IQE (IQE) H1 2026 earnings summary

Executive summary

• Delivered strong interim results with over 40% revenue growth year-on-year, reflecting a transformed business model, enhanced commercial focus, and operational efficiency.

• Secured multiple long-term agreements and strategic supply deals with key customers, including MACOM, Tower Semiconductor, and Quintessent, expanding order visibility and future revenue streams.

• Completed a strategic review and secured £81m investment from MACOM and existing shareholders, strengthening the balance sheet.

• Operating in high-growth markets such as AI, data centers, aerospace, defense, and communications, leveraging a broad technology portfolio to access diverse customer segments.

• Announced intention to list on the LSE main market by H1 2027 to access broader capital and improve share liquidity.

Financial highlights

• H1 2026 revenue reached £64.6 million, up 43% year-on-year, driven by strong wireless and photonics segment growth.

• Wireless revenue was £26 million (+40% YoY); Photonics revenue was £38.5 million (+45% YoY), driven by defense and AI/data center demand.

• Adjusted EBITDA for the period was £6 million, up from a loss of £0.4m in H1 2025, with improved margins from better asset utilization and favorable product mix.

• Adjusted net cash position at 30 June 2026 was £30.2 million; cash and equivalents totaled £41.6 million.

• Reported loss after tax narrowed to £12.9m from £17.9m year-over-year; adjusted loss before tax was £8.2m.

Outlook and guidance

• Upgraded full-year guidance following strong H1 and continued momentum into H2, with FY 2026 revenue growth expected to exceed 30% and low-teens £m adjusted EBITDA.

• Confident in reaching upgraded guidance, with potential upside from rising demand in optical communications for AI and data centers.

• Prudent approach to outlook, factoring in supply chain risks, substrate constraints, and macroeconomic/geopolitical factors.