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INTEST CORP (INTT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue of $26.24M (-13.3% y/y, -6.7% q/q) and gross margin of 41.9% missed Wall Street consensus; adjusted EPS was $(0.02), with orders surging 34.2% y/y to $37.6M and backlog rising to $49.3M .
  • Versus S&P Global consensus, revenue missed by ~$2.87M and adjusted EPS missed by ~$0.06; EBITDA missed materially as well, reflecting shipment delays and mix headwinds that management says have since been resolved* .
  • Q4 2025 guidance: revenue $30–$32M, GM ~43%, OpEx $12.3–$12.7M (excl. ~$0.2M restructuring), implying sequential growth as delayed shipments convert and backlog supports deliveries .
  • Catalyst: record orders (highest since Q2’22) from auto/EV and defense/aerospace demonstrate end-market diversification; however, near-term semi demand (front-end/analog/SiC) remains sluggish, and caution on capital projects tempers visibility .

What Went Well and What Went Wrong

What Went Well

  • Orders reached $37.6M (+34.2% y/y; +35.6% q/q), driven by auto/EV, defense/aerospace and other; backlog climbed $11.4M q/q to $49.3M, with ~55% expected to ship beyond Q4 .
  • Cash generation and deleveraging: $3.5M cash from operations in Q3; total debt reduced to $8.9M (down $1.2M q/q; down $6.2M since 12/31/24) .
  • Management highlights “highest” orders since Q2’22 and strengthened funnel, reflecting Vision 2030 execution and traction with new products/customers. Quote: “orders…surged to $37.6 million…highest level since Q2 2022” .

What Went Wrong

  • Revenue below guidance due to late-quarter technical challenges on certain systems; gross margin fell 440 bps y/y to 41.9% on lower volume and mix .
  • Segment/market pressure: defense/aerospace revenue down $1.3M q/q; auto/EV down $0.9M q/q; semi down $0.4M q/q; y/y declines in semi (-$1.6M) and auto/EV (-$1.3M) .
  • Net loss of $0.94M (GAAP EPS $(0.08)); adjusted EBITDA of $0.38M (1.5% margin), reflecting volume/mix headwinds; covenant waiver required with cash pledged equal to U.S. debt outstanding .

Financial Results

P&L and Profitability vs prior periods

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$30.27 $28.13 $26.24
Gross Margin %46.3% 42.6% 41.9%
Operating Expenses ($USD Millions)$13.53 $12.90 $12.19
Operating Margin %1.6% (3.3%) (4.5%)
Net Income ($USD Millions)$0.50 $(0.50) $(0.94)
Net Margin %1.6% (1.8%) (3.6%)
Diluted EPS ($)$0.04 $(0.04) $(0.08)
Adjusted EPS (Non-GAAP) ($)$0.11 $0.03 $(0.02)
Adjusted EBITDA ($USD Millions)$2.44 $1.26 $0.38
Adjusted EBITDA Margin %8.1% 4.5% 1.5%

Vs. Estimates (S&P Global consensus)

MetricQ3 2025 ConsensusQ3 2025 ActualSurprise
Revenue ($USD Millions)$29.11*$26.24 $(2.87) — bold miss
Primary EPS ($)$0.04*$(0.02)*$(0.06) — bold miss
EBITDA ($USD Millions)$1.42*$0.08*$(1.34) — bold miss

Values marked with * are retrieved from S&P Global.

Segment Revenue

Segment ($USD Millions)Q3 2024Q2 2025Q3 2025
Electronic Test$15.48 $13.73 $12.10
Environmental Technologies$6.73 $7.22 $7.49
Process Technologies$8.06 $7.18 $6.65
Total$30.27 $28.13 $26.24

Revenue by End Market

End Market ($USD Millions, % mix)Q3 2024Q2 2025Q3 2025
Semi$11.41 (37.7%) $10.19 (36.2%) $9.84 (37.5%)
Auto/EV$6.25 (20.6%) $5.86 (20.8%) $4.96 (18.9%)
Defense/Aerospace$3.24 (10.7%) $3.58 (12.7%) $2.31 (8.8%)
Industrial$3.53 (11.7%) $3.79 (13.5%) $3.66 (13.9%)
Life Sciences$1.32 (4.4%) $1.39 (4.9%) $1.93 (7.4%)
Safety/Security$0.67 (2.2%) $0.90 (3.2%) $0.93 (3.5%)
Other$3.85 (12.7%) $2.43 (8.6%) $2.60 (9.9%)
Total$30.27 (100%) $28.13 (100%) $26.24 (100%)

KPIs

KPI ($USD Millions)Q3 2024Q2 2025Q3 2025
Orders$28.05 $27.76 $37.64
Backlog (quarter-end)$45.45 $37.86 $49.27

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/OutcomeChange
RevenueQ3 2025$28–$30M (issued Aug 6) Actual $26.24M Below prior guidance
Gross MarginQ3 2025“Similar to Q2” (42.6%) Actual 41.9% Slightly lower
OpExQ3 2025$12.6–$13.1M (excl. ~$0.1M restructuring) Actual $12.19M; restructuring $0.12M Lower than guided
RevenueQ4 2025N/A$30–$32M New
Gross MarginQ4 2025N/A~43% New
OpExQ4 2025N/A$12.3–$12.7M (excl. ~$0.2M restructuring) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
Orders/Backlog momentumQ1: Orders down q/q amid customer delays; backlog $38.2M with ~48% beyond Q2 . Q2: Orders +9.5% q/q; backlog $37.9M with ~50% beyond Q3 .Orders highest since Q2’22; backlog +$11.4M q/q to $49.3M; ~55% ships beyond Q4 .Improving
Shipment/technical issuesNot highlighted in Q1/Q2 press releases.Late-quarter technical challenges on select systems; now resolved and shipments fulfilled .Resolved issues
Semi demand (front-end/analog/SiC)Q1: Semi demand weak; tariffs uncertainty . Q2: Semi orders slowed; back-end improved modestly .Semi front-end remains anemic; back-end slow; tariff-related investment caution, esp. China .Soft
Auto/EV demandQ1: Auto/EV up y/y; Alfamation contribution . Q2: Renewed purchasing, highest orders at Alfamation .Strong orders tied to 2027 model-year programs; revenue down q/q but orders up sharply .Mixed near term; strong orders
Defense/AerospaceQ1: Orders slowed; revenue fell y/y . Q2: Revenue +$0.8M q/q; $2.6M thermal test order announced .Q3 revenue down q/q/y/y; but orders +43% y/y; backlog support into 2026 .Orders strong; revenue timing
Tariffs/macroQ1: Insulated supply chain; mitigation plans; Malaysia build-out . Q2: Ongoing global/tariff uncertainty .Continued customer hesitancy due to trade/economic uncertainties .Persistent headwind
Regional/manufacturing footprintQ1: Malaysia manufacturing to start H2’25 .No new updates in Q3 press release.Execution-in-progress

Management Commentary

  • “Orders…surged to $37.6 million, our highest level since Q2 2022…reflecting…auto/EV…defense/aerospace…We continue to gain traction with our newly introduced products and our expanding customer base” — Nick Grant, CEO .
  • “Reported revenue…came in below guidance primarily due to technical challenges…These challenges have since been resolved and the shipments have been fulfilled. Operating expenses were lower than forecasted” .
  • “We…strengthened our readiness for a market recovery…diversify into non-semi markets is paying off…many customers continue to hold back…we still do not have visibility into the timing of an overall market recovery” .
  • Balance sheet actions: $3.5M CFO; total debt $8.9M; covenant waiver through Q1’26 with pledged cash equal to U.S. debt outstanding .

Q&A Highlights

  • Nature of Q3 issues: distinct from Q1; Q3 tied to new technologies (Alfamation, Archaeologic), resolved and customers satisfied .
  • Semi market: front-end remains anemic; back-end slow; tariff-related investment decisions (esp. China) weighing; some projects envisioned for 2026–2027 .
  • Q4 guidance tone: cautious, focusing on deliverability with minimal risk; strong Q3 order activity skewed to 1H’26+, limiting Q4 uplift despite shipment shifts .
  • Conference call logistics and replay: November 5, 8:30am ET; replay available through Nov 19 .

Estimates Context

  • Revenue: Consensus $29.11M vs actual $26.24M — miss; # of estimates: 3* .
  • Primary EPS: Consensus $0.04 vs actual $(0.02) — miss; # of estimates: 3* .
  • EBITDA: Consensus $1.42M vs actual $0.08M — miss*.

Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Order momentum and backlog strengthen medium-term setup (auto/EV, defense/aerospace), but near-term semi softness and capital-spending caution constrain visibility; expect lumpy revenue conversion .
  • Q4 guidance signals sequential revenue/gross margin improvement as delayed shipments convert; watch execution vs guidance (GM ~43%, OpEx $12.3–$12.7M) .
  • Cost discipline evident (OpEx below forecast in Q3), aiding margin resilience despite volume pressure; continued focus on non-strategic spend reductions .
  • Balance sheet: improving liquidity via CFO and debt reduction; note covenant waiver through Q1’26 with pledged cash — monitor covenant compliance and restricted cash impacts .
  • Segment mix: Environmental Tech resilient; Electronic Test/Process Tech pressured; end-market revenue declines in auto/EV and defense/aerospace q/q, but orders robust — timing of deliveries is key .
  • Malaysia manufacturing ramp (from Q1 commentary) should bolster regional supply and cost profile longer-term; track progress and potential margin benefits .
  • Estimates likely to be revised lower near-term given Q3 misses; Q4 consensus revenue broadly aligns with guidance mid-point — EPS/EBITDA may reflect cautious execution* .

Appendix: Primary source documents — Q3 results press release and 8-K with exhibits ; prior quarter press releases for Q1/Q2 trend analysis ; related defense order press release ; select Q&A highlights sourced from public call transcript pages .