InTEST : 2024 Annual Report
INTT
Published on 05/13/2025 at 20:02
2 0 2 4 A N N U A L R E P O R T
NYSE American: INTT
InTest Corporation (NYSE American: INTT) is a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include semiconductor ("semi"), automotive/EV, defense/aerospace, industrial, life sciences and safety/security. Backed by decades of engineering expertise and a culture of operational excellence, InTest solves difficult thermal, mechanical, and electronic challenges for customers worldwide while generating strong cash flow and profits. Our strategy leverages these strengths to grow organically and with acquisitions through the addition of innovative technologies, deeper and broader geographic reach, customer penetration and market expansion.
Our vision is to be the partner of choice for innovative test and process technology solutions globally. Driven by our VISION 2030 strategy to double the business over the next five years, our leadership team is further transforming InTest into a rapidly growing, high-margin business committed to creating long-term value for our shareholders.
(in thousands, except per share, margin and employee data)
Year Ended December 31,
2024
2023
2022
2021
2020
2019
Income Statement Data
Revenue
$ 130,690
$ 123,302
$ 116,828
$ 84,878
$ 53,823
$ 60,660
Gross profit
55,424
56,978
53,440
41,224
24,104
29,225
Gross margin
42.4 %
46.2
%
45.7
%
48.6
%
44.8
%
48.2
%
Operating income (loss)
3,394
10,439
10,721
8,459
(1,217)
2,549
Operating margin
2.6 %
8.5
%
9.2
%
10.0
%
-2.3
%
4.2
%
Net earnings (loss)
2,891
9,342
8,461
7,283
(895)
2,322
Earnings (loss) per share - diluted
$ 0.24
$ 0.79
$ 0.78
$ 0.68
$ (0.09)
$ 0.22
Weighted average shares - diluted
12,239
11,780
10,863
10,730
10,257
10,392
Balance Sheet Data
Total assets
$ 152,288
$ 134,829
$ 110,066
$ 103,905
$ 62,030
$ 59,715
Cash and cash equivalents
19,830
45,260
13,434
21,195
10,277
7,612
Total debt
15,032
12,042
16,142
20,100
-
-
Total stockholders' equity
$ 99,790
$ 96,281
$ 64,956
$ 54,823
$ 44,752
$ 44,834
Other Data
Operating cash flow
$ 3,821
$ 16,203
$ (1,389)
$ 10,842
$ 3,248
$ (8,405)
Depreciation and amortization
5,392
4,683
4,734
3,145
3,174
3,193
Capital expenditures
1,324
1,291
1,365
994
658
620
Backlog
$ 39,520
$ 40,130
$ 46,800
$ 34,052
$ 11,465
$ 5,547
Employees
425
334
346
316
204
198
InTest's VISION 2030 growth strategy is focused on driving innovation and acquisitions to create greater scale while striving for operational excellence. Our 5-Point Operating System provides the framework to execute on VISION 2030. Through disciplined processes, InTest is striving to accelerate growth, capture operational efficiencies, deepen our presence in target markets and expand our reach geographically. We solve complex problems for our customers with highly engineered solutions that are innovative and differentiated. We are expanding our capabilities to provide greater aftermarket support, continually investing in talent and driving an energized, accountable and collaborative culture. Our robust acquisition pipeline, critical to our growth goals, remains active as we focus on strategic roll-ups that expand our geographic presence or deepen our reach in our target markets or bring incremental recurring revenue through service enhancing offerings.
Global & Market
Expansion
Innovation &
Differentiation
Strategic Acquisitions & Partnerships
Service &
Support
Talent &
Culture
(in millions)
$117
$123
$131
$85
$54
2020 2021 2022 2023 2024
Targeting New Heights
$10 to $20 million $235 to $285 million
$50 to $60 million
$50 to $70 million
Subject to timing of acquisitions
$125 to $135 million
Organic growth implies 7% to 9% average annual growth
~15% CAGR
2025E
Organic Growth Acquired Revenue Acquisition Growth
2030 Goal
Dear Fellow Shareholders,
In 2024, we demonstrated resilience, tenacity, and continued our forward momentum in a year marked by global economic volatility and the resulting challenges for a number of industries. The semiconductor, industrial and automotive/EV markets, our three largest markets, were simultaneously depressed throughout the year. Nonetheless, we demonstrated the power of our diversification strategy as we delivered our third consecutive year of record revenue. We had sales in 2024 of $130.7 million, a 6% increase year over year. The acquisition of Alfamation in March 2024 combined with
strength in the
aerospace/defense and life sciences markets more
We demonstrated the power of our diversification strategy and delivered our third consecutive year of record
REVENUE.
Nick Grant, President and CEO
than offset the $17 million, or 26%, decline in the semi market. We believe this underscores the effectiveness of our 5-Point Strategy that we had initiated in 2021. Net earnings in 2024 were $2.9 million, or $0.24 per diluted share. On an adjusted basis1, net earnings were $6.2 million, or $0.51 per diluted share.
2024 Showcased Our Strategic Focus and Customer Centricity
While it's likely we will not achieve the original 2025 goals that we had set out for ourselves in 2021, we accomplished quite a lot, all the same. We have built a team that is driven to excel and transformed the culture of the Company to one that is performance driven with a sense of urgency for continuous improvement. We have made measurable progress by increasing our exposure to our target markets, expanding our customer base and driving innovative solutions to better serve our customers. Our 5-point strategy enabled us to win new business and gain new customers in key markets. For example, in 2024, life sciences achieved record performance, driven by demand for induction heating in diagnostics and medical device production. In the defense/aerospace industry, we strengthened customer relationships and delivered critical technologies used in both national defense systems and space exploration programs. This included work with NASA as well as private commercial space companies. Auto/EV captured repeat orders for battery test applications, and we increased market reach with our solutions, particularly with the addition of Alfamation which brought highly valued infotainment systems multifunction test technologies. We also benefited from sales synergies gained from the acquisition. While demand was soft in semi and industrial markets, we held our position with our customers and continued to deliver innovation.
During the year, we proactively addressed our cost structure given challenges in our markets and streamlined operations. These actions are expected to deliver long-term cost efficiencies and enhance our ability to scale in response to customer needs and shifting market dynamics.
We made significant progress with our new facility in Malaysia. This investment is a critical step toward improving lead times, optimizing supply chain resilience, and supporting the growing demand from customers across Asia-Pacific. In many ways, 2024 was a defining chapter in the ongoing transformation of InTest.
1 Adjusted net earnings and adjusted EPS are non-GAAP financial measures. Further information regarding the use of non-GAAP financial measures and the reconciliations of GAAP financial measures to non-GAAP financial measures follow this letter.
Capturing the Momentum: VISION 2030 Growth Strategy
Capturing the Momentum
We have established a strong foundation from which we can continue to grow. As we look at the next phase of our transformation, we are now taking the elements of the 5-Point strategy, which have been incorporated into
Creating Greater Value for our Stakeholders
NEXT LEVEL STRATEGY
VISION 2030: ADVANCING GROWTH STRATEGY
Drive innovation and acquisitions to create even greater scale
Strive toward Operational Excellence
5-POINT STRATEGY: LAID THE FOUNDATION
Established business operating rhythm
Transformed the culture
Built the team
our DNA, to be the basis of our 5-Point Operating System, or 5-POS. Our VISION 2030 growth strategy sets the path to create even greater scale and advance on our journey of operational excellence.
Targeting New Heights
$235 to $285 million
~15% CAGR
$125 to $135 million
2025E
2030 Goal
Our goals for the next five years are to achieve revenue in the
range of $235 million to $285
million and produce mid-teen EBITDA margins. VISION 2030
establishes alignment on our investment priorities and growth targets, while reinforcing our vision to be the partner of choice for innovative test and process technology solutions around the world. VISION 2030 also reflects our ambition to expand our global reach,
increase our focus on innovation, and become a more efficient organization capable of supporting long-term demand in the key markets we serve as we aim to once again double the size of InTest.
We believe our goals are achievable and reasonable. We took into consideration the likely market cycles over the time frame while recognizing the benefit of the reasonable growth trends of key target markets. We also provide solutions that address three key megatrends. These are electronification, power management of technology adoption, and the increasing complexity of semiconductors and electronic solutions. We believe that by creating greater scale through both organic initiatives and strategic acquisitions, we can leverage the experience and capabilities of our team across a larger base and concurrently develop greater operating leverage for the Company. We plan to deliver more innovation by prioritizing research and development, customer collaboration, and cross-platform integration as we deliver differentiated, high-value solutions that solve the most complex challenges for our customers. The execution of our VISION 2030 will focus on leveraging our global operations, driving efficiency, and building our three technology divisions to support scalable, sustainable growth without compromising agility or customer responsiveness.
We entered 2025 with measured optimism after three consecutive quarters of increased orders. There is no doubt, geopolitical uncertainty has since upended capital investments by many customers, but in the end, we
Disclaimer
inTest Corporation published this content on May 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 00:01 UTC.