IQE Shares Plunge; Faces Revenue Headwinds, Explores Potential Sale

IQE plc (LON: IQE), a supplier of compound semiconductor wafers, saw its share price plummet more than 11% Monday after it revised its full-year revenue guidance downwards, triggering strategic shifts including exploring a potential sale of the company.

The announcement has placed IQE into an “offer period” as defined by the Takeover Panel.

The company now anticipates FY 2025 revenue to land between £90 million and £100 million, leading to an adjusted EBITDA position ranging from £(5) million to £2 million.

First-half revenue is projected to be at least £44 million, with an adjusted LBITDA of £(0.4) million. These figures are said to reflect a challenging market environment, particularly in the wireless sector, and delays in US military and defence spending.

Meanwhile, the company's strategic review, initially focused on operational improvements, has now expanded to include the potential sale of the entire company, indicating a significant shift in the board's outlook.

IQE is actively negotiating the sale of its Taiwan operations. Proceeds from this sale are earmarked to fully repay the Group's Revolving Credit Facility with HSBC Bank and Convertible Loan Notes issued in March 2025, and to provide additional capital for core operations.

This move is designed to stabilize the company's financial position amid current market uncertainties.

CEO Jutta Meier stated, “We have updated our expectations for the full year to adjust for the deferral of certain contracts in our Wireless and Photonics segments… Looking ahead, while the Strategic Review remains ongoing I am encouraged by the progress we are making and remain confident in our ability to unlock value for all of our stakeholders.”