Trading Update

• Uplift in FY 2026 revenue guidance to in excess of 30% growth year-on-year

IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, today provides a trading update for the six months ended 30 June 2026.

Trading in H1 2026 exceeded management expectations with strong demand across all of the Group's core segments, which is expected to result in first half revenue of at least £64m.

Demand for IQE's Indium Phosphide (InP) solutions is continuing to accelerate due to their critical role in enabling optical photonics products for data centres and AI infrastructure. Revenue growth was also supported by ongoing strength in aerospace and defence segments, as well as robust demand for both 3D sensing and wireless products.

This momentum is expected to continue throughout 2026, and as a result IQE now expects FY 2026 revenue growth in excess of 30% year-on-year, resulting in low-teens £m adjusted EBITDA.

The Group remains bank-debt free with a cash position as at 30 June 2026 of £41.6m.

Jutta Meier, Chief Executive Officer of IQE, commented:

"I am very pleased that H1 trading exceeded our expectations. Our long-established leadership in InP and other key material systems means we are critically embedded in supply chains enabling industry trends that will continue to deliver further progress in H2. I remain extremely excited about the significant opportunities ahead for the transformed IQE, and look forward to sharing our continued progress."

• Smart Connected Devices
• Communications Infrastructure
• Automotive and Industrial
• Aerospace and Security