InTest's Diversification Pays Off, Fueling Strong Q4 and 2026 Outlook

MT. LAUREL, N.J. – February 27, 2026 – InTest Corporation (NYSE American: INTT) has delivered a powerful fourth-quarter performance that starkly contrasts with its full-year results, signaling a significant operational turnaround and validating its long-term diversification strategy. The global supplier of test and process technology solutions reported Q4 2025 revenue of $32.8 million and earnings of $0.10 per share, rebounding sharply from the previous quarter and showcasing resilience amid a sluggish semiconductor market.

The results highlight the success of the company's strategic pivot to reduce its reliance on the historically cyclical semiconductor industry. With strong orders and a healthy backlog, InTest has issued an optimistic forecast for 2026, projecting a return to year-over-year growth.

A Strategy Vindicated: Non-Semi Markets Drive Growth

The fourth quarter's success story is rooted in InTest's strategic diversification into markets like Automotive/EV, Industrial, Life Sciences, and Defense/Aerospace. These segments collectively accounted for nearly 80% of Q4 revenue and were the primary engine behind the 25.1% sequential revenue increase. Specifically, the Industrial and Defense/Aerospace markets contributed sequential revenue gains of $3.3 million and $3.2 million, respectively, while Life Sciences added another $2.1 million.

This performance is the tangible result of the company's 'Vision 2030 Strategy,' which centers on expanding into new high-growth sectors. “The success of our market diversification strategy, which has delivered approximately 20% compound average growth rate over the last five years, and our growing momentum with new products position InTest for sustainable profitable growth across multiple end markets,” said Nick Grant, President and CEO, in the company’s earnings announcement.

This momentum is further evidenced by the company's order book. Fourth-quarter orders remained strong at $37.5 million, a 22.2% increase compared to the prior-year period. The growth was propelled by a remarkable 182.7% year-over-year surge in Auto/EV orders and a 129.3% jump in Life Sciences orders. Consequently, InTest ended 2025 with a record backlog of $53.9 million, up 36% from the end of 2024, providing strong revenue visibility well into 2026.

Navigating a Challenging Year

The strong finish to 2025 came after a difficult year for InTest and the broader industry. The company reported a full-year revenue decline of 12.9% to $113.8 million and a net loss of $2.5 million, or $(0.21) per share. Management attributed the annual downturn to “global economic and tariff uncertainties contributing to customer hesitancy” and a “prolonged analog/mixed-signal semiconductor market weakness.”

While the semiconductor market remains a key segment for InTest, its contribution to revenue has diminished as diversification efforts take hold. In Q4, semi revenue fell 29.5% sequentially and was down 43.1% from the prior year. This strategic buffer contrasts with the performance of some competitors more heavily exposed to the semi-cycle. For instance, while a player like Teradyne saw a massive AI-driven surge in its semiconductor test business, other companies like Cohu reported a net loss in the same quarter, underscoring the volatility InTest is successfully mitigating.

Innovation and Efficiency Bolster Margins

Beyond top-line growth, InTest demonstrated significant operational improvement. The company's gross margin expanded to an impressive 45.4% in the fourth quarter, a 350-basis point sequential increase and a 570-basis point jump from the prior year. This margin enhancement was achieved despite the underperformance of its historically significant semiconductor business.

According to the company, the improvement was driven by a combination of higher sales volume, cost-reduction actions to improve manufacturing efficiencies, and a favorable product mix. Notably, InTest credited a “lift from sales of new products at Alfamation and Acculogic,” its subsidiaries focused on automotive and electronics testing. The successful integration of these acquisitions and the launch of their innovative products are clearly contributing directly to the bottom line, sharpening the company's competitive edge.

Building Momentum for a Brighter 2026

InTest enters 2026 on solid financial footing. The company reduced its total debt by $7.6 million in 2025, ending the year with a healthy balance sheet and approximately $58 million in total liquidity. This financial discipline, combined with a robust backlog, underpins management’s confident outlook.

For the full year 2026, InTest projects revenue to be between $125 million and $130 million, with gross margins holding strong at around 45%. This guidance anticipates a return to year-over-year growth and sustained profitability. The forecast is partly based on an expected “modest pick-up in demand from Semi customers in the second half of the year.”

This assumption aligns with broader industry forecasts. Analysts at Deloitte and World Semiconductor Trade Statistics (WSTS) project the global semiconductor market to grow by over 25% in 2026, fueled by the AI boom but also a normalizing of inventories in other sectors. InTest’s forecast for a modest, back-half recovery appears well-grounded within this wider market context.

With a leaner cost structure, a diversified portfolio, and a clear strategic vision, the company appears well-positioned to capitalize on recovering capital spending trends across its key markets. As Mr. Grant concluded, this positions InTest to “sustain profitability throughout the year as we continue to execute our VISION 2030 Strategy of increased diversification as we scale the business.”