inTest Corporation

Greetings. Welcome to Intest Corporation's fourth quarter 2025 financial results conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that today's conference is being recorded. At this time, I'll now turn the conference over to Sanjay Hari of Investor Relations. Please go ahead, Sanjay.

Good morning, everyone, and thank you for joining us. With me on the call are Nick Grant, President and Chief Executive Officer, and Duncan Gilmore, Chief Financial Officer and Treasurer. The earnings press release was issued this morning, as well as the slides that management will use during this call. Both can be found in the investor relations section of the intest.com website. Please turn to slide two for a review of the Safe Harbor Statement. During this call, management will make some forward-looking statements about our current plans, beliefs, and expectations. These statements apply to future events that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earnings release, as well as in other documents filed by the company with the Securities and Exchange Commission. These documents can be found on our website or at sec.gov. Also, as covered in slide three, management will refer to some non-GAAP financial measures. We believe these will be useful in evaluating the company's performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. You can find reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. With that, I'll turn the call over to Nick. Good morning, Nick.

Good morning, Sanjay, and thank you. Good morning, everyone. Thanks for joining us on our fourth quarter and year-end 2025 earnings call. We'll begin today's discussion on slide four of the presentation. Our fourth quarter results represent a strong finish to a challenging year. Much of this challenge stemmed from customer hesitation to spend on capital projects driven by tariff and macroeconomic uncertainties, as well as ongoing soft demand in our semi-business. After seeing some pockets of customers move forward with capital projects in the third quarter, we continued to see strong demand in the fourth quarter as our orders once again exceeded $37 million. As a result, we delivered revenue of $32.8 million that was above our guidance range, and we ended the year with a healthy year-end backlog of 53.9 million, representing a 36% increase over year-end 2024. I want to personally thank the entire end-test team for their hard work and steadfast dedication. Revenue for the fourth quarter was at the highest quarterly level for the year, which benefited from approximately 2 million related to orders that slipped out from the third quarter. Demonstrating the effectiveness of our diversification strategy, fourth quarter revenue reflected strength in industrial, defense aerospace, and life sciences and markets. In addition, growing market acceptance of our new products introduced over the past several quarters, particularly from AlphaMation and from AccuLogic, contributed meaningfully to the top line and progressed us towards our Vision 2030 target of generating 25% of revenue from new products. During the fourth quarter, we benefited from the cost actions taken across the businesses throughout the year. We continued to execute manufacturing efficiency initiatives and further scaled our Malaysia operations to support customers in the region. Our efforts were further complemented by growing customer acceptance of new products that drove incremental revenue and a margin lift. Through effective execution of our diversification strategy, we delivered gross margins of 45.4%. Notably, this was achieved without a significant contribution from our semi-business, historically one of our highest margin-end markets. Revenue diversification and new product innovation are two key pillars of our Vision 2030 growth strategy. With nearly 80% of fourth quarter revenue derived from non-semi end markets and momentum in new product sales contributing meaningfully to revenue and gross margin, we believe our strategy is working. Market diversification is creating broader order opportunities for us and fertile ground for new product adoption, while our innovative new products are resonating with customers and earning their place in their purchasing decisions. With that context in place, let's go deeper on orders and backlogs for the fourth quarter on slide five. After deferring spending plans due to tariffs and macroeconomic uncertainties in the first half of the year, we continued to see customers move away from a wait-and-see mode in the fourth quarter as they recognized that the cost of inaction increasingly outweighed perceived market risk. The momentum in our order book demonstrated demand durability engineered through deliberate end market focus. This strategy enables us to expand our addressable market and diversification into higher growth, less semi-correlated verticals. In fact, over the past five years, our non-semi-revenues have grown at approximately a 20% CAGR, which is something we are quite proud of. Equally important, the momentum in our order book also reflects customer adoption in end markets where we are still in the early stages of penetration. During the fourth quarter, we saw continued strength in our life sciences orders as they tripled sequentially, reflecting strong bookings for new alpha-mation products. Encouragingly, semi-orders were up about 18% sequentially as some customers began to move forward with plans to provisioned new test facilities, a trend that builds on the modest order growth recorded between the second and third quarters. Year over year, Q4 orders were up 22%, an increase of 6.8 million versus Q4 2024. This improvement was broad-based with strength in auto EV, life sciences, defense aerospace, and safety security, partially offset by continued softness in SEMI. On a full year basis, life sciences orders were up 137% year over year. Auto EV orders were up 89% and industrial was up 53%. Touching on our semi-business, year over year orders were down from a year ago period and represented about 25% of total orders this past Q4, compared to 40% for the fourth quarter of 2024. This is a compelling testament to our deliberate market diversification strategy succeeding and lessening our exposure to the cyclicality of the semi-business. We ended the year with a healthy backlog of 53.9 million, up 9% sequentially and 36% year over year. Backlog bottomed in the second quarter of 2025 and has steadily improved since. approximately 60% of our backlog is expected to shift beyond the first quarter of 2026, providing forward visibility end of the year. With a higher and more diversified backlog at the end of 2025, we are in a solid position for recovering growth in 2026. With that, I'll turn it over to Duncan to walk through the financial results in detail, starting with revenue on slide six. Duncan, over to you.