The compound semiconductor maker rides an AI and defence-led surge to swing into underlying profit, while lining up a move away from AIM.
IQE (AIM: IQE) has reported a sharp turnaround in trading for the first half of the year, with revenue up 43% to £64.6m as demand from AI data centres and defence programmes drove sales across its wireless and photonics divisions.
The Cardiff-based compound semiconductor specialist swung to an adjusted EBITDA profit of £6.0m, having posted a small loss over the same period last year, as higher factory utilisation and a richer product mix improved margins. The group also revealed plans to shift its listing from AIM to the Main Market of the London Stock Exchange, targeting admission in the first half of 2027.
IQE's photonics arm, which supplies materials for optical data transfer, grew 45% to £38.5m as AI infrastructure spending and released US defence funding boosted orders, while the wireless division expanded 40% to £26.0m. The group remained loss-making before tax, though the deficit narrowed to £12.6m from £18.3m a year earlier.
The balance sheet has been transformed following a fundraising completed as part of a strategic review, leaving IQE with net cash of £30.2m compared with net debt of £23.5m twelve months ago. Chief executive Jutta Meier said the company was 'uniquely positioned' to meet customer demand and would convert existing capacity in the second half to support rising need for indium phosphide, a material used in AI and data-centre applications.
IQE reaffirmed full-year guidance for revenue growth above 30% and adjusted EBITDA in the low tens of millions. The planned move to the Main Market, expected in the first half of 2027, would add IQE to the growing roster of companies departing AIM, with management framing the switch as a step to broaden investor support and position the business for further growth.
This report is based on IQE plc’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Homa Appliances on Unsplash.
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