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IQE (IQE) investor relations material
IQE H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Strategic review expanded to consider a potential sale of the company or its Taiwan operations, with multiple expressions of interest and ongoing discussions.
H1 2025 revenue declined 31% year-over-year to £45.3m, mainly due to wireless market softness, inventory overhang, and global economic volatility.
Adjusted EBITDA turned negative at (£0.4m), reflecting underutilized capacity and high fixed costs.
Focus on operational efficiency, cost control, and technology development in growth areas.
Reported loss after tax widened to £26.0m, with significant non-cash impairment charges in Photonics.
Financial highlights
H1 2025 revenue was £45.3m, down from £66.0m in H1 2024, with wireless revenue down 52% to £18.6m and photonics revenue flat at £26.6m.
Adjusted EBITDA for H1 2025 was (£0.4m), compared to £6.6m in H1 2024.
Adjusted net debt at period end was £23.5m; cash and equivalents stood at £17.0m.
£18.0m raised via convertible loan notes in March 2025 to bolster liquidity.
Gross margin fell to 1.2% from 7.6% year-over-year.
Outlook and guidance
Wireless market softness and U.S. defense funding delays expected to persist through 2025, deferring some orders to 2026.
Full-year 2025 revenue expected between £90.0m–£100.0m; adjusted EBITDA guidance ranges from (£5.0m) loss to £2.0m profit.
Market conditions anticipated to improve in 2026 as inventory levels normalize and new technologies gain traction.
Efficiency initiatives and cost controls ongoing to strengthen margins and cash generation.
Waiver received for Q3 2025 EBITDA covenant testing from HSBC; ongoing engagement with stakeholders to improve liquidity.
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