inTest Corporation

Ladies and gentlemen, greetings and welcome to the In-Test Corporation First Quarter 2026 Financial Results Conference Call. At this time, all participants are in the listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Sanjay Hari, Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us. With me on the call are Rich Rogoff, 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 the 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 their 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 and uncertainties and other factors are provided in the press release, as well as in other documents filed by the company with the Securities and Exchange Commission. These documents can be found on the Intest 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 press release and slides. Management will begin today's discussion on slide four of the presentation. With that, I'll turn the call over to Rich.

Thank you, Sanjay. Good morning, everyone. Thank you for joining us this morning. Since this is my first call as Intest CEO, I'm going to begin the call by sharing with you my experience both before joining Intest and during my tenure at the company. I'll then review Q1 revenues and orders and turn the call over to Duncan to take you through the financial results. After that, I'll wrap up by discussing my priorities at a high level and will be happy to take your questions. On the right side of slide four are the details of my 30 plus years of experience and increasing responsibility in operations and business building roles in capital equipment companies. The left side lists my positions at Intest since joining the company in October 2021. I was initially a consultant to the company before being brought on as Vice President of Corporate Development. In 2023, I was appointed Division President of Environmental Technologies and then Division President of Process Technologies, both on an interim basis. At the same time, I led the Corporate Development function, bringing on AcuLogic, Videology, and AlphaMation. In 2025, I was appointed Division President of Environmental Technologies and a member of the company's Operating Efficiency Committee, charged to drive divisional growth and operational improvement. In short, I am new to the CEO position, but not to Intest. I know the business, I know the customers, I know the opportunities, and I have hit the ground running. From my perspective, Intest is a company that has built real commercial momentum, having focused on diversifying and driving revenue and new product development. We have a growing customer base and a broad set of end markets that reward engineering capability and innovation. With this solid foundation in place, Intest is now beginning its next phase of growth. My priority as CEO is to build on this foundation, driving adjusted EBITDA growth through operating leverage as we continue to scale the business and improve operational efficiencies. Let me now turn to a deeper dive of our Q1 performance on slide five. We delivered a strong first quarter. Revenue of $33.9 million and gross margins of 45.5% both exceeded our guidance range. On a year-over-year basis, revenue growth was driven by gains in defense, aerospace, life sciences, and auto EV. With revenues up 27% versus the first quarter of 2025, we realized operating leverage and combined with favorable mix delivered adjusted EBITDA of $3.2 million for a margin of 9.3%. First quarter orders of $31.8 million were up 25% year-over-year, reflecting deepening penetration of our diverse end markets. Backlog at quarter end stood at $51.8 million, up 36% year-over-year, providing healthy revenue visibility. Looking more closely at orders and backlog on slide 6, first quarter orders of 31.8 million declined 15% sequentially after two consecutive quarters of very strong order flow. Orders in Q1 were a little lower sequentially in three end markets. Life Sciences, after an outsized Q4 of orders that were driven by alpha-mation program timing, Safety and Security, and Semi, where orders declined modestly from Q4 as customers prioritized fulfillment of their prior quarter's orders. That said, we are seeing a healthy quote activity and strengthening sales funnel for back-end Semi. These order declines were offset by continued strength in Auto EV, Defense Aerospace, and Industrial. To give you some color on the orders we received this quarter, AlphaMation secured a multi-euro program in Mexico spanning displays and hardware variants in many different models of automobiles, and we continue to see meaningful activity from leading EV and battery customers. These are the kinds of wins that illustrate the value of the platform we have built and demonstrate the commercial momentum we are seeing. On a year-over-year basis, quarter one orders grew 25%, led by auto EV and defense aerospace. Semi-orders declined. Auto EV and defense aerospace were standouts. Auto EV more than doubled due to AlphaMation's order activity that was driven by new model introductions and vehicle platform refreshes. In defense aerospace, our orders almost tripled as sustained armament replenishment and capacity expansion programs continued to drive engagement. Order and backlog of 51.8 million declined 4% sequentially from near record levels at the end of Q4, but increased 36% year over year. Approximately 50% of the current backlog is expected to shift beyond Q2, providing meaningful forward revenue visibility. With that, I'll turn it over to Duncan to walk through the detailed financial results, starting with revenue on slide seven.