Q2 2026 inTest Corp Earnings Call Transcript
Key Points
- Revenue grew 26% year-over-year in Q2, marking the third consecutive quarter of sequential growth and second consecutive quarter of over 25% year-over-year growth.
- Semi orders surged 56% sequentially and 64% year-over-year, the strongest intake in six quarters, signaling a robust recovery in the back-end semiconductor market.
- The company raised its full-year revenue guidance to $135-$140 million, reflecting continued diversified demand and improving order flow into the second half.
- Adjusted EBITDA increased 73% year-over-year to $2.2 million, demonstrating improved profitability despite margin pressures.
- Cash flow from operations was strong at $6.3 million in Q2, boosting cash to $22.1 million and total liquidity to $62 million.
- New product developments, such as the next-generation EKOHEAT and high-power chillers, are gaining traction and positioning the company for future growth.
- Gross margin declined to 40.5% in Q2, down 280 basis points sequentially and 210 basis points year-over-year, due to an unfavorable mix of low-margin Auto/EV projects.
- Auto/EV orders plummeted 67% sequentially after four quarters of strong order flow, indicating a potential slowdown in that market.
- The company identified a material weakness in internal control over financial reporting related to the Q1 revision at Alfamation, which could impact investor confidence.
- Backlog decreased 12% sequentially to $45.4 million, reflecting normalization of elevated Auto/EV projects and potential future revenue softness.
- Net income was only $0.5 million (1.3% net margin) in Q2, with adjusted EPS of $0.09, highlighting ongoing profitability challenges.
- The company faces uncertainty in the semi cycle, with management noting typical upswings last only 6-12 months, and front-end semi recovery is not expected until 2027.
Greetings, and welcome to the InTest Corporation second-quarter 2026 financial results conference call. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce Sanjay Hurry, Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us. With me on the call are Rich Rogoff, President and Chief Executive Officer; and Duncan Gilmour, Chief Financial Officer and Treasurer. The earnings press release was issued this morning as well as the slides that management will use during today's call. Both can be found in the Investor Relations section of the intest.com website.
Please turn to slide 2 for a review of the safe harbor statement. During this call, management may make some forward-looking statements about their current plans, beliefs and expectations. These statements apply to future events that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from
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