Transcat Earnings Call Transcripts
Fiscal Year 2026
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Strong double-digit revenue and profit growth were achieved in both service and distribution, with continued margin expansion and robust cash flow. Strategic M&A and technology investments are fueling further growth, especially in regulated end markets and rentals.
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Revenue grew 26% year-over-year to $83.9M, with strong gains in both service and distribution segments. Adjusted EBITDA rose 27%, while net loss reflected acquisition and CEO succession costs. High single-digit organic service growth is expected to continue into Q4.
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Q2 FY26 saw 21% revenue growth, strong rental and acquisition contributions, and margin expansion, despite economic headwinds. Adjusted EBITDA rose 37%, with a robust outlook for organic service growth and continued investment in technology and acquisitions.
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Q1 FY2026 saw 15% revenue and adjusted EBITDA growth, driven by strong calibration and rental demand. The Essco Calibration acquisition expands high-end capabilities, while a new credit facility boosts financial flexibility. Organic service growth is expected to accelerate in the year's second half.
Fiscal Year 2025
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Revenue grew 7% to $278.4M in fiscal 2025, with strong service and rental performance and record cash flow. The Martin Calibration acquisition expanded capabilities, while automation and rental growth are expected to drive future margin and revenue gains.
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Q3 revenue rose 2% year-over-year to $66.8M, with distribution growth offsetting a 4% organic service revenue decline due to holiday closures and solutions channel softness. The Martin Calibration acquisition expands market reach, and management expects improved growth in fiscal 2026.
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Revenue grew 8% year-over-year to $67.8M, with strong core calibration and rental business offsetting Nexa's underperformance. Net income rose to $3.3M, and adjusted EPS reached $0.52. Distribution margins were temporarily impacted by hurricanes, but recovery is expected in the second half.
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Delivered 10% revenue growth and 20% adjusted EBITDA increase, with margin expansion in both service and distribution segments. Recent acquisitions and automation initiatives drove performance, and guidance remains for high single-digit to low double-digit organic service growth in fiscal 2025.