Cardiff, UK
7 September 2026
H1 2026 Results
- Revenue growth of over 40% year-on year driving step change in profitability
- Strong order book and long-term agreements enabling greater visibility and momentum
- Intention to move to the Main Market of London Stock Exchange
IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, today announces its unaudited results for the six months ended 30 June 2026.
Jutta Meier, Chief Executive Officer of IQE, commented:
“I am pleased to report a strong first half performance, with more than 40% revenue growth year-on-year across our core markets driving profitability. This reflects the strong momentum we are seeing across AI-driven data centre infrastructure, advanced sensing, wireless and defence applications, alongside improved operational execution and a more favourable product mix.
“During the period, we have demonstrated our ability to capture long-term growth opportunities across these critical markets, underpinned by a number of key supply agreements. IQE is uniquely positioned to meet customer needs and will be converting existing capacity in H2 to support the increasing demand for Indium Phosphide solutions.
“Looking ahead, we have initiated a move to the Main Market of the London Stock Exchange, marking an important next step in IQE’s development and reflecting the Board’s ambition to broaden support for the business and position IQE for the future.”
H1 2026 Financial Summary:
|
|
H1 2026 |
H1 2025 |
|
Revenue |
64.6 |
45.3 |
|
Adjusted EBITDA1 |
6.0 |
(0.4) |
|
Adjusted loss before tax |
(8.2) |
(16.0) |
|
Reported loss before tax |
(12.6) |
(18.3) |
|
Adjusted net cashflow from operations |
4.7 |
6.2 |
|
Reported net cashflow from operations |
1.2 |
3.6 |
|
Cash capital expenditure2 |
(1.1) |
(1.0) |
|
Adjusted net cash/(debt)3 |
30.2 |
(23.5) |
|
Cash and cash equivalents |
41.6 |
17.0 |
|
Reported Diluted EPS |
(1.25p) |
(1.84p) |
|
Adjusted Diluted EPS |
(0.82p) |
(1.60p) |
1. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and certain non-cash charges, non-operational items and significant infrequent items set out in Note 8 in the financial statements section.
2. Cash capital expenditure stated is Property, Plant and Equipment cash capex.
3. Adjusted net cash/(debt) is calculated as cash less borrowings but excluding lease liabilities.
Financial highlights:
- Revenue for H1 2026 increased 43% year-on-year at £64.6m (H1 2025: £45.3m).
- Wireless revenue of £26.0m (H1 2025: £18.6m) increased 40% year-on-year, reflecting market share gains and increased sales of wireless mobile connectivity solutions across newly qualified customer platforms.
- Photonics revenue of £38.5m (H1 2025: £26.6m) increased 45% year-on-year driven by a combination of funding releases for certain US military and defence programmes and continued growth in AI and data centre related markets.
- Adjusted EBITDA of £6.0m (H1 2025: (£0.4m) LBITDA) reflects the combination of a higher revenue base and improved gross margins. Margin expansion was driven by increased utilisation of manufacturing assets and capacity across the Group, together with a more favourable product mix resulting from a higher proportion of Photonics sales.
- Reported net cashflow from operations of £1.2m (H1 2025: £3.6m) as a result of an increase in revenues and adjusted EBITDA, partially offset by a working capital outflow of £4.0m and restructuring and strategic review costs of £2.4m.
- Cash capital expenditure (PP&E) of £1.1m (H1 2025: £1.0m) reflects a continued prudent approach to capital expenditure.
- Cash and cash equivalents of £41.6m as at 30 June 2026, with adjusted net cash of £30.2m (H1 2025: adjusted net debt of £23.5m) following the conclusion of the Group’s strategic review and receipt of fundraising proceeds.
Operational highlights:
- The Group continues to prioritise efficiency and operational excellence, and is already seeing improvements in yield and production outputs across its sites.
- Matthew Geen appointed as Chief Operating Officer in order to drive further progress and strengthen operational oversight.
- Change in customer engagement model resulting in high volume of supply agreements signed since the conclusion of the Group’s strategic review, providing strong future order visibility and optimised utilisation.
- Existing tooling to be converted to increase Indium Phosphide capacity in H2 and meet significant demand for AI and data centre markets, in line with commercially driven approach to operations.
Market update:
AI and data centres
- Strong InP demand is driving volume growth, complemented by qualifications in GaAs-based new optical interconnect technologies for AI and data centre markets.
- Development and sampling of GaN-on-Si microLED epitaxy with partners serving hyperscalers for high-bandwith, energy-efficient data transfer in AI data centres.
- Qualification of GaN-on-Si power epitaxy for use in high-efficiency AI and data centre power supply units.
Consumer electronics
- Launch of next-generation 3D sensing VCSEL technologies for future premium consumer devices, enabling enhanced sensing capabilities and supporting new smartphone form factors.
- Continued strong progress in multiple microLED epitaxy programmes, achieving key development milestones and supporting future customer qualification activities for augmented reality and next-generation display applications.
- Advancing programmes for wearable sensing applications through collaboration with ecosystem partners, supporting progression from technology development towards future production opportunities.
Aerospace and defence
- Continued expansion of the GaN RF pipeline through new product qualifications and design-in activity across terrestrial, satellite including Low Earth Orbit (LEO), and defence radar platforms.
- Expanded global infrared customer base by securing multiple production orders and qualification opportunities across new geographies.
Communications infrastructure
- Strong progress with GaN-on-SiC qualifications for mobile base station infrastructure serving high-frequency and high-power RF networks.
- Diversification of HBT technology into high-frequency consumer connectivity applications, including WiFi 7.
Automotive and industrial
- Achieved qualification and full-rate production of long-wavelength infrared and dual-band products for multiple Tier 1 customers, supporting growth in autonomous vehicles, defence and advanced sensing applications.
- Actively expanding our US-based foundry partner ecosystem, broadening our geographic reach and securing global supply chains for 100V & 650V technology nodes.
Current trading and outlook:
Trading in H1 2026 exceeded management expectations, supported by strong demand across all of the Group’s core segments. Following the July trading update and upgraded guidance, the Group has continued to see strong momentum in the second half, which is expected to support growth through the remainder of 2026 and beyond.
IQE remains confident in achieving its FY 2026 guidance of revenue growth in excess of 30% year-on-year, resulting in low-teens £m adjusted EBITDA.
The Group also sees potential for upside opportunities in optical communications for data centre and AI infrastructure, underpinned by recently signed supply agreements.
Move to Main Market:
The Group today announces its intention to apply for the Company’s ordinary shares to be admitted to trading on the Main Market of the London Stock Exchange. As the UK’s premier listing venue, the Board believes this is the natural progression in IQE's development as a global semiconductor materials business. The Board expects the move to enhance the Company's investor profile, broaden access to institutional capital, improve liquidity in the Company's shares and support inclusion in FTSE indices, while maintaining the highest standards of governance and disclosure. The Group is targeting admission in H1 2027 and updates will be provided in due course.
Results presentation:
IQE will present its H1 2026 Results via webcast at 9:00am today, 7 September 2026. If you would like to view this webcast, please register by using the below link and following the instructions:
https://brrmedia.news/IQE_HY26
Contacts:
IQE plc
+44 (0) 29 2083 9400
Jutta Meier
Mark Cubitt
Amy Barlow
Peel Hunt (Nomad and Joint Broker)
+44 (0) 20 7418 8900
Ben Cryer
Kate Bannatyne
Adam Telling
Deutsche Numis (Joint Broker)
+44 (0) 20 7260 1000
Hugo Rubinstein
Iqra Amin
Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822
Andy Rivett-Carnac: +44 (0) 7968 997 365
Chloe Francklin: +44 (0)78 3497 4624
GLOSSARY
|
|
Material system |
End market |
|
InP |
Indium Phosphide |
|
|
GaN |
Gallium Nitride |
|
|
GaAs |
Gallium Arsenide |
|
|
GaSb |
Gallium Antimonide |
|
|
InSb |
Indium Antimonide |
|
ABOUT IQE
IQE is the leading global supplier of advanced compound semiconductor wafers and materials solutions that enable a diverse range of applications across:
- Smart Connected Devices
- Communications Infrastructure
- Automotive and Industrial
- Aerospace and Security
As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in this market which has high barriers to entry. IQE supplies the global market and is enabling customers to innovate at chip and OEM level. By leveraging the Group’s intellectual property portfolio including know-how and patents, it produces epitaxy wafers of superior quality, yield and unit economics.
IQE is headquartered in Cardiff UK, with employees across manufacturing locations in the UK, US and Taiwan, and is listed on the AIM Stock Exchange in London.