Intest Crop ((INTT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Intest Corp’s Latest Earnings Call: Resilience Amid Challenges
In the latest earnings call, Intest Corp presented a mixed sentiment, reflecting both challenges and achievements. The company faced a decline in revenue and technical delays, resulting in a net loss for the quarter. However, there was a positive outlook with strong order growth and improved financial flexibility, suggesting potential for recovery in the upcoming quarters.
Strong Order Growth
Intest Corp reported a significant increase in orders, reaching $37.6 million, marking the highest level since Q2 2022. This growth was driven by a sequential $11.4 million increase in backlog, with notable contributions from the automotive and defense/aerospace sectors. The company’s market diversification strategies have proven successful, contributing to this robust order growth.
Record Alfamation Bookings
The company achieved record bookings for its Alfamation division, highlighting strong demand for test equipment from Tier 1 electronic suppliers. Orders from the auto/EV sector doubled, reaching $14.6 million, showcasing the growing interest and investment in this area.
Defense and Aerospace Sector Growth
Orders in the defense and aerospace sector more than doubled sequentially to $6.4 million. This surge is attributed to the increased demand for test equipment for next-generation weapon systems, reflecting the sector’s expanding needs.
Year-Over-Year Order Increase
Overall, Intest Corp experienced a 34.2% year-over-year increase in orders, with significant growth in the auto/EV, industrial, and defense/aerospace sectors. This demonstrates the company’s successful adaptation to market demands and its strategic positioning.
Improved Financial Flexibility
The company improved its financial flexibility by reducing total debt by $6.2 million in the first nine months of 2025. This resulted in $21.1 million in cash, cash equivalents, and restricted cash, with approximately $61 million in liquidity, strengthening its financial position.
Revenue Decline
Despite the strong order growth, revenue for Q3 was $26.2 million, a decline of $1.9 million from Q2 and $4 million year-over-year. The decline was primarily due to lower sales in the defense/aerospace, auto/EV, and semi markets.
Technical Challenges Delaying Shipments
Technical challenges delayed approximately $2 million in shipments, impacting revenue. These challenges involved new capabilities for the life sciences and semi markets, highlighting areas for improvement.
Gross Margin Decline
The company experienced a decline in gross margin, which decreased by 70 basis points sequentially and 440 basis points year-over-year. This was due to lower volume and an unfavorable product mix.
Net Loss Reported
Intest Corp reported a net loss of $0.9 million or $0.08 per share for Q3, with an adjusted net loss of $0.02 per share. This reflects the financial challenges faced during the quarter.
Forward-Looking Guidance
Looking ahead, Intest Corp anticipates a revenue rebound in Q4, forecasting between $30 million and $32 million, with a projected gross margin of 43%. Despite the technical setbacks and revenue decline in Q3, the company is optimistic about future quarters, driven by strong order growth and market demand.
In summary, Intest Corp’s latest earnings call highlighted a challenging quarter with revenue decline and technical delays. However, the company demonstrated resilience with strong order growth and improved financial flexibility, suggesting potential for recovery. The forward-looking guidance indicates optimism for a revenue rebound in the upcoming quarter, driven by continued demand in key sectors.