inTEST (INTT) 17th Annual Southwest IDEAS Conference summary

Strategic direction, vision, and market positioning

• Vision 2030 targets $235–$285 million in revenue by 2029/2030 through organic growth and acquisitions, with a 10% operating income margin goal.

• Business has grown from under $55 million to about $130 million in five years, diversifying beyond the original back-end semi-test market.

• Three technology divisions—Electronic Test, Environmental Technologies, and Process Technologies—serve diverse, high-growth applications.

• Focused on six target markets: semi, automotive/EV, defense/aero, industrial, life sciences, and safety/security, leveraging global mega trends like electrification, AI, and advanced packaging.

• M&A strategy targets $20–$40 million companies, aiming for $50–$60 million in acquired revenue and expanded geographic reach.

Innovation and product development

• New product revenue rose from mid-single digits to 17% recently, targeting 25%+ by 2030, driven by accelerated development and launches.

• Recent launches include automated oscilloscope and RF probes, benchtop thermal stream units, and compact EcoHeat process solutions.

• New product development led to some shipment delays, but issues have been resolved and are expected to drive repeat orders.

• Operational excellence initiatives, including Lean Six Sigma, are improving lead times, reducing costs, and enhancing the bottom line.

• Global expansion includes a new Malaysia facility and increased presence in Europe and North America.

Financial performance and outlook

• Q3 orders reached $37.6 million, up 35.6% sequentially, with backlog up 30.1% to just under $50 million; 55% of backlog expected to ship beyond Q4 2025.

• Q3 revenue was $26 million, down $1.9 million sequentially and $4 million year-over-year, mainly due to shipment delays.

• Gross margin was 41.9%, contracting 70 bps sequentially and 440 bps year-over-year.

• Operating expenses managed down to just over $12 million, decreasing $0.7 million sequentially and $1.3 million year-over-year.

• Debt reduced by over $6 million in 2024/2025, with liquidity at $61 million and a leverage ratio of 1.7x.