IQE Shares Rise on Strong H1 Results and Main Market Move

IQE’s (LON: IQE) share price has climbed more than 2% on Monday morning as the Cardiff-based compound semiconductor wafer specialist unveiled a sharp turnaround in its first-half 2026 results, coupled with plans to move from AIM to the Main Market of the London Stock Exchange.

The company reported revenue of £64.6 million for the six months to 30 June 2026, up 43% year-on-year from £45.3 million, driven by robust demand across AI-driven data centre infrastructure, advanced sensing, wireless and defence markets.

Adjusted EBITDA swung to a positive £6.0 million, compared with a £0.4 million loss in the prior-year period, reflecting improved manufacturing utilisation and a richer product mix skewed towards higher-margin Photonics sales.

Both core divisions delivered strong growth: Wireless revenue rose 40% to £26.0 million on market share gains, while Photonics revenue climbed 45% to £38.5 million, boosted by US defence programme funding releases and continued AI/data centre momentum.

The balance sheet also strengthened materially, with cash of £41.6 million and adjusted net cash of £30.2 million, a reversal from net debt a year earlier following a completed strategic review and fundraising.

Chief Executive Jutta Meier highlighted plans to convert existing tooling to boost Indium Phosphide capacity in the second half to meet surging AI and data centre demand, alongside a raft of new long-term supply agreements improving order visibility.

The Board reaffirmed FY2026 guidance of over 30% revenue growth and low-teens adjusted EBITDA, while announcing its intention to seek admission to the Main Market in H1 2027 to broaden institutional access, boost liquidity and support future FTSE index inclusion.