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Dec 31, 2024
inTEST Q4 2024 Earnings Report
inTEST reported record revenue and strong operational performance in Q4 2024.
Key Takeaways
inTEST achieved record revenue of $36.6 million, representing a 31% year-over-year increase. Operating income surged 87% to $2.1 million, and adjusted EBITDA grew 82% to $4.4 million. Despite a one-time acquisition inventory step-up expense negatively impacting gross margin by 430 basis points, the company continued demonstrating strong financial health.
Revenue increased 31% year-over-year to $36.6 million, reaching the high end of guidance.
Operating income grew 87% to $2.1 million, with an operating margin of 5.7%.
Adjusted EPS rose 44% to $0.23 per diluted share.
Cash generated from operations totaled $3.8 million, while $7.8 million in debt was paid down in 2024.
Forward Guidance
inTEST remains cautious about 2025 due to ongoing macroeconomic challenges but expects gradual improvement in profitability. Geographic expansion efforts and cost-cutting initiatives, including restructuring in the Netherlands, are expected to yield future benefits.
Positive Outlook
- Continued improvements in back-end semiconductor applications.
- Ongoing expansion efforts in Japan and Southeast Asia.
- Cost-saving initiatives expected to generate $0.5 million in annualized savings.
- Gradual profitability improvement projected throughout 2025.
- Strong cash position supports further organic and inorganic growth.
Challenges Ahead
- Softness in end markets persists, particularly in industrial and front-end semiconductor sectors.
- Restructuring costs of approximately $0.6 million expected in 2025.
- Q1 2025 revenue expected to decline to $27M-$29M due to delivery pushouts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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