Demonstrating sustained operational momentum, InTest Corporation (NYSEAM: INTT) closed Q2 2026 in positive financial territory—marking its third consecutive quarter of profitability. Driven primarily by robust demand across the automotive and industrial sectors, the global testing and process technology supplier generated US$35.3 million in revenue, representing a US$1.4 million sequential increase over Q1 and a US$7.2 million rise year-over-year (YoY).
Key financial highlights
- Margin profiles: Gross margin stood at 40.5%, reflecting a slight compression (down 2.8% sequentially and 2.1% YoY). Leadership attributed this shift to product mix dynamics, specifically higher volumes from lower-margin automotive lines.
- Operating expenses: OpEx dropped by US$0.5 million quarter-over-quarter, largely due to the absence of the $0.7 million non-recurring restructuring charge recorded in Q1 during the CEO transition. However, OpEx grew by US$1 million YoY, pushed up by increased payroll costs in engineering and SG&A.
- Net income: Net income reached US$0.5 million (US$0.04 per diluted share), with adjusted net income arriving at US$1.1 million (US$0.09 per adjusted share). This extends InTest’s profitable trajectory set in previous quarters, including US$0.789 million in Q1 2026 and US$1.24 million in Q4 2025.
- Balance sheet strength: Cash and cash equivalents expanded to US$22.1 million—a US$6.4 million sequential increase—anchored by US$6.3 million generated from operating activities. Simultaneously, the company trimmed its term debt by US$1 million while maintaining US$40 million in available credit to fund strategic growth.
- Order backlog: InTest concluded Q2 with a US$45.4 million backlog, up 19.8% YoY (though down 12.4% from Q1). With roughly 45% of orders scheduled for shipment past Q3, management expressed confidence in sustaining momentum through year-end.
Full-year 2026 outlook
Building on guidance issued in July, InTest projects full-year revenue growth of approximately 21% YoY, compared to 2025’s US$113.8 million baseline. Boosted by diversified end-market demand and healthier order inflows, the company expects gross margins near 43%, with scaling efficiency driving stronger, more predictable adjusted EBITDA.
Leadership commentary
“We delivered second-quarter revenue of US$35.3 million, up 25.5 per cent year-over-year, our third consecutive quarter of sequential growth and our second straight quarter of year-over-year growth above 25 per cent,” Rich Rogoff, President and Chief Executive Officer of InTest, said in a statement. “Strong Auto/EV project delivery and the diversification we have built across our end markets powered the result, with non-semiconductor markets contributing approximately 74 per cent of revenue that drove an approximately 74 per cent increase in Adjusted EBITDA year-over-year. This is the diversified growth profile we are building for InTest.”
“Our leading indicators point to a strengthening second half,” Rogoff added. “Semiconductor orders were the standout and have increased approximately 56 per cent sequentially and approximately 64 per cent year-over-year, making the second quarter our strongest Semi order intake in six quarters as the demand we have been building into our funnel has started to convert into orders. With a backlog of US$45.4 million, up 19.8 per cent year-over-year, expanding Defense/Aerospace opportunities tied to higher US Department of Defense spending and healthy Auto/EV activity supported by rising electronic content, we entered the third quarter with momentum across our divisions.”
About InTest
InTest supplies testing and process technology solutions for clients in the semiconductor, automotive, aerospace, defense, industrial, life sciences and safety and security industries.
InTest stock (NYSEAM:INTT) last traded at US$13.98 and has added 99.43 per cent year-over-year.
