Intest (INTT) Q4 2025: Backlog Jumps 36% as Non-Semi Orders Fuel Diversification

February 27, 2026 | By EarningsIQ Research

Intest capped 2025 with a decisive pivot from semiconductor cyclicality, as backlog surged and non-semi markets now comprise nearly 80% of revenue. Margin gains, robust order flow, and new product traction signal that diversification and innovation are reshaping the company’s risk and growth profile. With a record backlog and deliberate conservatism on semi rebound, Intest enters 2026 positioned for multi-segment expansion and improved operating leverage.

Summary

• Order Book Resilience: Broad-based demand in industrial, defense aerospace, and life sciences drove a record year-end backlog and reduced semi exposure.
• Margin Expansion via Innovation: New product introductions, especially from AlphaMation, lifted gross margins despite muted semi contribution.
• Disciplined Outlook: 2026 guidance leans conservative on semi recovery, but backlog and product mix support a return to profitable growth.

Performance Analysis

Intest delivered its highest quarterly revenue of the year in Q4, exceeding guidance and capping a year marked by customer capital spending hesitation and semiconductor (semi) market weakness. The company’s revenue mix shifted decisively, with non-semi segments—industrial, defense aerospace, and life sciences—driving the majority of growth. Notably, life sciences orders tripled sequentially, and auto EV orders surged, reflecting the impact of new AlphaMation, automation and robotics solutions, and AccuLogic, test and measurement platform, products.

Gross margin expanded sharply, reaching 45.4% in Q4, up 350 basis points sequentially and 570 basis points year-over-year, supported by higher-margin new product sales and ongoing cost efficiency initiatives. Operating leverage improved as incremental revenue was achieved with proportionally lower operating expense growth, reducing OpEx as a percentage of revenue. Net income and adjusted EBITDA rebounded from Q3 lows, and the company further strengthened its balance sheet by reducing debt and maintaining strong liquidity.

• Backlog Momentum: Year-end backlog rose 36% year-over-year, with 60% scheduled to ship beyond Q1 2026, enhancing revenue visibility.
• Non-Semi Outperformance: Nearly 80% of Q4 revenue came from non-semi markets, underlining the success of diversification.
• Cost Structure Discipline: Margin gains and OpEx control reflect execution on manufacturing efficiency and cost actions across 2025.

While full-year revenue declined versus 2024 due to semi weakness, Intest’s ability to offset this with growth in targeted verticals and new product adoption demonstrates a structural change in its business model.

Executive Commentary

Strategic Positioning

1. Market Diversification Reduces Cyclicality

Intest’s deliberate pivot away from semi dependency is reshaping its revenue base. Over the past five years, non-semi revenues have grown at a 20% compound annual rate, and Q4 saw only 25% of orders from semi versus 40% a year ago. This shift is insulating the business from semi market volatility and broadening its addressable market.

2. New Product Innovation Drives Margin and Growth

AlphaMation and AccuLogic product launches are winning new customers and expanding applications, particularly in life sciences and auto EV. New products contributed meaningfully to both revenue and margin, advancing the company toward its Vision 2030 goal of 25% of revenue from new products.

3. Operational Excellence Unlocks Leverage

Manufacturing efficiency initiatives and the scaling of Malaysia operations improved cost structure and enabled margin expansion without semi tailwinds. The company’s ability to flex OpEx and achieve higher margins at lower semi volumes signals improved operating leverage as growth resumes.

4. Geographic Expansion Strengthens Customer Access

Establishing a Malaysia hub and acquiring AlphaMation in Europe have extended Intest’s reach and customer intimacy, allowing for deeper regional relationships and faster response to local demand, especially in emerging life sciences and automotive markets.

5. Conservative Guidance Reflects Discipline

2026 guidance assumes only modest semi recovery, despite industry optimism for a stronger rebound. This conservatism reduces risk of disappointment and positions upside potential if semi demand accelerates.

Key Considerations

This quarter marked a clear inflection in Intest’s business model, as the company leverages diversification and innovation to reduce cyclicality and pursue sustainable growth. Investors should weigh the following:

Key Considerations:

• Backlog Quality: With 60% of backlog scheduled for post-Q1 shipment, execution and order conversion will be critical to sustaining momentum.
• Semi Recovery Optionality: Guidance bakes in only modest semi improvement, creating potential for upside if industry rebound materializes in 2026 or 2027.
• Margin Durability: Margin expansion was achieved without high-margin semi, suggesting further upside if back-end semi demand returns.
• Life Sciences and Auto EV Penetration: Early-stage wins in these verticals present multi-year growth opportunities as Intest deepens its presence.

Risks

Semi market timing remains the largest uncertainty, as management’s conservative stance could be tested if the anticipated rebound lags or is weaker than peers expect. Tariff and macroeconomic policy shifts, customer capital spending volatility, and competitive threats in non-semi verticals could pressure backlog conversion and margin expansion. Additionally, operating leverage gains depend on maintaining cost discipline as growth resumes.

Forward Outlook

For Q1 2026, Intest guided to:

• Revenue of $31 million to $33 million
• Gross margin of approximately 44%
• Operating expenses of $13.3 million to $13.7 million

For full-year 2026, management provided guidance:

• Revenue of $125 million to $130 million (midpoint +12% YoY)
• Gross margin of approximately 45%
• Operating expenses of $53 million to $55 million

Management emphasized:

• Backlog and new product mix are key drivers of growth and margin.
• Guidance excludes material impact from tariff or geopolitical changes.

Takeaways

Intest’s Q4 and full-year results confirm that diversification and innovation are reshaping its risk profile and growth potential, with backlog and margin strength providing a solid foundation for 2026.

• Order Book Strength: Non-semi verticals are now the engine of growth, with backlog and order flow supporting higher visibility and less cyclicality.
• Margin and Leverage Upside: New product contribution and cost discipline have structurally improved margins, with further upside if semi rebounds.
• Watch for Semi Inflection: Investors should monitor for signs of a semi market rebound, which could drive further upside not reflected in current guidance.

Conclusion

Intest’s 2025 exit demonstrates a business model in transition, with diversification and product innovation delivering tangible results in backlog, margins, and growth visibility. Conservative guidance and strong operational execution set the stage for upside as end markets recover.

Industry Read-Through

Intest’s results and commentary provide a clear signal that test and automation providers can reduce cyclicality risk and capture growth by aggressively diversifying beyond semi. The robust order flow in life sciences, defense aerospace, and auto EV suggests that adjacent verticals are absorbing capital investment even as semi remains soft. For industry peers, margin expansion via product innovation and geographic reach is increasingly critical, and those with exposure to emerging medtech and automotive electronics are likely to outperform as these sectors ramp. The cautious tone on semi recovery, despite broader industry optimism, also highlights the need for investors to differentiate between near-term sentiment and actual order book visibility.

INTT Industrials Test Equipment Diversification Automation Backlog Life Sciences Semiconductor