This article presents the development of an active thermography algorithm capable of detecting defects in materials, based on the techniques of Thermographic Signal Reconstruction (TSR), Thermal Contrast (TC) and the physical principles of heat transfer. The results obtained from this algorithm are compared to the TSR technique and the raw thermogram obtained by stepped thermography inspection. Experimentally, a short thermal pulse is used and the surface temperature of the sample is monitored over time with an infrared camera. Due to the volume of data, the first step is data compression. Newton's law of cooling was used to store the normalized temperature data pixel-by-pixel over time and a compression ratio of 99% was obtained. The main contributions of the developed algorithm are: only four parameters for data compression and the concept of change in the direction of the heat flow to delimit the edges of the defects, where the borders are identified with a remarkable accuracy. Some well known image processing technique are also integrated to improve the thermal analysis: edge detection/interface between the sample and the image background; consolidation in a single image by aggregating the indicators referring to the concept of cooling/heating time constant, maximum thermal amplitude and contrast. INDEX TERMS active thermography, thermal analysis, infrared imaging, data compression, change detection algorithms, image processing.