IQE (AIM:IQE) said it expects revenue for FY 2026 to exceed 20% year‑on‑year and adjusted EBITDA to reach a high‑single digit to low‑double digit levels, citing strengthened demand for photonics and InP solutions.
IQE, the leading global supplier of compound semiconductor wafer products and advanced material solutions, reported revenue for the year to 31 December 2025 of £97.3m (FY 2024: £118m) and adjusted EBITDA of £3.2m (FY 2024: £8.1m), a 60% decline that cut the margin to 3% from 7% as underutilised manufacturing capacity weighed.
"In particular, accelerating demand for our Indium Phosphide (InP) solutions supporting data centre and AI markets is expected to be a material growth driver throughout 2026 and beyond," Jutta Meier said.
Photonics revenue rose 15% to £57.1m, helped by US military funding releases and AI/data centre traction, while Wireless revenue fell 40% to £40.1m as handset demand softened and some orders were met from inventory.
Reported net cashflow from operations improved to £8.1m (FY 2024: £1.3m), cash and cash equivalents were £15.7m at 31 December 2025, adjusted net debt was £31.5m (FY 2024: £18.8m) and cash capital expenditure was £5.1m.
IQE said trading in Q1 2026 was in line with expectations and highlighted multiple tier‑1 InP design wins plus GaN, VCSEL and microLED development and volume orders across data centre, aerospace, defence and smartphone applications.
And, IQE confirmed board changes after its Strategic Review, along with its newly secured funding, and noted continued fiscal discipline.
This morning, it also formally confirmed the close of a share placing, and also noted that it intends to appoint a permanent chief financial officer in due course.
