IQE reported first-half 2026 revenue of £64.6 million, an increase of 43% from £45.3 million in the prior-year period, as demand accelerated across AI data center infrastructure, advanced sensing, wireless, and defense applications.
Adjusted EBITDA improved to £6 million from a loss of £0.4 million a year earlier, representing a significant improvement in profitability.
The adjusted loss before tax narrowed to £8.2 million from £16 million, while the reported loss before tax narrowed to £12.6 million from £18.3 million. Adjusted diluted loss per share improved to 0.82 pence from 1.60 pence.
Wireless revenue increased 40% to £26 million from £18.6 million as IQE gained market share and generated additional sales of wireless mobile connectivity products across newly qualified customer platforms.
Photonics revenue increased 45% to £38.5 million from £26.6 million, supported by funding releases for U.S. military and defense programs as well as continued expansion in AI and data center markets.
IQE said first-half trading exceeded management expectations and momentum has continued into the second half. The company reiterated guidance for fiscal 2026 revenue growth exceeding 30% year over year and adjusted EBITDA in the low-teens millions of pounds.
The company sees additional upside potential from optical communications infrastructure used in data centers and AI, supported by recently signed supply agreements. IQE also plans to convert existing production capacity during the second half to address increasing demand for Indium Phosphide solutions.
Other development programs include next-generation 3D sensing VCSEL technologies for premium consumer devices, microLED epitaxy programs for augmented reality and displays, GaN RF products for satellite and defense radar applications, technologies supporting WiFi 7, and infrared products for autonomous vehicles, defense, and advanced sensing.
IQE also announced its intention to move from AIM to the Main Market of the London Stock Exchange. The company is targeting admission during the first half of 2027 and believes the move could broaden institutional investor access, improve liquidity, and support potential inclusion in FTSE indices.
KEY QUOTES:
“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.”
Jutta Meier, Chief Executive Officer of IQE
