Business
IQE plc: Trading Update
IQE plc reported strong trading momentum in the second half of 2025, driven by increased demand in military and defence, AI, data centre, and handset markets, leading to expected full-year 2025 revenue of approximately £97 million and adjusted EBITDA of at least £2.0 million. The company ended 2025 with a cash position of £15.6 million and has secured a waiver for its Q4 2025 EBITDA covenant test from HSBC. IQE enters 2026 with a robust Q1 order book, indicating improved demand visibility across its core segments. The Board is actively negotiating non-binding offers for the Group as a whole and for certain assets to maximize shareholder value. Disclaimer*
About this update from Iqe Plc
[{"type":"text","content":"\n\nIQE plc\n \nCardiff, UK\n12 January 2026\n \n \nTrading Update\n \n- Positive H2 2025 trading momentum\n- Demand driven by military and defence, AI, data centre and handset markets\n- Strong Q1 2026 order book with improved visibility\n \n \nIQE plc (AIM: IQE, \"IQE\" or the \"Group\"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, today provides a trading update for the full year ending 31 December 2025.\nThe Group saw strong trading momentum in H2 2025 due to faster than expected funding releases for some US military and defence programmes, previously anticipated for 2026. IQE also experienced higher than forecast photonics demand in the period, reflecting continued growth in AI and data centre markets, and increased sales of wireless products tied to new handset introductions which benefitted the Group's Taiwan operations.\nThis is expected to result in a performance at the upper end of the previously announced FY 2025 forecast range[1], with revenue of c.£97m resulting in an adjusted EBITDA position of at least £2.0m due to improved operating leverage as capacity utilisation improves.\nAdditionally, good progress has been made with stakeholders including customers and suppliers to improve near-term liquidity and working capital, resulting in a cash position of £15.6m as at 31 December 2025.\nThe Group's banking facilities provided by HSBC Bank plc are subject to certain covenant tests. IQE has received a waiver from HSBC in relation to Q4 2025 EBITDA covenant testing, a reflection of the established and supportive relationship with the bank.\nCurrent Trading\nIQE enters 2026 with a strong Q1 order book, reflecting improved demand visibility across core segments including consumer mobile, data centre and AI-related photonics markets. The momentum in wireless demand observed in Q4 2025 is expected to continue, supported by existing customers and recent platform wins.\nGrowth in data centre deployments and AI-enabled compute, alongside ongoing strength in consumer mobile is also supporting increased demand for the Group's photonics products. \nStrategic Review\nThe Board is negotiating non-binding offers for the Group as a whole in addition to separate bids ...