Source: Sharecast
IQE now expects FY25 revenues to be between £90m and £100m, down from prior expectations, with its adjusted underlying performance expected to be anywhere between a £5.0m loss and a £2.0m profit. First-half revenues were anticipated to be at least £44.0m, with an adjusted LBITDA of £400,000.
The AIM-listed group attributed the downgrade to ongoing macroeconomic uncertainty, which it said had led customers to draw down pre-built inventories rather than place new orders. Weak mobile handset sales also weighed on demand in its wireless segment, while delays in US federal funding cycles pushed defence-related photonics orders into 2026.
Chief executive Jutta Meier said: "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.
"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."
As of 0805 BST, IQE shares were up 0.81% at 8.67p.
Reporting by Iain Gilbert at Sharecast.com