- Transcat (TRNS, Financial) reports an 11% increase in service revenue to $52 million for Q4 2025.
- Full fiscal year revenue rose 7% to $278 million, driven by growth in both service and distribution segments.
- Adjusted EBITDA for Q4 2025 increased by 9% to $12.7 million, facilitated by strong performance in the calibration sector.
Transcat, Inc. (TRNS), a leader in accredited calibration services and professional-grade test and measurement instrument distribution, has announced its financial results for the fourth quarter and full fiscal year ending March 29, 2025. The company reported a robust fiscal fourth quarter revenue increase to $77.1 million, up 8.8% from the previous year, despite having one less week compared to fiscal 2024. This growth was fueled by an 11% rise in service segment revenue to $52 million, accounting for 67.4% of total revenue in Q4.
Service segment gross profit expanded by 13% to $18.8 million, supported by enhanced productivity and a strategic shift towards automation, leading to a 50 basis point increase in gross margins to 36.2%. This improvement was attributed to the successful integration of recent acquisitions, including Martin Calibration, which contributed $6.8 million in incremental revenue for the quarter.
On a full-year basis, Transcat's total revenue saw a 7.3% increase to $278.4 million, with service revenue contributing $181.4 million, up 7% year-over-year. The distribution segment also experienced growth, with revenue climbing 3.9% to $25.1 million for Q4, driven by improved rental sales and acquisitions.
Adjusted EBITDA rose 9% for the quarter to $12.7 million, reflecting the company's ability to leverage increased technician productivity and expand service gross margins. However, net income for Q4 was down 35.2% to $4.5 million, and diluted EPS decreased to $0.48 from $0.77 in the previous year, influenced by higher operating expenses related to acquisitions and stock-based compensation.
CEO Lee D. Rudow emphasized Transcat's resilience amid macroeconomic uncertainties and expressed confidence in the company's strategic approach of leveraging both organic growth and acquisitions. The company remains committed to enhancing shareholder value through consistent execution and strategic acquisitions, capitalizing on the robust demand within the calibration sector.
Looking forward, Transcat aims to maintain its growth trajectory by continuing to optimize its service model and exploring strategic opportunities, thereby positioning itself for sustained success in fiscal 2026 and beyond.
