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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 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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