IQE lowers 2025 forecast, explores potential sale
Compound semiconductor specialist IQE plc says it expects weaker full-year revenue and has expanded its ongoing strategic review to include the potential sale of the company.
The company forecast revenue for 2025 in the range of GBP 90 million to GBP 100 million, with adjusted EBITDA between a GBP 5 million loss and a GBP 2 million profit. For the first half of the year, revenue is expected to be at least GBP 44 million, with an adjusted loss before interest, tax, depreciation and amortisation of GBP 0.4 million.
IQE cited ongoing weakness in wireless markets, particularly mobile handset sales, as well as delays to US federal defence funding cycles that have pushed some orders into 2026.
The company said its board now intends to explore a potential sale of the business as part of its strategic review. It confirmed receipt of an approach from a potential offeror but added that there is no certainty that an offer will be made. The UK Takeover Panel has granted IQE a dispensation from naming potential bidders unless they are identified in market rumours or speculation.
In parallel, IQE is in negotiations with several parties for the sale of its Taiwan operations. Proceeds from a possible sale would be used to repay debt.
“We have updated our expectations for the full year to adjust for the deferral of certain contracts in our Wireless and Photonics segments. This is a result of continued global and macro uncertainty which has impacted the unwinding of customer inventory levels pre-built in 2023 and 2024, the sale of new mobile handsets and the release of budgetary spending across the US military and defence sector,” says CEO Jutta Meier in a press release.
