IQE PLC announced first‑half 2024 results showing total revenue of £64.6 million, a 43% increase from the same period a year earlier. Revenue growth was driven by wireless sales of £26 million (up 40%) and photonics sales of £38.5 million (up 45%). Adjusted EBITDA reached £6 million and the company reported an adjusted net cash position of £30.2 million, underpinned by a cash balance of £41.6 million and a debt‑free bank position.
Working capital pressures generated a £4 million outflow that reduced adjusted operating cash flow, and gross‑profit margins remained low at 1.39%. The interim results were delivered 133 days after IQE concluded a strategic review in April 2024 and announced new investment from MACOM and existing shareholders.
Shares traded at $47.75, up 0.63% from the prior close, within a 52‑week range of $4.68 to $72.80. InvestingPro data show an 849% total return year‑to‑date and a 452% gain over the past twelve months, though the platform’s financial‑health score rates the company as weak (1.75/5).
CEO Jutta Bechwati highlighted a commercial shift from spot orders to long‑term agreements, noting that the new model provides greater visibility on asset utilization. She also emphasized the transition to a debt‑free balance sheet and the company’s focus on “the biggest and most important markets in the world.” COO Matt Geen, appointed with more than 35 years of internal experience, will oversee manufacturing and engineering operations.
Key customers referenced include MACOM, Tower Semiconductor (with a multi‑year indium‑phosphide agreement) and Quintessence (for quantum‑dot laser epitaxy). IQE plans capacity expansion in the second half of the year, converting tooling to boost indium‑phosphide output in Newport, contingent on firm customer commitments.
The company outlined long‑term targets of at least 30% revenue growth for 2026 and 2027, with analysts forecasting 32% growth in fiscal 2026. IQE also aims to seek admission to the London Stock Exchange’s main market in the first half of 2027. Identified risks include indium‑phosphide substrate supply constraints, rare‑earth bottlenecks and lower yields on larger‑diameter substrates, prompting a disciplined approach to capacity additions.
