TRNS

Transcat’s second quarter saw the company exceed Wall Street’s revenue and non-GAAP profit expectations, powered by double-digit gains in both its Service and Distribution segments. Management pointed to particularly strong performance in regulated end markets such as life sciences, aerospace, and energy, where Transcat’s calibration business continues to gain market share. CEO Jaime Irick highlighted operational improvements and integration of recent acquisitions as key to the quarter’s growth, stating, “Our differentiated value proposition continues to resonate throughout Transcat’s addressable end markets.” Is now the time to buy TRNS? Find out in our full research report (it’s free). Revenue: $92.95 million vs analyst estimates of $86.55 million (21.6% year-on-year growth, 7.4% beat) Adjusted EPS: $0.51 vs analyst estimates of $0.38 (35.1% beat) Adjusted EBITDA: $14 million vs analyst estimates of $12.46 million (15.1% margin, 12.4% beat) Operating Margin: 5.5%, down from 7% in the same quarter last year Market Capitalization: $850.3 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Maxwell Michaelis (Lake Street Capital): asked which end markets outperformed and whether the rental business would sustain its growth. CFO Thomas Barbato responded that performance was broad-based across markets and expected rental momentum to persist at high single-digit to low double-digit growth. Maxwell Michaelis (Lake Street Capital): inquired about the timeline for AI-driven productivity improvements. CEO Jaime Irick said early benefits are already visible, with further gains expected as operational initiatives scale. Greg Palm (Craig-Hallum): questioned whether the confidence in high single-digit Service growth represented a tone shift. Barbato confirmed the outlook reflects underlying market strength and share gains, not just easier comparisons. Martin Yang (Oppenheimer): asked about ongoing operating expense investments and the rationale for recent leadership hires. Barbato and Irick emphasized the need to build out the executive team and invest in talent to support future growth and M&A integration. Edward Jackson (Northland Securities): queried the sustainability of Service margin gains and current market share. Barbato highlighted operational leverage and maturing customer relationships as drivers, and noted significant room for further market share expansion in North America. Looking forward, the StockStory team will be monitoring (1) execution of operational excellence initiatives and visible improvements in Service segment margins, (2) continued successful integration and expansion following recent acquisitions such as SCM Metrology and Laboratories, and (3) sustained momentum in the rental business within the Distribution segment. The pace and quality of talent additions and further technology adoption will also serve as critical markers of progress. Transcat currently trades at $90.95, down from $91.89 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Senior Director of Financial Planning and Analysis - John Howe President and CEO - Jaime Irick Chief Financial Officer - Thomas Barbato Operator: Greetings and welcome to the Transcat, Inc. First Quarter Fiscal Year 2027 Financial Results Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John Howe, Senior Director of Financial Planning and Analysis. Thank you, John. You may begin. John Howe: Thank you, operator, and good afternoon, everyone. We appreciate your time and your interest in Transcat. With me here on the call today is our President and CEO, Jaime Irick and our CFO, Tom Barbato. We will begin with some prepared remarks and then open the call for questions. Our earnings release crossed the wire this afternoon after the market close. Both the earnings release and the slides that we will reference during our prepared remarks can be found on our website, transcat.com, in the Investor Relations section. If you would, please refer to Slide 2. As you are aware, we may make forward-looking statements during the formal presentation and Q&A portion of this teleconference. These statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause the actual results to differ materially from where we are today. These factors are outlined in the press release as well as the documents filed by the company with the SEC. You can find those on our website where we regularly post information about the company as well as on the SEC's website at sec.gov. We undertake no obligation to publicly update or correct any of the forward-looking statements contained in this call, whether as a result of new information, future events, or otherwise, except as required by law. Please review our forward-looking statements in conjunction with these precautionary factors. Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We've provided reconciliations of comparable GAAP to non-GAAP measures in the tables accompanying the earnings release. With that, I'll turn the call over to Transcat President and CEO, Jaime Irick. Jaime Irick: Thanks, John. Good afternoon, everyone, and thank you for joining us on today's call. Prior to discussing our strong financial performance, I want to share my observations and takeaways after my first full quarter as CEO of Transcat. Over the last 100 days, as you'd expect, I've had the opportunity to engage with and learn from our customers, our strategic partners, and the Transcat team members across technology labs, field operations, and the sales organization. I've also reviewed Transcat's end-to-end operations across North America, Central America, and Ireland. I've met with analysts and investors, many of you on the phone, and I've held in-depth discussions with our Board of Directors, both individually and collectively. These firsthand experiences have deepened my appreciation for Transcat's leadership, our employees' dedication, and enduring customer and strategic partnerships we have built over more than 60 years of industry leadership. Our first quarter results, combined with the insights from my first 100 days, reinforce my confidence that we have clear, measurable opportunities to build on our industry-leading organic and inorganic growth. They also highlight an important opportunity to become as well known for operational excellence as we have historically been for growth. This will require time, discipline, and consistent execution. By continuously improving our customer-facing business processes, applying proven lean operating principles, optimizing business mix and pricing, and using technology and AI to improve productivity and customer solutions, we can create repeatable levers to expand margins and to support sustained growth. As we move forward, we will build an even stronger Transcat by growing the business, improving how we operate, and energizing our teammates. With that, I'll briefly turn to our financial results. The fiscal first quarter of 2027 highlighted another sequential quarter of strong financial performance as strength in the calibration business drove double-digit Service organic revenue growth and Service gross margin expansion. Consolidated revenue was up 22% to $92.9 million in the fiscal first quarter, driven by double-digit revenue growth in both segments. Demand in our highly regulated end markets, including life sciences, aerospace and defense, and energy, remains strong, and our differentiated value proposition continues to resonate throughout Transcat's addressable end markets. Given our strong organic growth, operational excellence, and strategic acquisitions, we firmly believe Transcat continues to gain market share in the calibration services market. Consolidated gross profit grew 19% for the fiscal first quarter, led by 31% Service gross profit growth. Adjusted EBITDA grew 19% in the quarter, driven by revenue momentum and productivity gains. And let's take a closer look at our Service results. In the fiscal first quarter, Service revenue increased 27% and Service organic revenue grew 13%. The first quarter marked our 69th straight quarter of year-over-year growth. Service revenue growth was driven by our differentiated value proposition along with the continued successful integration and performance of our acquired companies. The recent acquisition of SCM is progressing very well, and we are excited about the opportunity that exists in Central America. You can expect us to continue to complement our Service organic growth with strategic M&A. Service gross profit increased 31% in the quarter, with Service gross margins expanding 90 basis points versus prior year, driven by the inherent operating leverage in our Service model, along with focus on operational excellence and maturing of new customer relationships. The Service segment has significant room for growth, both organically and through acquisitions. Our pipeline positions us to pursue strategic, accretive deals that deliver meaningful synergies, and M&A will remain central to our growth strategy. Turning to Distribution, Distribution revenue grew 11% in the fiscal first quarter on strong demand from rentals and product sales. As expected, Distribution gross margins of 31.4% were lower than prior year, given that fiscal 2026 first quarter margins were unusually high. Moving forward in fiscal 2027, we will have more typical prior year comparisons and expect to benefit from a greater mix of higher-margin rentals. Overall, we are pleased with our performance and optimistic about the future, given the momentum building in our Service segment. With that, I will turn the call over to Tom for a more detailed look at our first quarter financial results. Tom? Thomas Barbato: Thanks, Jaime. Slide 4 of the earnings deck provides detail regarding our revenue on a consolidated basis and by segment for the first quarter. First quarter consolidated revenue of $92.9 million increased 22% versus the prior year as both segments grew double digits. Looking at it by segment, Service revenue in the quarter grew 27%, with organic revenue growth of 13%, and the balance of the growth attributable to acquisitions. Relative to distribution, first quarter revenue grew 11%, driven by strong performance in our rental channel and strong product sales. On Slide 5, consolidated gross profit for the first quarter of $30.7 million increased 19%, driven by strength in the Services segment. If we look at it by segment, Service gross profit increased 31% in the first quarter and Service gross margin expanded 90 basis points versus the prior year, driven by the inherent operating leverage in our Service model, along with our focus on operational excellence and the maturing of new customer relationships. As expected, Distribution segment gross margin of 31.4% decreased in the quarter by 380 basis points compared to the prior year. Prior year Q1 Distribution gross margins were unusually high, driven primarily by increased levels of vendor rebates. On Slide 6, first quarter diluted earnings per share of $0.14. The year-over-year change reflects increased intangible asset amortization related to acquisitions, stock-based compensation, interest expense, and executive transition costs. We report adjusted diluted earnings per share to normalize for the impacts of upfront and ongoing acquisition-related costs, executive transition costs, as well as costs that are not directly tied to ongoing operations. First quarter adjusted diluted earnings per share was $0.51. Flipping to Slide 7, where we show our adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin. We use adjusted operating income, which is a non-GAAP measure, as a measure of performance when evaluating our business segments. The company's management believes adjusted operating income and adjusted EBITDA are important measures of operating performance because it allows management, investors, and others to evaluate and compare the performance of its core operations from period to period by excluding items that we do not believe are indicative of our core operating performance. In addition, these metrics are also indicators of the company's ability to generate cash. First quarter consolidated adjusted EBITDA of $14 million increased 19% from the same quarter in the prior year, driven by strength in the Services segment. Service adjusted operating income was $9.6 million, up 35% in the quarter, and margin of 15.4% increased 80 basis points compared to the prior year. Distribution adjusted operating income was $4.3 million, a decline of 12%. A reconciliation of adjusted operating income and adjusted EBITDA to operating income and net income can be found in the supplemental section of this presentation. Operating free cash flow of $4.8 million in the first quarter grew $5.8 million compared to the prior year period, driven by an increase of cash from operations and slightly lower capital expenditures. Capital expenditures of $4 million in the quarter continue to be centered around Service segment capabilities, rental pool assets, technology, and future growth projects. Quarter end, we had total debt of $110.4 million, $39.6 million available for borrowing under the secured revolving credit facility, and a leverage ratio of 2.19x. We believe we are well positioned to grow both organically and through acquisition and have the capital structure in place to support both. With that, I'll turn it back to you Jaime. Jaime Irick: Thanks, Tom. In our fiscal first quarter, the Transcat team delivered strong results, which demonstrated our ability to grow, to operate with excellence, and to energize our teammates. With Q1 performance and momentum as the backdrop, we remain relentlessly focused on bringing differentiated value to our customers every day. When you combine our Transcat customer focus and differentiation with our attractive, highly regulated end markets and recurring revenue business model, we have a winning equation that makes us extremely optimistic about our Service segment's future momentum and our overall company's potential for profitable growth. Our strong first quarter performance positions us well to execute high single-digit Service organic growth and Service gross margin expansion for the full fiscal year. Before we open the line for questions, I'll close with a few thoughts. 69 consecutive quarters of Service revenue growth reflect the disciplined execution of a focused strategy and an exceptional team. My first 100 days as the CEO of Transcat directly observing our team in action give me confidence that our best days are ahead of us. Looking ahead, we remain laser-focused on executing our four strategic pillars. One, driving strong Service organic revenue growth through high customer retention, realization of new business wins, and market share gains. Two, expanding Service gross margins through operational excellence in our recurring revenue business model. Three, continuing to pursue strategic M&A, including our recent acquisition of SCM Metrology and Laboratories, as the acquirer of choice in our market. And four, growing our higher margin rental business. Finally, I want to thank our customers for their trust, our employees for their dedication, and our shareholders for their confidence in Transcat and our path forward. The team and I are energized by what we can accomplish together, and I look forward to sharing our continued progress. With that, Leslie, please open the line for questions. Operator: [Operator Instructions] Our first question comes from Max Michaelis, Lake Street Capital. Maxwell Michaelis: Great job on the quarter. Jaime, it's good to talk to you. First question for me, I mean, Service organic growth in the Service segment, 13%, obviously that was higher than what we expected. You're looking for high single-digit growth throughout the rest of the year. I mean, can you kind of point to some end markets that really outperformed your guys' expectations and maybe some other end markets that you expect to kind of push growth throughout the year? Thomas Barbato: Yes, Max, I think we saw good performance across all end markets. I think, we talk about our splits. I would expect that they're going to kind of remain consistent, or they did remain consistent in Q1, and I would expect that to continue balance of the year. I think we're performing well. I think the opportunities are coming, kind of, across the spectrum of end markets and that's what the expectation should be. Jaime Irick: Yes, Max, I agree with what Tom said. And look, the nice thing is we've got a double threat in our favor. One, the end markets are growing and -- up from what we saw last year and two, we're taking share. So those give us the ability and the confidence to call what we're calling because of those two forces that -- the team, as you can tell, has just done a great job of optimizing. Maxwell Michaelis: Perfect. A couple more from me and then I'll hang it up. Rental business, so Distribution grew 11%. I mean, can you give us sort of an indication on how rental business performed on, let's say, Q4 last year. Was it low double digits? Or is it -- should we expect it to kind of slow down from what it -- how it performed in fiscal year '26? Thomas Barbato: Yes, I mean we've kind of guided that we expect the rental business to perform organically, high single digits, low double digits, and it was in that range. And we're really happy with the way that business performed in the quarter. Maxwell Michaelis: Okay. Last one for me. You guys mentioned AI optimizing sort of productivity in the company business lines right now. I mean, when should we expect to see that sort of show up in the numbers? I mean, what sort of outcome do you expect from sort of this operational excellence initiative? Jaime Irick: Yes, Max, the way we think about that, I mean, just take all the levers that I shared in my prepared remarks. Operational excellence to us means starting with our customer-facing business processes so that we make those faster, better, fewer defects for our customers. Quite frankly, drives growth and margin expansion. AI, mix optimization, pricing analytics and improving our processes there, and all the things we do, we feel we're getting an uplift now, quite frankly. And our team has really rallied around the renewed focus. And each of those is contributing, some a little more than others, but we're seeing that lift start to take effect. And that's going to continue to help prop up the business and help us on the growth side and the margin side, which is why we talk about being as strong on our operational excellence muscles as we are our growth muscles, we feel confident that we can do that and continue going forward. And we'll share more. You can expect in the future -- we'll start to break out some things as we talk more, but just know they're all giving us great tailwinds. Operator: Our next question is from Greg Palm with Craig-Hallum. Greg Palm: Yes, thanks. I wanted to go back to the organic Service growth number. It was very impressive. And so, I mean, as you look back on the quarter relative to what we were all talking about a couple months ago, what outperformed relative to your expectations? I guess, the one word that maybe changed as it relates to the full year is you now confidently expect high single-digit organic growth and just want to sort of get your feedback on whether that's a little bit of a under-the-radar tone shift as well. Thomas Barbato: Well, Greg, I think, again, similar to Max's question on end markets, right, I would say it was just strength across the board. There isn't one particular lab or one particular part of the business that stands out. I think we're pleased with what we saw. I do want to take a minute to remind everyone, though, that when you look at the first half of last year and the second half of last year, they were very different, right? We were relatively flat the first half of last year; we grew 7% in the second half of last year, right? So the comparison is a little easier, first half versus second half. But I think with Jaime's comments, with the use of the word confidence, I think that is in fact an indication of where we think we expect to be within that range. Greg Palm: And Jaime, as you think about some of these margin enhancement opportunities, you called out a few of those. I mean how does that shape your view of the earnings power of the company? And just trying to get a sense of, like, how much of this is near-term where we're actually going to see like near-term improvements in margins in the P&L versus stuff that's going to sort of work its well through over time? Jaime Irick: Yes. Look, the way I think about it, Greg, first, our team is rallying around the vision that we should be and can be and will be as strong on operational excellence as we have been on growth. So that's a starting point. And you heard me right off the levers. I won't repeat them. And frankly, we felt the lift as we shared in Q1. And Q1, based on what we were planning earlier, we did a little better than we thought, a little faster. Too early to call anything different than we've said for the full year, but I would say we're at the beginning of our journey, Greg, on operational excellence and what we could be versus the middle, certainly then. So there's room to continue to run, and we feel very confident with our team rallied around the levers that I laid out that we can continue that performance. Greg Palm: Okay, congrats again, best of luck. Jaime Irick: Thanks, Greg. Operator: Our next question is from Martin Yang with Oppenheimer. Martin Yang: I want to better understand your current outlook for OpEx investments. Are you still in investment phase? If so, what particularly are you investing in? Thomas Barbato: Yes, so maybe I could start on that, Martin, and then Jaime can comment as well, right? So, I think, 5 or 6 weeks ago you saw the announcement Roy Simmons joining the team, and that's obviously an investment in our future, right? Not only from helping us set the strategy and enhance the strategy of the company, but also an investment in ensuring that we've got a sound M&A strategy in place, ensuring the pipeline is robust, working closely with me to make sure that we've got the capital structure in place to execute the strategy, and also being hyper-focused on integration to make sure that we maximize the value of the acquisitions that we do execute on. I think there are some additional investments we'll make in the executive team as well, that again will position us for long-term growth. We've said it in the past, right, that the team that you need to get to, I'll just say $300 million is different than the team you need to get to $500 million or $600 million, right, and we're just going to continue to invest in that growth, right, and ensure that we're positioned not only at the executive team, but two and three levels down in the organization to build for success. Jaime Irick: I agree. I agree with what Tom shared. And what I'd add to that, Martin is, given the recurring revenue nature, highly regulated end markets we serve, and just the total lifetime value of our customers, we think there's an opportunity to kind of ride the tailwinds that exist now. So we want to be smart and surgical about investing into that. And we also think there's a continued opportunity to take share, given things we're seeing and some softness with other folks in the industry that we can take share from today. So I think you'll continue to see us invest into that broadly, but certainly we can pick up great talent like we did with Roy Simmons. You saw the announcement to lead M&A and Strategy, two areas that are so critical for our current performance and future. We'll look to be opportunistic there, and you can expect that to continue. Martin Yang: That's really a comprehensive answer. Next follow-up is on the share gain comment. Can you maybe double click on where are you taking share? Is it from more OEMs switching to third-party? Are you taking share from regionals or smaller... Jaime Irick: Yes, Martin, it's broad-based. I've been very impressed -- having worked in various end markets and industries, I knew the strength of Transcat and the brand and the growth history that we've been on, which as you know, is exemplary. I've been very impressed with our ability to win business and take share across the board. So I'd say the team is doing well and we've targeted areas which you're probably familiar with where others have dialed back on their services and investment. And if anything, we think that should accelerate and it's broad-based. Operator: Our next question is from Ted Jackson with Northland Securities. Edward Jackson: My first question, we've been talking a lot about organic Service revenue growth and it obviously is impressive, but the other part of it that was impressive in terms of Services was the margin. And how about a little discussion and -- was there -- the strength in the margins you saw, is there any kind of particular mix or discipline or something that pushed that margin to those levels? And how sustainable is something like that? That's my first question. Thomas Barbato: Yes, Ted, I think first and foremost, I think it shows the -- our ability, when you get, I'll just say, above high single digits into low double digits, the leverage that we get in our operating model, right, that's first and foremost. I think the other thing is that and then Jaime alluded to this, there are some early signs and some early results from some of the actions that we've been focused on from an operational excellence standpoint, which is kind of nice to see as well. And there was some benefit we got from mix, but we see that, some pluses or minuses from that quarter to quarter. But the biggest contributor is really the operational leverage that we got. Jaime also did mention that the past couple of quarters we've talked about some of the upfront costs associated with some of the new customers that we've been onboarding. And we've seen some of those relationships mature to the point where we've got kind of -- we've reached some normalized -- more normalized margins with some of those larger customers that are coming onboard. Jaime Irick: Well said, Tom. And all I'd add, Ted, look, this is a process that's going to take time. But you can expect to continue just relentless focus on both growth and operational excellence. And I've been really impressed with the team. Our COO, Mike West, is really leading the charge with a lot of support here on areas like mix optimization. And we don't have time on this call to dial it in, but as we've shared, we have the ability to now do a much better job of segmenting and targeting customers where we feel there's better mix opportunity and margin opportunity and do the same thing with our different business segments. So really like what Mike and the team are driving there. And every time we see him, he's got several more ideas and opportunities that he and the team are managing. So it's early. It's going to take time, but we're very excited about what we can accomplish together. Edward Jackson: My next question, this is maybe just an oversight on my part. But the tax rate was higher than I would have expected it to be last quarter too. And is there -- what is the tax rate we should think about for fiscal year and is there going to shift in terms of how you think about your tax rate with regards to the performance in pro forma? Thomas Barbato: Yes. So the tax rate in Q1 was higher than you would expect or more than -- what you would have seen historically, but we expect that to normalize, right? So we provided a range of 31% to 32% for the full year and we still expect to be at that rate. There were some stock-based compensation impacts in Q1 that drove the rate a little bit higher, but that will normalize. 31% to 32% is where you should expect this to be kind of on a go-forward basis -- on an annualized go-forward basis. Edward Jackson: And then just one more model question, then I've got something a little more fun, but G&A also is a little bit more than I might have expected. I mean, it's kind of hard to say what, maybe I was just low relative to my peers or such, but were there any expenses in G&A that were unforeseen? How would we think about that for the remainder of the year? Thomas Barbato: Yes, so there continue to be some, what I would say are kind of one-time expenses related to the CEO transition, right? And I think, maybe when we talk offline, Ted, we should just kind of take a look at those and just make sure that you have them reflected properly and are comprehending those properly. But aside from that, things kind of came in pretty much in line with where we would have expected and we could talk about the, kind of, the right go-forward run rate as well. Edward Jackson: Okay. And then one just kind of marketing question -- market question is, in the past there, I was -- I had a client ask me a bunch of questions about Transcat actually last week and it made me kind of dig into some old presentations from years gone by. And I haven't seen any data for a while. But I guess that where I wanted to get at is, where do you think you sit in, it's sort of a two or three-part question, in terms of market share in North America for calibration services? And where do you think you sit in terms of market share for, kind of, your key verticals, which would be, I mean, to me, it's the life sciences and aerospace and defense. Thomas Barbato: Yes. So Ted, if you think of the North American market, in, like, the $3 billion to $3.5 billion range in terms of calibration, right? You could take that market and split it roughly 1/3, 1/3, 1/3 between outsource service providers like Transcat, the OEMs, and then companies that run in-house laboratories, right? So you could kind of look at our Services revenue as a percentage of that 1/3, right, and that'll kind of show you where we're at relative to that percentage, right? But it's still a fairly small percentage of the North American opportunity and obviously growing, right? Because we're confident that we're taking share. In terms of end markets, I mean, we're roughly 60% life sciences. We've been at 60% for a while and it's -- not because life sciences isn't growing, it's just that we're being successful at growing across all of the end markets that we serve so that they're staying as a percentage of the total, they're remaining relatively the same. Jaime Irick: Yes, Ted, I mean, look, Tom's right. There's a lot of room to run organically. There's a lot of room to run inorganically. That's how I just think about it. We think we've got runway on both as we've demonstrated and we expect to continue. Edward Jackson: Well, I mean, in the markets you're at, there's clearly a lot of reshoring going on with life sciences and in some ways with aerospace and defense, war is good. So... Jaime Irick: Yes, that's right. Thomas Barbato: Yes, that's right. That's right. Edward Jackson: Congrats on the quarter. It was very impressive. Jaime Irick: Thanks, Ted. Operator: Thank you for your question. At this time, there are no further questions in the queue, and I will now turn our meeting back to John Howe. John Howe: Thank you all for joining us for today's call. We look forward to sharing more on our story at upcoming investor events, including facility tours, institutional investor conferences, and non-deal roadshows across key cities throughout the United States in the fall and winter of 2026. We will also be attending the Jefferies Industrials Conference, Lake Street BIG10 Conference, and D.A. Davidson Diversified Industrials and Services Conference in September. We look forward to discussing our recent results with investors at each conference. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist. Thanks again for your interest. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Transcat, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Transcat wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Transcat (TRNS) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Transcat Inc (NASDAQ:TRNS) delivered strong fiscal Q1 2027 results with consolidated revenue up 22% to $92.9 million, driven by double-digit growth in both segments. Service revenue grew 27% year-over-year, with organic growth of 13%, marking the 69th consecutive quarter of year-over-year service revenue growth. Service gross profit increased 31% in the quarter, with service gross margins expanding 90 basis points, driven by operational leverage and maturing customer relationships. The recent acquisition of SCM Metrology and Laboratories is progressing well, expanding Transcat Inc (NASDAQ:TRNS)'s presence in Central America and supporting its M&A growth strategy. Management expressed confidence in achieving high single-digit service organic growth and service gross margin expansion for the full fiscal year, citing strong demand in highly regulated end markets like life sciences, aerospace, and defense. Distribution segment gross margin decreased by 380 basis points to 31.4% in Q1, due to unusually high vendor rebates in the prior year period. Diluted earnings per share declined to $0.14 in Q1, impacted by increased intangible asset amortization, stock-based compensation, interest expense, and executive transition costs. The company incurred executive transition costs and other one-time expenses in Q1, which weighed on G&A expenses and overall profitability. Distribution adjusted operating income declined 12% in the quarter, reflecting margin pressure in that segment. The effective tax rate in Q1 was higher than historical levels due to stock-based compensation impacts, though management expects it to normalize to 31-32% for the full year. Warning! GuruFocus has detected 6 Warning Signs with TRNS. Is TRNS fairly valued? Test your thesis with our free DCF calculator. Q: Service organic growth of 13% was well above expectations. Can you point to specific end markets that outperformed, and how should we think about the growth trajectory for the rest of the year? A: (Jamie Erick, President and CEO) We saw good performance across all end markets, and the mix remained consistent in Q1. We expect that consistency to continue for the balance of the year. We have a "double threat" in our favor: the end markets are growing, and we are taking market share. These two forces give us the confidence to expect high single-digit service organic growth for the full fiscal year. Q: The 13% organic growth was very impressive. What outperformed relative to your expectations, and is the shift in language to "confidently expect" high single-digit growth a tone shift? A: (Tom Barbado, CFO) It was strength across the board, with no single lab or part of the business standing out. It's important to remember that the first half of last year was relatively flat, while we grew 7% in the second half, so the comparisons are easier in the first half. (Jamie Erick, CEO) The use of the word "confidence" is an indication of where we expect to be within the range. Q: You mentioned operational excellence and AI as levers for margin expansion. How much of this is near-term P&L improvement versus a longer-term journey? A: (Jamie Erick, CEO) Our team is rallying around the vision that we should be as strong on operational excellence as we have been on growth. We felt the lift in Q1, and we did a little better than we thought, a little faster. However, it's too early to call anything different for the full year. We are at the beginning of our journey, not the middle or end, so there is room to continue to run. Q: Are you still in an investment phase? What are you specifically investing in? A: (Tom Barbado, CFO) We recently announced Roy Simmons joining the team to lead M&A and strategy, which is an investment in our future. We will make additional investments in the executive team to position us for long-term growth. The team needed to reach $300 million is different than the team needed to reach $500 or $600 million. (Jamie Erick, CEO) Given the recurring revenue nature and highly regulated end markets, we want to be smart and surgical about investing into the tailwinds. We also see opportunities to take share from others in the industry who have dialed back on services and investment. Q: Can you double-click on where you are taking market share? Is it from OEMs switching to third-party, or from regional players? A: (Jamie Erick, CEO) It's broad-based. I've been very impressed with our ability to win business and take share across the board. We have targeted areas where others have dialed back on their services and investment, and we think that should accelerate. Q: Service gross margins expanded 90 basis points. What drove the strength, and how sustainable is it? A: (Tom Barbado, CFO) First and foremost, it shows the operating leverage we get when growth is above high single-digits into the low double-digits. There are also early signs of results from our operational excellence focus. We got some benefit from mix, but the biggest contributor was operational leverage. Additionally, some of the larger customer relationships we onboarded with upfront costs have matured to more normalized margins. (Jamie Erick, CEO) Our COO Mike West is leading the charge on mix optimization and customer segmentation. It's early, but we are very excited about what we can accomplish. Q: The tax rate was higher than expected. What should we think about for the fiscal year? A: (Tom Barbado, CFO) The Q1 tax rate was higher than historical levels, but we expect it to normalize. We provided a range of 31% to 32% for the full year, and we still expect to be at that rate. There were some stock-based compensation impacts in Q1 that drove the rate higher, but that will normalize. Q: G&A was a bit higher than expected. Were there any unforeseen expenses? A: (Tom Barbado, CFO) There continue to be some one-time expenses related to the CEO transition. Aside from that, things came in pretty much in line with where we expected. We can discuss the right go-forward run rate offline. Q: Where do you sit in terms of market share in North America for calibration services, and in key verticals like life sciences and aerospace/defense? A: (Tom Barbado, CFO) The North American calibration market is roughly $3 to $3.5 billion. It's split roughly a third between outsourced service providers like Transcat, OEMs, and companies that run in-house laboratories. Our services revenue is still a fairly small percentage of that third, so there's significant room to grow. We are roughly 60% life sciences, and that percentage has been stable because we are successfully growing across all end markets. (Jamie Erick, CEO) There's a lot of room to run both organically and inorganically. Q: How did the rental business perform, and should we expect it to slow down from fiscal 2026? A: (Tom Barbado, CFO) We guided that we expect the rental business to perform organically at high single-digits to low double-digits, and it was in that range in Q1. We are really happy with the way that business performed in the quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 13% Service organic revenue growth, marking the 69th consecutive quarter of year-over-year growth, driven by a differentiated value proposition and strong demand in highly regulated end markets. Management attributes market share gains to a 'double threat' of growing end markets and successful competitive displacement, particularly where competitors have reduced service investments. Service gross margin expanded by 90 basis points, fueled by inherent operating leverage as new customer relationships matured and normalized following initial onboarding costs. Introduced a strategic pivot toward 'operational excellence,' applying lean principles and AI-driven productivity tools to match the company's historical reputation for growth. Distribution segment growth of 11% was supported by strong rental channel performance and product sales, despite expected margin compression from unusually high prior-year vendor rebates. The acquisition of SCM Metrology is progressing well, providing a strategic foothold for expansion into the Central American market. Management reaffirmed confidence in high single-digit Service organic growth and continued Service gross margin expansion for the full fiscal year 2027. Strategic M&A remains a core pillar, with the appointment of a new Head of Strategy and M&A to enhance pipeline robustness and integration execution. Future margin expansion is expected to be driven by 'mix optimization,' targeting specific customer segments and business lines with higher profitability profiles. Tax rate is projected to normalize to a range of 31% to 32% for the full year, following temporary stock-based compensation impacts in the first quarter. The company plans to continue investing in executive leadership and organizational depth to support the transition from a $300 million to a $500 million-plus revenue scale. Q1 GAAP earnings were impacted by one-time executive transition costs and increased intangible asset amortization related to recent acquisitions. Distribution margins of 31.4% reflected a return to normalized levels after a prior-year period that benefited from exceptionally high vendor rebates. Leverage ratio stands at 2.19x, which management believes provides sufficient capital flexibility to pursue the current accretive M&A pipeline. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while Q1 outperformed, The comparison is easier for the first half of the current year than the second half will be, because the first half of the prior year was relatively flat compared to the 7% growth in the second half of the prior year. Growth was described as broad-based across all labs and end markets, rather than driven by a single specific sector. Productivity gains from AI and process improvements are already contributing to current results, though management views the company as being at the 'beginning of the journey.' Operational excellence efforts are focused on customer-facing processes to reduce defects and improve speed, which simultaneously supports growth and margin. Transcat estimates the North American calibration market at $3.0 billion to $3.5 billion, with significant room to capture share from in-house labs and OEMs. Management confirmed they are seeing 'softness' from other industry players, allowing Transcat to be opportunistic in taking share and recruiting talent.

Interested in Transcat, Inc.? Here are five stocks we like better. Revenue grew 22% to $92.9 million in fiscal Q1 2027, supported by double-digit growth in both calibration services and distribution, with demand strong across regulated markets. The services segment was the primary growth and profitability driver: revenue increased 27%—including 13% organic growth—while gross margin expanded 90 basis points and adjusted operating income rose 35% to $9.6 million. Transcat maintained its full-year outlook for high-single-digit organic service growth and service-margin expansion, while prioritizing operational improvements, acquisitions, and expansion of its higher-margin rental business. Transcat (NASDAQ:TRNS) reported first-quarter fiscal 2027 revenue of $92.9 million, up 22% from a year earlier, as both its calibration services and distribution segments posted double-digit growth. The company said demand remained strong across its regulated end markets, including life sciences, aerospace and defense, and energy. In his first full quarter as Transcat’s president and chief executive officer, Jaime Irick said his initial 100 days with the company reinforced his view that it has opportunities to build on organic growth, acquisitions and operating improvements. Irick said the company intends to place greater emphasis on operational excellence, including improving customer-facing processes, applying lean principles, optimizing mix and pricing, and using technology and artificial intelligence to support productivity and customer solutions. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Service revenue rose 27% during the quarter, including 13% organic growth, while acquisitions accounted for the remainder. The quarter marked Transcat’s 69th consecutive quarter of year-over-year service revenue growth. Service gross profit increased 31%, and service gross margin expanded 90 basis points from the prior-year period. Chief Financial Officer Tom Barbato attributed the improvement to operating leverage in the company’s service model, a focus on operational excellence and maturing relationships with newer customers. → Why Rare Earth Processing Could Be the Real 2027 Opportunity During the question-and-answer session, Barbato said service growth was broad-based across end markets rather than concentrated in a particular laboratory or business area. Irick added that the company sees growth supported by both improving end markets and market-share gains. “The nice thing is we’ve got a double threat in our favor,” Irick said. “One, the end markets are growing and up from what we saw last year. Two, we’re taking a share.” → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Irick said Transcat’s recent acquisition of SCM Metrology & Laboratories is progressing well and provides an opportunity in Central America. The company said strategic mergers and acquisitions will remain central to its growth strategy, with its acquisition pipeline positioned to support deals that can deliver synergies. Distribution revenue increased 11% in the fiscal first quarter, driven by rental-channel performance and product sales. The distribution segment’s gross margin was 31.4%, down 380 basis points from the prior year. Management said the year-earlier distribution margin was unusually high because of elevated vendor rebates. Looking ahead, the company expects more typical year-over-year comparisons and said it anticipates benefiting from a higher mix of rental revenue, which carries higher margins. Barbato said Transcat continues to expect rental revenue to grow organically at a high-single-digit to low-double-digit rate. The company has identified growth in the higher-margin rental business as one of its four strategic priorities. Consolidated gross profit increased 19% to $30.7 million. Adjusted EBITDA rose 19% to $14 million, driven primarily by the services segment. Service adjusted operating income increased 35% to $9.6 million, while the service adjusted operating margin increased 80 basis points to 15.4%. Distribution adjusted operating income was $4.3 million, down 12% from the prior-year quarter. GAAP diluted earnings per share were $0.14. Barbato said the year-over-year comparison reflected higher tangible asset amortization related to acquisitions, stock-based compensation, interest expense and executive transition costs. Adjusted diluted earnings per share, which excludes certain acquisition-related and transition costs, was $0.51. Operating free cash flow totaled $4.8 million, improving by $5.8 million from the prior-year period due to higher cash from operations and slightly lower capital expenditures. Capital expenditures were $4 million and were directed toward service capabilities, rental-pool assets, technology and future growth projects. At quarter-end, Transcat had $110.4 million in total debt, $39.6 million available under its secured revolving credit facility and a leverage ratio of 2.19 times. Barbato said the company believes its capital structure supports organic growth and acquisitions. Transcat said its first-quarter results position it to deliver high-single-digit organic service revenue growth and service gross-margin expansion for the full fiscal year. Barbato noted that comparisons will become more difficult in the second half, as service organic revenue growth was relatively flat in the first half of the prior fiscal year before rising 7% in the second half. The company’s strategic priorities include maintaining customer retention and converting new business wins into service growth, expanding service margins through operational improvements, pursuing acquisitions and growing rentals. Management also said it expects to continue investing in leadership and organizational capabilities. Barbato cited the recent hiring of Roy Simmons to support strategy and mergers and acquisitions, while Irick said the company intends to make targeted investments to capitalize on recurring revenue opportunities in regulated markets and to pursue share gains where competitors have reduced investment in services. For the full year, Barbato said Transcat continues to expect an effective tax rate of 31% to 32%, after first-quarter results were affected by stock-based compensation items. He also said some CEO transition-related expenses remained in general and administrative costs during the quarter. Transcat, Inc (NASDAQ: TRNS) is a leading provider of calibration, laboratory, and metrology services in North America. Founded in 1964 and headquartered in Ronkonkoma, New York, the company specializes in ensuring the accuracy and compliance of measurement instruments across a wide range of industries. Transcat operates a network of ISO/IEC 17025–accredited laboratories and offers on-site field calibration, instrument repair, and preventive maintenance services. In addition to its calibration services, Transcat distributes precision instrumentation and related software solutions from top manufacturers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Transcat Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Measurement equipment distributor Transcat (NASDAQ:TRNS) will be announcing earnings results this Tuesday afternoon. Here’s what to expect. Transcat missed analysts’ revenue expectations last quarter, reporting revenues of $89.33 million, up 15.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and EPS in line with analysts’ estimates. Is Transcat a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Transcat’s revenue to grow 13.3% year on year, slowing from the 14.6% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Transcat has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Transcat’s peers in the maintenance and repair distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 3.7%, and MSC Industrial reported revenues up 7.8%, topping estimates by 1.3%. WESCO traded up 11% following the results while MSC Industrial was also up 3.2%. Read our full analysis of WESCO’s results here and MSC Industrial’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the maintenance and repair distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Transcat is down 6.8% during the same time and is heading into earnings with an average analyst price target of $101.33 (compared to the current share price of $85.37). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

Q1’27 Revenue Increased 22% to $92.9 Million Q1’27 Service Revenue Increased 27% to $62.6 Million Q1’27 Service Gross Margin Expanded 90 Basis Points to 33.9% Q1’27 Distribution Revenue Grew 11% to $30.4 Million on Strong Demand for Rentals Management to Host Conference Call Today at 4:30 p.m. Eastern Time ROCHESTER, N.Y., August 04, 2026--(BUSINESS WIRE)--Transcat, Inc. (Nasdaq: TRNS) ("Transcat" or the "Company"), a leader in test measurement, control and calibration, has reported its financial and operational results for its fiscal first quarter ended June 27, 2026 (the "first quarter") of fiscal year 2027. Management Commentary First 100 Days "Prior to discussing our strong financial performance, I want to share my observations and take aways after my first full quarter as CEO of Transcat," said Jaime Irick, President and CEO. "Over the past hundred days, I have engaged with and learned from our customers, strategic partners, and Transcat teammates across our technology labs, field operations, and sales organization. I have also conducted extensive reviews of Transcat’s end-to-end operations across North America, Central America, and Ireland; spent time with the analyst and investment community; and held in-depth discussions, both individually and collectively, with our Board of Directors. These firsthand experiences have only strengthened my appreciation for Transcat’s leadership, the dedication of our employees, and the lasting customer and strategic partnerships we have built over more than 60 years of industry leadership. "Our first quarter results, together with the insights gained during my first 100 days, reinforce my conviction that we have clear, measurable opportunities to build on our industry-leading organic and inorganic growth. Just as importantly, they underscore our opportunity to become as recognized for operational excellence as we have historically been for growth. This journey will take time and disciplined execution. By relentlessly improving our customer-facing business processes, deploying proven Lean operating principles, optimizing business mix and pricing, and applying AI to enhance productivity and customer solutions, we can activate repeatable levers to expand margins and strengthen the foundation for continued growth. As we move forward, we will build an even stronger Transcat by growing the business, improving how we operate, and energizing our teammates. Continued Strong Financial Performance "The fiscal first quarter of 2027 showcased another sequential quarter of strong financial performance as strength in the Calibration business drove double-digit Service revenue growth, double-digit Service organic revenue* growth and Service gross margin expansion. The inherent operating leverage in our Service model, along with our focus on operational excellence and maturing of new customer relationships, drove 90bps of Service gross margin expansion. Distribution revenue grew 11% during the quarter, fueled by continued strength in Rentals and Product sales. Revenue momentum combined with productivity gains enabled a 19% increase in adjusted EBITDA*. Given our strong organic growth, operational excellence, and strategic acquisitions, we believe Transcat continues to gain market share in the calibration services market. "Looking ahead, we remain optimistic about the Service segment’s momentum, supported by high customer retention, conversion of new business wins into revenue, and continued strong demand in life sciences, aerospace and defense, and the other regulated end markets we serve. The recent acquisition of SCM is progressing well and we are excited about the opportunity that exists in Central America. For the fiscal 2027 full year, we confidently expect Service organic revenue growth in the high single-digits and Service gross margin expansion, assuming the broader economic environment remains stable. "Fiscal first quarter financial results are a testament to the execution of our proven and successful core strategy: strong service organic revenue growth, service gross margin expansion, strategic M&A, and steady rentals growth. We believe our compelling customer value proposition and focus on operational excellence, along with continued acquisitions of premier calibration service companies, positions Transcat to deliver sustainable, long-term shareholder value," concluded Mr. Irick. First Quarter Fiscal 2027 Results (Results are compared with the first quarter of the fiscal year ended June 28, 2025 ("fiscal 2026")) Consolidated revenue was $92.9 million, an increase of $16.5 million or 21.6%, driven by growth in both service and distribution segments. Consolidated gross profit was $30.7 million, an increase of $4.9 million, or 19.0%, while gross margin decreased 70bps when compared to the prior year period. Operating expenses were $27.0 million, an increase of $6.5 million, or 31.9%, driven by incremental expenses from acquired businesses, including intangible assets amortization expense, increased stock-based compensation expense, and executive transition costs. Net income was $1.3 million, and Adjusted EBITDA* was $14.0 million, which represented an increase of $2.2 million or 18.6%, primarily driven by strong revenue growth. Earnings per diluted share was $0.14 compared to earnings per diluted share of $0.35 last year. Adjusted Diluted Earnings Per Share* were $0.51 versus $0.59 last year. Service Segment First Quarter Results Represents the accredited calibration, repair, inspection and laboratory instrument services business (67.3% of total revenue for the first quarter of fiscal 2027). Service segment revenue was $62.6 million, an increase of $13.4 million, or 27.3%, and included $6.9 million of incremental revenue from acquisitions. The segment gross margin was 33.9%, an increase of 90bps from the prior year. Distribution Segment First Quarter Results Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (32.7% of total revenue for the first quarter of fiscal 2027). Distribution segment revenue was $30.4 million, which represented an increase of $3.1 million, or 11.4%. Distribution segment gross margin was 31.4%, a decrease of 380 bps. The revenue increase was driven by continued strength in rentals and product sales. The revenue mix in the current quarter compared to the prior year quarter resulted in a decrease in gross margin. Balance Sheet and Cash Flow Overview On June 27, 2026, the Company had $6.7 million in cash and cash equivalents on hand and $39.6 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Net cash provided by operations for the three months ended June 27, 2026 and June 28, 2025 was $8.8 million and $3.6 million, respectively. Operating free cash flow* for the three months ended June 27, 2026 was $4.8 million. Total long-term debt as of June 27, 2026 was $110.4 million versus $99.9 million on March 28, 2026. Tom Barbato, Transcat’s Chief Financial Officer, added, "Net income decreased $1.9 million, in line with expectations and influenced by higher levels of deal-related amortization and stock compensation expense. That said, Adjusted EBITDA* grew 19%, and we believe it is a better indicator of our ability to generate cash. The result was a year-over-year increase in operating free cash flow of $5.8 million. Given increased levels of cash generation, our strong balance sheet and proven strategic execution, we believe we remain well-positioned to pursue opportunities for growth through both organic initiatives and strategic M&A." Fiscal First Quarter 2027 Results Webcast and Conference Call Transcat will host a conference call and webcast on Tuesday, August 4, 2026, at 4:30 p.m. ET. Management will review the financial and operating results for the first quarter, as well as the Company’s strategy and outlook. A question-and-answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (833) 419-0865. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations. Tuesday, August 4, 20264:30 p.m. Eastern TimeDial-in – Toll-Free US / Canada: 1-833-419-0865Dial-in – Toll / International: 1-785-838-9333Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY)Webcast and accompanying slide presentation:https://viavid.webcasts.com/starthere.jsp?ei=1767397&tp_key=17aef9c35b A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, August 18, 2026. To listen to the archived call, dial 1-844-512-2921 from the US or Canada, or 1-412-317-6671 from international locations, and enter conference ID number 11161995 or access the webcast replay at https://www.transcat.com/investor-relations, where a transcript will be posted once available. NOTE 1 – Non-GAAP Financial Measures In addition to reporting service revenue, net income, operating income, diluted earnings per share, net cash provided by operating activities, and long-term debt, which are U.S. generally accepted accounting principle ("GAAP") measures, we present service organic revenue, adjusted net income, adjusted EBITDA, adjusted operating income, adjusted diluted earnings per share, operating free cash flow and net debt, which are non-GAAP measures. Management uses these non-GAAP measures as indicators to better assess comparability between periods and as a basis for planning and forecasting because management believes these non-GAAP measures reflect our core business operations. These non-GAAP measures are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the SEC. As such, they should not be considered a substitute for the corresponding GAAP measures and, therefore, they should not be used in isolation, but in conjunction with the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See pages 10-14 for the reconciliation tables. About Transcat Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the life sciences industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its Calibration Service Centers strategically located across the United States and Internationally. In addition, Transcat operates calibration labs in imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry. Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers. Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, Cost, Control and Optimizations services, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at Transcat.com Safe Harbor Statement This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as "anticipate," "assuming," "believe," "can," "continue," "estimate," "expect," "focus," "looking ahead," "may," "plan," "opportunity," "outlook," "potential," "strategy," "will," and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804372205/en/ Contacts Investor Relations Chris TysonExecutive Vice PresidentMZ Group - MZ North AmericaPhone: (949) [email protected] www.mzgroup.us

Transcat, Inc. (TRNS) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +37.84%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.56, delivering a surprise of +9.8%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Transcat, which belongs to the Zacks Instruments - Control industry, posted revenues of $92.95 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.56%. This compares to year-ago revenues of $76.42 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Transcat shares have added about 57.9% since the beginning of the year versus the S&P 500's gain of 11%. While Transcat has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Transcat was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $90.12 million in revenues for the coming quarter and $1.71 on $361.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Instruments - Control is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Fastly (FSLY), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This cloud software developer is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +333.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Fastly's revenues are expected to be $174.03 million, up 17% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transcat, Inc. (TRNS) : Free Stock Analysis Report Fastly, Inc. (FSLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ROCHESTER, N.Y., July 16, 2026--(BUSINESS WIRE)--Transcat, Inc. (Nasdaq: TRNS) ("Transcat" or the "Company"), a leading provider of test measurement, control and calibration, announced that it will release its results for the first quarter fiscal year 2027 ended June 27, 2026 after the close of financial markets on Tuesday, August 4, 2026. Transcat President and Chief Executive Officer Jaime Irick and Chief Financial Officer Thomas Barbato will host a conference call and webcast on Tuesday, August 4, 2026 at 4:30 p.m. ET to review the financial and operating results for the period and discuss its corporate strategy and outlook. A question-and-answer session will follow. First Quarter Fiscal Year 2027 Conference Call Tuesday, August 4, 20264:30 p.m. Eastern TimeDial-in – Toll-Free US / Canada: 1-833-419-0865Dial-in – Toll / International: 1-785-838-9333Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY)Webcast and accompanying slide presentation:https://viavid.webcasts.com/starthere.jsp?ei=1767397&tp_key=17aef9c35b A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, August 18, 2026. To listen to the archived call, dial 1-844-512-2921 from the US or Canada, or 1-412-317-6671 from international locations, and enter conference ID number 11161995 or access the webcast replay at https://www.transcat.com/investor-relations, where a transcript will be posted once available. About Transcat Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the life sciences industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its Calibration Service Centers strategically located across the United States and Internationally. In addition, Transcat operates calibration labs in imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry. Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers. Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, Cost, Control and Optimizations services, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at Transcat.com. Safe Harbor Statement This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as "anticipates," "assuming," "believes," "can," "continues," "estimates," "expects," "focus," "guides," "looking ahead," "may," "plan," "opportunity," "outlook," "potential," "strategy," "will," and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260716815723/en/ Contacts Investor Relations Chris TysonExecutive Vice PresidentMZ Group - MZ North AmericaPhone: (949) [email protected] www.mzgroup.us

Transcat’s first-quarter results drew a negative market reaction as revenue growth of nearly 16% year over year fell short of Wall Street’s expectations. Management attributed this performance to robust demand in highly regulated sectors, including life sciences, aerospace, and energy, as well as continued momentum in its high-margin service and rental businesses. CEO Jaime Irick highlighted the company’s ongoing integration of recent acquisitions, such as SCM Metrology and Laboratories, and emphasized the importance of maintaining operational excellence. However, operating margins declined compared to the previous year, partly due to the costs associated with onboarding new customers and ongoing investments in technology and process enhancements. Is now the time to buy TRNS? Find out in our full research report (it’s free). Revenue: $89.33 million vs analyst estimates of $89.79 million (15.8% year-on-year growth, 0.5% miss) Adjusted EPS: $0.56 vs analyst estimates of $0.56 (in line) Adjusted EBITDA: $14.79 million vs analyst estimates of $13.9 million (16.6% margin, 6.4% beat) Operating Margin: 6.1%, down from 8% in the same quarter last year Market Capitalization: $822.8 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Greg Palm (Craig-Hallum): Asked about operational improvements and margin expansion. CEO Jaime Irick emphasized Lean Six Sigma process enhancements and faster customer cycle times as key areas of ongoing focus. Greg Palm (Craig-Hallum): Inquired about the timing of year-over-year service margin improvement. CFO Thomas Barbato said onboarding new customers weighed on margins but expects normalization and improvement during the next year. Greg Palm (Craig-Hallum): Questioned changes in M&A strategy post-SCM acquisition. Barbato confirmed consistency in approach, with a focus on expanding geographic reach and service capabilities. Max Michaelis (Lake Street Capital Markets): Sought clarity on demand trends and rental business growth. Barbato clarified that demand is not being pulled forward and expects continued strong rental performance. Ted Jackson (Northland Securities): Asked about new verticals, particularly energy, and Transcat’s exposure. Barbato explained energy is an emerging area, especially in data centers, and is driving additional rental demand due to specialized power equipment needs. Our analyst team will be watching (1) the pace of margin recovery as onboarding costs for new customers stabilize, (2) the impact of technology investments and automation on operational efficiency and service quality, and (3) the execution of the acquisition strategy in key U.S. and Latin American markets. Successful integration of recent acquisitions and growth in rentals will also be monitored closely. Transcat currently trades at $88.29, up from $76.45 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Consolidated Revenue: $89.3 million in Q4, up 16%; $331.9 million for the full year, up 19%. Service Revenue: Increased 18% in Q4; 20% for the full year. Service Organic Revenue Growth: 7% in Q4. Distribution Revenue: Grew 11% in Q4; 18% for the full year. Consolidated Gross Profit: $30.5 million in Q4, up 18%; 21% increase for the full year. Gross Margin Expansion: 50 basis points in Q4 and full year. Service Gross Margin Improvement: 670 basis points sequentially in Q4. Distribution Gross Margin Expansion: 280 basis points in Q4; 320 basis points for the full year. Adjusted EBITDA: $14.8 million in Q4, up 16%; $48.7 million for the full year, up 23%. Adjusted EBITDA Margin Expansion: 10 basis points in Q4; 40 basis points for the full year. Diluted EPS: $0.21 in Q4; $0.57 for the full year. Adjusted Diluted EPS: $0.56 in Q4; $1.84 for the full year. Operating Free Cash Flow: $19.6 million for fiscal 2026. Capital Expenditures: $15.3 million for fiscal 2026. Total Debt: $99.9 million at quarter end. Leverage Ratio: 2.03x at quarter end. Warning! GuruFocus has detected 3 Warning Sign with TRNS. Is TRNS fairly valued? Test your thesis with our free DCF calculator. Release Date: May 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Transcat Inc (NASDAQ:TRNS) delivered strong performance with a 16% increase in consolidated revenue to $89.3 million in the fiscal fourth quarter. Service organic revenue continued to grow in the high single digits, marking the 68th consecutive quarter of year-over-year growth. The company experienced a 19% increase in full-year consolidated revenue to $331.9 million, driven by double-digit growth in both service and distribution segments. Gross profit grew 18% in the fiscal fourth quarter, with gross margins expanding by 50 basis points. The acquisition of SCM Metrology and Laboratories established Transcat's first operational presence in Latin America, aligning with their strategic M&A growth strategy. Service gross margins, although improved sequentially, were still down on a year-over-year basis. Increased intangible amortization, stock-based compensation, interest expense, and executive transition costs impacted diluted earnings per share. The company faces ongoing costs related to onboarding new customer wins, which have weighed on service gross margins. Despite strong performance, the leverage ratio remains at 2.03x, indicating a significant level of debt. The company is still working on improving operational efficiency and reducing cycle times, which are areas identified for further improvement. Q: Jaime, as the new CEO, what operational improvements do you plan to implement at Transcat? A: Jaime Irick, President and CEO, emphasized his background in Lean Six Sigma and operational excellence. He plans to focus on driving better efficiency in organic growth, improving customer experience, and enhancing innovation. He aims to accelerate improvements in cycle time reduction and customer-facing business processes. Q: Can you provide insights on the sequential improvement in service gross margins and when we might see year-over-year improvements? A: Thomas Barbato, CFO, noted that onboarding new customers impacted margins in Q4. He expects normalization in the first half of fiscal '27, with year-over-year margin improvements anticipated for the full year. Q: What is the current M&A strategy, and are there new geographic areas of interest? A: Thomas Barbato, CFO, stated that the M&A strategy remains consistent, focusing on expanding into new geographies both within and outside the US. The recent SCM acquisition in Latin America aligns with this strategy, and they are exploring opportunities in Northern California, Dallas, Atlanta, and the mid-Atlantic region. Q: How is the rental business performing, and what are the growth expectations? A: Thomas Barbato, CFO, reported that the rental business continues to perform well, contributing to Distribution growth. They expect low double-digit organic growth in the rental segment, supporting overall Distribution performance in fiscal '27. Q: Can you elaborate on the opportunities and market potential following the SCM acquisition in Costa Rica? A: Thomas Barbato, CFO, highlighted the strategic location of SCM in Costa Rica's free trade zones, which are densely populated with life sciences and med device customers. The acquisition offers opportunities to expand in Latin America and aligns well with Transcat's customer base and market strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.