12th Jan 2026 15:16
(Alliance News) - IQE PLC shares surged on Monday as it reported positive trading momentum in the second half of 2025, and noted deal interest amid an ongoing strategic review.
Shares in IQE jumped 40% to 10.28 pence on Monday afternoon in London.
The Cardiff-based supplier of advanced wafer products for the semiconductor industry said trading momentum was strong in the period amid faster than expected funding releases for some US military and defence programmes, which were previously expected for 2026.
IQE said it experienced higher than forecast photonics demand in the period, due to continued growth in the artificial intelligence and data centre markets.
The firm expects this to result in performance at the upper end of the previously announced 2025 forecast range, with revenue of around GBP97 million resulting in adjusted earnings before interest, tax, depreciation and amortisation of at least GBP2.0 million.
In 2024, IQE reported revenue of GBP118.0 million and adjusted Ebitda of GBP8.1 million.
The company said it has a strong first quarter order book at the beginning of 2025, due to improved demand visibility across segments including consumer mobile, data centre and AI-related photonics markets.
The firm added that the board is negotiating non-binding offers for the group as a whole, in addition to separate bids for other group assets, to try to maximise shareholder value.
"The board is encouraged by the level of interest received and the recognition of the intrinsic value of the group and its component parts," IQE said.
The company said there can be no certainty which, if any, of these will progress to a completed deal.
IQE said it has received a waiver from HSBC Holdings PLC on its fourth quarter Ebitda covenant testing due to its "established and supportive" relationship with the bank.
"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," said Chief Executive Officer Jutta Meier.
"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."
By Michael Hennessey, Alliance News reporter
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