IQE said said that stronger than first forecast trading in the second half of 2025 has continued into this year
IQE(Image: )
One of Wales’ leading technology firms, IQE, said it has been encouraged by non-binding offers for the whole and parts of the business while confirming stronger than anticipated trading in the second half of 2025 with momentum continuing into this year with a strong first quarter order book.
In a trading statement for its 2025 full year, the Cardiff headquartered and Alternative Investment Market listed firm, a leading global supplier of compound semiconductor wafer products and advanced material solutions, said it achieved strong momentum in the second half of 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.
This is expected to result in a performance at the upper end of the previously announced full 2025 forecast range with revenue of £97m resulting in an adjusted Ebitda position of at least £2m due to improved operating leverage as capacity utilisation improves.
READ MORE: Tech lighting venture to the agriculture sector Bloemteknik in £2.5m equity boostREAD MORE: Lack of grade A space holding back take up of large industrial space in Wales
It also confirmed it has made good progress 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.
The group’s banking facilities provided by HSBC Bank are subject to certain covenant tests. IQE said it has received a waiver from HSBC in relation to Q4 of 2025 Ebitda covenant testing, adding that this was a reflection of the established and supportive relationship with the bank.
IQE’s board is negotiating non-binding offers for the group as a whole in addition to separate bids for certain other group assets with a view to maximising shareholder value.
It said it is encouraged by the level of interest receive which recognises “the intrinsic value of the group” and its component parts. The trading statement added: “Given the nature of such discussions there can be no certainty which, if any, of the these will progress to a completed deal.”
Jutta Meier, chief executive IQE, said: “I am pleased to report a positive second half of trading for IQE in 2025. Coupled with a strong Q1 order book and sustained demand across key end markets, the company is well-positioned to enter 2026.
“We continue to advance our strategic review and I am encouraged by the progress we are making. I remain confident in the opportunity ahead for the company and look forward to updating the market in due course.”
Following the trading statement IQE beleaguered share price rallied in early trading by around 25% to just over 9p. On the positive trading statement broker Panmure Liberum maintained a retained a buy rating with its share price target price of 20p.
