InTest has unveiled impressive financial performance for the second quarter of 2026, marking substantial growth and an optimistic outlook for the remainder of the year. The company's revenue surged to $35.3 million, demonstrating a 25.5% increase compared to the previous year and achieving its third consecutive quarter of sequential growth. This robust performance was largely driven by a significant uptick in semiconductor orders, which soared by 64% year-over-year to $12.0 million, representing the highest intake for this segment in six quarters. The company's diversified strategy, focusing on non-semiconductor markets such as automotive/electric vehicles (Auto/EV), defense, and life sciences, proved successful, with these sectors contributing 74% of total sales.
Key financial highlights for the quarter included a backlog of $45.4 million, reflecting a 19.8% year-over-year increase, with a substantial portion slated for shipment after the third quarter. Despite a slight decline in gross margin to 40.5% due to a mix of high-volume, lower-margin automotive projects, adjusted EBITDA saw a notable increase of 73.7% to $2.2 million. The company's financial position strengthened, with cash and cash equivalents rising to $22.1 million and total liquidity reaching $62 million. Management has consequently raised its full-year revenue guidance to $135 million to $140 million, indicating an anticipated growth of approximately 21% at the midpoint, underscoring confidence in sustained demand and strategic market penetration.
Looking ahead, InTest is focused on capitalizing on expanding opportunities within its target markets. The company anticipates continued momentum in semiconductor back-end testing, driven by the increasing demand for high-power devices in the evolving electrified economy. Furthermore, heightened U.S. Department of Defense procurement and capacity expansion are fueling growth in the defense and aerospace sectors. InTest is also prioritizing technological innovation and operational enhancements, including the development of next-generation induction heating systems and robotic docking solutions. Efforts to optimize manufacturing operations and cost structures are underway, aiming to improve productivity and further enhance profitability. The company's strategic initiatives, coupled with its strong market positioning, are set to drive consistent performance and long-term value creation.
InTest's journey through a dynamic market landscape exemplifies the power of adaptability and strategic vision. By proactively diversifying its market focus and continuously investing in innovation, the company is not only navigating industry shifts but also establishing a resilient foundation for future growth. Their commitment to operational excellence and customer-centric solutions serves as a testament to building a thriving enterprise that embraces change and consistently delivers value.
