Filtronic plc said on Monday it had received an order worth $20.9 million from SpaceX — the fourth contract from the rocket maker, a key customer. As a result, its results for fiscal years 2025 and 2026 will exceed market expectations, the Sedgefield, England-based company said.
The shares rallied as much as 15% on Monday to the highest since May 2008. The stock has soared almost 700% in the past two years, giving it a market capitalization of £229 million ($284 million) and making it the best performer on London’s FTSE AIM All Share Index over that period.
Filtronic signed a five-year strategic partnership with SpaceX in April last year, providing the Starlink constellation of satellites with ground-based modules that amplify radio frequency signals.
Satellite internet services like Starlink are becoming more important as they can provide high-speed connectivity to places that are underserved by traditional internet providers, such as rural communities, conflict zones or areas where infrastructure has been damaged by natural disasters.
Before Monday, Filtronic had already received three batches of orders from SpaceX, totaling $37.1 million. It has also issued warrants for the space technology company to take a maximum 10% stake.
In the late 1990s and early 2000s, Filtronic provided parts to cellular phone makers including Nokia Oyj and Motorola Inc. Once a FTSE 250 company, Filtronic’s market value peaked at £1.63 billion ($2 billion) in 2000. But in the two decades following the dotcom crash, the stock struggled to regain its footing, with market capitalization falling as low as £6.3 million at one point in 2015. Even after its recent rally, its value still sits 86% below the peak of 25 years ago.
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