Q4 2025 inTest Corp Earnings Call Transcript
Key Points
- inTest Corp (INTT) reported a strong finish to 2025 with fourth-quarter revenue of $32.8 million, exceeding guidance and marking the highest quarterly level for the year.
- The company achieved a 36% year-over-year increase in year-end backlog, reaching $53.9 million, indicating strong demand and future revenue visibility.
- inTest Corp's diversification strategy is proving effective, with nearly 80% of fourth-quarter revenue derived from non-semi end markets, reducing dependency on the cyclical semiconductor business.
- Gross margins improved to 45.4% in Q4 2025, driven by new product sales and manufacturing efficiency initiatives, despite a lower contribution from the semi-business.
- The company is well-positioned for growth in 2026, with a healthy backlog and expectations of a gradual recovery in capital spending, particularly in industrial, aerospace defense, auto EV, and life sciences sectors.
- The semiconductor business, historically a high-margin segment for inTest Corp, experienced continued softness, with Q4 orders down year-over-year and representing only 25% of total orders.
- Revenue for the full year 2025 declined by $3.8 million compared to 2024, primarily due to semiconductor market weakness and slower-than-anticipated recovery in non-semi markets.
- Operating expenses increased by $1.4 million sequentially in Q4 2025, driven by higher sales commissions and marketing activities, impacting overall profitability.
- The company reported a net loss of $2.5 million for the full year 2025, with an adjusted EBITA margin of only 3.5%, down from 8.3% in 2024.
- Guidance for 2026 does not anticipate a significant rebound in semi sales, reflecting cautious optimism and potential challenges in achieving higher growth rates.
Greetings. Welcome to InTest Corporation's fourth quarter 2025 financial results conference call. At this time, all participants are in listen-only mode. The question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that today's conference is being recorded.
At this time I will now turn the conference over to Sanjay Hari of Investor relations. Please go ahead, Sanjay.
Good morning, everyone, and thank you for joining us. With me on the call are Nick Grant, 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 this call. Both can be found in the investor relations section of the intest.com website.
Please turn to slide two for a review of the safe harbor statement. During this call, management will
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