InTEST Corp’s Q2 Earnings Call: Mixed Sentiments and Strategic Moves

Intest Crop ((INTT)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for inTEST Corporation reflected a balanced sentiment, highlighting both achievements and challenges. The company made significant strides in debt reduction, strategic expansions, and order growth in key markets. However, these positive developments were tempered by ongoing challenges in the semiconductor market, a year-over-year revenue decline, and a reported net loss.

Revenue and Gross Margin Performance

In the second quarter of 2025, inTEST Corporation reported over $28 million in revenue, with gross margins exceeding 42%. This performance indicates incremental improvement despite the ongoing global economic challenges, showcasing the company’s resilience in maintaining profitability.

Debt Reduction Achievements

The company successfully reduced its debt by $1.7 million during the quarter and nearly $5 million year-to-date, bringing the total debt down to approximately $10 million. This achievement underscores inTEST’s commitment to strengthening its financial position.

Strategic Expansion in Malaysia

InTEST completed the manufacturing space in Malaysia on schedule, with plans to begin manufacturing first article products in the second half of 2025 and ramp-up production in 2026. This strategic expansion is expected to enhance the company’s manufacturing capabilities and market reach.

Order Growth in Key Markets

Orders for the quarter grew 10% sequentially to nearly $28 million, with significant increases in the auto/EV sector (40% increase to $7.1 million) and life sciences (more than doubled to $2.9 million). This growth highlights the company’s successful penetration and expansion in these key markets.

Strong Defense Order

A notable achievement for inTEST was receiving a large defense order at the Environmental Technologies division for missile test systems, marking a significant milestone in the defense/aero sector.

Weakness in Semi Market

The semiconductor market presented challenges, with semi orders declining 24% sequentially. The overall sluggishness in this market continues to pose difficulties for the company.

Year-over-Year Revenue Decline

Compared to Q2 2024, inTEST’s revenue was down $5.9 million, driven by a $4.9 million decline in auto/EV sales and slight declines in life sciences, defense/aerospace, and other markets. This decline reflects the broader market challenges impacting the company’s performance.

Net Loss Reported

InTEST reported a net loss of $0.5 million for the quarter, or a loss of $0.04 per diluted share. This loss highlights the financial pressures the company is facing amidst market uncertainties.

Reduced Cash Position

The company’s cash and equivalents at the end of the second quarter were $19.2 million, down $2.8 million from the end of the first quarter, indicating a reduction in liquidity.

Forward-Looking Guidance

InTEST Corporation’s guidance for the upcoming quarter projects revenue between $28 million and $30 million, with gross margins expected to remain consistent with Q2 2025’s 42.6%. Operating expenses are anticipated to range from $12.6 million to $13.1 million, excluding restructuring costs. The company expressed confidence in its long-term fundamentals, supported by a robust customer pipeline at historical highs, and signaled sequential improvements in top line and profitability throughout the year.

In summary, inTEST Corporation’s earnings call presented a mixed sentiment, balancing notable achievements in debt reduction and strategic expansions with challenges in the semiconductor market and a year-over-year revenue decline. The company’s forward-looking guidance reflects optimism in its long-term fundamentals and potential for sequential improvements in profitability.