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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.
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H1 2025 earnings summary23 Sep, 2025

Executive summary

  • Strategic review expanded to consider a full sale of the company or its Taiwan operations, with multiple expressions of interest and ongoing discussions.

  • Challenging H1 performance due to global economic volatility, U.S. tariff impacts, and wireless market softness.

  • Focus on operational efficiency, cost control, and technology development in growth areas.

  • Delays in U.S. federal funding cycles affected military and defense revenues, but no market share lost.

  • Reported loss after tax widened to £26.0m in H1 2025, with significant non-cash impairment charges in Photonics.

Financial highlights

  • H1 2025 revenue declined 31% year-over-year to £45.3m, mainly due to wireless market softness and inventory build-up.

  • Adjusted EBITDA for H1 2025 was (£0.4m), down from £6.6m in H1 2024, impacted by high fixed costs and underutilization.

  • Adjusted net debt at period end was £23.5m, with £17.0m in cash and cash equivalents after an £18.0m convertible loan note raise.

  • Reported loss before tax was (£26.5m), with adjusted loss before tax at (£12.9m).

  • Cash capital expenditure reduced to £1.0m, reflecting prudent investment.

Outlook and guidance

  • Wireless market softness and U.S. federal funding delays expected to persist through 2025, with some defense orders deferred to 2026.

  • Full-year 2025 revenue guidance set at £90.0m–£100.0m, with adjusted EBITDA expected between (£5.0m) and £2.0m.

  • Market conditions anticipated to improve in 2026 as inventory levels normalize and new technologies gain traction.

  • Waiver received for Q3 2025 EBITDA covenant testing from HSBC.

  • Efficiency initiatives and cost controls ongoing to strengthen margins and cash generation.

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Frequently asked questions

IQE plc is a UK-based technology company specializing in the development and manufacturing of advanced semiconductor materials. The company provides epitaxial wafers and related materials used in a variety of applications, including wireless communications, photonics, and power electronics. IQE's products are integral to technologies such as smartphones, fiber-optic networks, and sensors for automotive and industrial uses. The company is headquartered in Cardiff, Wales, and its shares are listed on the London Stock Exchange.

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